The Many Faces of Fuel Poverty

Campaigning for Warm Homes

A real-life perspective on the causes and effects of fuel poverty and how this problem can be tackled.
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Contents
Acknowledgements Fuel Poverty the Facts Kerrys Story - Low Income Nicolas Story - Family with Young Children Simons Story - Disability Margarets Story - Pensioner 2 3 4 6 8 10

Acknowledgements The source material referred to below has been invaluble in preparing this report. 6. Marmot Review Team. 2011. The health impacts of cold homes and duel poverty. Commissioned by Friends of the Earth. 7. National Centre for Social Research (NatCen). 2008. The Dynamics of Bad Housing: The Impact of Bad Housing on the Living Standards of Children. 8. Age UK. 2011. Winter Warmth Briefing October 2011 9. Leonard Cheshire. 2008. Disability Poverty in the UK 10. The UK Fuel Poverty Strategy, DEFRA (2001) 11. English Housing Survey Housing Stock Summary statistics. 2009. 12. Professor John Hills. 2011. Fuel Poverty: the problem and its measurement. Interim Report of the fuel poverty review. 13. Office of National Statistics. http://www.ons. gov.uk/ons/index.html

1. Noel Olsen. (2001) Editorial. British Medical Journal 2. Vivienne Press (2003) Fuel poverty and health toolkit. 3. Krishnan Bhaskaran et al (2010) Short term effects of temperature on risk of myocardial infarction in England and Wales: time series regression analysis of the Myocardial Ischaemia National Audit Project (MINAP) registry. BMJ;341:c4540. 4. Christine Liddell. 2011. Fuel poverty and human health: A review of recent evidence. Energy Policy, 38, pp29872997. 5. Green & Gilbertson (2008) cited in Liddell (2011) p2990.

Fuel Poverty the Facts and Faces

Fuel Poverty the Facts
Fuel poverty is defined as the need to spend more than 10% of household income on fuel costs to maintain adequate warmth for health and comfort. The most recent official Government statistics, based on 2009 data, put the total number of households living in fuel poverty in the UK at 5.5 million. According to NEA projections, after the most recent round of energy price increases there are now approximately 6.6 million UK households in fuel poverty. Fuel poverty is caused by three factors: inadequate heating and insulation low incomes the continued high cost of energy It is most prevalent among vulnerable households, including: those on low incomes people with children under the age of 16 people with disabilities or suffering from a longterm illness older people However, with almost 1 in 4 households now estimated to be in fuel poverty it is a problem no longer limited to these groups. The consequences of fuel poverty range from psychological stress, worry and social isolation, to causing or exacerbating serious illness such as respiratory and circulatory conditions. Those in fuel poverty often have to face the stark choice between spending what they need to heat their home adequately and either falling into debt; or rationing their energy use and living in cold damp homes that are dangerous to their health. Others spend money on fuel and reduce their purchasing of other necessities, such as food.

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Fuel poverty can be particularly severe in rural areas where properties are often older, are not suitable for cavity wall insulation, and are off the gas network and so have to rely on more expensive forms of heating. Action across a number of specific areas is needed to ensure all households are helped, including measures to reduce essential energy demand through energy efficiency programmes; measures to provide financial support for energy costs through income supplements; and measures to defray energy costs through discounted charges. The following document highlights real examples of people in fuel poverty that NEA has worked with. They cover each vulnerable group and show the difficulties faced before practical solutions were delivered in helping them overcome fuel poverty. For further information and to access advice on the different schemes and agencies involved in fuel poverty solutions across the UK please refer to the accompanying Fuel Poverty Action Guide.

