2.1 Measuring fuel poverty on a UK wide basis is complex as figures are estimated on a country by country basis to different timescales and slightly different definitions. Nonetheless, the latest estimates indicate that in 2006, there were approximately 3.5 million households in fuel poverty, an increase of around 1 m households since 2005. Around 2.75 million of these were vulnerable households, an increase of around 0.75 million. The increase reflects the impact of energy price rises in recent years on the number of households in fuel poverty.

n Total UK fuel poverty         n Fuel poverty in vulnerable homes

Progress in England

2.2 Based on the results of the 2006 English House Conditions Survey, the overall number of households in fuel poverty in England in 2006 was estimated to be 2.4m (around 11.5% of all households) of which around 1.9 million were vulnerable. This represents a total rise of 0.9m households since 2005 and a rise of 0.7m vulnerable households over the same period. Further details explaining reasons behind the change in fuel poverty between 1996 and 2006 are included in the statistical annex to this report.

2.3 Rising energy prices have made the challenge of tackling fuel poverty more difficult. Therefore, whilst the current mix of fuel poverty measures will not totally eradicate fuel poverty amongst vulnerable households by 2010, the package announced on 11 September underlines the Government’s commitment to doing all that is reasonably practicable to ensure that such households do not live in fuel poverty. We remain committed to doing all that is reasonably practicable to eradicate fuel poverty in all households by 2016.

2.4 Projections of fuel poverty in England for 2007 (as detailed in the statistical annex to this report) show that prices are likely to have pushed a further 0.7 million households into fuel poverty.

Numbers of Households in Fuel Poverty in England 1996 - 2006 (Bracketed figures are based on levels using the basic income definition)

Projections for 2008 show a further increase in fuel poverty for England, of around 0.5 million households.

2.5 Further work has been carried out over the last year to improve the methodology used to calculate these statistics. These changes will have a small effect on the overall statistics, and are set out in the methodology annex. Statistics http://www.berr.gov.uk/files/file48039. pdf

Progress in Scotland

2.6 The table below shows levels of fuel poverty in Scotland over the 10 years between 1996 and 2006.

2.7 The “Fuel Poverty in Scotland Report,” 2004, concluded that half of the change in fuel poverty between 1996 and 2002 could be attributed to increases in household incomes; 35 per cent was due to decreasing fuel prices and 15 per cent to improvements in the energy efficiency of the home. Rising fuel prices since 2003 have been pushing fuel poverty numbers steadily upwards again.

2.8 The Scottish Government has conducted a Review of Fuel Poverty which was published in May of this year and is available at http://www.scotland.gov.uk/Topics/Built Environment/Housing/access/FP/fuelpove rtyreview. The review indicates that more than half of the household groups that primarily benefit from current fuel poverty programmes are not fuel poor and, conversely, many of those who are fuel poor are not currently eligible for help. It shows clearly that some refocusing of programmes will be essential to achieve the 2016 fuel poverty target.

2.9 The Cabinet Secretary for Health and Wellbeing made a statement on fuel poverty to the Scottish Parliament on 22 May which can be read at http://www.scottish. parliament. uk/busin ess/officialReports/meetingsParliament/or -08/sor0522-02.htm#Col8934. In it the Cabinet Secretary announced the reconvening of the Scottish Fuel Poverty Forum to examine the programmes and make recommendations for moving it forward in a way that tackles fuel poverty more effectively and makes better use of the resources that are available. The Forum will report shortly and its recommendations will be considered for implementation as soon as possible.

Progress in Wales

2.10 The 2004 Living in Wales survey estimated that there were 130,000 households in Wales in fuel poverty. Modelling to produce projections from

Source: Scottish House Condition Survey, Scottish Government

the 2004 data for the number of households in fuel poverty in Wales in 2005 and 2006 has also been carried out. This modelling estimates that there were 166,000 households in fuel poverty in Wales in 2005 and 243,000 in 2006, and took into account increases in gas and electricity prices since 2004.

2.11 As with the 2004 survey, the 2008 Living in Wales survey will include a property survey which will enable the number of households in fuel poverty in Wales to be calculated. The results of the fuel poverty analysis of the 2008 survey are expected to be available in 2009/10.

Progress in Northern Ireland

2.12 The Northern Ireland House Condition Survey 2006, reported that 34% of all households in Northern Ireland were defined as being fuel poor. The Warm Homes Scheme continues to be Northern Ireland Executive’s main tool in the alleviation of fuel poverty. In response to the ever increasing cost of fuel, Margaret Ritchie, the Northern Ireland Minister for Social Development established a Fuel Poverty Task Force in May 2008, which brought together representatives from Government departments and the wider energy sector. The Task Force was asked to identify measures to tackle fuel poverty, including short term recommendations which could be developed to assist those most in need this winter. The Minister has circulated a paper to her Ministerial colleagues in the Executiveoutlining proposals to alleviate fuel poverty.

2.13 The Fuel Poverty Advisory Group in Northern Ireland published its third annual report in September 2008. The report acknowledged the substantial progress made and provides a challenge across Government Departments to develop or adjust policy in order to alleviate fuel poverty.

Fuel Poverty Statistics and Winter Fuel Payments

2.14 For the purposes of the Government’s fuel poverty statistics, and consistency with other statistics, Winter Fuel Payments are classified as an addition to recipients’ incomes. They make an important contribution to tackling fuel poverty and are responsible for taking around 100,000 households out of fuel poverty in England in 2006 (and around 200,000 in the UK as a whole).

2.15 However, whilst it remains appropriate to consider Winter Fuel Payments in this way for statistical purposes, to gain a full picture of the impact of Winter Fuel Payments on the situation of fuel poor households, it is also useful to consider what effect they would have if used to meet energy bills directly.

2.16 Taking this approach, around 600,000 fewer households in England (and around 1.1 million fewer households in the UK as a whole) are shown to need to spend more that 10% of their income in order to meet the remaining costs of heating their home adequately.

Estimated number of households in fuel poverty in England if winter fuel payments were deducted from fuel bills, 1996-2006.(Full income definition only – Numbers in brackets are the fuel poverty figures using the official statistical methodology)