Category: Reports

Commons committee backs urgent action on fuel poverty

The Government should immediately update its package of support to help households with soaring energy bills before the cost-of-living crisis grips even harder following October’s energy price cap increase, according to a new report by the House of Commons Business, Energy and Industrial Strategy Committee. 

The report argues that the Government’s Energy Bills Support Scheme will not be enough given the continued rising energy prices households will face. MPs warn that the size of the package has been ‘eclipsed by the scale of the crisis.’ 

Committee Chair Darren Jones MP said:

Once again, the energy crisis is racing ahead of the Government. To prevent millions from dropping into unmanageable debt it’s imperative that the support package is updated and implemented before October, when the squeeze will become a full-on throttling of household finances and further tip the economy towards recession.

We were told by a number of witnesses, ‘if you think things are bad now, you’ve not seen anything yet’. This Winter is going to be extremely difficult for family finances and it’s therefore critical that public funds are better targeted to those who need it the most.

It’s an injustice that the poorest households continue to pay higher energy costs because they’re on prepayment meters. This must end and a social tariff should be brought forward.

Ultimately, Ministers know that the long-term solution is to reduce our need for energy through insulation works that keep our homes warm in winter and cool in summer. If the Government is really taking this energy crisis and the country’s net zero targets seriously it will come forward with a bold, fully funded, national home insulation program before the end of the year.

A spokesperson for the End Fuel Poverty Coalition said:

MPs are right. The crisis facing millions of homes as energy bills continue to soar is ‘ongoing and severe’.

The energy bills crisis this winter is a nightmare scenario, but the Government is sleepwalking into it.

Tory leadership hopefuls and Ministers need to wake up and announce urgent financial support to offset the predicted price rises this winter and further help vulnerable homes stay warm this winter.

But financial support will only be a stop gap solution.

We also need to see a rapid roll-out of support to make homes and community buildings more energy efficient, a full review of the consumer energy market and action to bring cheap renewable energy on stream as fast as possible.

A spokesperson for National Energy Action added:

Energy prices continue to spiral, and vulnerable households in the energy market are being hardest hit. It is vital that the plans from the UK Government and Ofgem are scrutinised by Parliament, and they act on this credible set of recommendations to help the poorest households through the energy crisis, this winter and beyond.

The next Prime Minister will need to implement these recommendations urgently, topping up the current energy support, announced in May, to offset the October increases. We also agree with the cross-party recommendation to introduce a social tariff to give fuel-poor households deep, enduring protection against persistent high energy prices, and putting in place a new scheme to help households that have accrued a mountain of debt during the crisis. The regulator must also not duck its role in reducing the growing burden of standing charges that are hitting struggling households the most. Overall, it is critical to ensure that pre-payment meter customers do not pay more for their energy and are not punished further as a result of finding their bills already unaffordable.

Finally, the winner of the leadership contest must ensure that reducing the wasted energy in our homes becomes a much more prominent part of the policy response. Improving energy efficiency should be top of their agenda as it will help ease future price spikes now and in the future.

How fuel poverty is still an issue during the summer

The majority of campaigning on fuel poverty is done in light of the excess winter deaths and wider health problems living in cold homes causes.

But fuel poverty also affects people in warmer weather.

As Dr Harriet Thomson, a Senior Lecturer in Global Social Policy and Sociology at the University of Birmingham, writes:

“If the effects of the heatwave are predicted to be so severe and/or prolonged they will extend outside the health and social care system. In other words, the extreme heat could cause illness and death, including among those with no pre-existing illnesses.”

Indeed, during the last major UK heatwave, the NHS was at crisis point and during the same year, in Japan more than 130 people died and 70,000 were rushed to hospitals; while in Quebec, the heat claimed the lives of 90.

And the situation could get worse with the Met Office predicting heatwaves will become more regular and more intense in the UK.

As the Big Issue reports, it will be the vulnerable who are most at risk from high temperatures.

