How much SHOULD household energy bills be?

From Factsheets: Limiting UK Emissions
Jump to navigation Jump to search

One possible benchmark is to combine the traditional ten percent definition for FUEL POVERTY, which means a household is deemed to be in fuel poverty if it needs to spend more than 10% of household income on fuel and the definition for POVERTY meaning 60% of median household income

In the UK in 2019 the median disposable income is £29,400 according to The Office for National Statistics

Ten percent of 60 percent of the median (or 6% of the median if you prefer) = £1764; compare this to the actual average household spend on energy: £1254

This suggests the domestic consumer could afford to pay a modest premium for more renewable / low carbon household energy … but multiples of 3X, 5X, 10X would plunge large numbers of people into fuel poverty

ONS Median Income 2019 Ofgem Median Household Energy Bill