Improving energy efficiency of UK homes 'best way' to solve fuel poverty

A drive to increase energy efficiency in UK homes is the best way to solve long-term fuel poverty, according to a study released today.

The Institute for Public Policy Research (IPPR) report said fuel poverty increased over the last five years despite Government targets to eradicate the problem by 2016.

Current moves to tackle fuel poverty were "out of date", with a review of the strategy and the setting up of an independent fuel poverty commission required as part of a longer term solution, it said.

The IPPR said the Government's Home Energy Management Strategy published last week did not go far enough to improve the energy efficiency of homes or give enough consideration to the issue of fuel poverty.

While short term measures were needed to help the poorest pay for their heating during the cold snap, longer term measures focusing on fuel efficiency were a more sustainable and cost effective way of tackling fuel poverty, it said.

The report also calls for greater use of technology including smart meters, micro-generation technologies and community-scale heating and a review of how fuel poverty programmes are paid for.

IPPR co-director Carey Oppenheim said: "Extremely cold weather conditions seen in the UK over the past months have highlighted the pressing need for a radical overhaul of fuel poverty measures and policy. Millions of households across the UK still struggle to afford adequate warmth and the fuel poverty strategy devised in 2001 is increasingly out of step with reality in 2010.

"We need a creative and inclusive approach to reach a solution which breaks the cycle of short term payments and measures. In particular we need to focus on making UK homes more green and more fuel efficient so that it is more affordable to heat homes."

Consumer Focus energy expert Jonathan Stearn said: "Government targets to end fuel poverty by 2016 will become an impossible dream without radical action.

"A drastically improved energy efficiency scheme is urgently needed to help the poorest households struggling to afford to heat their homes. This could not only lift millions out of fuel poverty but could help meet Government targets to cut carbon emissions."

Andrew Harrop, director of policy and public affairs at Age Concern and Help the Aged, said: "As this report makes clear, the only sensible way to eradicate fuel poverty in the long run is to make a vast improvement to the energy efficiency of our housing stock.

"The efforts of the main Government's programme and the energy companies' initiatives during the last decade have helped, but have been overwhelmed by the growth in fuel poverty fed by the energy price rises.

"A strategy to radically improve the housing stock will not only help reduce carbon emissions but also promote employment and activity in the economy and build a cutting edge in new, 'green' technologies.

"A quarter of our older households have just spent the coldest winter in 30 years in fuel poverty. We need a more ambitious strategy to end the scandal of fuel poverty in 21st century Britain."

Minister for Energy and Climate Change David Kidney said: "I know how hard it is for people, especially the most vulnerable, who have to cope with high energy prices and low temperatures during the winter months. That's why we already provide immediate financial help for people to deal with fuel bills, including £294m of emergency cold weather payments this winter.

"But we're also making long term and lasting changes by making homes more energy efficient and warmer and this winter the Warm Front scheme has carried out 25,000 heating or insulation jobs leading to permanently reduced fuel bills.

"And our recent energy efficiency strategy put particular focus on the most vulnerable by requiring energy companies to target poorer households, setting minimum energy efficiency standards for social housing and consulting on how to do the same for rented property.

"But everyone knows this is a really tough issue, that there is more to do and that's why we continue to review our fuel poverty policies."