Fuel poverty 'continues to rise'

The number of people in England living in fuel poverty is likely to reach 4.6 million by the end of the year, according to figures from the department of energy and climate change.

The projection comes from data that shows the number of fuel-poor households has increased from 3.5 million in 2006 to four million in 2007.

Fuel poverty is defined as those who spend more than 10 per cent of their household income on heating their homes.

The government had aimed to end fuel poverty in England by 2016, alongside a charter in Wales to eradicate fuel poverty by 2018.

Energy and climate change minister David Kidney said in a press release that there was still "a mountain to climb" in managing fuel poverty, due to the significant increases in fuel bills.

"We will build on the measures we’ve already brought forward, including the £20bn on benefits and programmes, without which 800,000 more people would have found themselves in fuel poverty," he said.

Plans include "energy makeovers" to help homes in low income neighbourhoods, allowing families to save around £300 a year on energy bills.

And voluntary social tariffs offered by energy companies will be placed on a statutory footing.

Meanwhile, the Audit Commission has suggested winter fuel payments for pensioners have been an "unsustainable response" on fuel poverty and should be reconsidered.

In a report published today, the local government spending watchdog said the government's £2.7bn annual budget for winter fuel payments could be used more effectively on lagging, insulating, reglazing and modernising pensioners' homes.

The report, entitled Lofty Ambitions, highlighted that only 12 per cent of people are receiving the payments are classed as being in fuel poverty.

And it said the £400-a-year payments do nothing in encouraging energy efficient measures or working towards reducing C02 emissions.

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