A household is said to be in fuel poverty if it needs to spend more than 10% of its income on fuel to maintain an adequate level of warmth (usually defined as 21 degrees for the main living area, and 18 degrees for other occupied rooms). Fuel poverty results from a combination of low household income, high energy costs, poor home energy efficiency (inadequate thermal insulation and inefficient heating systems) and property under-occupancy.

Fuel poverty is measured by combining property condition, fuel price and income data from the English House Condition Survey over a two year period.

The latest Government figures show that the number of households in fuel poverty in the UK rose between 2006 and 2007 by 0.5 million, to around 4 million (around 16% of all households). The UK Government has a target to eliminate fuel poverty by 2016, as far as is practicable. Projections for England indicate a likely 3.6m fuel poor households in 2008 and 4.6m households in 2009. Actual (rather than projected) fuel poverty data for 2008 and 2009 will be published in 2010 and 2011 respectively.

The Fuel Poverty Strategy Group is the only stakeholder forum of fuel poverty delivery organisations and non-government and government bodies across all four UK nations. It advises on and informs the development and execution of national governments¿ fuel poverty policies and delivery plans, as well as sharing an oversight of fuel poverty across the UK on policies, programmes, initiatives, research and relevant best practice.

Fuel poverty is cross sectoral in its impact and potential solutions. The group raises awareness of the issues associated with affordable warmth for low income and vulnerable households, both within the broader Partnership and more widely.

The group ran its 6th Fuel Poverty Annual Seminar in January 2010 with workshops focussed on finance options for low income households and the super priority group proposed in the Government¿s Carbon Emissions Reduction Target (CERT) Extension consultation. In the plenary session David Kidney, Parliamentary Under-Secretary of State at the Department of Energy and Climate Change (DECC), delivered the keynote address and delegates received policy updates from officials for England, Scotland, Wales and Northern Ireland.

In December 2009 the Chancellor¿s Pre Budget Report committed Government to consider the impact of the proposed Renewable Heat Incentive (RHI) on those in fuel poverty, particularly where the upfront costs needed for the measures could be sourced. The Energy Efficiency Partnership for Homes and the Fuel Poverty Strategy Group ran a workshop in March 2010 to advise DECC on this particular issue.

The group also provided expert opinion to DECC on mandated social price support, the proposals for PAYS financing, voluntary agreements with non-metered fuel suppliers and improving data on fuel poverty, particularly with respect to energy efficiency.

When the Government¿s expected review of fuel poverty is published the group will galvanise stakeholder views to inform on the practicality of the design and implementation of the proposed schemes. The group will also engage with the Government on emerging policies, particularly with respect to its implications for low income consumers. The group will continue to share best practice and updates between nations at meetings and events and encourage the improved delivery of affordable warmth schemes.