Fuel Poverty in Scotland - Essay Example

Introduction Fuel poverty remains to be a contentious issue in Scotland and the entire UK. However, the Scottish government has recognised this as aserious issue and has embarked on a mission to eradicate fuel poverty in the country by 2016 that currently stands at 27%. This rate is above the UK’s average fuel poverty rate of 20% despite the fact that Scotland benefits from the wider UK energy policy unlike England that has a lower fuel poverty rate of 19.4% (Read, 2015). Therefore, to ensure that the targets are met, the Scottish government has established a multi-million pound scheme of about £224 million aimed at eradicating fuel poverty in Scotland by 2016 (STVNews, 2014). This paper explores the various factors or variables that are contributing to high fuel poverty rates in Scotland with the main focus on the SIMP map and 1991 and 2001 census data. Literature Review According to “High Level Summary” (2013), fuel poverty refers to a situation where persons spend over 10% of their personal income on household fuel to maintain a heating regime that is satisfactory. On the other hand, Moore (2012) defines fuel poverty as a situation where a person’s energy costs are more than average and when he/she spends such an amount, he/she is left with an income that is less than the official poverty line. That notwithstanding, the Warm Homes and Energy Conservation Act 2000 in the UK defines fuel poverty as when, “a person is to be regarded as living in fuel poverty if he is a member of a household living on a lower income in a home that cannot be kept warm at reasonable cost” (HECA, 2000). However, it is imperative to note that the term fuel poverty was initially a common phrase in the United Kingdom but currently the concept has found its way globally wherever there is poverty. A survey on Scottish house conditions 2012 revealed that over 27.1 % of households in Scotland spent over 10% of their personal incomes on energy, resulting in a situation of fuel poverty (“Fuel poverty,” 2013). Some of the indicators that have been found to cause fuel poverty in Scotland include: Fuel Prices The prices of fuel in Scotland keep on fluctuating from time to time resulting in people falling in and out of poverty (East Ayrshire Council, 2002). For example, high consumer prices for fuel such as electricity resulting from aggravated higher tariffs increase the cost of fuel causing high levels of fuel poverty as was the case in the years 2009 and 2011 when fuel poverty rates stood at 34% and 30% respectively. Moreover, it is imperative to note that fuel poverty rates vary by the kind of fuel that is used for heating (“High Level Summary,” 2013). For example, the main gas is prevalent and the cheapest fuel used in heating in the UK and Scotland. Therefore, in situations where households are not connected to the main gas networks, households are forced to turn to alternative sources of energy such as electricity that has been to known to be a major contributor to fuel poverty because of the costs involved. This was evident in 2012, when fuel poverty rates stood at 52% for all households not connected to the main gas network compared to 24% for those who were connected (“High Level Summary,” 2013). Low Incomes Low incomes earned by the Scottish people have often been cited to be one of the main causes of absolute poverty in Scotland (Morrison & Shortt, 2008). Therefore, this implies that households cannot afford to pay energy costs or acquire central heating systems. For instance, due to better changes in personal incomes with little changes in the prices of fuel, coupled with improved energy efficiency, the fuel poverty rate in Scotland fell to a low mark of 27.1 % between October 2011 and mid 2012 as shown in chart below (“High Level Summary,” 2013). Therefore, it is evident that an increase in personal incomes for Scottish people can help eradicate the problem of fuel poverty in the country because households will be able to afford to pay for energy and getting connected to cheap common alternative sources of energy such the main gas network. (“High Level Summary,” 2013). Pensioner Households and Lone Parent Households Fuel poverty in Scotland has been associated with single pensioner households and lone parent households. Statistics from the 2001 census data indicate that, the percentage of married (including separated and remarried) people in Scotland fell from 58% in 1991 to 54% in 2001 while the proportion of those who were divorced rose from 5% to 7% (“Key Facts,” 2011). These factors contribute to fuel poverty because the rates of income for single pensioners and lone parent homes are considered to be lower even though their fuel costs tend to be a bit lower (“Key Facts,” 2011). However, this results in a situation where the cumulative burden of fuel costs for these groups tend to be higher relative to their amount of incomes; thus, making such households unable to pay for their energy costs causing them to fall in and out fuel poverty. Low Average Size of Households Another indicator, which has been associated with fuel poverty in Scotland is the low average size of households. Statistics from the 2001 census indicate on average the number of people per a home was 2.27 in 2001 compared to 2.44 in 1991 (“Key Facts,” 2011). This has been attributed to decrease in marriages or increase in numbers of ate marriages, divorce rates among many others. Thus, this implies that the rates of fuel poverty are increasing as the number of people per household keeps on declining because the level of incomes just like in the case of lone parent and single households, face the risk of low cumulative incomes relative to the costs of energy (“Fuel poverty,” 2013). Therefore, because of reduced incomes such homes find it expensive to pay for the costs of energy especially when prices of energy increase. Unemployment Statistics from the 2001 census data also indicate that the proportion of males who were in full-time employment declined from 55% in 1991 to 51% in 2001 resulting in higher fuel poverty rates (“Key Facts,” 2011). High levels of unemployment imply that households have little or no income and are struggling to meet their eating and heating needs (“Key Facts,” 2011). Therefore, unemployment has an