The ‘Review of the Fuel Poverty Strategy’ consultation comes at a critical time in the net zero transition. As the UK government ramps up efforts to decarbonise the power system by 2030 and with the expected introduction of the Warm Homes Plan later in the year, ensuring the transition is fair and tackles fuel poverty in the process will be crucial to achieving net zero.
Regen’s response is focused on the intersection between fuel poverty and the wider net zero transition.
Switching people from fossil fuel heating systems to low-carbon technologies, retrofitting homes and encouraging smarter engagement with energy markets all pose risks to those in fuel poverty who may be disadvantaged or left behind in the decarbonisation process. Without careful consideration and support this could widen health, social and economic inequalities between those who can afford to transition to low-carbon technologies – and reap the subsidies and benefits available – and those who cannot.
However, if done well, the transition can bring opportunities to deliver significant value to those in fuel poverty. This will require updating the fuel poverty strategy and embedding fuel poverty considerations within wider market, policy and regulatory frameworks. This includes across the energy retail and wholesale markets, Local Power Plan and Warm Homes Plan, as well as across health, housing, social care, local authorities, third sector and, crucially, net zero.
Within this consultation response, we address specific questions focused on this theme and encourage the government to implement four core ‘foundations’ across the full strategy to support a fairer net zero transition for fuel-poor households.
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