The government's own assessment of progress towards its fuel poverty milestones was published on 18 January 2023 in response to an Environmental Information Regulations request, and was later set out in the Committee on Fuel Poverty's annual report1. The figures state that current announced policies are expected to upgrade around 140,000 homes rated E, F or G to Band D or above by 2025, which would leave 515,000 fuel poor households still rated E-G in that year1.
The statutory target, as described by the National Insulation Association, is for as many fuel poor homes as is reasonably practicable to reach a minimum energy efficiency rating of Band C by 2030, with interim milestones of Band E by 2020 and Band D by 20251. The 2020 milestone has still not been met, and 704,000 properties in England rated E, F and G require upgrading or the 2025 milestone will be missed1. Meeting the 2030 target would involve upgrading approximately 3.26 million D-G rated households to a C rating, requiring at least 365,000 D rated properties to be upgraded each year from 2023 to 20301.
The report places those figures against wider movement in and out of fuel poverty. Since 2021, rising fuel prices have forced 287,000 more households into fuel poverty, while energy efficiency measures contributed to some 145,000 households being removed and increased incomes lifted 48,000 out, a net increase of 100,000 compared with 20211. The government forecasts a further rise to 3.53 million fuel poor households this year, a rise of 270,000, and a widening of the fuel poverty gap to an average of £443 per household, an increase of 31%1.
"Current announced policies are expected to upgrade around 140,000 E-G homes to D+ by 2025. This would result in 515,000 fuel poor households still being rated E-G in 2025."
The report makes five broad recommendations: a robust fuel poverty strategy with effective measurement; better targeting of bill support and energy efficiency programmes; fairer pricing and better regulation; a shared mission across government, local government and the NHS; and a fair transition to net zero that does not increase fuel poverty1. These are underpinned by 19 calls to action1.
| Milestone | Requirement | Position reported |
|---|---|---|
| 2020 | As many fuel poor homes as reasonably practicable to Band E | Not met1 |
| 2025 | As many fuel poor homes as reasonably practicable to Band D | 140,000 E-G homes expected to reach D+; 515,000 still E-G1 |
| 2030 | As many fuel poor homes as reasonably practicable to Band C | About 3.26 million D-G homes to upgrade; 365,000 D rated homes per year from 20231 |
Why it matters for households
The energy efficiency rating of a home sets how much energy it takes to keep warm, and therefore how exposed its occupants are to prices. A household in Band E, F or G needs more units of gas or electricity for the same warmth than one in Band D or C, so the same tariff produces a larger bill. The gap between what fuel poor households pay and what other households pay is put at an average of £443 per household, up 31%1.
For a household already at Band D or above, the figures describe the pace of the wider programme rather than an immediate change to their own rating. For the 515,000 fuel poor households the government expects to remain at E-G in 2025, the assessment implies no upgrade under announced policies by that date1. The rules that govern how energy regulation and policy applies to rented and owned homes, and the work of DESNZ in setting them, determine which properties are addressed and when. The 2030 target sits alongside the wider carbon budgets and net zero targets that shape retrofit policy, while new-build standards are dealt with separately under the Future Homes Standard.
What happens next
The government has declared its intention to review the 2021 Fuel Poverty Strategy, and the report is expected to inform that review1. No date for the review has been reported.