Fuel poverty

Fuel poverty means being unable to afford to keep warm. We consider a household to be in fuel poverty if it needs to spend more than 10 percent of its income on fuel for adequate heating (usually 21 degrees for the main living area, and 18 degrees for other occupied rooms).

Living in cold homes can damage people’s health and affect their quality of life. The elderly, children, and those with a disability or long-term illness are especially vulnerable.

There are three main causes of fuel poverty:

  • poor energy efficiency in the home
  • high energy prices
  • low household income

The following sets out a response to the Efra Select Committee’s examination of energy efficiency and fuel poverty.

28 February 2011: Warm Home Discount consultation: Government Response

The Warm Home Discount consultation closed on January 14 2011 and the Government published its response on February 28.

The Energy Act 2010 provided a framework to mandate energy companies to provide support to the fuel poor, including powers to give greater guidance and direction on the types of households eligible for support and the form of support they should be given.

The Coalition Government’s proposals for the Warm Home Discount scheme were set out in the consultation which was published on December 2nd 2010 and ran for 6 weeks to January 14th 2011.

During the consultation period, DECC actively engaged with interested parties, holding meetings and workshops with energy suppliers and representatives of charities and consumer groups.

The Government’s response can be viewed on the Consultation on the Warm Home Discount web page.

Control framework for DECC levy-funded spending

The control framework for DECC levy-funded spending forms part of the Government’s public spending framework, which the Treasury has responsibility for. Its purpose is to make sure that DECC achieves its fuel poverty, energy and climate change goals in a way that is consistent with economic recovery and minimising the impact on consumer bills.

The control framework is available to view via the HM Treasury: PSR control framework for DECC webpage. The Q&As provide more information on what the control framework is and its implications for new and existing policies.

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