Fuel Poverty Report

Since the energy crisis began in the Autumn of 2021, the proportion of fuel-poor houses in the UK has absolutely sky-rocketed. According to the Child Poverty Action Group, in 2019/2020, 19.2% of UK households were fuel-poor; by January 2023 this had increased to 55.8%.

Households now living in fuel poverty have impossible choices to make, which usually result in going hungry or slipping into debt. The average electricity bill debt in the UK is around £1,214. Whilst the government did put vital energy crisis support in place last winter, more than one million eligible households missed out on this crucial support. According to the chief executive of the National Energy Action, around £440 million went back into the treasury when it should have gone to households struggling with the cost of energy.

Furthermore, according to The Trussel Trust, over 90% of food banks in their network had people referred to them who were experiencing fuel poverty. And four in five food banks in their network identified fuel poverty as a significant concern.

Our experts at BOXT have analysed data from the Child Poverty Action Group and the UK government to reveal the state of fuel poverty in England. We have looked at the regions in the UK that are most affected by fuel poverty, as well as offering a breakdown of fuel poverty by house type, income, and what fuel your boiler uses for England.

Key findings: 

• Much of Northern England is worst affected by fuel poverty, as the North East, North West, and Merseyside, and Yorkshire & the Humber all have fuel poverty rates above 67%. 

• Residents of converted flats suffer fuel poverty more than residents of other property types, at a rate of 24.82%. 

• The fuel poverty gap for fuel-poor residents of detached houses is around £702, almost double the average UK fuel poverty gap of £337. 

• Houses fueled by electricity have the highest rate of fuel-poor households, with a rate of around 21%. 

Andy Kerr, Founder at BOXT, comments:

“It is sadly unsurprising but, nonetheless, shocking that such a high proportion of people in the UK are living in fuel poverty. 

“This year, the UK government will be offering some help to those struggling to pay their energy bills. The Winter Fuel Payment scheme, a one-off payment of up to £600, is available to those born before September 25, 1957. There is also the Warm Home Discount Scheme, which is expected to run again this year, offering a one-off £150 discount to those eligible.

“That being said, it is clear that the support offered by the government is not enough to help most households, as the cost of living is still high in other areas too. We need to prioritise the development of long-term solutions to reduce our reliance on fossil fuels and make more sustainable energy solutions more accessible and affordable for households in the UK.” 

Regions in the UK worst affected by fuel poverty

The Low-Income Low Energy Efficiency indicator measures fuel poverty in England. A household is considered fuel-poor if the property they live in has an energy efficiency rating of band D or below, and when they spend the required amount to heat their home, they are left with a residual income below the official poverty threshold. The threshold for fuel poverty is defined as spending ten percent or more of the total income after housing costs on fuel.

1. North East

Estimated % of households in fuel poverty: 73.1%

The North East of England is the region worst affected by fuel poverty, as almost three-quarters of households are expected to be fuel-poor by April 2024. This is a massive increase of one quarter (25%) on the estimations from the year prior when 58.6% of households were predicted to be fuel-poor by the start of 2023.

2. Northern Ireland

Estimated % of households in fuel poverty: 71.6%

Coming in as the region with the second-highest level of fuel poverty in the UK, we have Northern Ireland. Current estimations predict that 71.6% of the country’s households are fuel-poor, a 0.14% decrease from the previous year's estimations.

3. Scotland

Estimated % of households in fuel poverty: 70.1%

Scotland is the third-worst fuel poverty-affected region in the UK, with 70.1% of households predicted to be fuel-poor by April 2024. This represents a 14% increase from the predictions made the year prior, which stated that 61.5% of households would be fuel-poor in Scotland by January 2023.

Regions in England with the largest fuel poverty gap

The fuel poverty gap is the reduction in required fuel bills that the average fuel-poor household needs to be no longer classed as fuel-poor. The following estimates on the fuel poverty gap in each region of the UK are taken from government data relating to fuel poverty in 2022 and how the situation has changed since the previous year.

1. South West

Average fuel poverty gap: £521

The South West of England, home to Bournemouth and Bristol, is the region with the country's most significant fuel poverty gap. As the latest data shows, the fuel-poor households in the area would need a £521 reduction in energy bills to no longer be considered fuel-poor. This gap is 54% higher than the £338 average for all of England. The fuel poverty gap in the South West has increased by almost half (48%) from 2021.

2. North West

Average fuel poverty gap: £442

The area in England with the second-highest fuel poverty gap is the North West. Fuel-poor households in this region would need a £442 reduction in energy bills per household to no longer be fuel-poor, which is almost a third (31%) higher than the average for England. In 2021, the fuel poverty gap in the North West was £347, meaning that it has increased by 27% in 2022.

