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Fuel Poverty Facts
 (A fact sheet on fuel poverty)

What is Fuel Poverty
(also known as Energy Poverty in other parts of the world)

The UK government defines fuel poverty as follows:
A household is said to be in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain a satisfactory heating regime (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, but three specifically stand out. These are:

1. The energy efficiency status of the property
2. The cost of energy
3. Household income
 

How many People are in Fuel Poverty in the UK

In 2005, 2.5 million households in the UK were classed as fuel poor.
This figure can be found alongside other detailed information in the report below by clicking the link:
UK fuel poverty strategy - 5th Fuel Poverty Annual Progress Report 2007

In 2006 an estimated 3.5 million households in the UK were classed as fuel poor.
In 2007 an estimated 4.5 million households in the UK were classed as fuel poor.
(Based on facts from Age Concern)

By the end of 2008 it is estimated that around 6 million households will be forced into fuel poverty due to an average increase of 43% in energy bills.

Estimations vary from different sources however one must be mindful of the massive increases in energy prices that recently occurred in Britain.

For instance The National Housing Association has revealed in a report the following:

5.7m households will be spending at least 10% of their income on energy bills by the end of 2009 – an increase of 100% over 2005 levels.

With annual electricity bills due to increase to over £500 per year, and gas bills to increase to around £900, by 2010, the report shows that the number of people struggling to pay their bills will increase to record levels.

According to the report, 5,720,000 households will be in fuel poverty by the end of next year compared to 2,400,000 in 2005 (and 3,774,000 at the end of 2007). This means that 13.4m people will be hit by fuel poverty in 2009 – which equates to 23% of the British population.

In 2005, the average energy bill per annum was £676. However, next year this is set to rocket to £1,406.

More about their findings are in the link below:

http://www.housing.org.uk/default.aspx?tabid=212&mid=828&ctl=Details&ArticleID=1391

To find out more energy price increases this year please see the section on Energy Price analysis. Click Here