Traditionally, people would turn to fans and air-conditioners to help keep themselves and their families cool, but the World Economic Forum predicts that using air-conditioners increases energy bills by 42% and warns:

“As temperatures increase around the world, cooling is emerging as a new, basic need – even in countries that traditionally have not previously required such appliances.”

But the solutions to summer fuel poverty are similar to cold weather fuel poverty. While good insulation of housing helps reduce the need for heating systems, so it can also reduce the need for cooling systems too.

As Dr. Thomson explains:

“We know that housing plays a huge role in mitigating the risks of excessive indoor warmth.

“Our  research within Eastern and Central European countries found that overheating was most common in districts dominated by large apartment blocks, particularly if the building lacked cooling features such as shutters and tiled floors, natural shading from trees, and the ability to cross-ventilate.”

At the Centre for Sustainable Energy, experts have provided easy (and cheap!) advice on how to keep your home cool, but as Ian Preston from the CSE adds:

“A well-insulated and ventilated home will actually help with keeping the heat out too. If you’re able to invest in insulation do so, just make sure ventilation is considered at the same time.”

As Greenpeace UK’s energy campaigner, Georgia Whitaker, argues investing in a nationwide programme to green our homes will not only help us cope better when temperatures soar but also help bring down energy bills, tackle the cost of living crisis and slash carbon emissions to help tackle climate change, which is the driving force behind the increasing numbers of heatwaves we’re experiencing:

“The number one thing the government should be doing to beat the heat is insulating houses. Insulation keeps homes cool in the summer, warm in the winter and means people use less energy because less of it is wasted through draughty windows, walls and roofs.”

A spokesperson for the End Fuel Poverty Coalition commented:

“Keeping cool in the summer is just as important as staying warm in winter for many vulnerable groups.

“Yet energy bills remain at record highs meaning that running air coolers and fans will put a strain on household finances. In addition, efforts to insulate homes continue to lag behind what is required.

“Combined, this means that people will be subject to the full force of this summer’s heat waves.”

Energy saving measures could save billions

An expert report has revealed how investing now in energy saving solutions could save the UK Government hundreds of billions in ‘sticking plaster’ solutions this decade.

Experts calculate that the UK government has spent £37bn this year to stand still on soaring costs of living, without meaningful investment in solutions which could permanently reduce bills. With estimates that fossil fuel prices will remain at an unprecedented level until at least 2030, E3G is calling for long-term energy saving solutions to save the Treasury from needing to spend hundreds of billions in ‘sticking plaster’ solutions.

Households living in the least efficient homes will pay around £916 more per year on energy bills when the energy price cap rises to £2,800. If everyone living in homes below Energy Performance Certificate (EPC) band C were improved to EPC C today, the aggregate saving would be £10.6bn each year.

Independent climate and energy think tank E3G has set out a package of measures to make rapid near-term progress, saving families an average of between £450 – over £1,000 per year.

As well as energy efficiency measures in homes, key measures suggested also include launching an Olympic-style skills and training programme for the retrofit supply chain and making independent energy and retrofit advice readily available to people across the country to share what help is available.

Juliet Phillips, Senior Policy Advisor at E3G and lead author of the report says:

With fossil fuel prices expected to remain sky high until at least 2030, the government must decide whether it wants to go on spending £37bn per year just to stand still – or to invest now in permanent solutions for lower bills, which will pay off multiple times over in the years ahead. Until the structural drivers of the cost of living crisis are addressed, including the cold and leaky nature of our housing, the government could be left spending tens of billions on emergency financial support packages each year.

Stew Horne, head of policy at Energy Saving Trust said:

E3G’s latest report highlights the steps the UK Government should take if it is to help people across the country reduce household energy usage and bills for the long-term. Time is ticking away to make the much-needed improvements to the energy efficiency of UK homes that UK government has committed to this decade. Energy Saving Trust particularly welcomes the report’s proposals for bespoke advice and support for consumers as this will play a vital role in helping make the changes that will permanently reduce the energy required to heat their homes and keep energy costs down.

