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Key Facts

Fuel poverty is caused by a combination of factors including:

o Energy efficiency and condition of the home
o Fuel costs
o Household income
o Heavy debt
o Low benefits take-up

The Energy Retail Association recognises that fuel poverty is a serious and complicated issue. The industry has committed to spending £700 million over the next three years to help tackle fuel poverty and will continue to work with government and other responsible parties on this issue.

Fuel poverty is caused by a culmination of issues, including energy efficiency of the home, fuel costs, household income, debt and low benefits take-up. The Energy Retail Association is making sure that the industry is doing its part to tackle fuel poverty and support the Government’s UK Fuel Poverty Strategy.

The ERA launched the Home Heat Helpline (0800 33 66 99) in October 2005. It is a free national helpline for vulnerable people having difficulties paying their fuel bills. The Home Heat Helpline offers callers advice on cheaper payment schemes, grants for insulating your home, how to get on to the Priority Services Register for extra services and information on extra government benefits that you may be entitled to. For more information visit the website.

The definition of fuel poverty are those households that spend more than 10% of their income on heating and lighting. Approximately 3 million households in Britain suffer from fuel poverty.

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Background Information
Energy suppliers recognise that they have a responsibility to society and, in particular, to vulnerable customers and the fuel poor, the elderly, sick and impoverished. Suppliers have worked closely with social services, citizens advice bureaux and charitable groups, such as Age Concern and Help the Aged to consider the best way to help vulnerable customers. Since 1996 two and a half million people have been taken out of fuel poverty through the efforts of energy suppliers working with social welfare organisations.

The recent price increases are having an impact on the number of people likely to be in fuel poverty. For this reason, the Energy Retail Association established the Home Heat Helpline (0800 33 66 99). This is a dedicated helpline for people having difficulty paying their electricity and gas bills and is staffed by trained advisors (e.g. ex-nurses, social workers).

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Tips on How to Keep Warm This Winter

If you have central heating, these tips will help keep winter at bay.

• Set the thermostat at around 21ºC (70ºF).
• If a room gets too warm, turn the thermostat down.
• Set the timer to come on before you get up and switch off when you go to bed.
• In very cold weather set the heating to come on earlier, rather than turning the thermostat up higher.

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“We have cut the number of fuel poor households by two-thirds since 1997 but there is still a lot more to be done to eradicate fuel poverty, particularly in the light of recent price increases. All of us need properly and affordably heated homes. That’s why I welcome today’s move - as industry and Government work together to take responsibility for tackling the plight of those caught in the fuel poverty trap.”
Malcolm Wicks MP, Minister for Energy, October 2005

“Research has shown that the majority of vulnerable people when questioned didn’t know who to turn to for energy advice and said that they would welcome a central helpline for such advice. By setting up the Home Heat Helpline the energy industry is assisting the Scottish Executive in meeting its target of eliminating fuel poverty by 2016.”
Johann Lamont MSP, Deputy Minister for Communities, December 2005

“I would urge all older people and single parents on low incomes to take advantage of this helpline if they are having any problems keeping their homes warm in the winter because it is so important to keep homes heated to 18-21oC to avoid cold related illnesses and to stay well in the winter.

Energy Action Scotland is pleased to support the Home Heat Helpline. It is particularly pleasing to see the energy industry respond to the need to give appropriate advice on keeping warm and reducing energy costs to their vulnerable customers. Energy Action Scotland would encourage any householder who feels that their home is cold or who has trouble paying their bills to contact the helpline.”
Norman Kerr, Director of Energy Action Scotland, November 2005

“Fuel poverty besmirches the lives of too many older people. The public, private and voluntary sectors have grown an impressive range of schemes to mitigate this evil, but the picture is of a jungle. This helpline will help people through that jungle, and identify the help they badly need. Older people, and their families and carers, will welcome it.”
Mervyn Kohler, Head of Public Affairs for Help the Aged, October 2005

"We have been asking for a more co-ordinated approach to tackling fuel poverty. The ERA helpline is an invaluable initiative which promises to provide a central point of contact for customers and the wide variety of organisations that play a crucial role in helping and advising them."
Sir John Mogg, Chairman of Ofgem

“I am delighted to welcome this initiative from energy suppliers. The Home Heat Helpline will provide support for the many thousands of consumers who struggle with the cost of heating their homes, especially when winter sets in. Anyone who is worried about being able to afford to keep warm this winter should call the number and take advantage of the help that is just at the other end of the phone.”
Allan Asher, Chief Executive of Energywatch, October 2005

“There has been a colder than normal winter predicted and with that in mind, the Home Heat Helpline aims to bridge the gap between the help that's available and lower income households,"
Chris Ruane MP, Vale of Clwyd, November 2005

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