Three million households will be trapped in fuel poverty by 2030, according to a new report.

Launched this week by National Energy Action (NEA), the UK Fuel Poverty Monitor report also warns the UK government will miss a legal requirement on fuel poverty in England by “a staggering margin”.

Adam Scorer, Chief Executive of the NEA said: “Based on current ‘progress’ we estimate three million households in England alone will still be trapped in fuel poverty by 2030 – the same number who are currently in fuel poverty in England. Three million households left cold, damp and unhealthy.

“Governments risk missing their legal targets, but those living in fuel poverty are at risk of so much more.”

The Fuel Poverty Monitor contains a first-of-its-kind study independent analysis by Gemserv Ltd, of the cost and benefits of meeting the targets. It quantifies a funding gap of at least £18 billion for energy efficiency measures to meet the legal requirement to ensure fuel poor homes in England are brought up to a reasonable standard of energy efficiency by the end of this decade.

Adam Scorer adds: “Unlike the £40 billion spent last year to subsidise everyone’s energy bills, this funding is targeted and achievable from existing sources of revenue such as carbon taxes, VAT revenues or planned windfall taxes. Crucially, the benefits of positive action are double the costs. The quicker we act, the greater the benefits that are generated.”

The report shows that action on the private rented sector, put off by the UK government last year, is critical. Effective regulation on private and social landlords would reduce the investment gap to £10.8 billion of central investment required.

In the private rented sector alone, this could remove almost two fifths of all households from fuel poverty in England by 2030. It could also add over £3 billion of capital value to private rented sector properties with fuel poor tenants, allowing landlords to recover the cost of their investment in energy efficiency measures through lower overall borrowing costs.

Commenting on the report, Caroline Flint, Chair of the Committee on Fuel Poverty (CFP), said “The people most impacted by the ongoing energy crisis are the poorest households, trapped for too long, in the most expensive to heat homes.

“While we cannot control global energy prices, we can and must insulate vulnerable people from current and future energy shocks by investing in our housing stock. This report is a necessary and timely reminder that current plans to meet our legal target in England are insufficient.

“Strategies for fuel poverty must be kept updated and need to be far more ambitious. If we do, we can all do so much more to help those who cannot currently afford to keep warm every winter and whose health and well-being is currently in serious risk.”