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Thousands 'facing fuel poverty' | Thousands 'facing fuel poverty' |
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Rising unemployment and higher energy prices are likely to push hundreds of thousands more homes into fuel poverty, a key government advisory body says. | Rising unemployment and higher energy prices are likely to push hundreds of thousands more homes into fuel poverty, a key government advisory body says. |
The Fuel Poverty Advisory Group (FPAG) says about 4m households in England are already in fuel poverty, spending more than 10% of their income on energy. | |
And it has urged ministers to set out a detailed plan for meeting their own target of ending the problem by 2016. | And it has urged ministers to set out a detailed plan for meeting their own target of ending the problem by 2016. |
The government says it has spent £20bn on cutting fuel poverty since 2000. | The government says it has spent £20bn on cutting fuel poverty since 2000. |
Vulnerable | Vulnerable |
One of the key causes of fuel poverty is high energy prices. Average domestic fuel bills have increased by 125% over the past five years. | One of the key causes of fuel poverty is high energy prices. Average domestic fuel bills have increased by 125% over the past five years. |
The report warns that the long-term trend on prices is likely to be upwards, not least due to the huge industry investment needed to meet green energy targets. | The report warns that the long-term trend on prices is likely to be upwards, not least due to the huge industry investment needed to meet green energy targets. |
Unemployment is becoming a key factor too, the report added. The jobless rate is expected to hit three million in the next year and about 38% of those out of work are fuel poor. | Unemployment is becoming a key factor too, the report added. The jobless rate is expected to hit three million in the next year and about 38% of those out of work are fuel poor. |
Households in England in fuel poverty rose from 1.2m in 2004 to 4m by Sep 2008Of those, 50% were pensioner households and 80% considered "vulnerable"Average dual energy bills rose from £572 to £1,287 between Jan 2003 and Sep 2008 Source: Fuel Poverty Advisory Group | Households in England in fuel poverty rose from 1.2m in 2004 to 4m by Sep 2008Of those, 50% were pensioner households and 80% considered "vulnerable"Average dual energy bills rose from £572 to £1,287 between Jan 2003 and Sep 2008 Source: Fuel Poverty Advisory Group |
The FPAG has called for the government to set out a detailed plan showing how it will eradicate fuel poverty over the next seven years. | The FPAG has called for the government to set out a detailed plan showing how it will eradicate fuel poverty over the next seven years. |
The report has been welcomed by one of the main consumer watchdogs, Consumer Focus. | The report has been welcomed by one of the main consumer watchdogs, Consumer Focus. |
Its energy expert Jonathan Stearn said: "We are urging the government to heed the warning of its own advisory group, that energy prices could rocket in the next few years. | Its energy expert Jonathan Stearn said: "We are urging the government to heed the warning of its own advisory group, that energy prices could rocket in the next few years. |
"If the government is serious in its aim to end fuel poverty, it needs to do much more to help the most vulnerable households." | "If the government is serious in its aim to end fuel poverty, it needs to do much more to help the most vulnerable households." |
The numbers in fuel poverty fell dramatically during the early part of this decade, with the government establishing several schemes that provide help for vulnerable households. | The numbers in fuel poverty fell dramatically during the early part of this decade, with the government establishing several schemes that provide help for vulnerable households. |
Energy and Climate Change Minister David Kidney said: "The government has spent more than £20bn since 2000 on policies and programmes which can help tackle fuel poverty. | Energy and Climate Change Minister David Kidney said: "The government has spent more than £20bn since 2000 on policies and programmes which can help tackle fuel poverty. |
Those using pre-payment meters may pay more for their energy | Those using pre-payment meters may pay more for their energy |
"But we know the challenge needs further action, and recognise that rising energy costs have reversed the downward trend on the number of households in fuel poverty." | "But we know the challenge needs further action, and recognise that rising energy costs have reversed the downward trend on the number of households in fuel poverty." |
The report calls for urgent action to stem the rise of the fuel poor, with compulsory social tariffs for the least well off. Companies currently provide social tariffs on a voluntary basis. | The report calls for urgent action to stem the rise of the fuel poor, with compulsory social tariffs for the least well off. Companies currently provide social tariffs on a voluntary basis. |
The FPAG also urges the government to ensure those who pay for their energy using pre-payment meters (PPMs) do not pay over the odds compared with other payment methods. | The FPAG also urges the government to ensure those who pay for their energy using pre-payment meters (PPMs) do not pay over the odds compared with other payment methods. |
In the worst cases, customers on PPM's are paying up to £255 a year more for their energy, the report said. | In the worst cases, customers on PPM's are paying up to £255 a year more for their energy, the report said. |
Energy regulator Ofgem plans to ban unfair price differentials between PPM's and other payment methods. | Energy regulator Ofgem plans to ban unfair price differentials between PPM's and other payment methods. |
But in a statement it added: "Primary responsibility for tackling fuel poverty rests with the government, which must look at improving the housing stock and raising income levels for the fuel poor." | But in a statement it added: "Primary responsibility for tackling fuel poverty rests with the government, which must look at improving the housing stock and raising income levels for the fuel poor." |