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E3G publishes report on supporting warmer homes for rural communities

E3G research published on 9 August 2023 sets out the higher fuel poverty gap faced by rural off-gas-grid households in England and recommends a rural uplift to two government heating schemes.

A newspaper on a kitchen table beside a model of grants and schemes

E3G published research on 9 August 2023 examining inequalities in access to affordable clean heating for rural, off-the-gas-grid communities in England, and set out recommendations including a nationwide rural uplift to the Boiler Upgrade Scheme and the Great British Insulation Scheme1.

The report states that most off-grid homes are heated using oil and liquefied petroleum gas (LPG), which it describes as among the most expensive and carbon intensive fossil fuels, and that leakier properties cost more to heat1. It gives the 2022 fuel poverty gap, defined as the reduction in fuel costs needed for a household to move out of fuel poverty, as £677 for rural households overall and £956 for households in rural villages, hamlets and isolated dwellings, against £265 for urban households1.

"Our research looks at the inequalities in access to affordable clean heating that rural, off-the-gas-grid communities in England face."
E3G, Supporting warmer homes for rural communities1

The recommendations cover both financial and non-financial measures. On costs, E3G calls for a nationwide rural uplift to the Boiler Upgrade Scheme and the Great British Insulation Scheme, citing higher upfront costs for retrofitting larger, leakier, detached properties, and says the scope and scale of the Homes Upgrade Grant should be expanded1. It also calls for a phased-in, worst first approach to phasing out fossil fuels, noting that the government has consulted on phasing out fossil heating systems in off-grid homes from 2026, and for additional non-financial support including independent advice services and awareness raising campaigns1. Further recommendations are to change the planning system and enable upgrades to the electricity grid so that no areas are left behind1.

The fuel poverty gap figures by household type, as reported by E3G for 2022, are set out below.

Household groupFuel poverty gap, 2022
Rural households overall£677
Rural villages, hamlets and isolated dwellings£956
Urban households£265

Why it matters for households

For homes off the gas grid, the choice of heating fuel and the cost of improving the building itself are the two levers on energy independence, and the report indicates both are harder to pull in rural areas. Oil and LPG are delivered fuels, so a household's exposure to price movements sits with the tank rather than a mains supply, and the higher fuel poverty gap figures suggest the shortfall between what rural households pay and what they would need to pay to leave fuel poverty is larger than in towns and cities1. The recommendation for a rural uplift rests on the argument that detached, leakier properties in these areas cost more to retrofit, which affects the upfront cost of moving to a heat pump or of insulating to a standard that lowers running costs1. The report also links the transition to lower bills, describing it as a permanent solution to the cost-of-oil crisis, and notes that running costs of electricity would need to fall for low-income homes to benefit1. Details of how a rural uplift would be structured, its value or its eligibility rules are not reported in the research summary.

What happens next

E3G states that the government has consulted on phasing out fossil heating systems in off-grid homes from 2026, and supports starting with the most polluting fossil fuels so that households have time to plan and invest1. No decision, timetable or funding commitment on the recommendations has been reported. Households in England can check eligibility rules for the Boiler Upgrade Scheme and other home energy grants in England, and guidance on heating a home off the gas grid and energy in rural homes sets out the options.

Sources1 cited
  1. Supporting warmer homes for rural communities - E3G, e3g.org