What is fuel poverty?
The Government uses the Low Income Low Energy Efficiency (LILEE) definition of fuel poverty in England whereas Scotland, Wales, and Northern Ireland use different definitions.
The LILEE defines fuel poverty by explaining that a household is considered fuel-poor if:
- They are living in a property with a fuel poverty energy efficiency rating of band D or below
- When money is spent to heat their home they are left with a residual income below the official poverty line
It is defined that three key factors determine whether a household is in fuel poverty:
- A household’s income
- Household energy requirements
- Fuel prices
From these definitions, fuel poverty therefore refers to a situation where households struggle to afford the energy needed to heat their homes and meet other basic energy needs. Because of issues outside of an individual’s control like fuel price increases and the cost-of-living crisis, many households have been left with the unjust decisions of whether to heat their homes or put food on the table.
Statistics of fuel poverty – What are the impacts?
Currently, the official number of households living in a low-income household with poor energy efficiency in England in 2022 was 3.26 million. However, it is estimated it is actually a lot more than that ranging from 4.1 million to 7.5.
Recent evidence published by the University of York also states that 32% of households identified in fuel poverty will not be helped by the existing governmental support. In fact, on average over 7,400 winter deaths are caused by living in cold homes each year.
It was estimated that over 8 million adults will spend 2023/24 in cold damp homes contributing to the worsening public health and pressures on the NHS.
These fuel poverty statistics therefore demonstrate that millions of households are suffering and not getting the support they need to get back on their feet and that in turn, is causing major physical and mental health issues increasing dependencies on GPs' practices and NHS services when demands are already high and budgets are already stretched.
It is thought that illnesses linked to cold, damp, and dangerous homes cost the NHS more than £2.5 billion a year equating to £6.9 million a day, a massive increase from £3.6 million in 2016.
Fuel poverty is a major rising concern therefore across the UK making it vital that strategies are put in place to both tackle it and prevent fuel poverty from happening in the first place.
Causes of Fuel Poverty
Fuel poverty can be caused by various factors from low income to high energy processes, but regardless of the cause or combinations of causes, all of these can be exacerbated by living in older and poorly insulated homes, having insufficient heating systems, and being in colder climates.
1. Low income
Often it is not rare to find homes living in fuel poverty will also struggle with low incomes. This is because low incomes make it difficult to afford necessities including both fuel and food.
High levels of unemployment, underemployment, as well as low wages, are also factors that contribute to this problem, making it harder for individuals to make ends meet.
2. High Energy Prices
A factor that increasingly makes it harder to avoid fuel poverty for lots of households, especially in the last few years, is high energy prices. The massive jump in energy bills in the last few years makes it difficult for any household to manage, but particularly more so for lower-income households.
Bills are currently 85% more expensive now compared to winter 2020/21 with the estimated bills on average costing over £2000 last winter (2022/23).
3. Poor Energy Efficiency
Something that also causes fuel poverty is having a poor energy-efficient home. This can be very common, especially in older properties where inadequate insulation and energy-energy systems poorly insulate homes. This, in turn, leads to homes requiring more energy to heat the home, heating being left on for longer, and ultimately higher heating bills for its occupants.
Having strategies in place to improve energy efficiencies in homes is just one of the ways the government is currently trying to tackle fuel poverty.
4. Housing Quality
Some homes might have poor energy efficiency in their homes due to the devices they use, however, the actual quality of a home including its structure can make a home less energy-efficient.
Sometimes rented accommodation does not always meet the minimum energy efficient standards leading to its occupants constantly having higher heating bills than other property types due to their homes taking longer to get warm and stay warm too.
5. Lack of funding and support
Over the last few years, the government has put more things in place to provide better support and funding to tackle and prevent fuel poverty. However, sometimes this does not go far enough leaving many households not getting the support they need, deteriorating their housing situation further as well as putting both their physical and mental health at risk.
Addressing fuel poverty in the UK needs a multifaceted approach to target the different causes to help households reduce energy costs or make them more manageable.
How does fuel poverty effect health?
As mentioned previously living in fuel poverty without the right support can cause severe impacts on both an individual's physical and mental health. It also causes health risks for every individual with some more severe than others such as older adults, adults living with disabilities, and children.
Effects on adults:
The energy crisis over the last few years has caused severe impacts on the day-to-day lives of many adults. It has been estimated that 10% of every adult's income is spent on heating their homes.
Some have even disconnected their meters to avoid any heating coming on at all, increasing risks further. This causes major health problems, risks, and concerns including:
- Respiratory – asthma, chronic obstructive pulmonary disease (COPD)
- Cardiovascular – hypertension, heart disease and heart attacks
- Increased risks of strokes due to the colder climates thickening up blood and veins
- Increased risks of hypothermia
Effects on older adults:
As well as causing major health risks and problems for adults in general, living in fuel poverty also increases risks further with older adults. The increased vulnerability to the cold temperatures leads to extreme health conditions as well as exacerbates existing ones such as:
- Respiratory issues
- Cardiovascular issues – especially for those with pre-existing conditions
- Hypothermia
- Musculoskeletal problems – worsening joint points and stiffness and arthritis conditions
- Increases mortality risk
Effects on Children:
In the Warm This Winter campaign it was estimated that one in three young families in the UK are stuck in homes with recurring mold problems. A Public Health Report found that living in cold homes and poor housing conditions has been linked with a range of health problems in children which in turn creates indirect impacts such as lower educational attainment and attendance at school as well as strains on children’s mental health services.
