A worked example
44.The example below demonstrates how the calculation of the fuel poverty gap works. It builds on the hypothetical example given at paragraphs 35 to 38 above but, because the fuel poverty gap only applies where a household is in fuel poverty, it uses the alternative ending set out at paragraph 38 which applies where the home in question was located in a remote rural area, remote small town or island area.
45.The section 5 test is as follows—
| Relevant information: | ||
| £80 | per month necessary fuel costs | |
| £750 | per month adjusted net income | |
| £679.57 | per month to maintain an acceptable standard of living | |
| £670 | per month remaining adjusted net income (i.e. the household’s adjusted net income after deducting the necessary fuel costs, benefits received for a care need or disability, and childcare costs) | |
| The first figure: | ||
| £960 | annual necessary fuel costs | |
| (£900) | 10% of annual adjusted net income | |
| -------- | ||
| £60 | ||
| The second figure: | £8,154.84 | annual sum required for acceptable standard of living |
| (£8,040.00) | annual remaining adjusted net income | |
| ------ | ||
| £114.84 | ||
| As the first figure is lower, it is used. The fuel poverty gap in this case is therefore £60. | ||