New data published by the Department for Energy Security and Net Zero has revealed that a surge in the numbers of households spending more than 10% of their income on energy in England.
The number of households who are required to spend more than 10% of their income after housing costs on domestic energy has risen to 36.4% of households (8.9 million households) up from 27.4% in 2022 (6.7 million).
Meanwhile, the average fuel poverty gap (which measures the additional money a household would need to be lifted out of fuel poverty) has increased by 66% between 2020 and 2023 in real terms, due to rising energy prices.
E3G UK energy lead, Juliet Phillips, explained that for those already in fuel poverty, things have got significantly harder:
“It is shameful that in a country as wealthy as England, so many households cannot afford to heat their homes to a healthy and comfortable level. New statistics show that no progress has been made in reducing fuel poverty rates in the past year, and that for those struggling to pay their energy bills, things have gotten a lot worst.
“We have seen a concerning inertia from the government over the last year on action to upgrade homes. This included a U-turn on the planned increase in energy efficiency standards in the private rented sector, and a significant under-delivery of the retrofit schemes designed to alleviate fuel poverty.
“If the UK is to have any chance of meeting its statutory target to end fuel poverty by 2030, a long-term plan is needed to rebuild confidence in supply chains: backed by investment and regulations to drive action to deliver warmer homes across the country.”
The statistics also show that households in the private rented sector are at the highest risk of fuel poverty. This follows Rishi Sunak’s U-turn on the planned uplift to minimum efficiency standards in the sector last year.
Jonathan Bean, spokesperson for Fuel Poverty Action, commented:
“Fuel poverty rates are highest in private rentals so the Government’s lack of commitment to improved standards will continue to harm millions.
“In addition, electric-only homes have the highest fuel poverty rates due to the four times higher price of electricity compared to gas, due to our rigged energy market which the Government and Ofgem have failed to reform.
“It is time to admit Government and Ofgem policies have completely failed, and a more radical solution to fuel poverty is needed – Energy For All. This would eradicate fuel poverty now, rather than allowing millions to suffer in cold damp homes for another decade.”
The statistics show that there were an estimated 13.0 per cent of households (3.17 million) in fuel poverty in England under Ministers’ preferred measure of fuel poverty, known as the Low Income Low Energy Efficiency (LILEE) metric in 2023. This number is effectively unchanged from 13.1 per cent in 2022 (3.18 million).
A spokesperson for the End Fuel Poverty Coalition explained the limitations of this metric:
“Even these terrible figures don’t paint the true picture of the suffering in households across the UK.
“They exclude millions of homes in certain energy performance categories, fail to take into account soaring energy costs and also don’t include many people who actually get a Warm Home Discount to help with their bills.
“The reality is that household energy debt is at record levels, millions of people are living in cold damp homes and children are suffering in mouldy conditions.
“The wider impact of high energy bills is also clear to see with households having to cut back on spending so much that the UK has now entered a recession.”
Nearly 1 in five households in the West Midlands are classed as fuel poor. Meanwhile, in the South West, it would take an extra £634 to lift homes out of fuel poverty.
The latest National Energy Action (NEA) Fuel Poverty Monitor, developed with Energy Action Scotland and Gemserv, highlighted over 3 million UK households could be left in fuel poverty by the end of the decade, despite a legal requirement for no households in England to be living in fuel poverty by 2030.
Adam Scorer, Chief Executive of National Energy Action, added:
“At this rate, the government will miss its 2030 legal fuel poverty target by a country mile and millions will be stuck unable to afford to keep their homes and their families warm and well.”
New polling by YouGov for NEA shows that three in 10 (30%) GB adults say their household has found it difficult to afford to pay their energy bills in the past three months.
This has driven many to drastic ‘not coping strategies’ with 59% of British adults saying they had turned their thermostat down lower than they wanted, while 52% turned their heating off, even though it was cold inside the house.