It is thought that it costs the NHS £27,000 every day to support children experiencing ill-health due to cold homes. Examples of the health conditions they can experience include:
- Respiratory issues – asthma and bronchitis
- Weakened immune systems making children more susceptible to illnesses
- Increases the risk of malnutrition
Effects on adults living with disabilities:
Adults living with disabilities in fuel poverty can experience compounded health effects due to their increased vulnerability and specific needs. The energy crisis has caused massive disruption to the lives of many individuals living with disabilities with an estimated third of adults saying their impairment or conditions has a significant impact on their energy costs.
It is thought that half of disabled adults are not planning to use heating even when it is cold and that more than a third are cutting back on food and skipping meals. With an estimated quarter of adults living with disabilities already unable to heat their homes and many more in danger of fuel poverty, the health effects of living in fuel poverty can be detrimental.
- Exacerbate existing health conditions – respiratory issues, mobility impairments, and chronic pain
- Increases risk of hypothermia
- Impact on access to care further comprising their physical health
- Increases the risk of medical equipment being used less to reduce costs
Fuel poverty therefore causes many different health risks some more severe than others, it is vital support for individuals is catered to their unique needs so they can get the financial, physical, and mental health support they need.
Fuel poverty and mental health – what is the link?
As well as physical health impacts caused by fuel poverty there are also severe mental health effects from living in fuel poverty.
Fuel poverty and mental health are closely linked due to the stress, anxiety, and emotional strain that living in colder and inadequate homes can cause.
Currently, two-thirds of people in fuel poverty experience debilitating levels of depression or anxiety with additional financial stressors including being behind on mortgages rent payments, and food bills all increasing and exacerbating situations further.
A report on the Money and Mental Health Policy Institute highlighted the impact of the cost-of-living crisis on mental health has left people not being able to sleep as they are worrying and wondering how they are going to manage.
Not only does it impact the mental health of adults, older adults, and adults living with disabilities, but living in fuel poverty also impacts children and young people’s mental health. A recent study shows that 1 in 4 children and young people aged 11-18 were at risk of developing mental health conditions compared to 1 in 20 who had a history of living in warmer housing.
Like physical health, there are lots of examples of mental health issues people can experience when living in fuel poverty including:
- Financial stress - causes anxiety, depression, and feelings of helplessness
- Cold and uncomfortable living conditions - cause feelings of discomfort and dissatisfaction negatively affecting wellbeing
- Social isolation - avoiding spending money to afford bills can stop people from going out leading to social isolation and loneliness which are both risk factors for poor mental health
- Lack of control – not being able to be in control of their living situation can cause feelings of powerlessness, distress, and weakness leading to severe depression
By addressing fuel poverty through different measures including improving energy efficiency, providing financial assistance, and offering mental health support services, mental health burdens associated with living in fuel poverty can improve enabling individuals to feel more in control and confident that they can manage.
Fuel Poverty Strategy
Typically, a fuel poverty strategy involves government initiatives aimed at addressing the issues of households struggling to afford adequate heating and energy services. Often including subsidies, energy efficient programs, and social support to help vulnerable groups cope with high energy costs, strategies have changed a lot over the years as fuel poverty has increased and regulations have been updated.
Fuel poverty strategies therefore refer to comprehensive plans or actions implemented by governments and local authorities to address fuel poverty effectively.
In the 2001 Fuel Poverty Strategy, for example, the UK government set out an affordability metric looking at the ratios between a household’s income and their required energy bills. The calculation was based on required spend than actual spending. Now fuel poverty strategies enable it to be measured in multiple ways.
For Northern Ireland and Wales, fuel poverty is still measured with an affordability metric using a 10% threshold. Whereas in Scotland their 10% threshold is used in a two-part metric explained in the Fuel Poverty Act 2019.
In England, however, the 10% threshold is no longer used following the 2021 Fuel Poverty Strategy, to the definition and measurement more well known today using LILEE as an indicator. Here the fuel poverty strategy for England highlights the aim to improve as many fuel-poor homes to a minimum energy efficiency rating of Band C by the end of 2030.
This latest strategy also included principles related to sustainability and vulnerability to ensure its longevity. The feedback received from various stakeholders including energy companies, charities, and local authorities supported these proposals and agreed on the importance of the fuel poverty metric being updated as it has both increased in numbers and complexity.
Examples of current fuel poverty strategies include:
- Local strategies – Encouraging residents to adopt energy-saving practices such as switching off appliances when they are not being used.