Revealed: The streets where nearly everyone is in fuel poverty

Areas of the Midlands and Yorkshire have topped an unwelcome league table of fuel poverty.

New data projections from the End Fuel Poverty Coalition reveal that the fuel poverty crisis gripping the country is affecting some areas worse than others.

With the increase in energy bills coming into effect on 1 April 2022, over 6.3m households (27% of homes in England) will wake up in fuel poverty that morning.

In parts of the Bushbury South and Low Hill area of Wolverhampton, the situation is even more severe where 88% of households will be in fuel poverty from 1 April.

But Wolverhampton, which was recognised in the Government’s Levelling Up white paper, is not alone in seeing the vast majority of homes in fuel poverty.

The Washwood Heath area of Birmingham, the Castle & Priory ward of Dudley, the Shelton area of Stoke and the area near Smethwick Galton Bridge in Sandwell will also all see fuel poverty levels soar to over 80% of homes.

Just outside the 80% barrier, come parts of Smallbridge & Wardleworth in Rochdale, Bramley in Leeds, Richmond in Sheffield, Derwent in Derby and Nechells in Birmingham.

While these areas are among the highest levels of fuel poverty in the country, in terms of Parliamentary constituencies Birmingham Hodge Hill (55% of households in fuel poverty from 1 April 2022) tops the league table.

This is followed by Barking (48%), Stoke on Trent Central (47%), Wolverhampton South East (47%), Walthamstow (47%) and Birmingham Yardley (47%).

And in a blow to the Government’s levelling up agenda, “red wall” Tory MPs will be feeling the heat from constituents forced into fuel poverty by prices which were spiralling before the Russian invasion of Ukraine.

In Stoke Central, where Conservative MP Jo Gideon was elected, the number of homes in fuel poverty has doubled from 9,275 in 2019 to an estimated 18,463 in 2022.

Fellow Tories in Wolverhampton North East (Jane Stevenson MP), Walsall North (Eddie Hughes MP), Stoke on Trent North (Jonathan Gullis MP) and West Bromwich East (Nicola Richards MP) have also seen the numbers of constituents in fuel poverty rapidly increase since the 2019 election. [4]

Rachael Williamson, Head of Policy at Chartered Institute of Housing, said:

The Government’s ambition to ‘level up’ is being undermined by its inaction in meaningfully tackling fuel poverty. We need clear, long-term plans to tackle homes with poor energy efficiency, especially in the private sector, and financial support to address the gap in the meantime. Without this we will see many more households and families plunged into poverty. This was an issue before the invasion of Ukraine but is quickly becoming a real crisis.

Barking & Dagenham remains the local authority with the highest levels of fuel poverty after 1 April 2022 (44.7% of households) and while the West Midlands and Yorkshire continue to dominate the top ten, it is not just cities that suffer.

Around a third of households in market town Kings Lynn and rural West Norfolk will be in fuel poverty (33.8%), as will similar numbers in North East Lincolnshire (33.2%), Herefordshire (32.9%) and Shropshire (32.8%).

On the Chancellor’s home turf, 14,000 households in his constituency of Richmond (Yorks) will be in fuel poverty, with the numbers in wider Richmondshire also among the worst in rural England (32.3%).

Paul Dixon, Rural Evidence Manager at Action with Communities in Rural England, commented:

Rural residents have some of the hardest to heat homes. Additionally, about a million households rely on heating oil which has increased in price by more than three times since the same period last year. Government must recognise and address the particular vulnerabilities of people in this situation.

William Baker, of Solutions to Tackle Energy Poverty, said:

Local authorities will need to step up to tackle the tsunami of fuel poverty that will hit them over the next few months. We urge them to take coordinated action across local services, particularly through improving energy efficiency standards, providing income maximisation advice and protecting private rented sector tenants. And the Government must provide them with the resources to do this.

