National Energy Action (NEA) has published its annual Fuel Poverty Monitor with Energy Action Scotland and Gemserv, which finds a funding gap of at least £18 billion for energy efficiency measures needed to meet the legal requirement that fuel poor homes in England reach a reasonable standard of energy efficiency by the end of this decade1. The report was released on 15 February 2024, the same day the UK government published its official Fuel Poverty Statistics for England1.
The government figures show 3.17 million households in England are in fuel poverty, virtually unchanged from 3.18 million in 20221. The statistics also show 1.17 million households with children in England are in fuel poverty, up from 1.15 million in 2022, and 2.1 million vulnerable households are now in fuel poverty, an increase from 20221. Fuel poor households pay on average £417 a year more for energy than if they were living in a more efficient home, and the fuel poverty gap has grown by 66% since 20201. NEA estimates 6.5 million UK households are in fuel poverty, paying 10% of their income on energy bills1.
The Monitor states that effective regulation of private and social landlords would reduce the investment gap to £10.8 billion of central investment required, and that in the private rented sector alone this could remove almost two-fifths of all households from fuel poverty in England by 20301. NEA recommends the UK government commits an additional £2 billion per year to ensure 90% of fuel poor homes in England are insulated to EPC C before the target date, up from approximately £0.5 billion per year currently1. The report says the poorest households could be left paying on average £480 more a year to meet their energy needs if the gap is not filled1.
On bills, NEA states the typical annual energy bill was £1,276 in October 2021, is currently £2,000, and is forecast to reach £1,640 from 1 April1. It says that while bills are forecast to fall by around 16% in April, this still leaves them far higher than pre-crisis levels, with households burdened by record energy debt of £2.9 billion1.
"At this rate, the government will miss its 2030 legal fuel poverty target by a country mile and millions will be stuck unable to afford to keep their homes and their families warm and well."
YouGov polling of 2,016 adults in Great Britain on 25 to 26 January 2024, commissioned by NEA, found 30% said their household had found it difficult to afford to pay energy bills in the past three months1. In the last three months, 59% had turned their thermostat down lower than they wanted, 52% turned their heating off even though it was cold inside, 49% had gone to bed early to stay warm, 45% heated only one room, 28% left curtains closed all day or covered windows in newspaper, 22% left the house to avoid putting the heating on, and 6% had foraged locally for wood or other fuel1. The polling also found 87% of British adults support the government providing grant funding for low-income households to improve the energy efficiency of the homes they own1.
Why it matters for households
The figures describe the gap between the legal target for England's fuel poor homes and the money committed so far. For a household in a cold, inefficient home, the Monitor's estimate that the poorest could pay £480 more a year than necessary is the practical measure of that gap: the same warmth costs more because the building leaks energy. The £417 average fuel poverty gap points the same way, as does the finding that the government metric for how many low income households live in the least efficient homes has remained unchanged since 20201. Improving a home's fabric reduces how much energy it takes to keep warm, which is the part of a household's energy position it can control; the price of that energy is set elsewhere. The Monitor's landlord regulation findings suggest the tenure of a home affects how quickly that improvement happens. For households in England, free advice is available through Home Energy Advice in England, and in Scotland through Home Energy Scotland. The Home Energy Efficiency Tool sets out what measures apply to a property, and How much could I save by improving my home's energy efficiency? covers the savings question. Landlords considering upgrades can find the funding position in Funding Energy Upgrades as a Landlord.
What happens next
The energy price cap is forecast to reach £1,640 from 1 April1. NEA is calling for a social tariff for those on a low income, a help-to-repay scheme for energy debt, and increased investment in energy efficiency1. The government has not responded to the Monitor's £18 billion funding gap figure in the material published alongside the statistics; no commitment to the additional £2 billion per year has been reported1.