Fuel Poverty in Norfolk 2014 data

Transcription

1 Fuel Poverty in Norfolk 2014 data July 2016 version 4.0 Page 1 of 16

2 Contents 1 Key issues 3 2 Statement on data and methodology 4 3 Background What is fuel poverty? National context 6 4 Fuel poverty data for Norfolk The picture for Norfolk Looking deeper at LSOA level Rural and urban classification 10 5 Related data for Norfolk Heating the home Deprivation 13 6 Concluding remarks 15 Page 2 of 16

3 1 Key issues This report presents the latest Low Income High Costs (LIHC) fuel poverty data for Norfolk, along with contextual national data and information, which could be used to help inform the planning of local service strategies and provision. The following key issues have been identified from the data: Under the LIHC definition a household is considered to be fuel poor where they have required fuel costs that are above average, and were they to spend that amount, they would be left with a residual income below the official poverty line. Whether a household is in fuel poverty or not is determined by the interaction of three key elements: household income; fuel prices; and household energy requirements. In 2014, it is estimated that there were around 38,800 Norfolk households in fuel poverty, representing 10.2% of the county s households - this is worse than the region (8.4%) and better than nationally (10.6%). There are around 3,100 more Norfolk households in fuel poverty in 2014 compared with the previous year. Four of Norfolk s local authority areas have worse (higher) levels of fuel poverty compared with the county average of 10.2% North Norfolk at 12.0%; King s Lynn & West Norfolk at 10.8%; Norwich at 10.5%; and Great Yarmouth at 10.5%. Great Yarmouth and Norwich have experienced a reduction in levels of fuel poor households compared with the previous year, which may be due to targeting of initiatives such as energy efficiency advice and incentives within these areas of traditionally higher fuel poverty. Fuel poverty affects households in all LSOAs across the whole county, to some extent. Around 44% of Norfolk s LSOAs are estimated to have a worse (higher) proportion of households in fuel poverty than the Norfolk average. Around 28% of Norfolk s urban city and town areas and around 58% of sparse setting areas have a worse (higher) rate of fuel poverty than the Norfolk average. Around 9,000 Norfolk homes have no central heating (2.4% of households), with Great Yarmouth (3.7%), North Norfolk (3.4%) and Norwich (2.6%) worse than average. Around 44,000 Norfolk households are not connected to the gas network, and are disproportionately disadvantaged by the cost of heating their homes with more expensive alternatives. The link with fuel poverty and deprivation can be complex and areas with relatively low levels of deprivation could contain households living in fuel poverty. Page 3 of 16

4 2 Statement on data and methodology The data in this report comes from national sources, in particular the Department of Energy & Climate Change (DECC). The data are the most recent figures available to illustrate the current national and local picture of fuel poverty. Click here to go to the DECC fuel poverty website. Additional key data and information for Norfolk can be found on Norfolk Insight - Norfolk Insight is the county s Local Intelligence System and the host of Norfolk s online Joint Strategic Needs Assessment (JSNA). This is a public-facing website which presents key data for Norfolk and allows this to be downloaded. Page 4 of 16

5 3 Background Fuel poverty not only damages the well-being of individual households, but also imposes additional costs on the wider community in treating poor health, financial disadvantage and social exclusion. This report presents contextual national data and information about fuel poverty and related issues as an introduction to the latest fuel poverty data for Norfolk, which could be used to help inform the planning of local service strategies and provision. 3.1 What is fuel poverty? The Annual Fuel Poverty Statistics Report, 2016 published by DECC 1 describes how fuel poverty in England is measured using the Low Income High Costs indicator (LIHC), which considers a household to be fuel poor if: they have required fuel costs that are above average (the national median level); were they to spend that amount, they would be left with a residual income below the official poverty line. There are three key elements in determining whether a household is fuel poor: Household Income Household Energy Requirements Fuel Prices LIHC is a dual indicator, which allows measurement of not only the extent of the problem (how many fuel poor households there are) but also the depth of the problem (how badly affected each fuel poor household is). The depth of fuel poverty is calculated by taking account of the fuel poverty gap. This is a measure of the additional fuel costs faced by fuel poor households compared to the non-fuel poor household thresholds. This is explained in Figure 3.1, where the indicator consists of: the number of households that have both low incomes and high fuel costs (shown by the shaded area in the bottom left hand quadrant in Figure 3.1); and the depth of fuel poverty among these fuel poor households. This is measured through a fuel poverty gap (shown by the vertical arrows in Figure 3.1), which represents the difference between the required energy costs for each household and the nearest fuel poverty threshold. The fuel poverty gap for each individual household is then aggregated across all fuel poor households to produce an overall aggregate fuel poverty gap, which gives a sense of the depth of fuel poverty at a national level. The fuel poor quadrant includes some households who may not traditionally be considered to be poor, but are pushed into fuel poverty by their high energy requirements (this is reflected in the gradient of the income threshold). While it is recognised that households in the top left hand quadrant have low incomes, they also have relatively low energy costs, and so are not considered to be fuel poor. 1 Department of Energy & Climate Change (DECC) Annual Fuel Poverty Statistics Report, 2016 (London: DECC, 2016). Page 5 of 16

