What is fuel poverty and which areas are most affected?

Millions more people are set to be pushed into fuel poverty in the coming months, amid the cost of living crisis.

After Ofgem raised the energy price cap by 54% earlier this month, the End Fuel Poverty Coalition warned an additional 1.1 million homes will be plunged into fuel poverty when the increase takes effect in April.

People on lower incomes will be hardest hit as they spend a greater percentage of their earnings on fuel bills.

Here, Yahoo News UK explains what all this means, and what is being done about it.

What is fuel poverty?

The UK government defines a household as being in fuel poverty if:

"Its fuel efficiency rating is Band D or below and its disposable income - after housing and fuel costs - is below the poverty line (of 60 per cent of the median UK household income)."

Overall, 13.4% - or 3.2 million - of households in England are considered to be in fuel poverty.

Fuel efficiency has a significant impact on fuel poverty, with average costs three times higher in the least efficient band G properties than the most efficient Band A.

The latest government data, which cover 2019, shows a Band D or E property is just as likely to be in fuel poverty (23% of households in England) as a Band F or G property (also 23%).

However, those in less efficient homes are likely to have a higher "fuel poverty gap".

This is the reduction in required fuel bills that the average fuel poor household needs in order to not be classed as in fuel poverty. It is £1,039 in the least efficient band F and G properties - six times higher than the average gap of £173 in band D and E properties.

Broken down by household composition, a single parent household is most likely to be in fuel poverty (28%) while a couple under 60 with no children is least likely (6%).

Households in the private rented sector are most likely to be in fuel poverty (27%) compared to 18% in social housing and 8% in owner occupied homes.

Which areas are worst affected?

Of the nine English regions, the West Midlands has the highest proportion - 17.5% - of households in fuel poverty, followed by Yorkshire and the Humber (16.8%) and London (15.2%).

The least affected region is the South East (7.5%).

At a constituency level, the areas with the highest levels of fuel poverty are clustered in London and the West Midlands.

The 10 constituencies with the lowest levels of fuel poverty are all the South East.

Constituencies with the highest proportion of households in fuel poverty

1. Birmingham Hodge Hill (West Midlands): 27.4%

2. Barking (London): 24%

3. Stoke-on-Trent Central (West Midlands): 23.7%

4. Wolverhampton South East (West Midlands): 23.7%

5. Walthamstow (London): 23.7%

6. Birmingham Yardley (West Midlands): 23.5%

7. Sheffield Brightside and Hillsborough (Yorkshire and the Humber): 23.2%

8. Warley (West Midlands): 23.2%

9. Birmingham Ladywood (West Midlands): 23.1%

10. Manchester Gorton (North West): 22.8%

Constituencies with the lowest proportion of households in fuel poverty

1. Wokingham (South East): 4.8%

2. North East Hampshire (South East): 5%

3. Beaconsfield (South East): 5.1%

4. Windsor (South East): 5.2%

5. Surrey Heath (South East): 5.3%

6. Fareham (South East): 5.5%

7. Esher and Walton (South East): 5.5%

8. Bracknell (South East): 5.5%

9. Chesham and Amersham (South East): 5.6%

10. Maidenhead (South East): 5.7%

What help is available?

Following Ofgem's lifting of the energy price cap, chancellor Rishi Sunak announced a £9 billion package to help households during the cost of living crisis.

This includes a £150 rebate on 80% of the nation's council tax bills in April. A further £144m will be handed to councils for them to also support vulnerable households.

Sunak also announced £200 discount off energy bills in October. This has sparked controversy due to the additional levy which will see every household pay pack £200 in £40 instalments over the next five years, whether or not they benefitted from the initial discount.

Watch: People to receive £350 of help through energy crisis

Campaigners including the End Fuel Poverty Coalition warned the scheme "will do little but offset or defer part of the most recent rise". Labour shadow chancellor Rachel Reeves branded it a “buy now, pay later scheme that loads up costs for tomorrow”.

Sunak himself warned households they will have to adjust to higher energy prices in the future.

Read more:

Revealed: The 10 food items from your weekly shop increasing fastest in price

Why Russia invading Ukraine could increase your energy bills

Separate to the chancellor's announcement, help already exists for people struggling to pay their bills.

For example, consumers can agree a payment plan with their supplier, which must co-operate under Ofgem rules. This may result in being given more time to pay, or payment reductions.

In some cases, energy suppliers and the government also offer grants to help consumers with their bills.

For more information about getting help with energy bills, visit Ofgem's website.