About the National Fuel Poverty Strategy
In 2001 the Government published the UK Fuel Poverty Strategy. The Strategy's aim was to tackle the growing numbers of households that could not afford to heat their homes to an acceptable level. This placed a statutory duty on the Government to ensure the eradication of fuel poverty in vulnerable households by 2010 and in all other households by 2016.
Initially,progress was good due to falling fuel prices, rising incomes and better home energy efficiency. However, since 2004 significant fuel price rises have seen a worsening of fuel poverty. The Department for Business, Enterprise and Regulatory Reform (BERR) estimates that a 1% real change in both gas and electricity prices would imply an increase of 40,000 households in fuel poverty and Consumer Focus (previously EnergyWatch) estimate that average fuel prices rose by 38% in 2008 alone.
Latest figures show that there are 4.6 million households in fuel poverty in England in 2010 compared to 1.2 million in 2004. This is largely due to gas and electricity bills increasing by 125% in this period. Those using heating oil or liquid propane gas have experienced even bigger increases. In terms of ‘vulnerable households’ it is estimated that there were 2.7m in fuel poverty in 2008 in England, against a total of 3.3m fuel poor households at that time.
Indications are that the long term trend for energy prices is upwards. Ofgem predicts that a typical dual-fuel energy bill could increase from around £1200 p.a. (in 2009) to between £1300 and £1800 (at 2009 prices) by 2020. This is partly due to £150 billion of potential power infrastructure replacement work plus the cost of achieving the Government’s target to reduce greenhouse gas emissions by 34% by 2020 (based on 1990 levels).
Fuel Poverty in the Wakefield District - 2009/10
Research performed in 2009/10 suggests fuel poverty in the Wakefield district had risen to 26.2% (private sector only). This rise is primarily due to the increase in fuel price rises. It is estimated that although fuel poverty on the whole has increased, around 3,700 households have been brought out of fuel poverty as a result of the Wakefield Affordable Warmth Strategy 2007-2010.
Although benefit recipients are much more likely to be in fuel poverty, the bulk of fuel poverty (76% in 2009) occurs in households that are not claiming Council Tax Benefit, suggesting that there is scope for many households that fall into this category to access unclaimed benefits.
Fuel poor private households are more likely to be in an older property, and less likely to have wall insulation. The percentage of fuel poor households with a SAP rating of 60 or more, meaning more likely fuel bills will be affordable, is 28.6%. This suggests that income is a major factor resulting in fuel poverty, as rising fuel prices mean that many households living in relatively energy efficient homes will still experience fuel poverty if their income is low.
Research performed in 2007 showed that high levels of fuel poverty were dispersed across the Wakefield district and the 2009 research illustrates that this is still the case.
Fuel Poverty in the Wakefield District - 2007
Fuel poverty is notoriously difficult to measure and monitor given the complexity of the issues. In October 2006 the Centre for Sustainable Energy (CSE) were commissioned to produce a detailed analysis of fuel poverty in the District with the aim of creating a baseline to help monitor the progress of the 'Wakefield Affordable Warmth Strategy 2007-2010'.
Research in 2007 found that the baseline rate of fuel poverty in Wakefield for 2007 was 18.2% or 24,240 households. (Please note this is a revised rate and slightly lower than the figures quoted in the Wakefield Affordable Warmth Strategy 2007-2010).
The levels of fuel poverty have risen sharply since 2003 due to fuel price rises. The average rate of fuel poverty in Wakefield in 2003 was 7.7% (10,200 households). This is the same rate as Yorkshire and Humberside. The average rate of fuel poverty in England in 2003 was 7.2%.
There are ‘pockets’ of concentrated fuel poverty in some areas of Wakefield. There are high concentrations of fuel poverty within the wards of Castleford Glasshoughton, Hemsworth, South Elmsall, South Kirkby, Wakefield Central, Featherstone, Castleford Ferry Fryston and Knottingley.
Apart from these concentrations, fuel poor households are dispersed widely across the district. For example, over a third of Wakefield’s fuel poor households live in the 4 least fuel poor areas. Conversely, 15% of households live in the first most fuel poor area.
