A quarter of households are in fuel poverty

The high cost of energy is forcing growing numbers of UK households, including middle class families, into fuel poverty, according to new research by uSwitch.com, the independent price comparison and switching service. The findings show that 6.3 million or almost a quarter of all households (24%) are now living in fuel poverty, with single working parents the most likely to be fuel poor.

Fuel poverty is where 10% or more of net household income is spent on energy bills. Previously it was seen as an issue affecting mainly pensioners and lower income groups. However, as energy bills have gone through the roof the total number of households in fuel poverty has soared, with the more affluent middle classes now also falling prey.

In just over five years, household energy bills have rocketed by £471 or 71% from £660 a year in 2006 to £1,131 a year today. As a result, a third of households (33%) with an income of up to £30,000 a year are in fuel poverty while one in fifty households (2%) with an income of over £30,000 a year are in fuel poverty. However, these numbers do not take into account ScottishPower's forthcoming price rise and if other suppliers follow suit fuel poverty will only get worse.

More worryingly, the current definition of fuel poverty doesn't take into account housing costs - mortgage or rent payments. There have been calls for the definition to be updated so that fuel poverty would be calculated as 10% of net household income after household spend on mortgage or rent. If this was the case then fuel poverty numbers would rocket to almost 9 million or a third (33%) of all households.

Incredibly, 22% of middle class households would be classed as being amongst the fuel poor, along with 47% of working class households. But the greatest impact would be seen on households made up of a single person who works and families with children and a stay-at-home parent. Both of these groups would see an extra 19% classed as fuel poor if the definition was revised to take into account the cost of keeping a roof over their heads.

However, the highest incidence of fuel poverty would still be seen amongst single working parents where over half of such households (52%) would be in fuel poverty under the proposed new definition. This shows the powerful impact that a combination of high energy costs along with mortgage or rental payments can have on family finances. 

Ann Robinson, Director of Consumer Policy at uSwitch.com, says: "Rocketing energy prices mean that the middle classes are no longer immune to social ills such as fuel poverty. The fact is that we can now find the fuel poor amongst all walks of life and in all types of households. Start to factor in housing costs such as mortgage and rental payments and we are left with the shocking image of a third of all British households living in fuel poverty. The sad truth is that consumers are paying a heavy price for this country's disjointed, incoherent and unaffordable energy policy.

Definition For Poverty - News


A quarter of households are in fuel poverty
A quarter of households are in fuel poverty

However, these numbers do not take into account ScottishPower's forthcoming price rise and if other suppliers follow suit fuel poverty will only get worse. More worryingly, the current definition of fuel poverty doesn't take into account housing costs



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Hit Fuel Poverty for Six

Gareth Price

Gareth Price is the Communications Manager for Consumer Focus Wales and leads on media and public affairs. He is a member of the Fuel Poverty Coalition steering group. From 1999-2009, Gareth worked in the Assembly Building in various capacities; as a political journalist, Assembly Government press officer and as Head of Communications for the Welsh Liberal Democrats. Originally from Abersychan, Gareth read Mathematics at Warwick and Lille universities before choosing words over numbers. AS I write this piece it’s a glorious sunny day in the capital city. I cycled to the office this morning comfortable in shorts and T-shirt. Through the window I can see city centre workers laying picnic blankets out in the park: it’s a strange time to be thinking about people being cold.

Yet, with the schools preparing for their annual summer shut down, fuel poverty campaigners from a range of organisations across Wales are coming together today to suggest six actions the new Welsh Government needs to take before the winter bites. Because only by taking action now, can we make a real difference when the nights draw in and the mercury drops.

The accepted definition of fuel poverty is that households spend £1 in every £10 on keeping warm. Around one in four households in Wales meet this definition. But we also know that 61,000 households in Wales are living in severe fuel poverty. That means they are spending one in every five pounds to keep their homes warm. We have to deal with these households first – some 61% of which live in the least energy efficient properties (F or G rated).

Members of the Fuel Poverty Coalition Cymru will later today launch a new six point action plan, and urge AMs to support their call to “Hit Fuel Poverty for 6”.

The timing may seem odd – but it couldn’t be more timely. We have a new government in Wales, deciding its priorities and focusing on delivery; and we expect the major energy companies to put bills up by around £200 a year in the coming weeks – a decision which could plunge many more households in to fuel poverty.

Scottish Power announced last month that they were raising their electricity prices by 10% and gas by 19%. So far none of the other big 5 suppliers have followed suit, but industry experts say it’s a matter of when rather than if. In recent weeks both Centrica (British Gas) and SSE (Swalec) have dropped hints that their prices are about to rise too. Between them, these three companies supply electricity to 2/3 of homes in Wales.


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MHIRC A new definition for via ^DT


Tony Otoa Thats why I aways call for a Country Social Analysis before ppo try to make comparisons. That poverty definition is so American!


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