Households in fuel poverty double in three years

11 Sep 08
Soaring energy bills mean that nearly 5.5 million households will be in fuel poverty by the end of 2008, more than double the number three years ago, according to a survey

12 September 2008

Soaring energy bills mean that nearly 5.5 million households will be in fuel poverty by the end of 2008, more than double the number three years ago, according to a survey.

The study, carried out for the National Housing Federation, defines fuel poverty as when households spend at least 10% of their income on energy bills.

And the situation is forecast to get worse. According to IPA Energy and Water Economics, which carried out the study, the number of households in fuel poverty will rise to 5.72 million by the end of 2009 (equivalent to one quarter of the population) and remain above 5.5 million well into the next decade.

In 2005, the average annual energy bill was £676. By next year, following record increases in gas and electricity prices, it is set to reach £1,406.

The study, published on September 9, warned that many social housing tenants were worse hit because they paid for fuel through pre-payment meters. Customers with these meters can pay up to £70 per year more than those charged through quarterly bills, and £560 more than those using direct debits.

Ruth Davison, director of campaigns and neighbourhoods at the NHF, said the government should step in. 'Energy companies must be regulated so that they can no longer charge pre-payment meter customers grotesquely high tariffs,' she said. 'A cap must be put on the prices they charge, and they must be made to use their profits to pay for their social and energy efficiency responsibilities.'

The survey was published as the government was preparing to announce a £1bn package to modernise household energy use.

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