A spokesperson for the End Fuel Poverty Coalition, said:

Energy prices were rocketing before the Russian invasion of Ukraine as this data shows. Since 2019 households across the country have been feeling the squeeze as the implications of the  Government’s inaction on fuel poverty have been realised.

Charities and campaigners have been warning for years that fuel poverty is a social justice crisis, a public health emergency and a national security priority, but the Government took little action.

We need to see urgent help for households in fuel poverty now combined with a long-term plan to improve energy efficiency of our homes and investment in a sustainable, renewable-led, energy mix.

The Government has talked about this for long enough, but fails to match words with action – the Chancellor’s attempt to provide support for people through a “loans dressed up as grants” scheme is a prime example of this.

Ruth London from Fuel Poverty Action added:

Bad housing, profiteering on energy, and government foot dragging on the urgent switch to renewable energy have combined to create a disaster for millions of people.

The icing on the cake is that the pricing system discriminates – through high standing charges and through prepayment meters, poorer households in areas like these pay more per unit than households in better off regions. Just how much injustice and deprivation do they think people will put up with?

Jo Gilbert from Butterfly Energy said:

It’s no longer a question of heating or eating, sadly a large proportion of people can no longer afford to do either. The government needs to stop knee jerk responses and to take long term sustainable action, Rebates on council tax and £200 loans will not remedy this crisis.

Jess Ralston an analyst at the Energy & Climate Intelligence Unit, commented:

Energy efficiency reduces gas demand, shrinking our bills and weaning us further off gas from places like Russia. For the families in this report – many living in places that voted in the Conservatives in levelling up areas at the last election – better insulation is a lifeline against rocketing bills. For our energy system, it’s a shield against volatile fossil fuel supply and prices. If there was ever a time for energy efficiency, it’s now; insulation is the clear winner for lowering bills and improving energy security in the short term.

Ramping up existing schemes that deliver efficiency, like the Energy Company Obligation, is one way to level up homes while levelling down bills. Other policies to get our housing on track for net zero like the boiler upgrade scheme, that gives grants to swap out gas boilers for cleaner alternatives that could be hundreds of pounds cheaper to run this year, could help to isolate British families from the impacts of surging fossil fuels. It really is a no brainer.

For more on the methodology used in this news story, read more here.

Image: Shutterstock

Eight million older people worried about heating their home

More than three in five over-65s (62 per cent) – equivalent to 7.8 million older people – are worried about heating their homes compared to 43 per cent just six weeks ago, according to new research for Age UK.

Ahead of the widely anticipated price cap announcement from Ofgem next month, the new poll shows a sharp rise in concern over energy bills.

Over half (52 per cent) of over-65s – 6.5 million older people – are worried about their energy bills now compared to just under a third (31 per cent) last month, and nearly half (45 per cent) – 5.6 million over-65s – are worried about having to reduce energy use due to financial concerns compared to under a third (30 per cent) in December.

Additionally, 82 per cent – equivalent to over 10 million over-65s – think the Government should step in to help poorer older people pay their energy bills.

The high levels of concern are reflected in a surge of support for the Charity this month, with over 50,000 people adding their names to a letter to the Prime Minister in the past week, urging him to act now to protect older people from unaffordable energy bills.

The Charity is warning that many older people are already feeling the impact of the rising cost of living, with basic household bills fast becoming unaffordable for many pensioners living on a low fixed income – many of whom have few, if any, savings to fall back on.

Age UK has been flooded with stories from thousands of older people who are already struggling and cutting back on heating, food and other essentials. People such as Carol who is 78 and says, “I simply cannot cope with even higher bills”, or Denise who says, “This is so scary.”

Financial support for older people during the colder months has remained broadly unchanged for years and is nowhere near enough to match the scale of the current problem.

