Another 300,000 homes are likely to face “fuel poverty” by Christmas following the latest round of energy price hikes, an advisory body warned on Monday.
The Fuel Poverty Advisory Group (FPAG) said price increases this winter had pushed the average annual energy bill up by seven percent to £1,247 for direct debit customers and £1,336 for those paying by cash or cheque.
The group urged Prime Minister David Cameron to act to combat “spiralling” fuel poverty, which it says could hit nine million households by 2016.
Families are considered to be in fuel poverty when they have to spend more than 10 percent of their incomes on keeping their homes warm, according to figures from the FPAG, a non-departmental public body sponsored by the Department of Energy and Climate Change (DECC).
Nearly half of Britain’s estimated 3.9 million fuel poor households are pensioners, a third include people with a disability or illness, while a fifth contain a child aged five or under.
FPAG chairman Derek Lickorish said a “toxic cocktail” of rising wholesale prices coupled with the cost of energy reforms and decreases in personal incomes called for “radical action”.
“With a cold winter, welfare reforms cutting incomes, and all at a time of austerity measures and other rising household costs, the plight of the fuel poor has never been more serious,” he said.
“Millions are living in misery due to high energy bills. Yet time is running out for the government to fuel poverty-proof the homes of those on the lowest incomes.”
The group urged the government to carry out an urgent impact assessment of welfare reforms on fuel poverty and set up a cross-party group to tackle the issue.
Their calls come as Deputy Prime Minister Nick Clegg used a keynote speech in London to defend welfare reforms, including caps on benefits.
The Liberal Democrat leader admitted changes introduced by the coalition government had been “painful and controversial” but insisted they “will make a significant difference in encouraging families to work and take responsibility for their lives”.
The government recently announced plans to make energy firms simplify their tariffs and to offer customers the cheapest price available but some critics say the move will signal the end of cheap deals.
A spokesman for the Environment Department stressed that 2 million households will get help this year under the Warm Home Discount Scheme.
“We have also already announced our intention to launch a new fuel poverty strategy next year to make sure we are targeting help at those who need it most,” the spokesman said.
“The Fuel Poverty Advisory Group has an important part to play in helping us assess our progress in this area and we will now carefully consider the recommendations set out in their annual report.”
Thousands more to face 'fuel poverty' by Christmas
