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Dept of the Environment Transport and the Regions

Answer

Mr. Alan Simpson: To ask the Secretary of State for the Environment, Transport and the Regions what he estimates to be the reduction in numbers of fuel-poor households since 1996 and the amount of reduction attributed to (a) improved energy efficiency, (b) reduced fuel prices and (c) increased household income. [145764] Mr. Meacher: Using data from the 1996 English House Condition Survey (EHCS), it was estimated that in 1996 there were either 4.3 million or 5.3 million households in fuel poverty using the definitions at (a) and (b) respectively. (a) If, in order to maintain a satisfactory heating regime, it would be required to spend more than 10 per cent. of all income (including Housing Benefit and Income Support for Mortgage Interest) on all household fuel use. (b) If, in order to maintain a satisfactory heating regime, it would be required to spend more than 10 per cent. of its income (excluding Housing Benefit and Income Support for Mortgage Interest) on all household fuel use. Since the last EHCS there have been a number of significant Government policy developments that have moved households away from fuel poverty. These include: increases in household income due to the introduction of Working Families Tax Credit, the minimum wage and other changes to the benefit and tax systems; and reduced fuel prices resulting from the lowering of VAT on fuel, effective regulation and the liberalisation of the fuel supply market. Provisional estimates suggest that the number of fuel poor households fell by nearly 1 million between 1996 and 1999 under both definitions, due to reductions in energy prices and improved incomes. Data were not available to estimate the effect of improvements made to the energy efficiency of homes during the period, nor for changes in the composition or economic activity of households. However, it is likely that the significant drop in the number of unemployed over this period will also have reduced the number of fuel poor. Analysis of the components of the reduction in the number of fuel poor households indicates that: a fall of around 0.7 million could be attributed to the reduction in household energy bills from energy price changes alone; If energy prices had been assumed to be unchanged, then income improvements alone are estimated as taking some 0.4 million households out of fuel poverty. About 0.1 million households would have been moved out of fuel poverty by either change. A follow-up study to the 1996 EHCS was carried out in 1998. Data from the study are in the process of being prepared and the first analysis should be complete during 2001. This should help to confirm the accuracy of the 1999 estimates. The next full EHCS will be carried out in 2001. Fuel poverty is a devolved matter and it is the responsibility of the respective Parliament and Assemblies to comment on the situation in Scotland, Wales and Northern Ireland.

Secondary information

Type

Written question

Reference

361 c293-5W; 145764

Session

2000-01

Subjects

Conservation Energy Households Fuel poverty Heating Fuels Income Prices

Contains statistics

Yes

Link

View this Written question on www.publications.parliament.uk