effect of increasing fuel poverty rates because households have little or no funds to pay for higher energy costs. Households without Central Heating The number of low-income homes without a central heating system in Scotland has been falling sharply since the mid-1990s from a quarter to about a tenth by 2001/04. For instance, the number of low-income homes without a central heating system in 2001/04 was estimated to be less than that for average income homes in the mid-1990s. Nevertheless, because of increasing unemployment as indicated above, increasing number of lone homes and declining incomes for low-income homes, the problem of fuel poverty continues to be a nightmare for a number of poor homes especially in the cities of Glasgow, Edinburgh, Dundee and Orkney as shown below (“Without Central Heating”, n.d.). Fig. 2 (“Without Central Heating”, n.d.). Access to a Van or Car Finally, statistics also shows that about a third of homes in Scotland had no access to a van or car in 2001 compared to over a two-fifth of 1991 (“Key Facts,” 2011). Therefore, this implies that many Scottish homes currently don not own cars an indication that the level of incomes have been decreasing over the years for the employed, implying that a number of homes cannot now afford to pay for the costs of energy. Moreover, statistics also indicate that unemployment has been increasing over the years; thus, many families are becoming poor and falling into poverty such that they cannot afford to meet the high costs of energy. Discussion and Analysis of Findings Despite fuel poverty being a contentious issue in Scotland, it is evident from the literature review that some indicators of fuel poverty have more remarkable effects than the others. These include: Fluctuations in Prices of Fuel The fluctuations in prices of fuel has been cited as one of the leading indicators causing higher fuel poverty rates resulting in many homes falling in out of fuel poverty (Boardman, 2013). For example, it has been established that most rural homes in Scotland have no access to the main gas supply network, which is one of the prevalent and cheapest form of energy in Scotland. Thus, because such homes cannot afford to pay for electricity, which is expensive due to tariffs that are imposed causing prices to increase, the households are forced to remain in a situation of poverty; thus, explaining the reason why the Scottish government has been unable to eradicate the problem of fuel poverty (“Fuel poverty,” 2013). Poor Energy Efficiency Measures Poor energy efficiency measures, which are attributable to lack of house insulation resulting in an escape of heat through windows, walls and roofs have also been cited to be a significant contributor to fuel poverty in Scotland. For instance, Patrick Harvie a member of the Scottish Parliament from Glasgow argues that, “We can still make a real difference if ministers redirect their budget to cut energy waste and create valuable green jobs across our economy” (“Fuel poverty,” 2013). Unemployment In addition to the aforementioned, it is evident from Patrick Harvie’s argument that the problem of fuel poverty in Scotland can be addressed by creation of valuable green jobs for the Scottish people (“Key Facts,” 2011). Therefore, through employment many families can boost their income levels and be able to afford to pay for the costs of energy that keep on fluctuating from time to time. Illness and Health Illness and health that stood at 20% in 2001 compared to 14% in 1991 has been a significant factor of concern to most Scottish people because it limits their ability to engage in economic activity to generate income (Healy, 2004; “Key Facts,” 2011). Thus, because of this such households do not afford to pay for energy costs resulting in an increasing fuel poverty rate. Conclusion Ultimately, it is evident that with the new multi-million pound scheme of about £224 million that is aimed at eradicating fuel poverty in Scotland, the government can achieve its 2016 vision of a fuel poverty free Scotland if it invests in efficient measures for conserving energy such as housing insulation. Moreover, the government needs to tame the volatility of energy price fluctuations that are a significant contributor to fuel poverty as well as create job opportunities for the Scottish people to enable them boost their incomes so that they can afford to pay for their energy costs; consequently, bringing down the fuel poverty rate. Bibliography Boardman, B., 2013. Fixing fuel poverty: challenges and solutions. Routledge. East Ayrshire Council, 2002. East Ayrshire Council Fuel Poverty Strategy 2004-2009, pp. 1-23. Fuel poverty in more than a quarter of Scottish homes in 2012. (2013, December 10). Available at: http://www.bbc.com/news/uk-scotland-25319365 [Accessed 15 Jan. 2014]. Healy, J. D., 2004. Housing, fuel poverty, and health: a pan-European analysis. Gower Publishing, Ltd. HECA, 2000. Warm Homes and Energy Conservation Act 2000. Available at: http://www.legislation.gov.uk/ukpga/2000/31/section/1 [Accessed 15 Jan. 2014]. High Level Summary of Statistics Trend: Fuel Poverty. (2013, November). Available at: http://www.scotland.gov.uk/Topics/Statistics/Browse/Housing-Regeneration/TrendFuelPoverty [Accessed 15 Jan. 2014]. Key Facts from the 2001 Census. (2011). Available at: http://www.scotlandscensus.gov.uk/key-facts-2001-census [Accessed 15 Jan. 2014]. Moore, R., 2012. Definitions of fuel poverty: Implications for policy. Energy Policy, 49, 19-26. Morrison, C., & Shortt, N., 2008. Fuel poverty in Scotland: Refining spatial resolution in the Scottish Fuel Poverty Indicator using a GIS-based multiple risk index. Health & place, 14(4), 702-717. Read, S., 2015. Fuel poverty support is ten times bigger in Scotland and Wales than in England. Available at: http://www.independent.co.uk/news/uk/politics/fuel-poverty-support-is-ten-times-bigger-in-scotland-and-wales-than-in-england-9219554.html [Accessed 15 Jan. 2014]. STVNews, 2014. Scottish Government launches £224m winter fuel poverty scheme. Available at: http://news.stv.tv/scotland/295502-scottish-government-launches-224m-winter-fuel-poverty-scheme/ [Accessed 15 Jan. 2014]. Without Central Heating. (n.d.). Available at: http://www.poverty.org.uk/s77/index.shtml / [Accessed 15 Jan. 2014]. Read More