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

Background 1.EXPENDITURE 2.OBJECTIVE MEASURES 3.SUBJECTIVE MEASURES October, 2014Fuel Poverty Conference2 How to Define Fuel Poverty? Easily measurableNarrow definition Somewhat relevant to affected HHs -Difficult to measure -Data availability issues Effect on people’s lives can be measured Based on subjectivity of respondents only "People are living in poverty if their income and resources (material, cultural and social) are so inadequate as to preclude them from having a standard of living which is regarded as acceptable by Irish society generally. As a result of inadequate income and other resources people may be excluded and marginalised from participating in activities which are considered the norm for other people in society." The damaging lack of material benefits considered to be basic necessities in a society. POVERTY DEPRIVATION

Background October, 2014Fuel Poverty Conference3 The Facts  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. * HBS

Background October, 2014Fuel Poverty Conference4 The Facts * HBS

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, 2014Fuel Poverty Conference5 Research Determine Fuel Poverty

October, 2014Fuel Poverty Conference6 Research Constructing a Fuel Poverty Indicator ScaleFrequency Not fuel poor1.5Mio Fuel poor150K * EU SILC 2011 According to this indicator 9% of the Irish population are considered to be fuel poor.

October, 2014Fuel Poverty Conference7 Research Main Demographic Findings The odds of being fuel poor are considerably higher when divorced or separated than when being single, married or widowed. MARITAL STATUS 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. AGE CATEGORIES The odds of being fuel poor are marginally higher for ‘other’ forms of households and lone parent households compared to single households. HOUSEHOLD TYPE 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. EDUCATION

October, 2014Fuel Poverty Conference8 Research Main Socio-Economic Findings The odds of being fuel poor are higher when falling into the AROP rate before receiving any social transfers. Inability of household to afford a week's annual holiday 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 Inability of household to afford leisure activities The odds of being fuel poor are higher when being deprived of any of these items than when not. Risk of fuel poverty: The percentage of fuel poor amongst all responses of the household reference persons. Incidence of fuel poverty: The distribution across the categories in percentage amongst the fuel poor.

October, 2014Fuel Poverty Conference9 Conclusion THE AFFECTED THE FUTURE THE FUTURE THE PHENOME NON 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