Fuel poverty is an intense problem affecting low income families right across the UK but is particularly severe in Northern Ireland. A household is defined as in fuel poverty if the family spends more than 10% of its income on heating the home to an acceptable standard. The World Health Organisation recommends temperatures of 21ºC in living spaces and 18ºC in all other rooms to maintain a healthy environment. Lack of heating can lead to dampness in the home and has been linked to severe health issues such as asthma, pneumonia and depression.
Northern Ireland still has the highest levels of fuel poverty in the UK. In 2011, the Department of Social Development (now Department of Communities) commissioned an important report on fuel poverty, entitled 'Warmer Healthier Homes'. In 2009, fuel poverty in Northern Ireland was assessed at 44% of families compared with 33% in Scotland, 20% in Wales and 16% in England. This report was the start of an action plan to tackle this problem and set a target of eradicating fuel poverty by 2016. Unfortunately, this target was missed but this did give some impetus to reducing fuel poverty which has dropped by 50% in Northern Ireland in the past 10 years since the peak level of 2009.
The latest UK government statistics in 2018 ('Annual Fuel Poverty Statistics Report 2018' from the Department of Business, Energy and Industrial Strategy, BEIS) indicate a considerable improvement since 2009. According to these figures, the proportion of families affected by fuel poverty in England is 11%, from 16% in 2009, whereas in Northern Ireland is 22%, from 44% in 2009. The most recent UK government strategy, published in 2018 notes that the NI strategy has failed but 'the eradication of fuel poverty must remain a core goal'. In this document, the government sets goals for the UK of 15% by 2030 and 5% by 2040 but this is considerably relaxed from the original aggressive goals of 2011 and is a concerning level of poverty through to 2040. The UK has an average national income (GDP per capita) of £32,800 and an average personal income of £28,700.
Fuel poverty is a complex issue associated not only with low income but also with cooler climates, fuel prices and with a high dependency on oil for heating. The most comprehensive information relating to income was published in the 'Warmer Healthier Homes' report of 2011. This indicated that, in 2009, over 50% of families on less than average income and more than 80% of those on minimum wage were in fuel poverty. The key to this would appear to be the level of minimum wage: minimum wage has increased by just over 40% in the past 10 years: from £5.80 per hour in 2009 to £8.20 today. So this improvement in minimum wage is the most likely reason for improved fuel poverty.
Other key factors are climate and fuel pricing. In Northern Ireland, the daily climatic temperature runs at about 5¡C less than in the south east of England. What this means is that, in Northern Ireland, the average daily temperature (averaged over each month) never reaches above 16¡C, regarded as the level below which heating is required. In London the daily average is above 16¡C from June to September. In London, there is little or no requirement for heating during the summer whereas in Northern Ireland there is some requirement all summer. This difference is difficult to estimate but is probably in the region of 10% to 20% more and hence more cost. Adding to the compounding factors for Northern Ireland is the additional cost of fuel and the dependency on oil heating. Published data on energy costs indicate that electricity costs about 25% more in Northern Ireland and fuel cost (oil versus gas) about 20% more than in mainland UK. Putting these factors together gives an additional cost of energy of at least 30% for Northern Ireland when compared to the UK. Using UK official figures and applying this 30% gives an average NI fuel cost of over £1,500 per annum so a family will need to earn over £15,000 to avoid fuel poverty. As minimum wage only generates an annual income of £13,000, then families on minimum wage in NI will be in fuel poverty whereas those in mainland UK will not due to the lower fuel costs.
Another key group of vulnerable people, who are also on low income, are the elderly. A single person or a couple on a single state pension of £8,767 will most likely be in fuel poverty. Published data indicate that only those on personal pensions, as a couple, or with additional income will have sufficient income to avoid fuel poverty. The average pension for single pensioners is just over £11,000, whereas couples average just over £23.000. However, the overall average income for all pensioners is around £15,000 so almost 50% of pensioners would be considered in fuel poverty.
Government targets indicate that fuel poverty will still be an issue in 2040 (a target of 5%) but this target will most likely be missed. This implies a level of between 5% and 10% of families in the UK in difficulty in 2040. This is a serious on-going situation and a blight on the whole of the UK, which is the 5th wealthiest nation in the world and 2nd wealthiest in Europe.
Roy Douglas
Gracehill
