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Fuel poverty

The increasing cost of oil and gas for fuel, which most UK households depend on for heating and transport, combined with reduced income and wealth has contributed to rising rates of fuel poverty in the UK.

National Energy Action estimates that in January 2024, 6.5 million households in the UK were experiencing fuel poverty. The increasing cost of oil and gas for fuel, which most UK households depend on for heating and transport, combined with reduced income and wealth has contributed to rising rates of fuel poverty in the UK. This is further exacerbated by the low standard of energy efficiency across older housing stock, which can be poorly insulated and be more expensive to heat.

Households with the least disposable income typically spend a higher proportion of their income on heating and fuel (the bottom income decile spend 7.3% of their income on gas and electricity, vs 2.4% for the top income decile). Households with dependent children, single-parent households, households with multigenerational occupancy, and people living with a disability are more at risk of experiencing fuel poverty. Minority ethnic households are also more likely to be in fuel poverty than white households.

Children living in cold, damp homes are more susceptible to respiratory tract infections and asthma, negative mental health symptoms, and missed school days. In adults, cold home environments are associated with increased risk of respiratory conditions, cardiovascular disease, dementia, stroke and other circulatory problems. Cold homes can also exacerbate existing medical conditions including diabetes, asthma and musculoskeletal and rheumatological conditions.

Left out in the cold: The Hidden impact of cold homes

The 2024 Marmot report found that the cost of retrofitting 9.6 million households would be outweighed by savings from improved productivity and reduced NHS Care, and carbon costs.