§ Mr. Alan SimpsonTo ask the Secretary of State for the Environment, Transport and the Regions how many households are defined as fuel-poor on the basis of(a) income including housing benefit and mortgage interest support, (b) income excluding housing benefit and mortgage interest support and (c) income excluding housing expenditure. [145766]
§ Mr. MeacherThe common definition of a fuel poor household is one that needs to spend in excess of 10 per cent. of household income in order to maintain a satisfactory heating regime. Using data from the latest English House Condition Survey, the table shows the effect of different options for calculating household income on the number of households defined as fuel poor in 1996.
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; andreduced 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:
295Wa 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.