The Consumer Council Fuel Poverty

• What We Do
  • Forgotten Bank Accounts
  • Water Charges
  • Household Costs
  • Fuel Poverty
  • Money Affairs
  • Energy
  • Passenger Transport

What is fuel poverty?

Fuel poverty is when a household has to pay more than ten per cent of its income to maintain an acceptable level of temperature in the home.[1] As well as heating the home, fuel poverty also refers to the costs of lighting, cooking and appliances.

What causes fuel poverty?

Fuel poverty is caused by a combination of three factors:

1. Poor household energy efficiency;
2. Low income;
3. Expensive fuel costs

How many homes in Northern Ireland are in fuel poverty?

Figures show that the number of households in fuel poverty in Northern Ireland increased by 11 per cent (or 60,000 households) between 2004 and 2006.[2] Although there was a decrease in energy prices at the beginning of 2009, with the huge increases in the cost of domestic energy in 2008, it is frightening to think how many more households will now be in fuel poverty.

• In Northern Ireland, 23 per cent of households were in fuel poverty in 2004.  By 2006, 34 per cent of households were in fuel poverty[3];
• The cost of domestic electricity increased by 36 per cent between January 2008[4]and October 2008;
• The cost of domestic natural gas increased by 19 per cent between January 2008[5]and October 2008;
• The rate of fuel poverty in Northern Ireland is almost three times that of England[6]

Who is affected by fuel poverty?

50 per cent of people in fuel poverty are aged over 60.  However this is not just an older person’s issue.  Families also are at risk. In Northern Ireland, 42 per cent of households in fuel poverty have children.

Fuel poverty has reached such a level that it is not only older people or those on benefits who are affected, although they remain at the highest risk. 27 per cent of fuel poor households are working and earning between £10k and £15k per year.

The vast majority of households in fuel poverty owner occupied. This means that the occupiers have the responsibility to improve the energy efficiency of the house. 72 per cent of households in fuel poverty use oil or natural gas as their main heating fuel. These are the most energy efficient ways to heat your home yet so many in Northern Ireland remain in fuel poverty. This shows how energy efficiency measures alone will not tackle fuel poverty[7]. 

How is fuel poverty measured?

Every five years the Home Energy Conservation Authority (part of the Northern Ireland Housing Executive) carries out a House Condition Survey (HCS). The last survey took place in 2006. As part of the HCS, a Fuel Poverty Model is used to determine the number of households in fuel poverty. This model compares the energy efficiency of the dwelling with the income and family circumstances of the occupiers and the cost of fuel at that time.

What is the effect of fuel poverty on consumers?

Fuel poverty can have serious implications on the health and well being of vulnerable groups such as the elderly, children and people living with disabilities or chronic illness. These groups are particularly vulnerable to the effects of fuel poverty for a variety of reasons including that they:

·       Are likely to be at home for more of the day;

·       Are more vulnerable to the health impacts of cold homes, such as respiratory illnesses;

·       Are more likely to suffer secondary impacts of fuel poverty.  For example impacts on education (for children). Children may not be able to do their homework in a cold room, so they come down and do it in the living room where the tv is on and other distractions are.

Effects on older people

Between 2004 and 2006 about 12 per cent of deaths of people aged 65 and over were associated with cold temperatures in the home[8].

Effects on people with disabilities

According to the report, ‘In the Balance, disabled people’s experiences of debt’, cutting back on essential items like food or fuel, can be particularly damaging for a disabled person who may experience particularly negative effects from not eating properly or being unable to afford sufficient fuel to keep the house warm. For example a cold and damp house can make a disabled persons medical condition worse.

Effects on young people

A report for Save the Children shows that the impacts of fuel poverty on young people range from increased hospital admissions for infants, more respiratory problems for children and increased anti-social behaviour amongst adolescents[9].

What is being done to tackle fuel poverty?

Dealing with fuel poverty has been identified as an important issue by Government. The strategy ‘Ending Fuel Poverty – A Strategy for Northern Ireland’ published by the Department of Social Development (DSD) in 2004, states the Government’s intent to eradicate fuel poverty in vulnerable households by 2010 and in all households by 2016. However, it should be noted that the DSD now refers to alleviating rather than eradicating fuel poverty, which may be seen as an admission that the original targets are unachievable[10].

