Fuel poverty
Encyclopedia
A household is said to be in fuel poverty when they cannot afford to keep adequately warm at reasonable cost, given it's income. The term is mainly used in the UK, Ireland
and New Zealand
, although the concept also applies everywhere in the world where poverty may be present.
As the term fuel poverty sometimes receives a negative connotation, some specialists in the field prefer to talk about its converse - affordable warmth.
is said to occur when in order to heat its home to an adequate standard of warmth a household needs to spend more than 10% of its income to maintain an adequate heating regime (definitions of "income" and "adequate heating regime" vary between UK Government and Devolved Administrations). In Eastern Europe (transition economies) the term energy poverty
is sometimes used instead. However this use of the term (which is about a lack of access to energy services due to economic poverty) can be confused with indicating a lack of any access to energy infrastructure, as has been used by the World Economic Forum
when establishing its Energy Poverty Action (EPA) initiative in 2005 to address energy poverty in the developing world by implementing electrification schemes (grid-extension and off-grid).
The most effective way of combating fuel poverty, if one excludes forcible rehousing, is to target energy efficiency measures on homes typically occupied by those on low incomes. A home with a very low energy requirement to provide adequate warmth can generally be occupied by those on relatively low incomes without leading to fuel poverty. The sharp rise in fuel prices from 2006-8 has led to an estimated doubling of the numbers in fuel poverty in countries where it is a major problem.
A number of illnesses, including cancer
can exacerbate fuel poverty.
By April 2011 a YouGov
survey indicated that the number of households in fuel poverty had risen to 6.3 million households, representing approximately 24% of all households in the UK.
Research by Confused.com
found that 82% of the UK population had expressed a concern at being able to afford their energy bills throughout winter.
Ireland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
and New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
, although the concept also applies everywhere in the world where poverty may be present.
As the term fuel poverty sometimes receives a negative connotation, some specialists in the field prefer to talk about its converse - affordable warmth.
Definitions
In the UK, fuel povertyPoverty
Poverty is the lack of a certain amount of material possessions or money. Absolute poverty or destitution is inability to afford basic human needs, which commonly includes clean and fresh water, nutrition, health care, education, clothing and shelter. About 1.7 billion people are estimated to live...
is said to occur when in order to heat its home to an adequate standard of warmth a household needs to spend more than 10% of its income to maintain an adequate heating regime (definitions of "income" and "adequate heating regime" vary between UK Government and Devolved Administrations). In Eastern Europe (transition economies) the term energy poverty
Energy poverty
Energy Poverty is a term for a lack of access to electricity, heat, or other forms of Power. Often referring to the situation of peoples in the developing world, the term also implies any quality of life issues relating to this lack of access....
is sometimes used instead. However this use of the term (which is about a lack of access to energy services due to economic poverty) can be confused with indicating a lack of any access to energy infrastructure, as has been used by the World Economic Forum
World Economic Forum
The World Economic Forum is a Swiss non-profit foundation, based in Cologny, Geneva, best known for its annual meeting in Davos, a mountain resort in Graubünden, in the eastern Alps region of Switzerland....
when establishing its Energy Poverty Action (EPA) initiative in 2005 to address energy poverty in the developing world by implementing electrification schemes (grid-extension and off-grid).
Causes of Fuel Poverty
Fuel Poverty is caused by a convergence of four factors:- Low income, which is often linked to absolute poverty
- High fuel prices, including the use of relatively expensive fuel sources (such as electricity in the UK, aggravated by higher tariffs for low-volume energy users)
- Poor energy efficiencyEfficient energy useEfficient energy use, sometimes simply called energy efficiency, is the goal of efforts to reduce the amount of energy required to provide products and services. For example, insulating a home allows a building to use less heating and cooling energy to achieve and maintain a comfortable temperature...
of a home, e.g. through low levels of insulation and old or inefficient heating systems - Under-occupancy: according to UK government statistics, on average those in the most extreme fuel poverty live in larger than average homes
The most effective way of combating fuel poverty, if one excludes forcible rehousing, is to target energy efficiency measures on homes typically occupied by those on low incomes. A home with a very low energy requirement to provide adequate warmth can generally be occupied by those on relatively low incomes without leading to fuel poverty. The sharp rise in fuel prices from 2006-8 has led to an estimated doubling of the numbers in fuel poverty in countries where it is a major problem.
A number of illnesses, including cancer
Cancer
Cancer , known medically as a malignant neoplasm, is a large group of different diseases, all involving unregulated cell growth. In cancer, cells divide and grow uncontrollably, forming malignant tumors, and invade nearby parts of the body. The cancer may also spread to more distant parts of the...
can exacerbate fuel poverty.
United Kingdom
In early 2008 it was estimated by Energywatch that there were around 4.4 million households in fuel poverty in the UK, with just over 3 million in England alone. This was more than double the number in 2003.By April 2011 a YouGov
YouGov
YouGov, formerly known as PollingPoint in the United States, is an international internet-based market research firm launched in the UK in May 2000 by Stephan Shakespeare, now Chief Executive Officer, and Nadhim Zahawi...
survey indicated that the number of households in fuel poverty had risen to 6.3 million households, representing approximately 24% of all households in the UK.
Research by Confused.com
Confused.com
Confused.com, part of the Admiral Group, is a British price comparison website specialising in insurance and financial services.-History:Confused.com launched in 2002, becoming the UK’s first car insurance comparison site. It is based in Cardiff, Wales with its offices located near the headquarters...
found that 82% of the UK population had expressed a concern at being able to afford their energy bills throughout winter.