As of October 2022, the number of UK households in fuel poverty is 6.7 million. The average annual energy bill in October 2021 was £1,271, now even with the government support package, it’s now around £2,500, on average. (The total energy bill is NOT capped – it’s the price per unit. If you use more than average, you will pay more).

In 2021 the Government redefined fuel poverty for English households. The ‘Low Income Low Energy Efficiency’ (LILEE) indicator counts a household as fuel-poor if they are living in a property with an energy efficiency rating in band D, E, F or G and their disposable income (income after housing costs and energy needs) is below the relative poverty line.

The cost of fuel has risen significantly, which is an increasing concern as the winter months approach. In July 2022, nearly half (46%) of adults in the UK found it somewhat or very difficult to pay their energy bills, representing an increase from 43% in the previous month (ONS, 2022).

Homes that are cold due to fuel poverty exacerbate health inequalities. Cold homes can cause and worsen respiratory conditions, cardiovascular diseases, poor mental health, dementia, hypothermia and problems with childhood development. In some circumstances, health problems may be exacerbated to a degree that they may cause death.

In 2019 it was estimated the NHS spends at least £2.5 billion per year on treating illnesses that are directly linked to cold, damp and dangerous homes.

Cold homes and fuel poverty contribute to the phenomenon of excess winter deaths. England saw an estimated 63,000 excess winter deaths in 2020–21. Estimates suggest that some 10 per cent of excess winter deaths are directly attributable to fuel poverty.

Who will be most affected?

There are populations in our society who are likely to be disproportionally affected by the increased living costs 

• Low-income households with children

• People with long term health conditions

• People living in deprived areas

• People from black, Asian and minority ethnic communities

• People with a disability

• Older adults

• People who are just about managing financially.