6.3 million households are in fuel poverty Fuel poverty has reached dangerous levels in the UK, according to shocking new research from uSwitch.

6.3 million, or almost a quarter of all households, in the UK are classed fuel poor.

Fuel poverty is defined as when a household has to spend over 10% of its income on its energy bills and therefore struggles to cover essential costs, such as heating the home in winter.

However, the way fuel poverty is calculated has come under scrutiny, with many campaign groups such as the NEA claiming that the exclusion of housing costs when calculating a household’s expenses is distorting current figures.

These groups want fuel poverty to be redefined and to take housing expenses such as mortgage costs and rental payments into consideration.

If these costs are factored in, the number of households in fuel poverty will rocket to almost 9 million, or a third of households in the UK.

The uSwitch research also revealed the worst hit demographics in the country.

Single parents are the most likely to be in fuel poverty with almost 40% of this category classed as fuel poor.

Although 36% of working class households are currently in fuel poverty, the middle classes – a demographic previously thought to be relatively safe from the epidemic – have also been affected, with 15% of this group categorised as fuel poor.

If fuel poverty is redefined this figure would rest at around 22% of the middle classes, along with 47% of the working classes.

However, single parent families would still be the worst affected, with over half, or 52%, in fuel poverty under the proposed new definition.

Fuel poverty in 2011

Source: uSwitch.com/YouGov

The cause of this dramatic rise in fuel poverty is likely to be rising energy costs and a high level of inflation.

In five years, energy costs for the average household have gone up by 71%a  – in 2006, the average energy bill was just £660, now it stands at £1,131.

These numbers don’t take into account the recent ScottishPower price rise of 19% on gas and 10% on electricity, which could well have pushed more households into fuel poverty, nor the impending price rises that energy suppliers warn will happen before the end of this year.

Ann Robinson, Director of Consumer Policy at uSwitch, said that fuel poverty was a growing economic problem in the UK which threatens to get worse: “Rocketing energy prices mean that the middle classes are no longer immune to social ills such as fuel poverty.

“The fact is that we can now find the fuel poor amongst all walks of life and in all types of households.

“Start to factor in housing costs such as mortgage and rental payments and we are left with the shocking image of a third of all British households living in fuel poverty.

“The sad truth is that consumers are paying a heavy price for this country’s disjointed, incoherent and unaffordable energy policy.

“There is now a real urgency for the government to get on with its review of fuel poverty so it can relieve the misery facing those who cannot afford to keep warm this winter.

“But, in the meantime, households have to start protecting themselves and there are two key steps to this: pay the lowest possible price for your energy and learn to use less of it.

“With household energy prices likely to rise again, many households, especially those on tight budgets, may like the security of a fixed price energy plan.

“But all households should also look to invest in longer-term energy efficiency measures, such as insulating lofts and cavity walls.

“Those who would struggle to afford this investment should contact their energy supplier to see whether they would qualify for any energy efficiency grants or financial support.

“Suppliers have a pot of money available to help customers in this way and those who qualify could see their energy bills substantially reduced as a result.”

What do you think? Are energy costs out of control? Are you struggling to pay your bills and worried about future price rises? and let us know your views on fuel poverty and what it means to you. 

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