Welsh Fuel Povery Figures, WAG’s figures and Consumer Focus Wales Research

From WAG the key points show:

In 2008, 332,000 households in Wales were estimated to be fuel poor. This is equivalent to 26 per cent of all households. This is an increase of 198,000 households, or 15 percentage points, since 2004. This increase may reflect the impact of rising fuel prices over this period.

In 2008, 29 per cent of vulnerable households were estimated to be fuel poor. This was approximately 285,000 households, an increase of 172,000 households and 17 percentage points.

One in five households with dependent children were estimated to be fuel poor. This is equivalent to 70,000 households in 2008 and is an increase of 51,000 households since 2004.

Of the households that were fuel poor, one in five would be required to spend more than 20 per cent of their income on fuel use. Around 50 per cent of non-fuel poor households would be required to spend between five and ten per cent of their income on fuel use. This means that approximately 530,000 households in Wales could move into fuel poverty if energy prices continue to rise.

This is from Consumer Focus Wales 'Consumer Focus Wales is calling on both the Welsh Assembly and UK governments to act now to deal with the increase in fuel poverty following official figures, released today, which show that in 2008, 332,000 (26 per cent) households in Wales were fuel poor. This figure had increased by 198,000 since 2004.

Wales’ consumer champion says the figures demand action by government and the energy industry to tackle this problem.

Our research shows more than half the population (54 per cent) are worried about paying for their winter energy bills. More than one in seven (16 per cent) of Welsh homes are also off the gas network, with many of these consumers living in older, poorly-insulated homes. These factors – combined with the often higher costs of alternatives to gas, mean that off-gas consumers are more likely to be in fuel poverty than their on-gas counterparts.

Rhys Evans, Deputy Senior Director at Consumer Focus Wales, said: “Consumer Focus Wales believes no-one in Wales should have to live in a cold home. With energy costs remaining high and rising and another harsh winter predicted, the findings of this research highlight the constant struggle and worry many people in Wales face to adequately heat and power their homes and keep up with bill payments.

“Energy firms also need to give answers on why customer prices have been cut by less than 10% when wholesale costs have been so low for so long, yet suppliers are quick to hike prices as soon as wholesale costs start to creep up.

“While it is welcome news that the Welsh Assembly Government will maintain its capital spending on fuel poverty for the next three years, we eagerly await to see how the Welsh Assembly Government’s fuel poverty strategy will be put into action. More still needs to be done ahead of another potentially freezing winter to identify and support those living in homes which are hard to heat, particularly consumers off the gas network.

“We know from our work that a third of off-gas consumers are interested in generating their own heat, but those on low incomes cannot afford the high costs of installing equipment such as solar panels and heat pumps. We call upon the UK Government to target some of the £860million funding for the Renewable Heat Incentive on measures to help this group, who cannot currently access the cheapest means of heating their homes.”
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