What is Fuel Poverty?

Full Definition

Fuel poverty describes a situation where a household cannot afford to heat its home to an adequate standard, and it is measured differently across the UK. In England, the official Low Income Low Energy Efficiency (LILEE) measure defines a household as fuel poor if it lives in a property with an energy efficiency rating of band D, E, F or G and, after paying for required energy costs, its remaining income would fall below the poverty line; Scotland, Wales and Northern Ireland each use their own definitions, generally based on the older "10% of income on energy" style measure rather than LILEE. Fuel poverty is driven by three overlapping factors: low household income, poor energy efficiency of the home (single glazing, no insulation, inefficient heating systems), and high energy prices, meaning it can be tackled either by boosting income and support (such as Winter Fuel Payment, Cold Weather Payment and the Warm Home Discount), or by improving the fabric and heating efficiency of the home through schemes such as the Boiler Upgrade Scheme, ECO4 and the now-closed Green Deal. Government fuel poverty strategies typically set targets for upgrading the energy efficiency of homes occupied by fuel-poor households, since improving insulation and heating efficiency addresses the root cause rather than just offsetting the cost each winter.

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