The Centre for Sustainable Energy (CSE) is calling for more ambitious targets and the introduction of fairness as a core principle in addressing the growing crisis of cold homes in our response to the government’s review of the Fuel Poverty Strategy We’re calling for urgent action as energy prices rise again this week, benefits face cuts, and the average fuel poverty gap continues to deepen for millions of households across the UK.

Drawing on CSE’s 45 years of experience supporting people in fuel poverty and the insights from helping thousands of people annually through our advice services, our response considers the harsh reality facing millions of people across the UK and includes insights from our research exploring fairness in the transition to net zero and ending fuel poverty.

Ambitious targets needed

In our full response, we advocate for keeping the current fuel poverty target while proposing an additional goal of upgrading all fuel-poor households to at least EPC band B by 2040.

We also recommend introducing a complementary affordability indicator using the 10% definition of fuel poverty (where energy costs exceed 10% of income), with income calculated after housing costs, to better reflect households’ actual financial situations.

Core principles must guide action

While broadly supporting the government’s proposed principles, we’ve called for fairness to be added as an essential fifth principle to ensure the transition to a net zero energy system doesn’t widen existing inequalities. Those in fuel poverty should be empowered to engage with the cheapest energy tariffs and flexibility where appropriate.

Worst first

Many of the coldest homes need repair and maintenance before they can be retrofitted. Without addressing these fundamental issues first, we risk leaving people in the most vulnerable circumstances behind.

Targeting the most severe cases of fuel poverty requires acknowledging that many properties need basic repairs before energy efficiency measures can be installed. We’re calling for retrofit grant programmes to include allowances for these enabling works, supported by low-interest loans to cover additional costs.

Cost effectiveness

Quality is paramount in fuel poverty interventions. Poor installation work leads to expensive remediation and erodes public trust in insulation schemes. We’re advocating for measured performance targets and improvements to the assessment process.

Specifically, we recommend measuring the Heat Transfer Coefficient (HTC) before retrofit work begins, which can improve targeting, reduce unnecessary insulation, and cut costs by up to 50%.

Vulnerability

Our response emphasises the critical role of intermediate organisations like CSE and multi-agency partnerships in identifying people who need support. We’re calling for greater integration between health and energy advice services. Fuel poverty is fundamentally a public health issue that requires joint working between health, social care, and energy sectors.

Sustainability

Fuel poverty policies must align with net zero goals. We’re calling for a reduction in the gap between gas and electricity costs, alongside grant funding programmes that support gateway technologies like batteries and smart controls for existing technologies such as mobility scooters and hot water tanks.

We recommend that solar installations should include battery storage and solar diverters as standard to maximise cost savings for people in more vulnerable circumstances.

Fairness

The energy market needs fundamental reform to become more equitable. Current smart energy tariffs and technologies primarily benefit wealthier households with electric vehicles and battery storage, offering them lower rates and greater flexibility.

“Fuel-poor households, particularly those with prepayment meters, broken smart meters or limited digital access, are being excluded from the benefits of the energy transition, even when they have assets which could be used flexibly”, our response highlights.

A national approach to local delivery

To deliver on these principles, CSE is calling for a comprehensive national energy advice service that enables fuel-poor households to access free, local, independent and relevant energy advice. This service needs to provide national telephone coverage alongside in-depth locally embedded support and delivery of measures, funded through the Warm Homes Plan.

Our recommendations include:

1. Implementation of NICE Guidance on excess winter deaths (NG6), with every local council in England establishing a one-stop shop offering universal fuel poverty services.
2. Comprehensive personalised advice covering smart energy options, with funding to upskill energy advisors on smart energy offers and low carbon technologies.
3. Follow-up advice for all households receiving low carbon technologies through grant funding to ensure they maximise the benefits from their installations.

We welcome the revised fuel poverty strategy as a vital step toward addressing persistent and growing levels of need. However, for these reforms to truly succeed, we must rebuild trust among fuel-poor households who have been left behind by an increasingly complex energy market. Our recommendations offer a path forward that ensures no one is excluded from the benefits of a greener, smarter and fairer energy system.