6 Households to the right of the income threshold have relatively higher incomes. Those in the top right quadrant have high incomes and low energy costs and are not fuel poor. Those in the bottom right hand quadrant have high energy costs but their relatively high incomes mean that they are not considered to be fuel poor. Figure 3.1: Fuel poverty under the LIHC indicator Source: DECC Annual Fuel Poverty Statistics Report, 2016 The LIHC indicator is a relative measure, as it compares households to national income thresholds and the national median energy costs, thereby ensuring national trends are reflected in both of these indicators. For any factor to affect the number of households in fuel poverty, it must change by a greater amount for those in fuel poverty, than for those not in fuel poverty. For example, a change in income will only have an impact on fuel poverty if households with low incomes and high fuel costs see relatively larger income changes (increases or decreases) compared to those who are not in fuel poverty. 3.2 National context In 2014, the number of households in fuel poverty in England was estimated at around 2.38 million, representing approximately 10.6% of all English households. 2 This is an increase from 2.35 million households in 2013 (a change of around 1.4%). The average fuel poverty gap (the amount needed to meet the fuel poverty threshold), fell by 2.1% between 2013 ( 379) and 2014 ( 371). The aggregate fuel poverty gap across all fuel poor households also reduced over this period, from 890 million to 882 million (0.9%). The relative nature of the fuel poverty indicator makes it difficult to accurately isolate 2 Department of Energy & Climate Change (DECC) Annual Fuel Poverty Statistics Report, 2016 (London: DECC, 2016). Page 6 of 16

7 absolute reason for change. However, in summary: Some households close to the fuel poverty threshold have seen a lower than average increase in disposable income, and therefore, been pushed into fuel poverty. Fuel prices have increased more than energy efficiency gains, leaving households with higher energy costs in 2014 compared to However, fuel poor households have seen smaller increases in energy costs than the overall population, which has reduced the fuel poverty gap. In 2014, domestic energy prices increased by approximately 4.3% compared with 2013, continuing the predominantly upward trend over the past decade marked the first year in over a decade that domestic energy prices decreased from the previous year - despite a general rise in inflation over this period. However, from 2011 onwards fuel prices have continued to rise in line with recent trends. 3 3 Department of Energy & Climate Change (DECC) Annual Fuel Poverty Statistics Report, 2016 (London: DECC, 2016). Page 7 of 16

8 4 Fuel poverty data for Norfolk This section looks at the overall picture of fuel poverty in Norfolk at local authority level, compared with the region and nationally. It then goes on to explore the data at Lower Layer Super Output Area (LSOA) level and the range of fuel poverty across rural and urban areas. 4.1 The picture for Norfolk Around 38,800 Norfolk households are estimated to be fuel poor in 2014 (Table 4.1). This is a decrease of around 2,400 households compared with 2011, but an increase of around 3,100 on 2013 figures. The variation in numbers over recent years is indicative of the complex interplay between levels of income, generally reducing levels of energy use (including improvements in the energy efficiency of housing) and fuel price fluctuations. Norfolk s rate of fuel poor households (10.2%) is worse than the region rate (8.4%) and better than the national rate (10.6%). Latest data shows that four of Norfolk s local authority areas have higher levels of fuel poverty compared with the county average of 10.2% North Norfolk at 12.0%; King s Lynn & West Norfolk at 10.8%; Norwich at 10.5%; and Great Yarmouth at 10.5%. For 2014, Breckland, Broadland, King s Lynn & West Norfolk, North Norfolk and South Norfolk have all experienced an increase in the rate of fuel poor households, compared with 2013 levels. Great Yarmouth and Norwich have experienced a reduction in levels of fuel poor households compared with the previous year, which may be due to targeting of initiatives such as energy efficiency advice and incentives within these areas of traditionally higher fuel poverty. Table 4.1: Fuel poor households, 2011 to % count % count % count % count Breckland , , , ,740 Broadland 9.2 4, , , ,960 Great Yarmouth , , , ,540 KLWN , , , ,990 North Norfolk , , , ,670 Norwich , , , ,520 South Norfolk 9.9 5, , , ,410 Norfolk , , , ,830 East of England , , , ,210 England ,390, ,282, ,346, ,379,360 Source: Norfolk Insight (DECC), Looking deeper at LSOA level There are 538 LSOAs in Norfolk. LSOAs have between 1,000 and 3,000 people living in them with an average population of 1,500 people. These small geographical areas make it easier to identify small pockets of fuel poverty that could be masked when looking at larger geographies such as Middle Layer Super Output Areas (MSOAs) or district and borough areas. Page 8 of 16

