Up to 3,500 households – nearly a 10th of the total – are currently in fuel poverty.

That’s the shocking finding of a report by the Cabinet Office’s economic affairs section.

Depending on the definition used, it found that between 3,100 and 3,500 island households can be considered to be in fuel poverty.

It found that we spend about 40 per cent more on fuel than in the UK and the poorest 10 per cent of households spend around 14 per cent more.

The report also uncovered evidence of under-spending on fuel by the poorest 10 per cent of households.

Chief Minister Allan Bell said the figures were a concern in what comparatively speaking is a wealthy island - but insisted there were no simple solutions.

He said: ‘The figures indicated that levels of fuel poverty are less than the UK average so on the one hand it is not altogether surprising. But it is still concerning that we have the level of problem we have and it is not an easy one to address.’

He said those in fuel poverty were in many cases on low incomes trapped in poor quality accommodation which isn’t well insulated.

Mr Bell said that while oil prices have fallen, gas and electricity prices have not followed suit but he said government was limited in what it can do to intervene. He fully accepted that increased government charges have put pressure on household incomes.

The new report uses two definitions of fuel poverty.

Defining it as households which receive below 60 per cent of the median income and spend more than the median amount on fuel, it estimated that 9.9 per cent of island households - some 3,525 - fall into that category.

Another definition identifies households which spend more than 10 per cent of their income on fuel, estimated to apply to 8.7 per cent of island households, a total of 3,100. This is down from 16.6 per cent in 2013. With the island having a greater reliance on oil to heat homes, the drop in oil prices since 2013 has dramatically reduced the number in fuel poverty.

Depending on the definition used, between 10.4 and 12 per cent of households in England were in fuel poverty in 2013.

Policy and Reform Minister John Shimmin MHK said: ‘We realise that short term solutions will not bring about lasting change. We are fortunate that oil prices are currently low, but when they increase again, the numbers in fuel poverty will increase once more.

‘The right solution is therefore to reduce the need for heating by improving insulation. Older properties in particular cost more to heat and should be a priority for such insulation work.’

Mr Shimmin said Cabinet Office will work with housing staff, Social Security, and Health and Social Care to identify those most at risk of fuel poverty. He said the focus would be on targeting the most vulnerable in society, especially the elderly and disabled.

The report finds that the average spend on fuel per household is currently £1,920 a year, up from £1,299 in 2006-7 but down from £2,282 in 2013. Those living in old properties may pay £150 a year more while those in newer homes would pay £75 a year less.

Mr Bell said he believed government fees and charges had reached a limit.

But there’s been yet more pressure placed on household incomes with electricity bills, water rates and the sewage charge all going up this year.

Manx Gas also come under fire for lowering tariffs but hiking the standing charge.

While electricity and coal prices have increases, the cost of fuel oil has fallen dramatically to 42.52p a litre, down from 66.5p a litre in 2013.

Source: IOM Today