Fuel Poverty Rises Dramatically Across the UK

There has been a dramatic increase in the number of households suffering from fuel poverty. There are now 4.5 million fuel poor households compared to 2 million in 2004.

The latest statistics about the extent of fuel poverty in the UK shows a large increase in the number of households who are classified as being fuel poor.

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).

Whether a household is in fuel poverty or not is determined by the interaction of a number of factors, but three specifically stand out: the energy efficiency of the property, the cost of energy and household income.

The latest statistics report the situation in 2008, and do not apply to this year. This means that the actual number of households experiencing fuel poverty today is likely to be much higher, not least because energy is now costing much more than in previous years.

For example, the average household is spending £1,194 per year on energy bills whereas the average annual bill for heating and electricity was £580 in 2004.

There are ways in which consumers can use the Internet to find the best energy deals or switch to a cheaper supplier, however electricity and gas prices have risen across the industry.

The deep recession over the last two years is also likely to increase the number of households affected by fuel poverty as incomes have fallen and energy costs have risen.

Commenting on these findings, Tom Lyon, energy expert at uSwitch.com, told us:

“This report reveals what we’ve always suspected – fuel poverty is a runaway train that is only going to gather momentum. Any opportunity to slow it down or to set it on the right track is long gone, as is any Government guarantee to bring it under control.”

“Worryingly it also predicts that fuel poverty in England alone will be 4.1 million in 2009 – almost as high as the current UK-wide level. But when you factor in the current economic situation of rising unemployment, a freeze on pay increases and escalating household running costs, these numbers are likely to end up far higher.”