Fuel poverty in UK increasing

Wednesday, 10 June 2009 12:00

Fuel poverty in the UK is getting worse despite government efforts to eradicate the problem by next year, a group of MPs have warned.

The Environment, Food and Rural Affairs committee's final report on energy efficiency and fuel poverty has been welcomed by consumer groups for criticising the government's fuel poverty policies.

"Despite a clear statutory target for the government to eradicate fuel poverty, as far as reasonably practicable, in vulnerable households by 2010 and in all households by 2016, we are witnessing the opposite, with a sustained increase in the numbers of those experiencing fuel poverty," the report said.

"The government should now explain why it did not review its fuel poverty policies earlier in the light of the upward trend in the number of fuel poor which began in 2005," the committee added.

Improved targeting of Winter Fuel Payments and redirecting funding into energy efficiency measures in households would help the government meet its targets, the group of MPs recommended.

Jonathan Stearn, energy expert for watchdog Consumer Focus, welcomed the report.

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

"Immediate investment is needed in a radical and coordinated action plan if we are to lift millions of the poorest pensioners, families and disabled people out of fuel poverty and cut carbon emissions."

A radical rethink of the government's fuel poverty policies will be needed to lift millions out of fuel poverty, the report suggested.

"The government should make the Winter Fuel Payment taxable and end its payment to those subject to higher rate tax.

"This would provide around £250 million per annum which could be used to provide a revenue stream to bring forward a programme of energy efficiency improvements for fuel poor households and other households with, for example, disabled people who have disproportionately high personal energy needs," the report said.

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