Fuel poverty measures 'a sticking plaster to cover a catastrophe'

Government moves to help pensioners cope with soaring fuel prices were dismissed as inadequate by campaigners today.

Chancellor Alistair Darling was forced to defend the aid package from accusations that it was a "sticking plaster to cover a catastrophe".

The row erupted amid warnings that thousands face freezing to death this winter - and as another minister warned it would be "intolerable" for any elderly person to be left without heating in cold weather.

Under the plans unveiled today, Whitehall data on people with low incomes is set to be shared with energy companies so they can be offered better deals.

All suppliers have been increasing their prices steeply as oil costs rise, and further hikes are expected later this year.

However, most provide so-called "social tariffs" for the poorest customers. The Government believes handing over details such as individuals' entitlement to benefits could ensure they receive whatever discounts are available.

There will also be more financial assistance for improving insulation in homes, and £3 million for installing solar panels and wind turbines in deprived communities.

Energy minister Malcolm Wicks conceded that households were likely to be paying annual power bills of £1,000-plus in future, but insisted pensioners would get help.

"Frankly, its intolerable that any elderly person could be cold in winter," he told BBC Radio 4's Today programme.

"One of the best ways to tackle fuel poverty is to make sure the heat, and the fuel that is used as it's so costly, keeps people warm and doesn't go out the window.

"The problem has been that because of data protection laws we haven't always been able to say to the electricity or gas company 'This is the person that needs that help'."

He said the data protection changes would be introduced "sensitively" so that information was not "spread around the place willy-nilly".

But Kate Jopling, head of public affairs at Help the Aged, branded the package "a sticking plaster to cover a catastrophe".

"While it is welcome news that the Government is moving in the right direction on fuel poverty, this initiative does not go nearly far enough to deal with the looming fuel poverty crisis."

Friends of the Earth spokesman Ed Matthew added: "The Government must stop reshuffling the same tired old ideas and instead jump-start a widespread and strategic programme of energy efficiency and renewable energy."

Dot Gibson, vice president of the National Pensioners Convention, said the measures would have "very little effect".

"For every 1% increase in bills, a further 40,000 older people fall into fuel poverty and every year, well over 20,000 die from the cold," she said.

"It's time the Government intervened to prevent the energy companies making profits at the expense of vulnerable pensioners."

Meanwhile, Liberal Democrat leader Nick Clegg accused the Government of a "pathetic piece of tinkering".

"Tens of thousands of people will die next winter from the cold while energy companies enjoy a £9 billion windfall profit from the Emissions Trading Scheme," he said.

"The Government should simply insist that this massive subsidy enjoyed by the energy companies should be used to help the most vulnerable families with their fuel bills."

However, Mr Darling rejected the criticisms, and urged the public to recognise that rising global oil prices were to blame for the problems.

"What we have done is that we've reached an agreement with the power companies to increase the amount of money they spend in helping people get on to lower tariffs, helping people insulate their homes," he told BBC Radio Scotland.

"There's an obligation now on all energy companies to help their customers cut their fuel bills by insulation and other measures as well."

He added: "We are taking a range of measures to help people, recognising that the amount of money they spend on their gas and electricity bills is an increasing proportion of their income."