Hills review proposes new way to measure fuel poverty

A new way of measuring fuel poverty has been proposed in a review sponsored by the government. Led by Professor John Hills of the London School of Economics, it proposes a dual approach based on: whether households have fuel costs above the median level; and whether their residual income after fuel costs brings them below the official poverty line. Fuel poverty is currently based on comparing the ratio between households' energy spending needs and their income against a fixed threshold, set at 10 percent, but Hills believes this approach is flawed and unhelpful.

Concern over cost

The proposed new approach takes its lead from the description in the Warm Homes and Energy Conservation Act 2000. This says raises concern about individuals in households "living on a lower income in a home that cannot be kept warm at reasonable cost".

The review also calls for research into the health effects of cold temperatures, especially on vulnerable people such as the elderly and young children.

The full report, Getting the measure of fuel poverty: Final Report of the Fuel Poverty Review is available on the Department of Energy and Climate Change website.

Energy and climate change secretary Edward Davey said: "We will now study the report in detail ahead of consulting on an alternative definition for fuel poverty in the summer."