30.04.08 Energy companies to help those in fuel poverty

The scandal of the fuel poverty trap has been in the headlines on numerous occasions recently, often coinciding ironically with the news of bumper profits for the energy industry.

Fuel poverty is officially defined as having to spend 10% or more of the household income on fuel bills. It is estimated that between 3 and 4.5 million households in the UK are living in the so-called fuel poverty trap, in many instances having to choose between eating properly and heating their homes adequately.

One would think that it is good news, therefore, that the industry is to spend £225 million over three years, in an attempt to help those least able to afford to pay their gas and electricity bills. £50 million of the £225 million will be made available this fiscal year, £75 million in 2009-2010 and £100 million in 2010-2011. It is hoped that some 100,000 households will benefit and find themselves lifted out of the fuel poverty trap.

However, Ann Robinson of the price comparison website uSwitch points out that although the figures sound generous, when one does the sums it works out at under £18 per household per year. With the average fuel bill topping the £1000 mark, this paltry £18 is unlikely to make much of a difference to the most vulnerable members of society.

Those finding it difficult to pay their energy bills are advised to contact their fuel provider to see what help can be offered, as well as ensuring that they are on the cheapest possible tariff.

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