9 Figure 4.1 shows the proportions of Norfolk households in fuel poverty by LSOA, with the darker coloured areas representing those LSOAs with higher proportions of fuel poverty. This shows that fuel poverty affects households in all LSOAs across the whole county, to some extent. Similar maps for Norwich, Great Yarmouth and King s Lynn are shown at Figure 4.2. Figure 4.1: % of fuel poor households (estimated) in Norfolk by LSOA, 2014 Source: Norfolk Insight (DECC), 2016 Figure 4.2: % of fuel poor households (estimated) for Norwich, Great Yarmouth and King s Lynn by LSOA, 2014 Source: Norfolk Insight (DECC), 2016 Page 9 of 16

10 Of the 538 LSOAs in Norfolk, it is estimated that 236 have a higher proportion of households in fuel poverty than the Norfolk average of 10.2%. It is estimated that King s Lynn & West Norfolk has 46 LSOAs with a higher proportion of households in fuel poverty than the Norfolk average (up from 35 the previous year), making up around a fifth of those 236 LSOAs. Norwich accounts for around 17% (41 LSOAs, which is down from 54 the previous year) of the LSOAs with a higher proportion of households in fuel poverty than the Norfolk average; South Norfolk accounts for around 16% (38 LSOAs, which is up from 27 the previous year); North Norfolk accounts for around 14% (34 LSOAs, which is down from 36 the previous year); Great Yarmouth accounts for around 13% (30 LSOAs, which is down from 33 the previous year); Breackland accounts for around 13% (30 LSOAs, which is up from 28 the previous year); and Broadland accounts for around 7% (17 LSOAs, which is up from 9 the previous year). 4.3 Rural and urban classification Each LSOA in England has a rural or urban classification for Norfolk there are four rural classifications and one urban classification - assignments of LSOA/MSOA to rural or urban categories are made by reference to the category to which the majority of their constituent Output Areas (OA) are assigned. In the rural-urban classification (RUC) at OA level, output areas are treated as urban if they were allocated to a 2011 built-up area with a population of 10,000 or more. 4 Figure 4.3 illustrates the range of Norfolk households living in fuel poverty for each LSOA, by its RUC. This shows that there are many rural and urban areas in Norfolk with above average fuel poverty. Of the 267 Norfolk LSOAs classified as urban city and town, 74 (or 28%) are estimated to have a higher proportion of households in fuel poverty than the Norfolk average. Of the 26 Norfolk LSOAs classified as being in a sparse setting, the majority (15 LSOAs or 58%) are estimated to have a higher proportion of households in fuel poverty than the Norfolk average. Figure 4.3: % Norfolk households living in fuel poverty (estimated) for each LSOA, by rural or urban classification, 2014 Source: Norfolk Insight (DECC, 2016; ONS, 2011) 4 ONS, Page 10 of 16

11 5 Related data for Norfolk When looking at fuel poverty, it is useful to consider related issues such as the availability and cost of various forms of central heating, and issues of deprivation. This section gives some high level data and information on these issues and how they relate to overall fuel poverty. 5.1 Heating the home Issues such as cost and availability influence whether a household has central heating and the type of central heating it has. These issues around central heating are fundamentally linked to the degree to which a household is living in fuel poverty. The Census 2011 asked people to record what type of central heating (a central system that generates heat for multiple rooms) their accommodation has. Around 2.4% of Norfolk households report they do not have any central heating, which equates to around 9,000 Norfolk homes. Figure 5.1 shows the proportion of households that do not have central heating, by local authority area, compared with the region and nationally - overall, Norfolk has a higher level of households with no central heating than the Eastern region, but a lower level compared nationally. Great Yarmouth has the highest proportion of households with no central heating (3.7%), equating to around 1,570 households. North Norfolk (3.4% or around 1,550 households) and Norwich (2.6% or around 1,580 households) also have higher proportions of households with no central heating than the Norfolk average. Figure 5.1: % of Norfolk households with no central heating, by district, 2011 Source: Norfolk Insight (Census, 2011) Figure 5.2 shows the proportions of Norfolk households with no central heating by LSOA, with the darker coloured areas representing those LSOAs with higher proportions of households with no central heating. This shows that this issue affects households in all Page 11 of 16

