Government warned over fuel poverty 'failings'

The Government was urged today to offer more help to the millions of families who are in fuel poverty because of rising energy prices.

The Environment, Food and Rural Affairs Committee warned the Government was failing to meet its statutory obligations to end fuel poverty and called on it to set up an action plan to help people struggling with energy bills as a matter of urgency.

It warned that the resources available for tackling fuel poverty were inadequate and getting worse.

In a series of recommendations, it called for the Winter Fuel Payment to be taxable and no longer given to people who paid higher rate tax, so that more money could be used to fund energy efficiency programmes aimed at helping the fuel poor and vulnerable households.

It also called on the Government to consolidate its current range of energy efficiency programmes into one comprehensive programme to upgrade all homes in England, with the improvements delivered by local authorities.

It urged the Government to produce a detailed "road map" setting out a national plan to make every home in England energy efficient to a minimum standard of 65 on the Government's energy rating scheme, which runs from one to 100, and to 81 where possible.

Chairman of the committee Michael Jack said: "We need action and clarity - not further consultation - to tackle the three elements that drive fuel poverty: prices, incomes and energy efficiency levels.

"The Government must act swiftly to bring forward practical measures before next winter, using technologies that are already well understood, to help the millions of households who remain in fuel poverty."

The committee also called for a central budget to be created into which energy companies pay their Carbon Emissions Reduction Target contributions, so that the cash could be pooled with money from other programmes to fund home upgrades.

It added that Warm Front, the Government's main scheme to help vulnerable households cut their energy bills, should have its budget increased and it should be extended to include all hard to treat properties.

The report also called on energy regulator Ofgem to ensure energy companies tell customers about social tariffs and who is eligible for them, to help increase competition for certain customers, such as those who use pre-payment meters.

The report was welcomed by consumer groups.

Jonathan Stearn, energy expert for Consumer Focus, said: "We warmly welcome this report and the committee's recognition of the Government's failure to adequately address the issues of fuel poverty and energy efficiency.

"It is outrageous that there are still more than five million vulnerable households struggling to afford to heat and power their homes.

"The Government's current energy efficiency schemes are simply not up to scratch. Immediate investment is needed in a radical and co-ordinated action plan if we are to lift millions of the poorest pensioners, families and disabled people out of fuel poverty and cut carbon emissions."

Michelle Mitchell, charity director for Age Concern and Help the Aged, said: "The EFRA report sounds a loud wake-up call for the Government, whose strategy to tackle fuel poverty is miles away from reaching its targets.

Mike Hobday, head of campaigns at Macmillan Cancer Support, said: "The Government must extend the Winter Fuel Payment to cancer patients, giving immediate help to those who will otherwise struggle to stay warm this winter."

Energy and climate change minister Joan Ruddock said the Warm Front scheme had "provided help" to almost two million low-income households, adding: "We welcome the report as we are currently reviewing our fuel poverty policies, looking at whether existing measures can be improved or new policies introduced, and we will consider the recommendations of the EFRA select committee as part of this process.

"We are also reviewing the long-term delivery of energy efficiency programmes as part of our plans for Great British Refurb, which will offer energy makeovers to every home in the country."

Dot Gibson, general secretary of the National Pensioners Convention, criticised the proposals to withdraw the winter fuel allowance from better-off pensioners.

She said: "It's about time the politicians realised that means-testing and pensioners simply don't mix.

"If they decide to means-test the winter fuel allowance, we will see millions of older people stop claiming it.

"Even now we have 20,000 pensioners dying every year from cold- related illnesses, and if the winter fuel allowance is means-tested that figure will certainly increase."

Shadow energy and climate change secretary Greg Clark said: "The Committee is right to highlight the Government's failure to meet its statutory duty to end fuel poverty.

"What makes this failure even more worrying is that it comes at a time when the price of oil is rising once again, threatening higher bills for families this winter.

"Britain's homes are among the least energy efficient of any European country. It means that customers pay far more for heating than they need to.

"It is time the Government adopted the Conservative plan to give every household in the country up to £6,500 of energy efficiency improvements which will cut fuel bills from day one and turn the tide on fuel poverty."