Why does it matter to save energy?

A household is said to be in fuel poverty if it needs to spend more than 10% of its income on fuel to provide adequate heating for comfort and health (usually 21 degrees for the main living area, and 18 degrees for other occupied rooms). Fuel poverty is caused by the interaction of a number of factors, in particular:

  • The thermal efficiency of the property
  • Fuel costs
  • Household income

Households on low income generally have no control over these factors and are unable to improve their situation.

It is estimated that 24,000 older people die every winter from ill health linked to cold, damp living conditions. Britain has the highest number of avoidable deaths due to winter cold in Western Europe. As for children, fuel poverty can lead to educational under-achievement, social exclusion, physical and psychological ill health.

The Government has a target of eradicating fuel poverty by 2016. However, currently numbers are rising and the target seems to be unattainable. Unaffordable and rising fuel prices and poor housing is taking its toll. A recent (April 08) summit including Age Concern, Child Poverty Action Group, and National Energy Action and Ofgem produced some disturbing statistics, claiming that around 4.5 million households, (almost one in five) now pay more than ten per cent of their income on fuel costs.  Fuel poverty is affecting the majority of single pensioners and lone-parent families. 600,000 households have fallen into fuel poverty in the last year alone.

The cost of fuel varies enormously depending on the fuel company and the tariff; for example pre-payment meters increase the chances of living in fuel poverty, as energy costs are generally much higher than for those paying by direct debit.

Clearly, well targeted energy efficiency campaigns can help to alleviate fuel poverty by reducing fuel bills for vulnerable households by improving insulation and heating systems.

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