A University of Adelaide study has found that the negative effects of energy poverty on mental health are not only related to income stress and therefore differ depending on how energy poverty is defined.
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Lead author Dr Rubayyat Hashmi, from the University's Australian Centre for Housing Research, compared the impacts of monetary energy poverty, measured through energy expenditure and income, and self-reported energy poverty, which is a measure of perceived energy-related hardship or wellbeing.
A person is defined as experiencing monetary energy poverty if 10 per cent or more of their household income goes to energy bills, or if their energy costs exceed the population median and push their residual income below the poverty line.
Self-reported energy poverty is when a person reports not being able to keep their house adequately warm or cool, or if they are having difficulty paying bills on time.
"We found that monetary energy poverty alone does not significantly impact mental health outcomes. In contrast, self-reported energy poverty has severe adverse effects on mental health," Dr Hashmi says.
"The situation is even worse for those experiencing both types of energy poverty. This finding highlights the impacts of energy poverty on mental health beyond financial hardship. "
While energy poverty impacts a broad range of Australians, there are several cohorts that are at an increased risk.
"Our research found that monetary energy poverty is more common among males and people aged 65 and over who are on low incomes, and it is more prevalent among those who are unemployed or not in the labour force," says Dr Hashmi.
"On the other hand, self-reported energy poverty is notably more prevalent among females, younger age groups, specifically those aged between 25-54, and renters - especially those in homes and neighbourhoods they are unhappy with.
"And families with children, including both couples and single parents, are especially at risk for all types of energy poverty."
The research also examined how long the mental health effects of energy poverty last.
"We found that current exposure to energy poverty has a more adverse effect on mental health than past exposure, though past self-reported energy poverty may have a lingering adverse effect," says Dr Hashmi.
"However, it is worth noting that we found no evidence that the type of energy poverty makes a difference in the long run; rather, longer cumulative exposure appears to have a more harmful impact."
Dr Hashmi says it is important that energy poverty is well defined and understood, both in the academic literature and amongst policymakers who are working to address the issue.
"Energy poverty has a major effect on mental health, but how we measure it makes a big difference to our understanding of its scale and who is affected," says Dr Hashmi, whose study was published in Energy Research & Social Science.
"Recognising these nuances is crucial. Without metrics that account for housing conditions, governmental and non-governmental interventions may miss the mark, leaving vulnerable populations without the support they need.
"Policy responses must go beyond income-based eligibility and incorporate lived experiences, housing quality, and energy stress indicators to more effectively target and support those most at risk."
