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38 A reduction in the number of households in fuel poverty (England).

Baseline and trends: Baseline year –1998. The number of households in fuel poverty has fallen significantly between 1996 and 2004. Analysis has been carried out to determine how much of this reduction was due to increased income, energy prices and energy efficiency improvements. This analysis suggests that, between 1996 and 2003, 61 per cent of the reduction can be attributed to improvement in incomes, 22 per cent to energy price changes and 17 per cent to improved energy efficiency. Indications for 2004 figures are that the positive effect of energy price movements has lessened because of the increases in energy prices. Estimates published in the Energy White Paper 2007 suggest the number of households in fuel poverty in England in 2006 had risen by approximately 1.2 million compared with 2004.

Number and percentage of households in fuel poverty (England)
  All households Vulnerable households
    Number (million) Percentage Number (million) Percentage
  1996 5.1 26% 4.0 30%
Baseline 1998 3.4 17% 2.8 20%
  2001 1.7 8% 1.4 10%
  2002 1.4 7% 1.2 8%
  2003 1.2 6% 1.0 7%
  2004 1.2 6% 1.0 6%

Definition: Households are considered fuel poor if, in order to maintain a satisfactory heating regime, they would need to spend more than 10 per cent of their income on all household fuel use. The Department for Business, Enterprise and Regulatory Reform and the Department for Environment, Food and Rural Affairs usually publish numbers of those in fuel poverty, whereas in previous Opportunity for all reports the indicator has been expressed as a proportion. Both are presented here for comparison. Vulnerable households are households containing someone aged 60 or over or under 16, or someone who is disabled or has a long-term illness.

The income estimates include Housing Benefit and Income Support for mortgage interest.

A full explanation of the policies to tackle fuel poverty is given in The UK Fuel Poverty Strategy, Fourth Annual Progress Report [34]. The figures for England in 2004 have used the new rolling English House Condition Survey, which covers combined data sets for two-year periods.

Data source: English House Condition Survey 1996, 2001, 2003 and the Energy Follow-up Survey 1998.

Linked to the UK Fuel Poverty Strategy: Following the Warm Homes and Energy Conservation Act 2000, we have a legally binding commitment to publish and implement a strategy for England to reduce fuel poverty and set targets for its implementation. The priorities set out in The UK Fuel Poverty Strategy are to eradicate fuel poverty where practicable to do so, by 2010 for vulnerable and by 2016 for non-vulnerable households. That commitment was reaffirmed in the Energy White Paper,[35] published in 2007.

Further information

An overview of the English House Condition Survey is available at: www.communities.gov.uk/housing/housingresearch/housingsurveys/englishhousecondition/

This includes most current and available data, with further breaks covering a range of household and dwelling classifications, type of location and deprived areas.

Further information on fuel poverty and its impacts can be found in the UK Fuel Poverty Strategy Fourth Annual Progress Report, with further breakdowns available in a series of annexes. These can all be accessed from: www.dti.gov.uk/energy/fuel-poverty/strategy/index.htm.

Detailed breakdowns of fuel poverty in England can be found at:
www.dti.gov.uk/files/file29687.pdf?pubpdfdload=06%2F1260

Research Evidence

“Energy: Its Impact on the Environment and Society”
http://www.dti.gov.uk/files/file32546.pdf

“Who are the Fuel Poor”
http://www.dti.gov.uk/files/file32551.pdf

“UK energy sector indicators 2007”
http://www.dti.gov.uk/energy/statistics/publications/indicators/page39558.html

“Fuel Poverty Advisory Group, Fifth Annual Report”
http://www.berr.gov.uk/files/file38873.pdf

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