Running on Fumes An Assessment of Fuel Poverty

Running on Fumes. . . An Assessment of Fuel Poverty and its Impact on Social Inclusion in Ireland Maria Mileder October, 2014

Background How to Define Fuel Poverty? "People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to Easily measurable 1. EXPENDITURE preclude them from having a standard of living which is Narrow definition The damaging lack of material benefits considered to be regarded as acceptable by Irish society generally. As a result basic necessities in a society. of inadequate income and other resources people may be excluded and marginalised from. Somewhat participating relevantin toactivities -Difficult to measure DEPRIVATION 2. OBJECTIVE MEASURES affected HHs in society. " -Data availability issues which are considered the norm for other people POVERTY 3. SUBJECTIVE MEASURES October, 2014 Effect on people’s lives can be measured Fuel Poverty Conference Based on subjectivity of respondents only 2

Background Thousands The Facts Average Yearly Disposable Income vs. Household Expenditure per Deciles € 140 § 10 deciles of gross household income ordered lowest to highest. § Gross income includes income after direct income plus transfers. § Expenditure exceeds income for the bottom four deciles. € 120 € 100 € 80 € 60 € 40 € 20 € 0 Bottom 2 3 4 Disposable Income 5 6 7 8 9 Top Household Expenditure * 2009 -10 HBS October, 2014 Fuel Poverty Conference 3

Background The Facts Average Yearly Expenditure on Fuel & Light € 3 000 14% 12% € 2 500 Expenditure on F&L € per annum 10% € 2 000 8% Expenditure on F&L as % annual disposable income Expenditure on F&L as % annual expenditure € 1 500 6% € 1 000 4% € 500 2% € 0 0% Bottom October, 2014 2 3 4 Fuel Poverty Conference 5 6 7 8 Top * 92009 -10 HBS 4

Research Determine Fuel Poverty Person has a car Household had to go without heating in the last 12 months through lack of money Inability of household to afford a week's annual holiday Inability of household to afford to keep the house adequately warm Inability of household to afford two pairs of strong shoes for each household member Inability of household to afford a roast joint (or equivalent) once a week Inability of household to afford to eat meals with meat, chicken, fish (or vegetarian equivalent) every second day Inability of household to afford new rather than second hand clothes Inability of household to afford a warm waterproof coat for each household member Inability of household to afford to replace worn out furniture Inability of household to afford to have family or friends for a drink or a meal once a month Inability of household to afford a morning, afternoon or night out in the last fortnight Inability of household to afford to buy presents for family or friends at least once a year Household had to go into debt in the last 12 months to meet ordinary living expenses Household hire purchase instalments or other loan payments has been in arrears in the last 12 months Household utility bills have been in arrears in the last 12 months Respondent for household had a day in last fortnight when respondent did not have a substantial meal due to lack of money Household rent or mortgage payments has been in arrears in the last 12 months Person owns a mobile phone Reason for not having a morning, afternoon or evening out in the last fortnight for own entertainment If respondent had a morning, afternoon or evening out in the last fortnight, for entertainment (something that cost money) Can save some income regularly Burden of debt repayment Household been in arrears for payment of utility bills in the last 12 months October, 2014 Fuel Poverty Conference 5

Research Constructing a Fuel Poverty Indicator Fuel Poverty % Scale 91% Not fuel poor Frequency 1. 5 Mio 150 K 9% * EU SILC 2011 not fuel poor According to this indicator 9% of the Irish population are considered to be fuel poor. October, 2014 Fuel Poverty Conference 6

Research October, 2014 AGE CATEGORIES The odds of being fuel poor are marginally higher for ‘other’ forms of households and lone parent households compared to single households. The odds of being fuel poor are much higher for the below 65 year olds, especially in between the age of 25 and 49, compared to any other age group. EDUCATION MARITAL STATUS The odds of being fuel poor are considerably higher when divorced or separated than when being single , married or widowed. HOUSEHOLD TYPE Main Demographic Findings The odds of being fuel poor are the highest when having no formal or only primary education. The exception to this are people who have completed the Leaving Certificate. Fuel Poverty Conference 7

Research Main Socio-Economic Findings ü Inability of household to afford a week's annual holiday Risk of fuel poverty: The odds of being fuel poor ü Inability to afford haveinto family or friends for a drink or a The percentage of fuelof household are higher whento falling Poverty Rates poor amongstmeal all once a month the AROP rate before 93, 3% any social transfers. responses of the of being fuelreceiving 84, 9% The odds poor are higher when being deprived of any of these householdüreference Inability of household to affordthan a morning, or night out in the items when afternoon not. persons. last fortnight 28, 7% 39, 8% 31, 1% Incidence of fuel poverty: 35, 9% ü Inability or friends at The distribution acrossof household to afford to buy presents 17, 7% 13, 8% for family the categoriesleast in once a year Cons. Pov AROP before soc. AROP after soc. Deprivation rate percentage amongst the transfers fuel poor. ü Inability of household to afford leisure Riskactivities of fuel poverty Incidence of fuel poverty October, 2014 Fuel Poverty Conference 8

Conclusion THE AFFECTED THE PHENOME NON THE FUTURE October, 2014 • • Younger age groups (majority 25 -49) Single or divorced/separated Students, unemployed, retired No formal/primary education, post Leaving Cert • • Fuel poverty as new form or deviation of poverty Fuel poor, as per research, do not necessarily fall into any current poverty definitions • Fuel Allowance payments work but money, if available, won’t solve the problem Severe consequences for younger groups in society • Fuel Poverty Conference 9