Number of Fuel poor households

Transcription

1 Fuel poverty According to the Department of Energy and Climate Change (DECC) a fuel poor household is one that cannot afford to keep adequately warm at reasonable cost. Adequate standards for warmth are defined as 21ºC in the living room and 18ºC in the other occupied rooms. The definition of a fuel poor household is one that needs to spend more than 10 per cent of its income on all fuel use to heat its home to an adequate standard of warmth. From a health and well-being perspective: living at low temperatures as a result of fuel poverty is likely to be a significant contributor not just to the excess winter deaths that occur each year (a total of 27,000 each year over the last decade in England and Wales), but to a much larger number of incidents of ill-health with the elderly, infants being at particular risk and to some extent those with disability or a long term illness. Fuel poverty can also have a wider impact on social isolation and poor outcomes for young people. In 2009 DECC developed a fuel poverty model that could study the relationship between demographic factors and households experiencing fuel poverty. According to this model there were 55,586 households in experiencing fuel poverty in 2009 which is equivalent to 18.3% of households (see table below). Number of Fuel poor households in by local authority district and borough (IMD 2110) Modelled estimates in fuel poverty in 2009 Area Number of Fuel poor households Total number of Households % fuel poor households Babergh , Forest Heath , Ipswich , Mid , St. Edmundsbury , Coastal 10,018 53, Waveney 10,124 50, , , East of England 387,672 2,388, England 396, ,535, As a whole has a similar level of fuel poverty to the whole of England (18.4%) but has an overall rate that is higher than the East of England average (16.2%). The highest levels of fuel poverty are seen in Mid and Waveney districts compared to with lower levels in Forest Heath, Ipswich and St Edmundbury (see table below). The model shows Waveney with the highest level of fuel poverty (20% compared to the 16.4% East of England average) and indicates there were 10,124 households experiencing fuel poverty in 2009.

2 % of fuel poor households (95% confidence interval) Fuel poor households in by local authority district and borough (IMD 2010). Modelled estimates of fuel poverty in Babergh Forest Heath Ipsw ich Mid St. Edmunds Coastal Waveney LA District East of England England Between 2008 and 2009 the rate of fuel poverty in increased in absolute terms by 3.6% from 14.7% to 18.3%, with all areas showing an increase in fuel poverty. The largest increase was seen in Ipswich where the % of fuel poor increased by 4.8%. 25% Trend in fuel poor households in by local authority district and borough. Modelled estimates of fuel poverty in 2009 % of fuel poor households 20% 15% 10% 5% 0% Babergh Forest Heath Ipsw ich Mid St Edmund sbury Coastal Wavene y East of England % 12.4% 12.8% 17.5% 13.2% 15.4% 15.7% 14.7% 12.5% % 15.0% 17.6% 20.4% 16.1% 18.8% 20.0% 18.3% 16.2%

3 Those living in the most deprived areas experience the highest levels of fuel poverty (21.3%) in whilst those living the least deprived areas experience the lowest (11.5%) However fuel poverty does not follow the normal linear gradient associated with inequalities. As can be seen below those living in areas of average levels of deprivation (deciles 4 to 6) also experienced higher levels of fuel poverty compared to the average. This may be explained by the types of houses and population living in these areas. For instance older people who may be relatively asset rich (living in larger houses may not have the necessary income to effectively insulate or effectively heat their home. % of fuel poor households (95% confidence interval) Fuel poor households in by deprivation (IMD 2010). Modelled estimates of fuel poverty in Most deprive Least deprive Deprivation decile Deprivation decile (IMD 2010) It is important to note that the estimates presented here are now three years out of date and do not take into account the increase in energy prices seen since The figures therefore are likely to be an underestimate of the number of households in fuel poverty in DECC produced a report in March 2012 Getting the measure of fuel poverty which stated that no matter what households income, they face very different costs to achieve the same level of warmth, this is largely due to the varying energy efficiency of their homes. Current measures to minimize fuel poverty both nationally and locally focus on three areas; fuel prices, energy efficiency and support to those on low incomes, some are funded by the Exchequer (Warm Front, Winter Fuel Payments, Cold Weather Payments) and some by the consumer (Carbon Emissions Reduction Target CERT, Community Energy Saving Programme CESP, Energy Company Obligation ECO and Warm Home Discount).

