.png)
What is fuel poverty?
National Energy Action defines fuel poverty as when a household needs to use 10% of their income on keeping their home warm. However, there are other measurements to be aware of…
For example, fuel poverty in England is measured using the Low Income Low Energy Efficiency (LILEE) indicator. Under this indicator, National Energy Action says a household is considered to be fuel poor if: they are living in a property with a fuel poverty energy efficiency rating of band D or below, and; when they spend the required amount to heat their home, they are left with a residual income below the official poverty line. There are 3 important elements in determining whether a household is fuel poor: household income; household energy requirements; and fuel prices.
How many people are affected by fuel poverty?
Citizens Advice recently shared that energy debt is now the leading debt issue they help people with across most of the country. In January 2024, record numbers of people who can't afford to top up their prepayment meters were being helped, and this includes a high proportion of people with a disability or long-term health, which is particularly concerning due to the increased risk of significant physical and mental harm for these groups. February 2024 was also a record month for energy debt issues, which has been on an upward trends during the ongoing cost-of-living crisis.
It is estimated that 6 million households will be in fuel poverty this winter, with a growing mountain of debt putting pressure on those least able to afford it. Households that were already stretched financially will be placed under further pressure and people will start prioritising some payments over others, which will cause debt to spiral.
The Wise Group - who provide home energy support to people across the UK, helping them to heat their homes at a cost they can afford - shared data which demonstrates some of the key groups that are disproportionately impacted by fuel poverty include those with a long-term illness or disability, single parents and those on prepayment meters, as well as how these groups are making ends meet in a prolonged period of crisis.
In particular, the group is seeing the choices people are making between heating, eating, and falling into debt, manifest in mental and physical health conditions which will have long lasting consequences for all members of the household. Overall, stress, anxiety, spending more time in bed, and fatigue combined with sleeplessness were among the most common issues people are facing related to fuel poverty.
Potential health impact of fuel poverty
To gather further insight, we spoke to Dr Babak Ashrafi, GP at Superdrug Online Doctor who answered our questions on how cold temperatures can impact our health. See what he had to say below:
1. Which health problems are most associated with exposure to cold temperatures, and why?
As we enter the winter months, cold temperatures can lead to a variety of health problems. One of the most common issues is the flu, which is a leading cause of death among the elderly during the winter in the UK. Cold air can aggravate our respiratory system, increasing susceptibility to infections such as the flu, bronchitis, and pneumonia. Hypothermia is another serious concern, occurring when the body loses heat faster than it can be generated, leading to dangerously low body temperatures. This can cause confusion fatigue, and, in severe cases, can be life-threatening. Additionally, cold weather places extra strain on the heart, raising the risk of heart attacks or strokes for individuals with cardiovascular conditions, as the heart works harder to regulate body temperature.
2. Which health conditions are negatively affected or exacerbated by exposure to cold temperatures, and why?
People with asthma or chronic respiratory conditions are particularly vulnerable in cold weather as cold air further constricts their airways, making it difficult to breathe. For those with cardiovascular conditions, cold temperatures can raise blood pressure and put extra stress on the heart as it works harder to maintain warmth.
Arthritis sufferers often report increased pain and stiffness during cold weather because muscles and joints might contract in response to the lower temperatures. Additionally, people with diabetes who already have problems with their peripheral circulation may face further issues or an increased risk of hypoglycemia due to a reduction in activity levels and metabolism during the winter.
3. Are there any other risks associated with exposure to cold temperatures that may cause other health issues?
Yes, exposure to cold temperatures can also increase the risk of injuries and accidents. When our bodies are cold, energy is diverted from cognitive functions to maintain core body temperature, slowing down our reaction times and leading to impaired visibility. This, combined with slippery and icy surfaces, increases the likelihood of falls, particularly for the elderly and those with mobility issues.
Another risk is the improper use of heating appliances, such as heaters or fireplaces, which can lead to fires or carbon monoxide poisoning if safety precautions aren’t followed carefully. These indirect risks, combined with the direct health effects of cold, make winter a particularly challenging time for the vulnerable.
4. Which demographics are most at risk of health issues related to exposure to cold temperatures?
The elderly are particularly vulnerable to cold weather because as we age our bodies become less efficient at regulating temperature, and any underlying health conditions will typically become exacerbated in the cold. Similarly, young children, who are still developing their ability to regulate body heat, are also more at risk.
People with chronic health conditions such as heart disease, respiratory illnesses, or diabetes are also more susceptible to the cold's effects. Those living in low-income households are especially vulnerable, as they may not be able to afford adequate heating.
5. What temperature range should people aim to keep their home at this winter, with the above in mind?
The recommended safe indoor temperature during the winter is generally between 18°C and 21°C (64°F to 70°F). For vulnerable individuals, it is even more important to maintain a minimum indoor temperature of 18°C (64°F) in the rooms they use most frequently to prevent health complications.
6. Are there any other general health or lifestyle tips/advice that you can share to help people avoid temperature-related illness this winter?
To avoid cold-related illness, it’s important to dress in layers to trap heat and cover exposed areas like the head and neck with scarves and hats, as this is where our body loses heat the fastest.
