Tuesday, 06 January 2009

Hutton in talks to fight fuel poverty

MINISTERS and energy companies were today meeting campaigners pressing for action to lift tens of thousands of low income households out of “fuel poverty”.

Ofgem, the energy regulator, was bringing together Business Secretary and Barrow MP John Hutton, Environment Sectretary Hilary Benn, industry and charities for a summit to address the plight of people struggling to pay rising gas and electricity bills.

A coalition of campaign groups yesterday released figures which, they said, showed the vast majority of pensioners and lone parents were now living in fuel poverty – defined as households spending more than 10 per cent of their income on fuel costs.

Age Concern, the Child Poverty Action Group and National Energy Action, said that almost one in five households, or 4.5 million people, were now affected.

According to their figures, the average fuel bill for 65 to 74-year-olds has leapt to £1,000, a rise of 15 per cent for a single pensioner. At the same time the price comparison service uSwitch.com published a survey suggesting 6.8 million households were in debt to their energy suppliers with average arrears of £114.

Ministers say that they have tackled the problem with measures including winter fuel payments for pensioners.