When you think about fuel poverty, you might think it means that you can’t afford to pay your energy bills. While that’s true to some extent, fuel poverty is more complicated than simply whether you can pay your fuel costs. Here’s what you need to know.
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What is fuel poverty?
Well, the definition varies slightly depending on where you live in the UK. However, at its core, fuel poverty means you’re spending a large or above-average portion of your income on energy and utility bills.
England
In England, you are “fuel poor” if you:
- live in a house with a ‘D’ energy rating or lower; and
- you’ll fall below the poverty line if you try to heat your home properly.
In other words, your home’s not energy-efficient and you can’t afford to fuel it without stretching your finances to their limit.
Scotland, Wales and NI
In these countries, the definition is slightly simpler. You’re fuel poor if you must spend more than 10% of your income on fuel to heat your home properly. So, if you’re spending 20% of your average household income on energy bills, this is fuel poverty.
Technically, then, you can be fuel poor even if you’re paying your energy bills.
What causes fuel poverty in the UK?
Fuel poverty in the UK comes down to three main factors:
- Household income: The lower your income, the harder it is to pay your energy bills.
- Fuel costs: When energy costs rise, you’re spending more to heat your home.
- Energy efficiency: If your home isn’t energy efficient, the rooms don’t retain heat, so you use more fuel. The result? Bigger energy bills.
Although fuel poverty can affect anyone, it usually affects people on low incomes the most. Why? Because low-income families are more likely to struggle when energy prices rise. They are also more likely to live in homes with poor energy ratings.
Where can I get help with energy payments?
Well, depending on your income, you might qualify for a government scheme to help with fuel payments.
- Cold Weather Payment: You might get a Cold Weather Payment if you’re on benefits and the temperature drops below freezing every day for at least a week during the winter.
- Warm Home Discount: Some people on low incomes or who receive the ‘guarantee’ part of Pension Credit might be eligible to apply for a £140 discount off their annual electricity bill. Check our article about applying for the discount for more information.
- Boiler Grant: If you’re on certain benefits, you might be entitled to a new boiler under this scheme.
If you’re aged over 65, you could also be entitled to Winter Fuel Payments.
How can I save money on energy bills?
Although you can’t control the cost of energy, here are a few simple steps you can take to reduce your energy usage.
- Don’t leave appliances on standby. Turn them off at the wall instead.
- Try an energy efficiency app to help you monitor your usage.
- Take showers rather than baths.
- Change your traditional light bulbs to new LEDs.
- Rather than running small wash cycles, wait until there’s a full load before you use the washing machine.
Finally, you can always try to reduce your energy tariff by shopping around for a better deal.
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Fuel poverty: takeaway
If you’re in fuel poverty and you’re struggling to pay your bills, contact your supplier right away. They might let you switch to a prepayment meter, which makes it easier to track what you’re spending on fuel. Or, they might work with you to make your monthly payments more affordable. If you’re unsure what to do next, contact Citizens Advice for more help.