In its letter to the Government, Age UK echoed concerns of other members of the Coalition and urged Ministers to announce a financial package to support vulnerable older people through this crisis.

Caroline Abrahams, Charity Director at Age UK, said:

The number of older people who are worried about being able to heat their homes is staggering and should be a source of shame for this Government. Millions of older people across the UK are absolutely dreading the imminent price cap announcement and urgently need reassurance that help is on its way so they can keep their heating on. This is a national crisis which needs a swift and decisive response from Ministers.

Every single day we are hearing heart-breaking stories from desperate older people who are being forced to choose between heating and eating. This isn’t a looming crisis, it’s already upon us – and while the Government is dithering, millions of older people are suffering and putting their health at risk because they can’t afford to keep warm. It is an absolute scandal and one that requires urgent government action.

Energy price rises on the scale we are now seeing are unprecedented and the Government’s response must be equal to the threat they pose to older people, many of whom are vulnerable and struggling to afford exorbitant bills on a meagre state pension.

Anyone who is interested in adding their name to the Charity’s open letter to the Prime Minister can do so by visiting: bit.ly/ageuk-energy. Sources for the press release are available from the Age UK website as well.

Massive increase in children experiencing fuel poverty revealed

An exclusive report in the i Paper has revealed the numbers of children living in fuel poverty.

The report, based on Coalition calculations, shows that 2.2m households with dependent children will be in fuel poverty from 1 April. This is a 74% increase since 2019.

There are 6.6m households with dependent children in England, so this means a third of those households are facing – or already in – fuel poverty. Previous calculations have suggested that roughly a quarter of all households will face fuel poverty, so homes with children are more badly impacted than the national average.
A spokesperson for the End Fuel Poverty Coalition, commented:
With millions of families already in fuel poverty and experiencing the toughest winter on record financially, the figures in the i Paper make for grim reading.
That so many parents are having to make the choice between keeping the heating on and feeding their kids is heartbreaking. Living in cold homes is not just bad for your health, but can also impact on mental performance, meaning this fuel poverty crisis could be affecting children’s education and development.
Fuel poverty is a health and social crisis, but can only be solved by financial and technical solutions. We need urgent Government action to help those most in need now alongside consistent investment and support for energy efficiency measures.

Legal challenge against Government’s fuel poverty failings launched

A legal challenge against the “shocking” and “lacklustre” climate commitments by the Government has been launched by Coalition members, Friends of the Earth.

A Judicial Review, brought to the High Court by the environmental campaign group, will challenge both the government’s Net Zero Strategy (NZS) and its Heat and Buildings Strategy.

It will do so on the basis that the NZS does not comply with the Climate Change Act 2008, which Friends of the Earth was central to devising and securing. The group also contends that the Heat and Buildings Strategy should have considered the impacts of its policies on protected groups, as part of ensuring a fair energy transition where climate action aligns with social responsibility.

Factors such as age (both the elderly and the very young who will live with the greatest future climate impacts), sex, race, and disability can make people more vulnerable to climate impacts. This unaddressed inequality needs transparency and political accountability.

A refusal so far to disclose its equality impact assessment for the Net Zero Strategy has raised similar concerns.

The environmental group is concerned that people in these groups can be unfairly and disproportionately impacted by a badly planned transition to low carbon living. Yet the government has not identified and considered their specific needs as required by the Equality Act 2010.

With the number of households in fuel poverty in England soaring to record levels, Friends of the Earth previously found that people of colour are twice as likely to be living in fuel poverty as white people, while areas identified by the government as having a high number of residents with disabilities or other health needs are more likely to be rated in the worst category for fuel poverty.

The government did not consider these factors which is why the environment group is today taking legal action. The need for a fair and just transition away from reliance on damaging fossil fuels makes these collective legal failures all the more serious.

