Friends of the Earth has published research identifying almost 9,000 energy crisis hotspots across England and Wales, neighbourhoods where communities are at greatest risk of serious financial hardship from unaffordable energy costs1. The findings were released by the End Fuel Poverty Coalition, which reported that the neighbourhoods worst affected by soaring energy prices have been identified for the first time1.
Energy crisis hotspots are defined in the research as neighbourhoods where energy use is high and typical household income is below the national average1. In many cases, energy use is high because homes are poorly insulated, meaning they require more energy to remain warm1. The analysis found that these at-risk neighbourhoods are home to a higher proportion of children than other areas, and that people of colour are twice as likely to live in them1.
Birmingham ranks first, Bradford second, Cornwall third and Sandwell fourth, with County Durham and Enfield joint fifth among 30 local authority areas with the most energy crisis hotspots1. Birmingham and Bradford also top a list of areas with the most homes missing basic insulation measures1.
The research was published as energy costs were expected to climb further, with the new energy price cap due to be announced by the regulator Ofgem1. The average annual energy bill was at that point more than 50 per cent higher than six months earlier1. Forecasts cited in the announcement predicted annual energy costs would exceed £3,500 for the average household from October, rising to £4,200 by January, with Cornwall Insight predicting prices would remain high throughout 2023 and beyond1. Recent estimates cited predicted one in three households would be living in fuel poverty that October unless the government meaningfully intervened1. Rent had increased by an average of 11 per cent that year1.
A separate report by the New Economics Foundation on behalf of Friends of the Earth set out how an emergency energy efficiency scheme for England and Wales could be delivered by local authorities over the coming months, starting with the neighbourhoods most in need1. It found households could save between £490 and £720 each year on their bills through a council-led, street-by-street programme of insulation and other energy saving measures, with those estimates made before the most recent price cap forecasts, making the potential savings higher1. Friends of the Earth estimated total costs for an England and Wales scheme at around £15 billion, which it said is three times lower than what households could save over a ten year period as identified in the NEF report1. The group said the government could begin rolling out such a scheme using money raised through its Windfall Levy, expected to raise around £5bn1.
Mike Childs, head of science, policy and research at Friends of the Earth, said:
"The highest priority of all is fixing the UK's leaky, inefficient housing stock, otherwise cash handouts will be required year on year. By rolling out a free programme of street-by-street energy efficiency measures, prioritising the most in-need neighbourhoods, we can help to bring bills down quickly, make homes warmer and slash Earth-warming emissions at the same time."
Why it matters for households
The research links high energy use to poor insulation rather than to high consumption alone, which means the households identified as most at risk are those paying for heat that their homes lose1. For a household, that gap between what is spent on energy and what is retained as warmth is the practical measure of energy independence: a well-insulated home needs less bought energy to reach the same temperature, so it is less exposed to price cap movements. The official energy statistics publications set out the price cap and consumption data behind these figures, and the housing stock data for England and for Wales show the condition of the homes involved. Insulation measures are the mechanism the research identifies for closing the gap, and the EPC D or below figures for England indicate how many homes fall short of the higher efficiency bands. The savings range of £490 to £720 a year applies to the programme as modelled, not to any individual property, and no per-home figures by area have been reported1.
What happens next
The new energy price cap was due to be announced by Ofgem later that week1. In England, Friends of the Earth called on the candidates vying to be the next Prime Minister to commit to a rapid programme of free, council-led street-by-street loft and cavity wall insulation and basic energy efficiency measures, and to guarantee better emergency financial support if elected1. In Wales, the group urged the Welsh government to urgently roll out its Warm Homes Programme, prioritising the most in-need households and neighbourhoods for insulation1. No timetable for either commitment has been reported1.
Sources1 cited
- 9,000 energy crisis hotspots in England and Wales revealed - End Fuel Poverty Coalition, endfuelpoverty.org.uk