- Energy efficiency programs – Focusing on improving the energy efficiency of homes through insulation and upgrading heating systems.
- Financial assistance – Providing grants, subsidies, or rebates to help cover the costs of heating and energy bills.
- Social Support Programs – These include offering targeted support for vulnerable groups such as older adults, adults living with disabilities, as well as young families.
Tackle Fuel Poverty – Best ways to do it
Tackling fuel poverty requires collaborative co-production approaches across different organisations in the community to best support those who need it so no one goes without the help they need. By having different organisations work together, the underlying causes of fuel poverty can be better addressed to deliver more targeted support to households in need.
Some popular ways of tackling fuel poverty include:
1. Improving energy efficiency
As discussed having a home more energy-efficient is an essential way of reducing fuel poverty, particularly for lower-income households, as the time taken to heat a home and the length of time it stays warm will be significantly better.
2. Income support
Financial assistance as discussed above is also another way to tackle fuel poverty. Having more targeted benefits in place helps ensure households have access to affordable energy tariffs and payment plans to manage energy costs.
3. Social Housing improvements
Upgrading the energy efficiency of social housing enables individuals to live in safer, higher-quality homes which in turn makes them more energy efficient, and heating bills more manageable.
4. Raising Awareness
As the number of households suffering from fuel poverty increases every winter, raising awareness is a vital way to tackle it. Not only can individuals themselves learn how best to safely reduce energy bills, but more awareness across communities in spotting signs can be addressed so better targeted support can be delivered.
5. Community Engagement and Support Networks
Developing strong multi-disciplinary teams is another effective way to tackle fuel poverty. Establishing support networks and fostering collaboration between local authorities, charities, businesses, and other community organisations strengthens the efforts to tackle fuel poverty.
Some examples include energy advice services, fuel banks and warm banks, as well as mutual aid networks providing practical assistance and social support for those in need.
6. Health and wellbeing support
As discussed living in fuel poverty can have both physical and mental health impacts. Addressing the impacts of fuel poverty is vital to ensure the support services available help mitigate the adverse effects of living in cold, damp homes.
Social prescribing in housing is one example of taking a holistic approach to improve the wellbeing of individuals and families to better address the underlying causes of fuel poverty. Here individuals can be linked with support services that matter to them more effectively by housing associations and social prescribing link workers working together to ensure the support services needed within the community are provided, as well as promote better energy literacy and social support networks to offer a sense of belonging, improving overall wellbeing.
Digital social prescribing also provides effective monitoring and evaluation of data to assess the impact fuel poverty interventions are having on individual social prescribing journeys.
At Access Elemental Social Prescribing, we offer one centralised place where this information can be tracked, monitored, and updated to help measure progress, and community demand, as well as identify areas for improvement to refine interventions further and foster more collaboration with other existing services.
Fuel Poverty Report Summary
This article has reviewed definitions of fuel poverty and how they have changed over time, as well as the main causes, how it can measured, and most importantly how it can be tackled to either overcome it or prevent it, to improve the overall physical and mental health of your community.
By addressing the different causes of fuel poverty, this article has highlighted how both factors out of individuals’ control as well as wider determinants of health can lead to being fuel-poor. Through addressing these factors this article has shown how there are many different physical impacts of fuel poverty as well as the link between fuel poverty and mental health.
Through demonstrating some of the best ways to tackle fuel poverty, this article has explained the importance of co-production approaches so different organisations, local authorities, charities, and businesses can work together to provide the support needed for every household that is fuel-poor as well as being at risk of being fuel poor.
Fuel Poverty Strategy Evidence
This article explains how social prescribing in housing complements traditional approaches to tackling fuel poverty by addressing the wider social determinants of health as well as the social, economic, and health-related determinants of energy affordability, by taking a holistic, person-centred approach to help households overcome fuel poverty, regardless of their age or needs, to improve their quality of life.
Here our social prescribing platform helps communities deliver better population health management approaches to deliver and cater better-targeted support for every household where multiple strategies can be used at once to provide financial support, awareness and education for both now and in the future, as well as physical and emotional wellbeing support, so no individual goes without the support they need.
At Access Elemental Social Prescribing, we know social prescribing works and that social prescribing models can be adapted to fit any sector, with housing being no different. We work with a variety of customers to help tackle fuel poverty by demonstrating that health starts at home.
Warm Wales is just one example of a customer we have helped provide better social prescribing services and support to across Wales and South East England to ensure all individuals are living in happier, healthier, and warmer homes. Through using our digital social prescribing platform, Warm Wales has also been able to present great evidence for social prescribing in housing, including 74% of users experiencing reduced anxiety after using their social prescribing service. This, in turn, has helped secure more funding to expand their services further in the future.
For more information on how our digital social prescribing software can help tackle fuel poverty in your local authority, contact us today and let’s get started on your fuel poverty strategy immediately so no one else has to suffer.