Katie de Kauwe, lawyer at Friends of the Earth, said:

With characteristic sleight of hand the government has set out an imaginary pathway for reducing carbon emissions but no credible plan to deliver it.

A rapid and fair transition to a safer future requires a plan that shows how much greenhouse gas reduction the chosen policies will achieve, and by when. That the plan for achieving net zero is published without this information in it is very worrying, and we believe is unlawful.

We know that those who do least to cause climate breakdown are too often the hardest hit. Climate action must be based on reversing these inequalities, by designing the transition with the most vulnerable in mind.

Not even considering the implications of the Heat and Building Strategy on groups such as older and disabled people, and people of colour and ethnic minorities is quite shocking, given these groups are disproportionately impacted by fuel poverty, for example.

Housing is a good example because people who need to consume the smallest amount of energy due to cost find themselves trapped in reliance on gas heating in cold, leaky homes. And now people across the country are facing an energy price crisis, with gas prices expected to double compared to just two years ago.

Friends of the Earth is represented in these proceedings by David Wolfe QC of Matrix Chambers and Catherine Dobson of 39 Essex Chambers, and by the law firm Leigh Day LLP.

Cost of cold highlighted in new campaign

An estimated 150,000 older households are likely to be plunged into fuel poverty this winter because of soaring energy prices, according to new analysis by Age UK.

Launching its new The Cost of Cold campaign, the charity issued a stark warning that the number of fuel poor older households could reach over 1.1 million by the spring unless the Government takes urgent action.

Rising energy prices and living costs will lead to some of the poorest pensioners rationing their heating this winter in order to afford higher energy bills.

Age UK believes that rising inflation and escalating prices are now threatening the standard of living of many pensioners on low incomes, creating uncertainty and anxiety as winter begins to bite.  Part of the problem is that many older people are living in hard to heat, older homes and, as a result, often need use a lot of energy just to stay warm.

The cold can be dangerous for older people, especially those with pre-existing health conditions.  Older people tend to feel the cold more than younger people, as it is harder for them to regulate and maintain body temperatures. Low temperatures can increase the risk of heart attacks and strokes in an older person, exacerbate lung conditions and worsen arthritis.

Living in a cold home can also undermine an older person’s mental health, contributing to anxiety, depression and loneliness.

Extra support such as Cold Weather Payments and the Warm Home Discount Scheme are vital tools in the fuel poverty armoury for those on a low income, yet they fail to reach many of those who need them the most because they are not claiming Pension Credit. This crucial benefit opens the door to these and many other benefits, but nearly a million (920,000) pensioner households are missing out on Pension Credit payments worth up to £1.6 billion every year – that’s an average of £32 a week.

Age UK, which is a member of the End Fuel Poverty Coalition, is campaigning for the Government to:  

  • Provide a one-off £50 payment to all those eligible for Cold Weather Payments and expedite existing payments so they arrive no later than seven days after a period of cold weather. 
  • Double the Household Support Fund to £1billion to help safeguard all those on low incomes this winter.  
  • Take urgent action to get Pension Credit – a vital benefit and passport to a package of extra financial support – into the pockets of all those who are eligible. 
  • Ensure the energy price cap is enshrined in law in the shorter term, and then move to re-introduce a social tariff into the energy market to offer protection against high energy costs in the medium term. 

Peter, aged 75, told Age UK:

It’s a simple choice, heat or eat. I already confine myself to one room and stay in bed as long as possible. If I cut down any further there won’t be any point in living.

Geraldine, aged 77, said:

I have arthritis which is worse when it is cold. I will have to keep my heating low now. Already I wear gloves on my hands and a heat pack inside my leggings to help my back.

Caroline Abrahams, Charity Director at Age UK, said:

There’s no doubt that media reports about rising energy bills are filling pensioners on low fixed incomes with absolute dread. More than twenty-five thousand people have told us how worried they are, and it is clear that as things stand, some fully expect to have to choose between cutting down on food or turning down their heating, once the cold weather sets in. Doing either is a potential risk to their health, especially if they are living with serious underlying health conditions like heart disease or COPD.