3. East

Average fuel poverty gap: £435

And rounding out the top three areas in England with the highest fuel poverty gap, we have the East of England, which includes cities such as Cambridge, Luton and Peterborough. This area’s fuel-poor households would need a £435, which is 29% higher than England’s average, reduction in fuel spending to no longer be considered as such. The year prior, the East of England had a fuel poverty gap of £248, meaning that in 2022 the gap increased by 75%. This can largely be attributed to the skyrocketing energy prices the UK had endured in late 2022.

Property types in England most affected by fuel poverty

1. Converted flat

Proportion of fuel-poor households: 24.82%

The property type with the highest proportion of fuel-poor households in 2022 was converted flats, with 24.82% of families living in this property type in England being fuel-poor. This is over 10% higher than the average for properties in England, which is 13.4%.

2. End-terrace

Proportion of fuel-poor households: 19.81%

End-terrace houses are the property type with the second highest proportion of fuel-poor households as of 2022. Somewhat similar to semi-detached houses in that you are only connected to one other house, they are classified differently due to their terraced status. Of the people in England who reside in this property type, 19.81% are fuel-poor.

3. Mid-terrace

Proportion of fuel-poor households: 15.38%

The property type with the third-highest proportion of fuel-poor households is mid-terraced houses. These houses are essentially any house on a terrace, except for the two on the end; they are connected to another house on both sides. As of 2022, 15.38% of mid-terraced houses are fuel-poor.

Property types in England with the largest fuel poverty gap

1. Detached

Average fuel poverty gap: £702

By far, detached houses have the most significant fuel poverty gap amongst property types in England. Fuel-poor households living in detached houses would need a £702 reduction in energy bills, as of 2022, not to be considered fuel-poor. This gap is 108% higher than the average fuel-poor gap in England.

2. Converted flat

Average fuel poverty gap: £436 

Converted flats, the property type with the highest proportion of fuel-poor households, have the second-highest fuel poverty gap. For fuel-poor families living in this property type to no longer be fuel-poor, they would need a £436 reduction to their energy bills, as of 2022, 29% higher than the average.

3. End-terrace

Average fuel poverty gap: £309

The property type with the third-highest fuel-poor gap is end-terraced houses. Fuel-poor households in this property type would need a £309 energy bill reduction as of 2022 to escape fuel poverty. This is 9% lower than England's average fuel-poor gap of £338.

England fuel poverty by central heating fuel type

1. Electricity

Proportion of fuel-poor households: 20.9%

Households with electrically fueled central heating have England's highest proportion of fuel-poor households. Almost 21% of homes that are primarily fuelled by electricity are fuel-poor. Electricity is the second-most common energy source for central heating in England, with 5.64% of households using this energy source.

2. Oil

Proportion of fuel-poor households: 19.4%

Oil is the fuel type with the second highest proportion of fuel-poor households in England, with 19.4% of households using this fuel type for their central heating are fuel-poor. It is England's third-most commonly used fuel source for central heating, with 3.51% of all households using it.

3. Other

Proportion of fuel-poor households: 12.5%

Other fuel sources have the third highest proportion of fuel-poor households. This includes families that use propane, community heating systems and solid fuels, such as wood and house coal. More than 12% of households that use other fuel sources to heat their homes are fuel-poor, though only 3.06% of all households in England with central heating use it, making it the least commonly used.

England fuel poverty gap by central heating fuel type

1. Other

Average fuel poverty gap: £1,508

The central heating fuel type with England's largest fuel poverty gap is all fuel sources regarded as other. This fuel type often includes homes that use heating oil, smokeless fuel like house coal and anthracite nuts, propane, or community heating either from a CHP or waste heat heating system. Fuel-poor households with other fuel as their primary source of central heating fuel would need a £1,508 energy bill reduction to no longer be fuel-poor. This gap is 383% higher than England’s average of £312.

2. Oil

Average fuel poverty gap: £801

Oil is the fuel type with England's second-largest fuel poverty gap. Fuel-poor households using this fuel type need a £801 energy bill reduction to no longer be classed as such; this is 157% higher than England’s average fuel poverty gap.

3. Electricity

Average fuel poverty gap: £636

And rounding out the top three, we have electricity as the fuel source with the third-highest fuel poverty gap. This shouldn’t come as a surprise with how much the cost of electricity has increased for England and the rest of the UK. As such, fuel-poor households using electricity as their main energy source would need a £636 bill reduction to escape fuel poverty. This is 104% higher than England’s average fuel poverty gap.

Methodology - 

Using the UK Government “Fuel poverty detailed tables 2023 (2022 data)” dataset, we were able to source fuel poverty gaps by region (Table 6), property type (table 7) and primary fuel source (table 13). We also sourced the proportion of households in fuel poverty by property type and primary fuel source.

For the estimated proportion of households that are fuel-poor by region in the UK, we used the Child Poverty Action Group “Fuel Poverty Estimates For April 2023 Following The Autumn Statement, Including Social Security Mitigations”.

We then ranked each region, property type and primary fuel source on their proportion of fuel-poor households and their fuel poverty gap.