Kerrys Story Low Income

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Kerrys Story
Kerry is 24 years old and rents a small two bedroom house in Newcastle-Upon-Tyne. She graduated from university in 2008 and works full time earning 14,000 per annum. She has suffered from asthma since birth and does not claim any benefits. Her rented home has solid walls and loft insulation which is about 15 years old. Due to previous tenants not paying their energy bills the landlord had fitted a prepayment meter. Not knowing a great deal about energy efficiency and energy bills, Kerry did not take these things into consideration when renting the property which she moved into in the spring. The following December proved to be the coldest in over 100 years and the house could not be kept warm. At one point Kerry was spending up to 30 a week to top up her prepayment meter in order to heat the house to a comfortable level. This wasnt sustainable as she simply didnt have sufficiant money and, being on a prepayment meter, she was unable to budget as her gas and electricity had to be paid for in advance. In the end Kerry self-disconnected, turning the boiler off completely in order reduce her energy bills. On colder days she took to wearing more layers of clothing and fleece slippers and went to bed earlier, investing in a high tog duvet. The boiler heated the water in the house and she found it cheaper to boil the kettle to get hot water than to switch on the boiler for an extended period of time. During the winter Kerrys asthma was exacerbated due to the cold living conditions and she developed a severe chest infection which led to her being admitted to hospital.

Fast facts
More than 50 per cent of people living in fuel poverty are under the age of 65. Low income, energy inefficient homes and high energy prices all contribute to fuel poverty. Fuel poverty is most common among those living in private rented accommodation: on average, from 2007 to 2009, 20 per cent of households in private rented accommodation were in fuel poverty compared to around 15 per cent in other tenures. Living in a cold, damp home exacerbates underlying health conditions such as asthma and can lead to serious ill health. Unless there is a disability, people under the age of 25 can not claim working tax credits. Landlords are not required to insulate their properties, although local authorities have powers to inspect properties to enforce improvements if necessary. Over 3.6 million UK households have an electricity prepayment meter. The majority of these also pay for gas in the same way. 16 per cent of prepayment meter users are self-disconnecting, with the poorest households disconnecting for the longest period. 16 per cent of prepayment meter users live in hard to heat properties and may cut down on other necessities to keep warm, at the most dramatic facing a choice of heat or eat.

Kerrys Story Low Income

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Outcome
Kerrys case was extremely difficult since living in a rented property meant she was reliant on her landlord making improvements to the property. NEA helped Kerry approach her landlord to ask him to look into insulation options, update the old, inefficient back boiler, and change the prepayment meter. NEA was also able to offer Kerry advice on energy efficiency and help her understand how to read and understand gas and electricity bills, all useful tools for the future. Although sympathetic, the landlord was unable to insulate the walls as they were solid wall and was not prepared to remove the prepayment meter. He did supply extra loft insulation and carried out minor improvements to eliminate draughts. The boiler was given a full service but not replaced. Sadly the changes did not improve the property sufficiently enough for Kerry to notice a difference. Fortunately Kerrys circumstances have changed and she has been able to move to a newer property which benefits from a new heating system and cavity wall and loft insulation. She has set up an online direct debit payment option for her energy bills and is more comfortable. Since moving she has had no more health complaints although she is still very careful about her energy consumption and when the heating is used.

Nicolas Story Family with Young Children

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Nicolas Story
Nicola is 32 and lives with her husband and two young children in a property they own. Nicola is a full time mum and her husband works full time. The family receives Child Tax Credits. In 2008 the familys boiler broke down and could not be repaired leaving them without heating as winter approached with a three-year-old child and a baby on the way. Luckily the family were able to apply for a Warm Front grant and a replacement boiler was fitted. They were also advised to contact their energy supplier which was able to insulate the cavity walls and loft free of charge. Nicola and family were able to cope thanks to the improvements made to their home, however as energy prices started to rise and the temperature dropped the family began to struggle. After two bitterly cold winters the family owed their energy supplier over 1000. Unable to manage their energy bills Nicola was advised by the supplier that having a prepayment meter fitted would help with budgeting. Nicola agreed to have the prepayment meter installed. Nicola is able to pay off a small bit of the debt every time she tops up the meter, however this means that the family home is at risk of being underheated and they have to go without other items such as clothing and fresh food. As a prepayment meter user she is also paying a high rate for her gas and electricity and cannot take advantage of the cheaper tariffs, nor can she switch supplier as she has an outstanding debt. During the spring and summer of 2011 Nicola managed to get her debt down to 650, but then the latest round of energy price rises was announced. She is really anxious about how they are going to cope this winter, especially if it is cold, and is concerned that after paying off the debt each time on the prepayment meter she wont have enough to to keep the house warm and that her debt will rise. Turning the heating off is not an option for Nicola as she has two children under the age of 5 and she is concerned that their health would suffer.

