One million more households living in fuel poverty - Government figures » Housing » 24dash.com

The number of households in fuel poverty rose to 3.5 million in 2006, the latest figures from the Government showed today.

The figure, an increase of one million on 2005 levels, includes around 2.75 million homes classed as "vulnerable" - containing a child, elderly person or someone with a long-term illness.

The figures, released by the Department for Environment and the Department for Business, mean that 3.5 million households are having to spend more than 10% of their income on heating.

In England, the number of homes in fuel poverty rose from 1.5 million in 2005 to 2.4 million in 2006, including an extra 700,000 vulnerable households.

The Government attributed the rise in the number of households in fuel poverty across the UK to an increase in consumer energy bills of 22% between 2005 and 2006.

Gas prices rose by half from low levels in 2003 to 2006 and electricity prices increased by a third in that time, ministers said.

While the major suppliers cut tariffs early last year, they put them up early this year, and again in the summer.

Environment Minister Hilary Benn said the Government was committed to tackling fuel poverty but that "sharply rising energy price rises have made that goal increasingly difficult".

He said that since 2000, the Government has spent £20 billion on fuel poverty benefits and programmes.

Paul Kenny, general secretary of the GMB union, said: "It is imperative that the Government acts on our motion to the Labour conference last week to give the energy regulator the power to cap gas and electricity prices.

"There is no justification for the high prices currently being charged. Somebody has got to get a grip."

Tony Woodley, joint leader of the Unite union, said: "With rocketing fuel prices this year, thousands more still will slip into fuel poverty this winter.

"The Government cannot stand back while struggling households chose whether to heat or eat. If intervention is on hand to bail out the speculators and spivs who have caused this economic turmoil, then our Government should not have to think twice about helping the frail and vulnerable heat their homes.

"Lagging the lofts is one thing but it will not help the fuel-poor heat their homes this winter.

"Roll back prices, cap them to stop future price exploitation and tax the windfall profits of the oil and energy companies to put an extra £250 in people's pockets in the weeks to come.

"Only then will we see immediate, real, much-needed assistance for millions this winter."

The Government recently announced an extra £1 billion to help tackle fuel poverty, including £800 million from the Budget deal, £74 million more for the Warm Front scheme - to improve energy efficiency - and an extra £16 million in cold winter payments.

It has also upped the obligation on energy companies and generators to help people conserve energy in their homes and cut carbon dioxide emissions by £1 billion.

The total contribution by energy companies to tackling fuel poverty and emissions from homes will now be more than £3.7 billion between now and March 2011, ministers said.

Energy Minister Malcolm Wicks said: "It is the global demand for energy that is pushing up prices, but that is no comfort to the fuel-poor who need support.

"That is why the Prime Minister launched the substantial energy efficiency package last month; it is why we have required supply companies to improve social tariffs; and it is why winter fuel payments for elderly people will increase substantially later this year.

"It is intolerable that the vulnerable could suffer this winter. The Government is not complacent. We need to take action on many fronts."

Friends of the Earth director Andy Atkins said: "The Government's fuel poverty strategy is in meltdown.

"The only long term solution to fuel poverty is a massive energy efficiency programme. This will heat homes, cut bills and help meet our targets for tackling climate change."

Friends of the Earth and Help the Aged are taking the Government to court next week to ensure they meet their legal obligations to reduce fuel poverty, he said.

Help the Aged special adviser Mervyn Kohler said the Government's response to the problem was "completely feeble".

"This winter, millions of people will be cutting back on food or fuel or both, putting their health in jeopardy and living in misery.

"What's needed is a Government strategy that combines both short and long term solutions - crisis payments to help with the here and now and, in the longer term, improvements to the energy efficiency of our housing stock."

Following the publication of the figures today, unions stepped up their calls for a windfall tax and legislation to cap bills.

Unison general secretary Dave Prentis said the energy prices, which had gone through the roof this year, were just the tip of the iceberg for families facing massive price rises at the supermarket checkout and the petrol pump.

"After a series of below inflation pay awards, millions of public sector workers including nurses, healthcare assistants, care workers, social workers, teaching assistants and home carers are bracing themselves for a tough winter of juggling red bills.

"The greedy energy bosses must be reigned in. We need tougher regulation to cap profits and reduce prices plus a windfall tax, with the cash raised given straight to those who need it most," he urged.

Paul Kenny, general secretary of the GMB union, said: "It is imperative that the Government acts on our motion to the Labour conference last week to give the energy regulator the power to cap gas and electricity prices.

"There is no justification for the high prices currently being charged. Somebody has got to get a grip."

The Liberal Democrats said recent Government action would do little to help the situation, and joined calls for windfall tax on the energy companies.

Age Concern backed calls for a rethink of the Government's fuel poverty strategy, while children's charity Barnado's warned that the rising rates of fuel poverty would plunge more of the UK's 3.9 million children who live in poverty into crisis.