The strategy established two groups:

• The Inter-Departmental Group on Fuel Poverty (IDGFP) and
• The Northern Ireland Fuel Poverty Advisory Group (NIFPAG)

The Minister for Social Development (Margaret Ritchie) chairs the Inter-Departmental Group on Fuel Poverty (IDGFP) which oversees the co-ordination of action across all government departments.The Northern Ireland Fuel Poverty Advisory Group (NIFPAG) is made up of voluntary and community sectors, whose annual report informs the work and priorities of the IDGFP.  

Action to tackle fuel poverty

Action has been mainly focused on improving energy efficiency in homes.

• The Northern Ireland Housing Executive has a programme to replace inefficient coal heating systems with natural gas or oil in the homes that it owns and manages. The Housing Executive also provides grants for owners of private properties to improve energy efficiency. 
• The Warm Homes scheme, funded by the Department for Social Development, provides grants to people who want to make their home more energy efficient.  These grants cover measures like loft insulation or replacement heating systems. Information on where to get more details and how to apply for grants is available below.
• A Taskforce was set up in May 2008 and made recommendations on how to tackle fuel poverty. The Assembly has subsequently agreed to make a one off fuel payment of £150 to people on Income Support and Pension Credit.

What is the Consumer Council doing?

The Consumer Council represents consumers' interests and sits on these groups:

·       The Fuel Poverty Advisory Group; and

·       Home Energy Conservation Authority panel.

We conduct consumer research around the issue of fuel poverty and how it affects consumers. Last year, in conjunction with the Utility Regulator, we commissioned a report called ‘Research into consumers’ views on initiatives by energy suppliers to help disadvantaged and vulnerable customers’. This surveyed consumers’ views on how energy suppliers can contribute to alleviating fuel poverty. Click here to download the report.

In 2006, we produced a research report into self disconnection amongst energy customers in Northern Ireland, entitled ‘In Control’. Click here to download the report.

We represent consumers during electricity and gas price reviews. During 2008, which saw unprecedented increase in fuel prices, we gave evidence to the Enterprise, Trade and Investment Committee on energy prices and how they would affect consumers.  We lobbied to have energy prices reduced at the end of the year falling international fuel prices. In January 2009, NIE Energy and Phoenix Supply reduced their prices. We will continue to represent the consumer at all levels and keep up the pressure to have prices reduced wherever possible.   

Help with paying to heat your home

Help is available for consumers to reduce their energy costs and make the most of their income:

• Energy Efficiency

Energy efficiency does not have to be expensive and it can help save you money in the long term A single payment, for example to fit loft insulation, will give you ongoing savings all year, every year .  For more information contact the Energy Savings Trust on 0800 512 012.

• Switch Payment Methods

Electricity and gas suppliers offer consumers a variety of ways to pay. For example you can pay weekly or quarterly by direct debit, or Pay As You Go. Some payment methods may offer you a discount.  Contact your natural gas or electricity supplier for additional information.  

• Warm Homes Grants

The Warm Homes scheme gives people a grant of up to £850 for insulation measures and up to £4300 to fit heating and insulation measures to help make their homes warmer and more energy efficient. The scheme is aimed at people who own their own home and people who rent their homes from private landlords. It is available to people on qualifying benefits.  To find out if you are eligible contact Eaga Partnership on 0800 181 667.  For information about Warm Homes and other grants that may be available, contact the Energy Savings Trust on 0800 512 012 or visit the website at www.energysavingtrust.org.uk/.   

• Winter Fuel Payments

The Winter Fuel Payment is an annual payment to help people aged over 60 with their fuel costs. For winter 2008-09, the Winter Fuel Payment is £250 for people aged over 60 and £400 for people over 80. Contact the Winter Fuel Helpline on 08459 15 15 15 (0845 601 5613 for textphone users) or visit the website www.dsdni.gov.uk to find out if you are eligible and to get a claim form.

• Get what’s yours

Billions of pounds in benefits go unclaimed in the United Kingdom every year. You may be entitled to benefits which you are not claiming. Contact your local Social Security Agency or speak to Advice NI or CAB to check if what benefits you are entitled to..

Advice NI on:028 9064 5919or www.adviceni.net

Citizens Advice on: 028 9050 3000

Related documents:

• Research into consumers’ views on initiatives by energy suppliers to help disadvantaged and vulnerable customers
• In Control
• Ending Fuel Poverty: A Strategy for Northern Ireland (PDF 264KB).
• Tackling Fuel Poverty:  A Partnership Approach.  The Northern Ireland Fuel Poverty Advisory Group's 2007 Annual Report (PDF 827KB)