This was a special joint meeting of the Economy and Enterprise Overview and Scrutiny Committee and the Environment and Sustainable Communities Overview and Scrutiny Committee. The main item for discussion was a report and presentation on fuel poverty in County Durham. Councillors were expected to comment on the report and presentation, and to consider receiving a further update on fuel poverty at a future meeting.

Fuel Poverty Overview

The committees were scheduled to discuss a report and presentation providing an overview of the national fuel poverty strategy and countywide fuel poverty programmes.

The report noted that the best long-term solution to tackling fuel poverty is through energy efficiency measures, such as home insulation and efficient heating systems. It stated that the council's warm homes team co-ordinates domestic retrofit schemes¹ and provides advice on saving energy. The energy and sustainability team promotes and works on community energy schemes.

The report stated that government figures show that the percentage of households experiencing fuel poverty in County Durham reduced from 15.5% in 2019 to 11.4% in 2023, but that the fuel poverty gap average has increased to £407.

National Fuel Poverty Strategy

The report pack included background information on the UK government's 2021 National Fuel Poverty Strategy, which is part of the Warm Homes Plan. The plan aims to ensure vulnerable households can afford adequate heating, with a statutory target to upgrade fuel poor homes to Energy Performance Certificate (EPC) Band C by 2030.

The strategy introduced the Low Income Low Energy Efficiency (LILEE) metric. A household is considered to be fuel poor if they have a residual income below 60% of median income, after accounting for required fuel costs, and live in a home that has a Fuel Poor Energy Efficiency Rating (FPEER) below Band C.

The report noted that the government launched a comprehensive review of the strategy in 2025, as the LILEE metric excludes some struggling households. It stated that the proposed new metric would consider actual energy costs relative to household income, with the aim to ensure no household is excluded from support simply because their home meets a technical efficiency standard.

Causes and Health Impacts of Fuel Poverty

The report identified the primary causes of fuel poverty as a combination of low household income, poor energy efficiency of homes, and high energy costs. Other contributing housing factors include older housing stock, private rented sector tenants having limited control over energy upgrades, and a lack of retrofit investment.

The report stated that fuel poverty has profound and wide ranging health impacts, particularly for vulnerable groups such as children, older adults, and people with chronic illnesses. Physical impacts include respiratory infections and cardiovascular disease, while mental health impacts include stress, anxiety, depression and isolation. The report stated that the NHS spends an estimated £2.5 billion annually on treating illnesses linked to cold, damp homes, and that fuel poverty contributes to excess winter deaths.

Fuel Poverty Statistics

The report stated that there were 2.73 million households in fuel poverty in England in 2024 (11.4% of all households), with an average fuel poverty gap of £407. Approximately 27,700 households (11.4%) in County Durham are experiencing fuel poverty, which is above the regional average of 10.6%. The fuel poverty gap in County Durham is estimated to be £405.

Current Schemes to Address Fuel Poverty

The report provided information on current schemes to address fuel poverty, including:

• Energy Company Obligation (ECO): The ECO focuses on supporting low income, vulnerable and fuel poor households, through installation of insulation and heating measures. Durham County Council supports the uptake of ECO4 within the county and reviews income and tenure eligibility for ECO flex applications on behalf of obligated energy suppliers and their contractors. The council charge a fee to onboarded contractors for administering the ECO4 flex scheme, currently set at £100 for route one (household income) and £50 for route three (health condition).
• Warm Homes Discount: The warm home discount scheme for winter 2025 to 2026 is set to reopen in October 2025, offering a £150 discount applied directly to electricity bills to eligible households across England.
• Winter Fuel Payments: Residents born before 22 September 1959 could get between £100 and £300 to help pay heating bills this winter.
• Warm Homes Local Grant (WHLG): Durham County Council have been allocated a total of £2.055 million to deliver energy efficiency measures to approximately 140 homes across 2025 to 2028. WHLG applies to privately owned properties either owner occupied or privately rented which have EPC rating of D to G.
• Warm and Healthy Homes: Warm and healthy homes grant utilises public health funding to provide one off minor gas boiler repairs and servicing carried out by Durham County Council service direct engineers up to the value of £500.
• Minimum Energy Efficiency Standards (MEES): The MEES are regulations which establish a minimum EPC rating for domestic properties that are rented privately by landlords in England and Wales.
• Ground Works North East: The energy works team is working in partnership with Groundworks North East to identify and refer residents onto their own home energy advisor who provides free impartial advice.
• Managing Money Better (MMB): The council's MMB service works alongside Groundworks North East to provide free and impartial advice on fuel debt, reducing bills, and making sure residents understood their heating system and controls.
• Rural Community Energy Schemes: The energy management and sustainability team promote and work with communities on community energy schemes and are actively investigating opportunities around district heating and how this can support local communities with cheaper British energy.

Past Schemes

The report also provided information on past schemes, including the Homes Upgrade Grant (HUG2) and Local Authority Delivery (LAD) funding.