Wednesday, March 15, 2006

[UK] Fuel poverty 'set to double'

from ITV

The number of households struggling to pay their gas and electricity bills could double within three years following a series of price hikes, fresh research has said.

Around two million vulnerable households in England are in a fuel poverty trap, the Fuel Poverty Advisory Group said.

The figure is up from one million in 2003 after a 35 per cent rise in domestic energy prices over the three years.

And it is estimated that UK-wide fuel poverty will also have doubled since 2003.

The group's chairman said an extra 1 billion of Government funding would be needed over the next four years to help meet its target of eliminating fuel poverty among vulnerable households by 2010.

Fuel Poverty Advisory Group chair Peter Lehmann said: "The significant increase in the number of households in fuel poverty is a very big setback after years of progress.

"The price increases are causing great hardship to vulnerable people. The prices of gas and electricity in the wholesale markets have been driven way above costs to the detriment of customers, and this needs to be resolved."

Responding to the report, Child Poverty Action Group chief executive Kate Green said: "Recent hikes in domestic energy prices have put even more pressure on the budgets of families with low incomes.

"Both the energy industry and the Government need to ensure that customers on low incomes can counter the recent increases."

Help the Aged's head of public affairs Mervyn Kohler said: "The massive rise in fuel poverty is nothing short of a scandal."

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