Age UK is urging older people to call its free national advice line BEFORE turning the heating off or down, to check they are receiving the full package of financial support available to them, including key benefits such as Pension Credit and Attendance Allowance.

In addition, energy suppliers have a duty to offer support if people are struggling with bills or debt, so the Charity is urging people to contact their supplier directly to ask about available support including an affordable repayment plan. 

Age UK’s advice line is open every day (365 days a year) from 8am to 7pm. Information and advice is also available on www.ageuk.org.uk or via a local Age UK.

Reports highlight growing fuel poverty crisis

Two reports have highlighted the gulf between rhetoric and reality in the fight against fuel poverty.

The latest BEIS Committee on Fuel Poverty report revealed that only 15% of funding to improve energy efficiency and help with fuel bills actually went to households in fuel poverty.

Commenting, a spokesperson for the End Fuel Poverty Coalition said:

This is a devastating report which highlights just how much work the government has to do to alleviate the rapidly growing fuel poverty crisis.

Improved financial assistance this winter must be matched by rapid and targeted investment in improving energy efficiency of homes in the long-term. The Budget later this month simply cannot ignore introducing urgent measures to help people.

Meanwhile a report by AgilityEco and Gemserv reveals that current funding and policy to relieve fuel poverty will help only a fraction of the 3.2 million homes that were in fuel poverty in 2019. 

The legally binding target to all but end fuel poverty by 2030 requires a further £18 billion to be spent in fuel poor homes across the rest of the 2020s. Even if some proposed action is taken, double the amount of current funding is still required for energy efficiency programmes.  

A spokesperson for Coalition members, National Energy Action, commented:

The urgent need to provide additional support to fuel poor households has never been greater. We know what needs to be done and how far current policies will take us. We also know all too well the consequences of not meeting our legal duties to help the poorest households who live in the least efficient homes.

Beyond directly supporting the most vulnerable households through this winter and better targeting of current policies, we need to boost investment to improve home energy efficiency in fuel poor homes. Public investment in keeping people warm and well pays for itself and will deliver huge national benefits.

The Treasury’s upcoming Budget and Spending Review provides a vital opportunity to protect health outcomes and support the most vulnerable people across the United Kingdom as well as delivering the Government’s levelling up agenda.

Image: Mike McBey / Flickr / Creative Commons

New figures show 3m households face fuel poverty

Press Association have reported that the English government has released the latest fuel poverty statistics, the first since an updated definition of fuel poverty was adopted.

The change to the definition came following a consultation on a new fuel poverty strategy for England.

The Coalition supported the widening of the definition to include all low income households living in cold homes (the ‘Low Income, Low Energy Efficiency’ indictor). It is believed this will better incentivise energy efficiency.

This initially suggested that the number of fuel poor households in England would sit at 3.66 million: an increase from 2.4m using the previous definition.

However, the new figures from the Department for Business, Energy and Industrial Strategy suggest the proportion of families in fuel poverty will fall from 13.4% or 3.18 million homes in 2019, to 12.5% or 3 million homes in 2021.

The latest figures suggest 180,000 households are being brought out of fuel poverty between 2019 and 2021, around 90,000 a year, driven by improvements to energy efficiency that lift properties up to a rating of C or above. But nearly half of low-income households are still living in homes with poor energy efficiency.

A spokesperson for the End Fuel Poverty Coalition said:

These figures are the first under the new measurement for fuel poverty and show the scale of the challenge facing governments – both at a national and local level.

While any predicted reduction in fuel poverty is to be welcomed, we are concerned that the reduction in Covid financial support later this year will offset any improvement predicted.

We also need to see continued and renewed emphasis on delivering policies that will end fuel poverty as quickly as possible.

Image: Shutterstock