17.12.12
Fuel poverty rising, warns lobby group
The Fuel Poverty Advisory Group (FPAG) has urged Prime Minister David Cameron to tackle fuel poverty, which it says is spiralling.
This year, energy prices have risen by 7% on average. This means that the average annual energy bill for a household paying by direct debit is £1,247.
A household is considered to be in fuel poverty if over 10% of its disposable income is spent on energy. By 2016, £9m people are expected to be in fuel poverty. 300,000 homes will add to the figure this winter alone.
Consumer groups have asked the Government to use part of the £4bn in annual carbon taxes due for collection to settle the issue. Additionally, campaigners want to see effective insulation in homes across Britain.
The Government is taking some action over the concerns. Next year, energy suppliers will offer a maximum of four tariffs, in a move to simplify prices. Suppliers will also place customers on the cheapest available price on their chosen tariff.
Derek Lickorish, the chairman of the FPAG, stated: “With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious.”
“Millions are living in misery due to high energy bills. Yet time is running out for the government to fuel poverty-proof the homes of those on the lowest incomes.
“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.”
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