4 Warm Front - provides heating and insulation improvements to households on certain income-related benefits living in properties that are poorly insulated and/or do not have a working central heating system, qualifying households can get improvement worth up to 3,500 ( 6,000 where oil central heating and other alternative technologies are recommended, grants are available for improvements such as loft insulation, draught proofing, cavity wall insulation and hot water tank insulation. Winter Fuel Payments - The Winter Fuel Payment is a tax free payment to help older people keep warm during winter and is not means tested. It is provided by the government to those who are eligible. Cold Weather Payments - Cold Weather Payments help people, who get certain income-related benefits, with their increased heating costs caused by periods of very cold weather during winter. A period of very cold weather is when the temperature is either:recorded as an average of zero degrees Celsius or below over seven consecutive days in a row or a forecast to be an average zero degrees Celsius or below over seven consecutive days in a row. The scheme runs every winter from 1 November and 31 March. Carbon Emissions Reduction Target (CERT) - The Carbon Emissions Reduction Target (CERT) requires all domestic energy suppliers with a customer base in excess of 250,000 customers to make savings in the amount of CO 2 emitted by householders. The aim is to contribute towards achieving the Kyoto protocol. Suppliers meet this target by promoting the uptake of low carbon energy solutions to household energy consumers, thereby assisting them to reduce the carbon footprint of their homes. Through this work there is a reduction in energy demand; an enhancement in the UK s security of supply; reduction in energy bills for those receiving measures; a reduction in fuel poverty; and, securing of jobs in energy efficiency industries. It is to be replaced by ECO in December 2012 Energy Company Obligation (ECO) - As part of the governments new Green Deal, ECO will replace CERT and will require energy suppliers to work harder to insulate lofts and walls ensuring that consumers, especially low income vulnerable households, receive measures which can offer significant energy bill savings. It will assess the way in which these costs have been passed on to date, and develop recommendations for cost-recovery to maximise the number of households removed and protected from fuel poverty. Energy efficiency work could be repaid through a charge on a home s energy meter offset by the savings made on fuel bills, meaning many householders will benefit from day one. Community Energy Saving Programme (CESP) - targets households across Great Britain, in areas of low income, to improve energy efficiency standards, and reduce fuel bills, promoting a whole house approach i.e. a package of

5 energy efficiency measures best suited to the individual property. The programme is delivered through the development of community-based partnerships between Local Authorities (LAs), community groups and energy companies, via a house-by-house, street-by-street approach. Warm Home Discount - requires energy companies by law to give a discount on energy bills to more of their most vulnerable customers Fuel Poverty policies target different types of households, so that CESP, Cold Weather Payments and Warm Home Discount are focused on low-income households, but not necessarily those with higher than typical energy costs in the latter two cases. CERT, ECO and Winter Fuel Payments are more widely spread over the population. Those receiving assistance under CERT and ECO may well have high costs. The numerous schemes available (as described above) create a complexity that many households can not negotiate and result in large numbers remaining in fuel poverty when they could access benefits they are eligible for. To help minimize fuel poor homes in more has to be done to identify households in fuel poverty and help them get the support they require, especially in areas of high fuel poverty like Waveney and Mid Suffollk. Tackling fuel poverty offers a multiple payoff; better living standards and conditions for people with low incomes; an improved and more energy efficient housing stock; fewer winter deaths and reduced costs for the NHS. Department of Energy and Climate Change (2009) - Sub regional fuel poverty statistics aspx (accessed ) Department for Energy and Climate Change (March 2012) Getting the measure of fuel poverty report ws/hills_news.aspx