The price of fuel (gas in particular) is going up rapidly. There’s a lot of concern that people won’t be able to afford the higher prices. In particular, there’s concern that higher heating costs will hasten the deaths of tens of thousands of pensioners who won’t heat their homes properly as a result.
To monitor the situation, the government measures what it calls ”fuel poverty”. A family is fuel poor if adequately heating its home would cost more than 10% of its income. (For next time your family argues about what to set the thermostat to, for non-pensioners “adequately heating your home” means heating your living room to 21 degrees and other rooms to 18 degrees.)
Because this definition ignores how much money people have left after they’ve paid for their heating, being fuel poor is neither necessary nor sufficient for being poor. Some households might be left short of money having spent 8% of their income on fuel; others could be left with plenty having spent 12% on fuel. There’s no ’poverty threshold’ that’s crossed when and only when your heating bill reaches 10% of your income.
Because of this, we need to be careful about using fuel poverty figures to draw conclusions about poverty. Following a rise in fuel prices, it may be that some of the newly fuel poor can afford to spend more than 10% on heating and aren’t poor at all. Certainly some of the newly fuel poor will already have been poor before their heating bill went up and so aren’t newly poor. And although there will be people who are newly poor but still not fuel poor, there’s no reason to think that this number will exactly match the number of newly fuel poor.
What all that means is that a rise in fuel poverty needn’t mean a corresponding rise in poverty.
Some people aren’t careful enough in how they use the figures. This is how This is Money reported on new fuel poverty figures in March 2007:
The number of households facing a choice between heating and eating has almost doubled in the past two years. Spiralling gas and electricity bills have left nearly 4m having to spend at least 10% of their disposable income on heating and lighting – the definition of ‘fuel poverty’. This is an increase of more than 1.7m…
[This is Money, Millions in 'Fuel Poverty' Trap]
To be fair, the article does give a definition of fuel poverty, and the definition is almost correct (fuel poverty relates to income, not disposable income, but at least they had a go). However, it reasons that because the number of fuel poor has gone from ~2.3 million to ~4 million, the number who have to choose between heating and eating has almost doubled.
This reasoning only makes sense if being fuel poor and having to choose between heating and eating are the same thing (if they aren’t, then why think that a near doubling of one would mean a near doubling of the other?). We saw above, however, that they aren’t the same thing. The result of the passage’s conflation of fuel poverty and facing a choice between heating and eating is therefore that the statistics don’t support its main claim.