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'Fuel poverty'?

toni999_2
toni999_2 Posts: 30 Forumite
Forgive me if this question is answered elsewhere - I have had a good look and can't find it...

I have been hearing about 'fuel poverty' recently and wondered how do I know if I am in fuel poverty and how do I find out if I could get reduced bills or some help? Is this just something for elderly people?

(I am self-employed and currently have a very low income, claim working tax credit and housing benefit, live in a privately rented flat and am single / no children.)
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Comments

  • Magentasue
    Magentasue Posts: 4,229 Forumite
    I can't see any reason why you'd be entitled to any help - might be worth asking on benefits board. Maybe an evening/weekend job?
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    1,000 Posts Combo Breaker
    Unfortunately if you are too poor to heat your home you are disqualified from being allowed to call yourself fuel poor. Only people living in subsidised housing are likely to be able to claim 'fuel poverty'. You have to spend 10% of your gross income on fuel. This is, of course, not possible if you are genuinely poor and thus you are forced to pay the premium to support the usual claimants.
  • noelphobic
    noelphobic Posts: 2,297 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    I studied this as part of my degree last year! Fuel poverty is a term used when 10% or more of your income is spent on gas and/or electricity. Extreme fuel poverty means you are spending 20%. It does not, however, mean you are automatically entitled to any help and is an extremely crude definition - if your income was 1 million pounds per month and you spent 100k per month on fuel bills then technically you are in fuel poverty!

    I suspect that many people are now spending 10% or more of their income on fuel and some are finding it harder than others.
    3 stone down, 3 more to go
  • Pssst
    Pssst Posts: 4,803 Forumite
    Part of the Furniture 1,000 Posts
    The concept of fuel poverty is rubbish. Where is it written that anyone is entitled to fuel? I'd advise everyone who hasnt already done so to get used to the concept of actually wearing the right clothes for the season eg a thermal vest/pants under their clothing. That way they will be warm but they won't be squandering fortunes on gas. It is ridiculous that people think they can flounce around the house in t shirts or silky undies when its freezing outside !
  • I think a more constructive answer would be that each of the energy companies takes a slightly different view on who should qualify for a social tariff - be it age, benefits, or spending over 10% of your income after housing costs on fuel. It's worth ringing around and seeing if any of them believe that you would qualify for the help.
  • KimYeovil
    KimYeovil Posts: 6,156 Forumite
    1,000 Posts Combo Breaker
    I think a more constructive answer would be that each of the energy companies takes a slightly different view on who should qualify for a social tariff - be it age, benefits, or spending over 10% of your income after housing costs on fuel. It's worth ringing around and seeing if any of them believe that you would qualify for the help.

    The main problem with the 10% rule is that this criterion DOES NOT exclude housing costs. That's what makes it farcical and unfair. Only the wealthy can afford to spend 10% of their gross income. The poorest people are too poor to spend enough money on their heating to qualify for a social tariff. They have to pay a premium to subsidise those who can warm their homes. Even if they are on a MDD online deal, they still pay a subsidy.
  • Pssst
    Pssst Posts: 4,803 Forumite
    Part of the Furniture 1,000 Posts
    I didnt even realise that energy companies offered "social tariffs" is this so ? They must be mad.
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Combo Breaker
    I think the government should remove VAT from the first x KWH of each household's fuel bills. This would have to be based upon size of property and/ or number of occupants. Some fuel is essential, you should be able to use a fridge freezer, lighting and a basic level of heating without being taxed. If you elected to then use loads of TVs/ games consoles, a tumble dryer and have the house very warm you would be taxed on that luxury. It wouldn't be easy to set up, but I feel it would be fairer.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • LadyT_4
    LadyT_4 Posts: 14 Forumite
    As other people have mentioned, fuel poverty is considered to apply to people who pay out 10% or more of their monthly income on their fuel bills. Those who said they don't know why you'd be entitled to any help or who told you to speak to the benefits agency and not your fuel company should either check their information or not give 'advice' if they don't know what they're talking about.

    I also think it's disgusting that people can be so judgemental when they don't know the exact details of your situation, and it seems especially inappropriate in a forum such as this which is set up for people who are having problems to ask for help from others. But anyway...

    Yes, you MAY be entitled to assistance from your fuel company in terms of a reduced payment plan or non-standard tariff. Who are you with? I can only speak from experience here, so if you're not with nPower you may end up having to take a different route to get help or the details of your experience may be different from mine.

    nPower have a First Step program for people who are in debt to the company and can't afford to pay it. They also have a First Step tariff for people who don't necessarily qualify for the First Step program but are still considered to be fuel poor.

    I am bankrupt and my previous debt to nPower (only a couple of hundred pounds) was cleared as part of the bankruptcy and a new account was set up (this took MONTHS though as nPower seem to be rather incompetant, but that's a different story). As I am no longer in debt to the company I don't need the First Step program's payment plan options but as I am considered fuel poor I do qualify for the First Step tariff which is lower than the standard tarrif.

    To qualify for this I had to first enquire about it and then fill in a budget sheet and other financial info to send back. If you're already having difficulty keeping up with your bills and think you may qualify for fuel poverty, please do contact your fuel company and ask them for more information.
  • toni999 wrote: »
    Forgive me if this question is answered elsewhere - I have had a good look and can't find it...

    I have been hearing about 'fuel poverty' recently and wondered how do I know if I am in fuel poverty and how do I find out if I could get reduced bills or some help? Is this just something for elderly people?

    (I am self-employed and currently have a very low income, claim working tax credit and housing benefit, live in a privately rented flat and am single / no children.)
    claiming housing benefit may qualify for some social tariffs,should for edf any way.
    also i believe accommodation type council/private or owned has no bearing on fuel poverty,it is simply a percentage ie if your income is £100 and you spend £11 on fuel you are in it.
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