Plans to lift fuel poverty criticised

Government plans to help lift thousands of people out of fuel poverty are being criticised by campaigners.

Up to 100,000 people are expected to benefit from a deal with power companies that should help the poorest households reduce their fuel bills.

An extra £225 million will be provided by the six biggest energy firms but several charities and consumer groups are claiming the scheme is not going far enough to solve the problem.

Business Secretary John Hutton said the companies would spend £150 million by 2010 on social assistance on top of £100 million over the next year and £125 million in 2009/10.

Mr Hutton said: "Thanks to the co-operation of our energy companies the amount of money being spent on social programmes to help the poorest heat their homes is now set to treble.

"I do not underestimate the difficulties and anxiety that rising energy prices can cause but I believe that this extra cash, coupled with ensuring we have the most competitive market possible will help us towards our goal of eradicating fuel poverty in the UK."

Ann Robinson, director of consumer policy at uSwitch.com, said: "This is welcome but falls well short of the 500,000 additional households plunged into fuel poverty by the 15 per cent increase to household energy bills this year.

"If it was spread across the whole 4.5 million households in fuel poverty, it would amount to less than £18 a year, which is a drop in the ocean when consumers are facing average fuel bills of £1,048 a year.

Gordon Lishman, director general of Age Concern, said: "The Government is quite simply failing the most vulnerable by not taking more action on this issue. This announcement will not paper over the cracks in its fuel poverty strategy.

"Even some of the energy companies have admitted voluntary social tariffs are a joke. Only by establishing mandatory social tariffs can the problem really begin to be addressed."

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