Fast Facts
The Government defines a healthy living environment as 21C in living areas and 18C in other areas of the house; but fuel-poor households cannot afford to heat their home to this standard. For households facing high fuel costs with constrained budgets, the choice is in many cases to cut back on expenditure or incur debts if they wish to maintain adequate levels of warmth. In England 20.5% of lone parent households and 8.1% of couples with dependent children were fuel poor in 2009. This is equivalent to 728,000 households, and they make up 18%, or almost one in five of all fuel poor households in England. Being employed offers only limited protection from fuel poverty for couples with families. At least half of the children living in poverty have a parent who works, showing that low paid work is just as likely to cause financial hardship as reliance on benefits. For children, living in fuel-poor households is associated with a significantly greater risk of health problems, especially respiratory problems. Poorer weight gain and lower levels of adequate nutritional intake have also been found a heat-or-eat effect. For infants, living in fuel-poor households is associated with a 30% greater risk of admission to hospital or primary care facilities.

Nicolas Story Family with Young Children

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More than 1 in 4 adolescents living in cold housing are at risk of multiple mental health problems compared to 1 in 20 adolescents who have always lived in warm housing. One in ten children residing in persistently cold homes are unable to find a quiet place to study or do homework compared to 4% of all children. This impacts on childrens educational attainment and future life chances, resulting in multiple negative outcomes in adulthood, including poor health and anti-social behaviour. Compared to children who lived in inadequately heated accommodation on a short term basis, children in persistently cold homes were more likely to fail to attend school. Children in persistently cold homes were more than three times more likely to get into trouble with the police (7% compared to 2% of all children).

Outcome
Nicola and her family have done everything right. The house is fully insulated, the heating system is efficient and they have changed their behaviour so they are able to use less energy. However with two young children they need to have the heating at 21C to ensure good health and comfort. They can do no more to reduce their current use and cannot manage to clear their debts before another winter hits or price rises mean they have to pay more which in turn leads to greater debts. NEA is currently working with Nicola to apply for a grant to help pay off her existing debts and enable her face the coming winter without fear of being unable to keep her family safe and warm. She has also been given fuel debt advice to help her manage her future energy use.

Simons Story Disability

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Simons Story
Simon is in his 30s and suffers from the mobility disability cerebral palsy. He also has a speech impediment. He claims Diability Living Allownece, Working Tax Credit and Council Tax Benefit and is also self-employed. Spending a lot of time at home and not being very mobile Simon needs to maintain a temperature of around 24C as he is very sensitive to cold conditions. A fiercely independent individual Simon is selfemployed as a Disability Consultant; he also hosts his own website which includes a virtual nightclub which he uses to host interviews and encourage others with similar disabilities to have better control of their lives. Simons work is sporadic and, as such, so is his income. He pays his bills by online direct debit, but his mandates are often rejected due to insufficient funds. This, combined with energy price rises of recent years, led to Simon building up significant arrears of over 3,000. Rising debts mean he is anxious and stressed, but he is unable to change his energy use or alter his behaviour due to his disability. Simon is at risk of ill heath should he not be able to heat his home, and would face social isolation should rising electricity costs mean he is unable to use his computer.

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Simons Story Disability

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Fast facts
Social isolation amongst adults is associated with cold homes, for example the fuel poor may not be able to afford to socialise or may be reluctant to invite friends or family into their homes. Disabled people are twice as likely to live in poverty as non-disabled people. Disabled people are far less likely to be in employment than non-disabled people, and when in work they earn less on average. There is evidence that disabled people on average spend a significantly larger proportion of their income on fuel than non-disabled people. The Winter Fuel Payment is not paid to people with disabilities. Fuel poverty may compound the ill health and suffering of those who are disabled or have a long-term illness. It is likely to exacerbate existing problems and lengthen recovery time. Cold homes may make it more difficult for carers to look after acutely or chronically sick people, more of whom will have to go into hospital needlessly - or go permanently into a nursing home.

