A new report from the Committee on Fuel Poverty has revealed that current policies have failed to significantly reduce UK fuel poverty over the last five years.
The Committee’s annual report, titled Can Fuel Poverty be Ended?, showed that rates of fuel poverty remain virtually unchanged from the previous year, with 13.0% (3.17 million) households in fuel poverty in 2023, compared with 13.1% (3.18 million) households in 2022.
Committee chair the Rt Hon Caroline Flint said: “Governments from 2010 onwards saw levels of fuel poverty in England falling steadily for almost a decade – a reduction of 40%, only to be followed by 5 years from 2019 to 2024 where fuel poverty did not fall to any meaningful extent.
“There has been a stalling of progress – fuel poverty has flatlined. I don’t think any government anticipated this. Perhaps the stable energy prices for most of the 2010s created an optimism that fuel poverty would continue to fall for years to come. That optimism was misplaced.”
While Flint did offer a ray of optimism, arguing that ending fuel poverty is possible with good policy, she noted that conditions may continue to be difficult for vulnerable people for quite some time. She said: “This report is not defeatist. The Committee believes fuel poverty can be beaten. But for too many low-income households, the unaffordability of bills, especially in the coldest months, is all too real. We foresee that targeted financial support, possibly including the use of social tariffs, for vulnerable and low-income households may be needed for some years to come.”
Energy efficiency schemes ‘could be the light at the end of the tunnel’
The report notes that energy efficiency programmes are “central” to reducing fuel poverty, but notes that the shift away from fabric first upgrades such as external wall and loft insulation has meant these programmes have been “ineffective” at halting fuel poverty.
This sentiment is shared by Jess Ralston, head of energy at the Energy and Climate Intelligence Unit (ECIU), who said: “Anyone who has paid a gas bill over the last few years knows the real-world impacts of relying on gas for home heating and electricity generation – with people in fuel poverty suffering most from the extortionate and volatile prices of the fuel. Energy efficiency schemes are not performing at the target level at the moment but could be the light at the end of the tunnel as insulation lowers bills and decreases gas demand in households, which will increasingly come from abroad as the North Sea continues its inevitable decline.
“This analysis coincides with the removal of the Winter Fuel Payment for some pensioners, with questions remaining about how the Government will ensure that these households don’t suffer in the short term, including whether it will bring in a social tariff or expand the Warm Homes Discount. In the long term, the solutions of upgrading our leaky housing stock, transitioning away from gas boilers and building renewables will help to shield fuel poor households from future gas crises, with no time to waste.”
Tackling energy debt
The Committee on Fuel Poverty report notes that policies to reduce fuel poverty cannot be separated from policies to help those who have built up substantial debt or arrears to their energy companies, adding that more research is required on the prevalence of debt among fuel poor households.
As such, the Minister for Energy Consumers Miatta Fahnbulleh has today (28 August) convened a roundtable discussion between the top energy firms, energy regulator Ofgem, and consumer support organisations Energy UK and Citizens Advice to discuss how to help those in energy debt and prevent others from falling into energy debt.
Commenting on this meeting, Rachel Fletcher, director of economics and regulation at Octopus Energy said: “High fossil fuel prices will hit customers hard this winter and many are already in debt. We welcome the government’s focus on this and look forward to working with Minister Fahnbulleh, other suppliers and charities to find solutions for this winter and beyond. It is time for more than short-term fixes.
“We need to build more cheap British renewables and reform grid connections and the market through locational pricing to bring bills down for good.”
