Fuel Poverty remains one of the most challenging aspects of financial exclusion. A 2015 Independent news piece estimated that 15,000 people die a year from fuel poverty in the UK alone. Frustratingly, fuel poverty is a durable feature of financial exclusion, and one that successive administrations and initiatives have failed to tackle.

Definition in the UK, fuel poverty is defined by the Warm Homes and Energy Conservation Act as: “a person is to be regarded as living “in fuel poverty” if she is a member of a household living on a lower income in a home which cannot be kept warm at reasonable cost”. Statistically, this used to be defined as a household needing to spend more than 10% of its income to maintain an adequate heating regime. However, definitions of “income” and “adequate heating regime” vary between UK Government and Devolved Administrations. A new, more complex definition of fuel poverty is now used in the UK, based on the Hills review. This gave the following definition: fuel poverty is now defined as when a household’s required fuel costs are above the median level, and if they were to spend what is required, then the household would be left with a residual income below the official poverty line. Fuel poverty in England is measured using the Low Income High Costs (LIHC) indicator. The most recent Annual Fuel Poverty Statistics Report is available here. In it the average fuel poverty gap is estimated at £353, ie that is the sum by which households in fuel poverty fall short of being able to afford proper heating. The government’s own report suggests that 2.5 million homes are in fuel poverty, suggesting nearly a £1bn shortfall.

Help
There are many ways that fuel poverty can be combatted…

Energy Grant Calculator
Government calculator that will work out what grants and assistance any individual is entitles to. Find it here
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Energy Company Assistance Funds
One of the best resources available is surprisingly hard to find. Auriga Services is a social enterprise that works with major energy companies and manages their assistance funds. Their excellent booklet is available from their website (choose ‘media’ and then ‘Help with Water & Energy booklet’, you’ll have to register, but it’s worth it.) The booklet lists every major water and energy company, the key contact, and all the schemes they run to support people struggling to pay their bills. It’s gold dust for financial inclusion practitioners and should be more widely available.

Warm Homes Discount scheme
There is a £140, one-off  ‘discount’ available to two key groups.

• if you get the Guarantee Credit element of Pension Credit – known as the ‘core group’
• if you’re on a low income and meet your energy supplier’s criteria for the scheme – known as the ‘broader group’

Only the big six energy suppliers are required by government to offer the scheme, so switching to a cheaper tariff may not be sensible for people who qualify for the Warm Homes Discount scheme.

Cold Weather Payment
This is a non-means tested payment of £25 that is paid automatically to everyone of pensionable age whenever the temperature falls below zero degrees celsius for seven days in a row.

Winter Fuel Payment
Also paid automatically to anyone born after August 1953, this ‘sort-of’ means-tested payment is between £100 and £300 depending on your circumstances.

Free Boiler scheme
More properly known as the ECO scheme, and things such as insulation or connection to district heating schemes are eligible too. Take up has been very low, so there’s plenty of money left! Contatct the Energy Saving Advice Service (0300 123 1234)

Here’s how OFGEm describes the scheme
As of 1 April 2017, ECO will consist of two separate obligations:
1) The Carbon Emissions Reduction Obligation (CERO). Suppliers are obliged to reduce carbon emissions by promoting the installation of wall and roof insulation and connections to district heating systems.
Other insulation measures can also be installed, as long as they meet certain conditions.
At least 15% of the target must be achieved in rural areas.
2) The Home Heating Cost Reduction Obligation (HHCRO).
For the HHCRO, suppliers must deliver energy efficiency measures that reduce home heating costs for low income, fuel poor and vulnerable people. HHCRO measures can be delivered to:

• private domestic premises occupied by someone in receipt of specific benefits (the help to heat group)
• private domestic premises where they are referred to ECO through a local authority declaration, and
• social housing where the premises has an EPC energy efficiency rating of E, F or G. Only insulation and first time central heating measures can be delivered to these premises.

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