Understanding the challenges faced by fuel poor households – May 2023

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Practice area: Consumer markets and protection | Energy | Regulatory economics
Client: Committee on Fuel Poverty
Published: 24 May, 2023
Keywords: 2023 consumer energy Net Zero Public Policy

London Economics was commissioned by the Committee on Fuel Poverty – an advisory Non-Departmental Public Body sponsored by the Department for Energy Security and Net Zero –  to undertake research to better understand the issues faced by fuel poor households and options as to how these issues can be addressed.

This study is an important addition to the evidence base available to the Committee on Fuel Poverty and the government, enabling better understanding as to how these challenges will need to be addressed in the future.

Using a combination of a Rapid Evidence Assessment, workshops with industry experts and frontline energy advisors, and online research, the study explores:

  • Challenges facing fuel poor households: the research examined the different challenges faced by those households in fuel poverty including affordability of energy, health and wellbeing, and food and nutrition, as well as the links between these challenges. The landscape is undoubtedly complex: with multiple links between challenges, there is no linear path determining an individual’s experience of fuel poverty.
  • Impact on specific groups: by recognising that fuel poverty affects different people in different ways, the research explored the impact on specific groups and how some groups are more affected by fuel poverty.
  • Challenges and coping strategies in the winter of 2022/23: the research looked at the different coping strategies used by households over the winter of 2022/23. Households in fuel poverty were using more unconventional – and more dangerous – heating and lighting methods to avoid using energy compared to previous winters.  Workshop participants also noted the increase in self-disconnection.
  • Government support and future support: the research explored the strengths and weaknesses of existing support – both short term help for households and longer term energy efficiency improvements – based on feedback from workshop participants and the literature.  The research also considered what further support could be implemented.
  • Areas to explore further: the research also set out a number of potential options for consideration by the Committee and government, including possibilities for data sharing across the sector to better target fuel poor households.

The Full Report is available here, and the Technical Annex (containing the full methodological details) is available here.