Rise in gas and electricity prices leads to increase in fuel poverty
The Department of Energy and Climate Change (DECC) has released new statistics that show that rising gas and Electricity prices have led to an increase in "fuel poverty" in England in recent years.
According to the figures, the number of fuel poor households, defined as residences where 10% or more of the income is spent on gas and electricity, rose from 3.5 million to 4 million between 2006 and 2007.
The DECC suggested that this year the number of households suffering from fuel poverty could rise to as many as 4.6 million.
One of the key causes of fuel poverty is thought to be the fact that gas and electricity prices have risen by an estimated 80% in the period from 2004 to 2008.
To combat this, the Government has introduced several new initiatives designed to help the poorest members of society to cut the amount they have to spend on fuel.
The DECC made it clear that it is taking positive action to improve home insulation for low-income households, and that it has plans to give industry regulator Ofgem new powers to curb industry abuses more effectively.
In addition to this, there are proposals to make voluntary social tariffs statutory for energy providers. These special tariffs offer lower gas and electricity prices to vulnerable customers.
The Minister for Energy and Climate Change, David Kidney, explained, "We recognise that there is still a mountain to climb on fuel poverty because of significant increases in fuel bills, and that's why we're determined to redouble our efforts."
Electricity prices: www.uswitch.com/gas-electricity/compare-electricity-prices/
According to the figures, the number of fuel poor households, defined as residences where 10% or more of the income is spent on gas and electricity, rose from 3.5 million to 4 million between 2006 and 2007.
The DECC suggested that this year the number of households suffering from fuel poverty could rise to as many as 4.6 million.
One of the key causes of fuel poverty is thought to be the fact that gas and electricity prices have risen by an estimated 80% in the period from 2004 to 2008.
To combat this, the Government has introduced several new initiatives designed to help the poorest members of society to cut the amount they have to spend on fuel.
The DECC made it clear that it is taking positive action to improve home insulation for low-income households, and that it has plans to give industry regulator Ofgem new powers to curb industry abuses more effectively.
In addition to this, there are proposals to make voluntary social tariffs statutory for energy providers. These special tariffs offer lower gas and electricity prices to vulnerable customers.
The Minister for Energy and Climate Change, David Kidney, explained, "We recognise that there is still a mountain to climb on fuel poverty because of significant increases in fuel bills, and that's why we're determined to redouble our efforts."
Electricity prices: www.uswitch.com/gas-electricity/compare-electricity-prices/