12 LSOAs across the whole county, to some extent. Similar maps for Norwich, Great Yarmouth and King s Lynn are shown at Figure 5.3. Figure 5.2: % of Norfolk households with no central heating by LSOA, 2011 Source: Norfolk Insight (Census, 2011) Figure 5.3: % of households with no central heating for Norwich, Great Yarmouth and King s Lynn by LSOA, 2011 Source: Norfolk Insight (Census, 2011) Page 12 of 16

13 In general, mains gas is the cheapest fuel for providing heat to a home. Table 5.1 shows that for Norfolk as a whole, gas central heating is the most common type of central heating in homes (59.8% of households), followed by oil (19.6%) and then electric (10.3%). Table 5.1: Type of central heating (%) of Norfolk households by district, 2011 No central heating Gas central heating Electric (including storage heaters) central heating Oil central heating Solid fuel (for example wood, coal) central heating Other central heating Two or more types of central heating Breckland Broadland Great Yarmouth King s Lynn & West Norfolk North Norfolk Norwich South Norfolk Norfolk Source: ONS Census, 2011 Although gas central heating is the most common form of heating for all Norfolk s local authority areas, Breckland has below average gas use and above average electric and oil use; King s Lynn & West Norfolk has below average gas use and above average electric and oil use; North Norfolk has below average gas use and above average electric and oil use; and South Norfolk has below average gas use and above average oil use. As mains gas is generally the cheapest fuel for providing heat to a home, those Norfolk households using an alternative are disproportionately disadvantaged by the cost of heating their home. Households not using mains gas to heat their home is usually due to the property not having gas grid connection. In Norfolk for 2014, there are an estimated 44,150 households not connected to the gas network, which is around 15% of households (compared with around 10% nationally) Deprivation The English Indices of Deprivation 2015 use 37 separate indicators, organised across seven distinct domains of deprivation which can be combined, using appropriate weights, to calculate the Index of Multiple Deprivation 2015 (IMD 2015). This is an overall measure of multiple deprivation experienced by people living in an area and is calculated for every LSOA in England. The IMD 2015 has been used to rank each of the 538 LSOAs in Norfolk according to their relative level of deprivation. Figure 5.4 shows how proportions of households in fuel 5 DECC LSOA estimates of households not connected to the gas network data, 2014 Page 13 of 16

14 poverty in Norfolk s LSOAs correlate with their IMD ranking. Despite an intuitive association with deprivation and fuel poverty, there is not a strong correlational relationship the scattergram shows a fairly random distribution of data points rather than a strong linear relationship, and no clustering around the top left-hand edge. A number of Norfolk s LSOAs are relatively deprived and also have a high proportion of households in fuel poverty. Other deprived areas have relatively lower proportions of households in fuel poverty. This suggests that deprivation and fuel poverty are complex issues with many contributing factors and a level of deprivation (as measured by the IMD) does not necessarily mean a household is fuel poor (as measured by the LIHC fuel poverty indicator). Figure 5.4: Correlation of estimated % of households in fuel poverty (2014) and rank of deprivation (2015) for Norfolk LSOAs Source: Norfolk Insight (DECC, 2014; IMD, 2015) Page 14 of 16

15 6 Concluding remarks Fuel poverty not only damages the well-being of individual households, but also imposes additional costs on the wider community in treating poor health, financial disadvantage and social exclusion. Along with contextual national data and information, this report presents the latest fuel poverty data for Norfolk, supported by data around rurality, cost and availability of domestic heating fuels, and deprivation. This data and information could be used to help inform the planning of local service strategies and provision, to reduce the level of fuel poverty in Norfolk. The data shows a picture of a county with overall levels of fuel poverty that have worsened over the last year, and with some areas significantly worse than average. Some of the most affected LSOAs in the county are in urban areas, although many with above average levels of fuel poverty are still situated in the county s most rural areas. Page 15 of 16

16 If you need this document in large print, audio, Braille, alternative format or in a different language please contact Norfolk County Council on and we will do our best to help. If you have any queries about this publication please contact the Business Intelligence and Performance Service by bi@norfolk.gov.uk Published July 2016 Page 16 of 16