There are lots of mentions in the press of increasing numbers of people being in fuel poverty, but all seem to be using the definition used in Scotland, Wales, and Northern Ireland of fuel bills over 10% of income.

But that hasn’t been the definition in England since 2013.

In England fuel poverty is measured using the Low Income Low Energy Efficiency (LILEE) indicator. Under this indicator, a household is considered to be fuel poor if:

– they are living in a property with a fuel poverty 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 line

https://www.gov.uk/government/collections/fuel-poverty-statistics

So nobody in England living in a property with an energy efficiency level of band C or above (which is half the homes in England) can be officially in fuel poverty no matter how much they spend on fuel or how little income they have.

And those that do live in a home with an energy efficiency level of band D or less would need to end up with a household income after tax (and council tax) of less than £19k (the official poverty line is defined as less than 60% of UK median income).

So even with the capped average fuel bill due to rise to £2,800, in England to be in fuel poverty you would need to be living in a home with an energy efficiency level of band D or less and taking home less than £1,800 a month after tax – irrespective of whatever amount your rent/mortgage or other household bills are.

This disparity in definition seems ripe for exploitation by English politicians to claim that despite energy rises people are not in fuel poverty and/or their policies and interventions have prevented people being in fuel poverty.

4 comments

  1. The definition that Scotland, Wales and NI use is pretty daft to be honest, because it doesn’t factor in how much money you actually have left over after heating. You could be perfectly fine with disposable income left over after all expenditure and still manage to be under “fuel poverty” by their definitions. Edit: and of course you could be spending under 10% on energy and be destitute, yet still not count under the “fuel poverty” measure

    Where do you get your stat that half of UK homes are band C or above? I checked my street and only one home is band C (all others are D and E), and that holds for a few other streets where I’ve lived. My house is Band D and it’s pretty well insulated!

    I get where you think it’s ripe for abuse but if you live in an efficient house and still spend a ton of money on energy it might be possible to improve your situation yourself. Perhaps the cut-off should be B and above though.

    Edit: I found [this](https://www.ons.gov.uk/peoplepopulationandcommunity/housing/articles/energyefficiencyofhousinginenglandandwales/2021) that does back up the suggestion that around half of homes are better than band D – that really does surprise me. Perhaps it should be B and above for the “fuel poverty” cut-off. I still think that it’s probably better than the “10%” measure though.

  2. > So even with the capped average fuel bill due to rise to £2,800, in England to be in fuel poverty you would need to be living in a home with an energy efficiency level of band D or less and taking home less than £1,800 a month after tax – irrespective of whatever amount your rent/mortgage or other household bills are.

    Ah, that’s me. Post-tax pay ~£1600/month. A quick Google tells me the property is apparently rated as D.

    Fun times ahead.

  3. Government is also making moves to make EPC ratings of C or higher mandatory, effectly building in a guarantee new rentals from 2025 won’t fall into this category.

    I’m all for making properties more energy efficient, but the definitions we rely on and frequently don’t properly understand (thanks for posting this info OP) need to evolve to be more honest about whats actually happening to people.

  4. The definition used is from the Hills report and states

    * They have required fuel costs that are above
    the median level; and

    • Were they to spend that amount they would
    be left with a residual income below the official
    poverty line.

    The official poverty line is 60% of median income. If you live in a Band A, B, or C property and you have an income that is reduced to below 60% of median income because of your fuel bill then you are in fuel poverty.

    The Government website seems to be intentionally misleading. Which is odd since the Hills Report is what defined the Low Income Low Energy Efficiency (LILEE) indicator. The *example* given on the Website is true, but it is not *all* of the possibilities that would render someone into Fuel Poverty. The “problem” for the Government is that the Hills Criterion puts a lot more people into fuel poverty this year than last year. Because of the rise in cap.

    Properties can be incredibly fuel efficient – but if the price is too high then you are in poverty. It is not a mystery.

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