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Poverty warning over fuel hikes Poverty warning over fuel hikes
(20 minutes later)
Soaring fuel bills this winter could lead to a sharp rise in the number of people struggling to pay for heating, an independent energy broker says.Soaring fuel bills this winter could lead to a sharp rise in the number of people struggling to pay for heating, an independent energy broker says.
Catalyst Commercial Services says the cost of gas and electricity is expected to rise by as much as 10% by January.Catalyst Commercial Services says the cost of gas and electricity is expected to rise by as much as 10% by January.
It says this could push 400,000 more households into "fuel poverty" - when the cost of heating accounts for 10% or more of household income.It says this could push 400,000 more households into "fuel poverty" - when the cost of heating accounts for 10% or more of household income.
The government says grants are available to help with fuel bills.The government says grants are available to help with fuel bills.
'Help available''Help available'
An estimated 3.5 million homes in the UK are already defined as being in fuel poverty.An estimated 3.5 million homes in the UK are already defined as being in fuel poverty.
The government admits a big drop a few years ago has been reversed and now more people are falling into this group.The government admits a big drop a few years ago has been reversed and now more people are falling into this group.
Energy Minister Malcolm Wickes said: "Obviously the numbers suffering from fuel poverty is sensitive to whether prices go up or down. Energy Minister Malcolm Wicks said: "Obviously the numbers suffering from fuel poverty is sensitive to whether prices go up or down.
"If they go up 1% it could be another 40,000 people classified as fuel poor.""If they go up 1% it could be another 40,000 people classified as fuel poor."
He said the government was determined to work with fuel companies and voluntary organisations to make sure that the most vulnerable households benefited from the help which was available, such as energy efficiency schemes and winter fuel payments.He said the government was determined to work with fuel companies and voluntary organisations to make sure that the most vulnerable households benefited from the help which was available, such as energy efficiency schemes and winter fuel payments.
Rising wholesale pricesRising wholesale prices
Catalyst Commercial Services tracks and analyses energy prices in the UK.Catalyst Commercial Services tracks and analyses energy prices in the UK.
Operations director Chris Hurcombe said domestic energy prices had been falling after steep rises during 2006, with further falls expected.Operations director Chris Hurcombe said domestic energy prices had been falling after steep rises during 2006, with further falls expected.
However, with oil prices at an all-time high and wholesale gas prices also rising again at an "unprecedented rate", domestic bills looks set to rise with them.However, with oil prices at an all-time high and wholesale gas prices also rising again at an "unprecedented rate", domestic bills looks set to rise with them.
He says gas prices have started going up again because of an increase in worldwide demand, combined with a faster than expected decline North Sea gas supplies, which has meant the UK has had to import more gas from Europe.He says gas prices have started going up again because of an increase in worldwide demand, combined with a faster than expected decline North Sea gas supplies, which has meant the UK has had to import more gas from Europe.
Electricity prices are also affected by gas wholesale rates as much of the UK's electricity is produced by gas-fired power stations.Electricity prices are also affected by gas wholesale rates as much of the UK's electricity is produced by gas-fired power stations.
Mr Hurcombe says a predicted cold winter will compound the problem by causing demand to rise.Mr Hurcombe says a predicted cold winter will compound the problem by causing demand to rise.
The Met Office is forecasting that this winter will be colder than last.The Met Office is forecasting that this winter will be colder than last.
There is a range of schemes run by central and local government to help people on low incomes improve energy efficiency and pay for fuel.There is a range of schemes run by central and local government to help people on low incomes improve energy efficiency and pay for fuel.
In addition, households with members over 60 are entitled to Winter Fuel Payments worth £200 per month - £300 per months for households with members aged 80 or over. In addition, households with members over 60 are entitled to Winter Fuel Payments worth £200 a year, or £300 for households with members aged 80 or over.