1. National energy efficiency schemes
Energy efficiency is part of the UK and devolved governments’ national energy strategies, which have the shared goals of reducing harmful emissions into the environment and tackling fuel poverty. It is widely accepted that the main cause of fuel poverty in the UK is a combination of low household incomes, high fuel costs and poor energy efficiency. In Scotland, a fourth driver of fuel poverty is recognised: how energy is used in the home, where a lack of knowledge on reducing consumption safely contributes to people’s fuel poverty.1Scottish government, Draft Fuel Poverty Strategy for Scotland 2018, June 2018 Often people cannot afford to adequately heat their homes because they are not sufficiently insulated or in a poor state of repair, or because expensive or inefficient appliances are being used. Substantial savings in fuel bills can be achieved by introducing energy efficiency measures and adopting more energy-efficient behaviours.
Successive governments have acknowledged that energy efficiency should play a central role in improving living conditions for the fuel poor in the UK. Fuel poverty is a devolved matter, with separate definitions, targets and strategies adopted by each nation.
An official overall UK figure for fuel poverty is no longer measured. However, fuel poverty charities estimate that fuel poverty currently affects over 6 million households.2 There are now several officially accepted ways to define and measure fuel poverty in the UK. According to the original definition, a household is fuel poor if over 10 per cent of its disposable income is spent on fuel. This definition has been retained in Wales and Northern Ireland. England uses the ‘low income high costs’ indicator to measure fuel poverty. This is a relative measure of fuel poverty, which also measures the ‘fuel poverty gap’ – the reduction in required spending for a household not to be considered fuel poor. In Scotland, a household is in fuel poverty if its fuel costs (necessary to meet the requisite temperature and number of hours as well as other reasonable fuel needs) are more than 10 per cent of the household’s adjusted net income and, after deducting these fuel costs, benefits received for a care need or disability and childcare costs, the household’s remaining income is not enough to maintain an acceptable standard of living.3Fuel Poverty (Targets, Definition and Strategy) (Scotland) Act 2019 This chapter looks at what help and support is available, how to access it and who is eligible. See also Chapter 13 for information on how you can exercise your rights against low-standard properties.