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Fuel poverty on the increase
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The number of households in England facing fuel poverty could be as high as 4.6 million in 2009 according to latest figures from the Department of Energy and Climate Change (DECC). If you’re having difficulty paying your energy bills, what help is on offer? And how can you reduce your costs?
The latest Annual Report on Fuel Poverty Statistics predicts a dramatic rise in fuel poverty this year. This mirrors figures from Citizens Advice in England and Wales which has reported a 46% increase in the number clients with fuel debts from April to September 2009, compared to the same period last year.
Fuel-poor households are defined as those who spend more than 10% of their total income on energy bills. According to the DECC, energy prices increased by a staggering 82% between 2004 and 2008, driving the upwards trend of fuel poverty we have seen over the past few years.
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According to Citizens Advice, the majority of clients concerned with fuel debt are of working age – only 5% are over 65 years old, while 80% earn half the average wage, 32% had incomes of under £400 a month and 25% had a disability.
A helping hand
With winter fast approaching, the charity is concerned the problem will only get worse and is keen to make people aware of the help that’s available.
“We are already seeing large increases in the number of people in fuel debt and it’s not yet winter,” said Citizens Advice chief executive David Harker. “With fuel prices remaining at historically high levels it is essential that people get all the help they need.”
“Recent Government increases in Warm Front Grants and Cold Weather Payments will go some way towards helping,” Harker continues, “but information on what help is available, targeted at those who are most vulnerable, must be a prime focus for the Government and energy companies.”
Electricity and gas regulator Ofgem reported earlier this month that fuel bills could increase more than 60% by 2016 if measures aren't taken to regulate the UK’s fuel supplies. With the average household currently paying £1,247 a year on fuel, this could rise to almost £2,000 if predictions are correct, meaning more people could find themselves in fuel poverty.
If you’re facing a cold winter with mounting fuel bills, what assistance is available to help with payments? And how can you cut the cost of heating your home?
Published 21 October 2009