Outcome
After intervention from NEA, a revised payment plan was agreed with the energy supplier which is more affordable and which is based on standing orders rather than a direct debit. He will now pay 98 per month for his electricity and 80 per month for his gas, amounts which are much more manageable. NEA also arranged for this amount to be flexible to suit Simon so that he can choose to pay a variable amount every Wednesday as long as he makes up the total to the agreed amount each month. He will receive the yearly rebate Warm Home Discount of 120 from April 2012 which is very much welcomed and which will go towards his winter fuel debts. Additionally, it was agreed that Simon will receive a 20% discount on his fuel bills. Although still living in fuel poverty Simon now feels more in control of his situation and is getting to grips with the payments.

Margarets Story Pensioner

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Margarets Story
Margaret is 88 years old and lives in sheltered accommodation in her own flat. She receives a state pension and does not claim any benefits; although she is entitled to claim Pension Credit she is not aware of this. Her flat is all electirc. She is also hard of hearing and finds it difficult having conversations on the phone. Margaret is very concerned that her monthly direct debit payment for electricity has risen from 45 to 67 in the space of five months. Unable to afford the new payments requested by her supplier, she has built up a debt that the supplier wants to be repaid in full. Margaret is not claiming benefits so she will not qualify automatically for the Warm Home Discount. She is also unaware that she needs to register for pensions credit. She is on an Economy 7 tariff which means she pays less for the energy she uses through the night, but a much higher rate for the energy she uses during the day. Margaret has never been in debt before and the stress is making her ill. She is so frightened of not being able to pay that she has restricted her heating use and has stopped using appliances such as her hair dryer. She no longer invites people around as she is embarrassed that her flat is too cold and by the damp starting to appear on her walls. Margaret is in danger of trips and falls becasue cold conditions make the blood thicker and sitting still for long periods of time in the cold can make limbs stiff. Any health problems she has will be exacerbated and she is at greater risk of heart attacks and stroke.

Fast facts
2700 deaths every year are linked directly to fuel poverty more than the number who die in traffic accidents. Individuals aged 65 and over comprise 90 per cent of excess winter deaths. There is a link between low temperatures and poor mental health, with those living at low temperatures more likely to be stressed and subject to common mental disorders. Official statistics estimate that a third (up to 1.6 million eligible pensioners) currently do not claim their Pension Credit entitlement. Every year benefits worth 4.2 billion go unclaimed by pensioners. NEA research has found that successful benefit entitlement checks uncover on average, an extra 29 per week per household in unclaimed benefits. This equates to over 1,500 p.a. One in eight over 75+ households live in housing which fails the decent homes standard because of inadequate heating and insulation.

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Margarets Story Pensioner

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Older people in private rented housing are most at risk of living in non-decent homes. Figures for the UK show 4.8 million people aged over 60 living in fuel poverty. These estimates do not include recent price rises. Even before the most recent energy price increases, gas and electricity costs have been rising faster than pension incomes 36% of people aged 60 or over sometimes live in just one heated room of their home to save money.

After talking with the supplier it became apparent that Margaret was being charged the Economy 7 offpeak rate for daytime consumption and at the higher rate for electricity consumed during the night (when most electricity would be used and which should have been charged at a much cheaper rate). The energy supplier then recalculated the readings and Margarets payments were significantly reduced. She also relieved a significant reimbursement. NEA then worked with Margaret to help her understand how to make the most of her energy use during off-peak hours, helping her change her behaviour in order to reduce her bills. A benefits check revealed Margaret was entitled to Pension Credit, which increased her weekly income and, as such, she will receive a Warm Home Discount rebate of 120 from her energy supplier in March 2012.

Outcome
NEA was able to work with Margaret and her energy supplier; NEA made phone calls on Margarets behalf as she was becoming increasingly frustrated with not being able to hear and understand.

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Campaigning for Warm Homes

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