In 2023, an estimated 13.0% of households (3.17 million) were in fuel poverty in England according to the Low Income Low Energy Efficiency metric.

However, the Committee on Fuel Poverty, in its 2024 Annual Report, Can Fuel Poverty be ended, states that fuel poverty in England is flatlining rather than falling, and it is adamant that it can be defeated.

How is fuel poverty measured?

The report urges a future fuel poverty strategy to include a guarantee of affordable energy for all and consideration should be given to low-income households who may not receive state benefits.

It also states that ‘the increase in the amount added to the standing charge element of energy bills a flat-rate charge incurred by everyone is regressive. Based on current energy price levels, targeted support to the fuel poor will remain important, and necessary, for the foreseeable future.

Why is fabric first important?

The Committee also states that ’effectively targeted energy efficiency programmes are central to reducing fuel poverty’ and notes that the shift away from a ‘fabric first’ approach to improving household energy efficiency since 2022 has proved less effective at making homes substantially warmer.

The report argues that ‘tackling fuel poverty among fuel-poor households requires a fabric first insulation approach, completing these programmes for all fuel-poor and vulnerable households before resources are directed at the incorporation of low-carbon heating systems into those properties.’

Which groups are most at risk?

The government is also committed to ensuring homes in the private rented sector meet minimum energy efficiency standards by 2030.

The Committee warns that failing ‘to make rapid progress in the private rented sector on energy efficiency will fundamentally undermine any government strategy to end fuel poverty.’ Those living in the Private Rented Sector (PRS), ethnic minority households, and households using prepayment meters (PPMs) are all identified as most at risk of not being able to afford energy and living in a cold home. Moreover, over 900,000 households with one or more children are in fuel poverty. Any strategy to tackle fuel poverty must be aligned with wider policies with similar end goals, such as those to eliminate child poverty.

Why is there a need for better evidence, data sharing, and targeting?

The Committee also advocates further research into the impact on low-income households, as well as the prevalence of fuel poverty amongst ethnic minority households. The Committee also sees better targeting and, in particular, data sharing, as key to being able to tackle fuel poverty in the future.

We are not defeatist

Said Chair, Rt Hon Caroline Flint: “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, including social tariffs, for vulnerable and low-income households may be needed for some years to come.

“This report argues that the Fuel Poverty Strategy requires a reset, a refresh, and a new focus, to continue to bear down on a problem that too many low-income households endure year after year.  The Committee hopes to see a renewed drive to improve the fabric of our coldest homes with a fabric-first approach.

“Our report exposes hidden aspects of fuel poverty: like very high concentrations of ethnic minority households in fuel poverty in some of our large towns and cities; like the lack of progress in the low-cost private rented sector, where too many people are still living in cold homes.”