Staying hydrated and eating well in winter is essential to maintain energy, support immune function, and prevent dehydration as the body works harder to stay warm.
Homes should be well-insulated to prevent heat loss, using heavy curtains and sealing drafts around windows and doors. Checking heating systems to ensure they’re functioning efficiently and safely is also critical!
Lastly, ensure you are checking in on vulnerable friends, relatives and neighbours to ensure they are staying warm and feel safe this winter.
Available support and advice for those struggling with fuel poverty
MoneyHelper - which provides free and impartial money guidance for people all across the UK - shared that Pension Credit is now key to keeping your Winter Fuel Payment - A major change to this year’s Winter Fuel Payment means that to get the allowance that’s worth up to £300, you must also receive Pension Credit.
According to Gov.uk, up to an estimated 850,000 eligible households are not claiming Pension Credit, with up to £1.7 billion of available Pension Credit going unclaimed. If you don’t currently get Pension Credit, but think you could be eligible, it’s vital to check now and apply, otherwise you could miss out.
If you are struggling with heating bills there is more help available.If you claim Pension Credit or another qualifying benefit, such as Universal Credit, The Winter Fuel Payment is just one form of support you could get if you’re struggling with heating costs. You could also get:
- A Cold Weather Payment - if you get certain benefits and the temperature drops to zero degrees Celsius or below for seven days in a row you can get £25 for every seven-day period.
- The Warm Home Discount - this is a £150 discount on your bills if you get Pension Credit or live in a low-income household.
MoneyHelper shared some of the best ways to save on gas and electricity this winter:
- Understand your energy bill - It’s important to review your energy bills to stay informed, be in control and make sure you're not overpaying.
- Get ready to switch - Energy prices are very high.There are now a few fixed deals available at the price cap or slightly below it, so keep a close eye on prices. Try using comparison websites and be ready to switch when better deals become available
- Pay by Direct Debit - It’s usually cheaper to pay by Direct Debit and it will mean you won’t have to worry about missing payments.some text
- Use less - The less energy you use the lower your bills will be:
- Close your curtains and use draft excluders to stop heat escaping.
- Use your washing machine or dishwasher at a lower temperature, or run them on the ‘eco’ setting – and avoid putting the washing on when you don’t have a full load.
- Get into the habit of switching off lights when you leave a room and switching off electrical items instead of leaving them on standby.
- Make your home more energy efficient - There are lots of grants available, including the Green Deal, to help improve your home’s energy efficiency such as: improving your insulation, upgrading your boiler and appliances, installing solar panels or other green technologies.These improvements could help you save you hundreds of pounds a year.
The Wise Group also shared their tips on keeping on top of your home energy costs this winter:
- Stop wasting energy at home - Switching your appliances off at the wall instead of leaving them on standby could save you £35 a year. Likewise, turning your thermostat down by just one degree could save you £60 a year.
- Check you’re getting the best deal - Switching energy supplier or tariff could save you hundreds of pounds a year on your bills.
- Give your home an energy upgrade - The cost of heating and hot water accounts for more than half of the typical energy bill, so having an efficient heating system can make a big difference. Likewise, if your home is well insulated, less heat is able to escape so your heating system shouldn’t need to work as hard. Upgrading your heating system or topping up insulation can be an investment, but could be worth it in the long run as you’ll save on your bills.
How PayCaptain can help
Financial stress is a very real issue for employees in these really tough times. This has a huge impact, not only on employees, but on employers too. It’s in everyone’s interest to offer solutions to support employees to improve their financial well-being.
Half of the people Citizens Advice help with debt advice are in a negative budget - this means that their income can't cover their essential costs and they are building up debt just to get by. Some groups are especially likely to be in a negative budget, including racially minoritised groups, the self-employed, private renters and, more recently, mortgage holders. People on zero hour contracts might be included here, as their variable wages is a key indicator of low financial resilience.
In these difficult times, we want to give employees as many tools as possible to help them manage their money and promote their financial well-being. The solution also incorporates functionality that is specifically designed to positively impact financial resilience for people struggling with money.
The software has specific functionality built in to help support more vulnerable and low-income employees. We have built a solution to help employees build up financial resilience with a focus on starting a saving habit- no matter small. Whilst employees build up savings, or if they are not in a position to save there are additional tools to support them such as, access to emergency funding when needed
A few examples include on demand pay, payment splitting, emergency wage advances, and money planning tools.
- On demand pay is where companies can give their employees access to payments when they need them, even if it’s outside of the regular pay period.
- The payment splitting functionality allows employees to make payments directly from their net pay to landlords, loans, credit cards, mortgages etc – eliminating the risk of missing an important payment.
- Emergency wage advances enable employees to access emergency cash and automatic weekly advances. Weekly funds can be helpful for employees to manage part of their budget on a weekly basis and keep funds protected for their bills and direct debits at the end of the month.
- Money planning tools allow employees to create a personal budget as well as access helpful financial guidance.
Hyper personalised suggestions are also designed to help support employees to maximise their income. With specific reference to Fuel Poverty - an in app note will flag the free services available from Wise Group with an easy link to access them this FPAD.
