Big rise in fuel poverty

The latest round of energy price rises is likely to have pushed a further 300,000 households in England into fuel poverty, according to a report by an official advisory body. It also says that government action thus far is 'completely inadequate' to tackle the scale of the problem.

Key points

  • The latest round of energy price rises has increased the average annual energy bill by around 7 per cent, to £1,247 for direct debit customers and £1,336 for cash and cheque customers. This increase is likely to have pushed a further 300,000 households in England into fuel poverty.
  • Estimates have also already shown that over 9 million households could be in fuel poverty by 2016 – the date by which the government is legally required to have done everything reasonably practicable to eradicate fuel poverty.
  • Government action to date is completely inadequate to tackle the scale of the problem. Government moves to soften the blow of additional environmental costs on industrial energy users, without measures to help the fuel poor, are unfair to the customers who will be hardest hit by rising energy prices.

The chair of the Group added: ‘A toxic cocktail of rising wholesale prices, the high cost of energy reforms and cuts in incomes for many households, means fuel poverty levels are set to sky rocket without radical action. Alarm bells are ringing on fuel poverty levels. The Government must heed them to avoid abandoning the most vulnerable pensioners, families and individuals to cold homes, high bills, and often ill health.’

SourceTenth Annual Report: 2011-12, Fuel Poverty Advisory Group (for England)
LinksReport | FPAG press release | Consumer Focus press release | Labour Party press release | BBC report | Daily Mail report | Guardian report | Telegraph report

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