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Fuel Poverty in the UK (Published on 13th June 2019: Annual Fuel Poverty…
Fuel Poverty in the UK
It was reported in the Dorset Echo on 24th September 2019 that 19,000 households in Dorset are struggling to keep warm and pay energy bills. 9.7% of homes in Dorset are 'fuel poor' which means their energy costs are above average and their remaining disposable income after paying their bills puts them below the poverty line. National figures show that 10% are living in fuel poverty - a decrease of 0.2% since the previous report. The reduction in energy bills that the average fuel poor household needs to come out of poverty is £321 but rural area figures are £571 - nearly double that of urban areas. https://www.dorsetecho.co.uk/news/17921969.fuel-poverty-crisis-19-000-households-dorset-struggling-keep-warm-pay-energy-bills/
Rural homes are typically older and poorly insulated making them more expensive to keep warm. The report highlights a lower uptake of energy efficiency improvements as one of the drivers for the increase in fuel poverty. Fuel costs for the least efficient properties are 3 times higher than those of the most efficient. Those living in Band G properties are twice as likely to be fuel poor.
2014: Government introduced legislation on a fuel poverty target for England to improve as many fuel poor homes as is reasonably practicable to a minimum energy efficiency rating of Band C by the end of 2030.
Since the Energy Company Obligation was introduced in 2013 it has improved around 2 million homes. In 2013, 30% of the scheme was focused on Affordable Warmth, in 2017 this rose to 70%. The new scheme launched in 2018 runs to March 2022 and is entirely focused on low income and vulnerable households.
The Winter Home Discount has been extended until at least 2021, providing over 2 million low income and vulnerable consumers in GB with a £140 rebate off their energy bill each winter.
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Fuel Poverty is defined in the Warm Homes and Energy Conservation Act 2000 as "a person who is a member of a household living on a lower income in a home which cannot be kept warm at reasonable cost".
Published on 13th June 2019: Annual Fuel Poverty Statistics in England 2019 (2017 Data). https://www.gov.uk/government/statistics/annual-fuel-poverty-statistics-report-2019
2017: The average fuel poverty gap in England was estimated at £321, down from £333 in 2016 and continues a steady downwards trend since 2014.
The proportion of households in England in fuel poverty was estimated to have decreased by 0.2% points from 2016 to 10.9% in 2017.
92.2% of all fuel poor households living in a property with a fuel poverty energy efficiency rating of Band E or above.
In 2017, of the 25.3% of households classed as having a low income 43.2% were classed as fuel poor. 50% of households were classed as having high fuel costs, of these 21.8% were fuel poor.
Fuel poverty is measured based on required fuel costs rather than actual spending. This ensures they don't overlook households who have low energy bills because they actively limit their use of energy at home.
In 2017, fuel poor households were required to spend a median cost of £1,351 on their energy bills, 38.8% more compared to low income low cost households.
The depth and likelihood of a household being in fuel poverty tends to increase as floor size increases. The likelihood of a household being fuel poor rises from 6.6% for the smallest dwellings to 13.3% for dwellings that are 90-10 square metres.
Based on figures by the National Energy Efficiency Data Framework (NEED) properties studied had media percentage gas cost savings of 7.3% from cavity wall insulation and 12.4% from solid wall insulation.
Households using electricity as a main fuel for heating have the highest likelihood of fuel poverty compared to gas. This is due to the higher fuel expenditure associated with properties with a lower energy efficiency rating and the higher cost of electricity than gas.
Households oin the north tend to have a higher likelihood of being in fuel poverty which is likely due to lower than average incomes. Households in the south have higher average gaps which is likely due to their larger than average properties resulting in higher than average fuel costs.
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The West Midlands has a higher than average likelihood of fuel poverty and one of the largest average gaps. This is due to higher than average fuel costs and lower than average incomes.
Single parents and couples with children have the highest proportion of households in fuel poverty with the single parent having the highest proportion of households in fuel poverty. Couples under 60 were the least likely to be in fuel poverty. Over 25% of single parents in fuel poverty live in social housing.
19.5% of households where the oldest member is aged 16-24 years were fuel poor resulting in lower incomes for younger households.
Households where the occupants were 60 or over saw a decrease in their likelihood of fuel poverty between 2003 and 2017. The Warm Home Discount and the Winter Fuel Payment are likely to have had an effect.
Predictions for 2019 suggest the average fuel poverty gap will increase by £19 and the proportion of households in fuel poverty is likely to decrease by 0.1%.
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Poverty Fuel Gap: The difference between a fuel poor household's energy bill and the size of the bill it would need to have in order not to be classified as fuel poor. It is how much the bill would have to fall by before paying them would not push a fuel poor family into poverty. https://www.moneysupermarket.com/gas-and-electricity/fuel-poverty/