National Energy Action and Kensa are calling for increased efforts to update homes still relying on outdated electric heating systems, to reduce energy inefficiency and bills
Outdated electric heating systems are trapping hundreds of thousands of UK households in fuel poverty, according to analysis by fuel poverty charity National Energy Action (NEA) and UK ground source heat pump specialists Kensa.
According to Government figures, around 1 in 4 electrically heated homes in England are fuel-poor, with an average fuel poverty gap– the additional income needed to not be fuel-poor – of £857, more than double the national average of £417.
Outdated electric heating systems are contributing to fuel poverty
This gap is caused by the inefficiency of direct electric heating, such as night storage heaters, and the rising cost of electricity, which has jumped to 24.5p per kWh.
As energy prices rise again this winter, electrically heated households could see annual heating costs close to £2,500 – significantly higher than the £1,717 cap for dual fuel homes set by Ofgem. Many households will be unable to afford this, emphasising the urgent need for more efficient affordable solutions.
Furthermore, as household Energy Performance Certificate (EPC) ratings fall, the fuel poverty gap widens significantly, underscoring the direct link between poor energy efficiency and fuel poverty.
Electrically heated EPC D properties have an average fuel poverty gap of £341
Electrically heated EPC E properties have an average fuel poverty gap of £1,028
Electrically heated EPC F and G properties have an average fuel poverty gap of £1,823
More efficient heating systems will boost EPC scores and cut energy bills
One of the solutions to achieve this is networked heat pumps, which use individual ground source heat pumps in multiple properties, potentially offering 400% energy efficiency – far exceeding the maximum 100% efficiency of traditional electric heating systems.
Switching to heat pumps could save electrically heated households over £1,200 a year on heating costs.
Through the Government’s Warm Homes: Social Housing Fund, which replaces the Social Housing Decarbonisation Fund, Kensa encourages providers to use the financial support to adopt better heating solutions in their properties.
Around 250,000 social homes still rely on inefficient electric heaters, risking fuel poverty. Replacing these with networked heat pumps will protect residents from future energy price increases and ensure affordable heating.
Increases to the price cap will see 6m homes in fuel poverty this winter
Maya Fitchett, policy analyst at National Energy Action, said: “We have known for too long that a disproportionate number of these fuel poor households rely on inefficient electric heating, making them particularly vulnerable to price increases.
“Ofgem’s price cap will mean that customers reliant on electricity for all or most of their energy needs will see additional increases of approximately £70 compared to Direct Debit customers. This means many of these households cut back their energy use to dangerous levels, some don’t heat their home at all.
“It doesn’t have to be this way. When installed alongside appropriate insulation measures, low-carbon technology, such as heat pumps, can help households to significantly reduce energy costs. Often this technology is too expensive for many of the people National Energy Action (NEA) try to support, but the Government’s Warm Homes: Social Housing Fund can be essential in supporting low-income tenants to benefit from this technology. This is also vital to make progress towards statutory fuel poverty and net zero targets.”
Stuart Gadsden, commercial director at Kensa, said: “Since 2020 continuous spikes in energy prices have left millions of UK consumers reeling at the sight of high energy bills, with many struggling to afford to even turn on their heating.
“The fuel poverty gap has been rising, and households with direct electric heating are seeing the gap widen most. Networked heat pumps can provide a much-needed lifeline for these people, shielding households from unstable energy prices and cutting heating bills by over £1,200 a year.
“Social housing landlords have made important commitments on fuel poverty alleviation and the climate. With the Warm Homes: Social Housing Fund, they have a clear pathway to fund these vital projects, improve heating for their tenants and potentially lift them out of fuel poverty all together.”
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