Fuel poverty aid deal disappoints
Comparison website uSwitch.com has welcomed today's move by the government to tackle fuel poverty, but said it falls well short of the real investment required.
The government said the six major energy companies have agreed to splash out £225m over three years on getting around 100,000 households out of the fuel poverty trap.
"This is welcome, but falls well short of the 500,000 additional households plunged into fuel poverty by the 15% increase to household energy bills this year," said Ann Robinson, Director of Consumer Policy at uSwitch.com, whose sentiments were echoed by other consumer groups.
"If it was spread across the whole 4.5 million households in fuel poverty it would amount to less than £18 a year, which is a drop in the ocean when consumers are facing average fuel bills of £1,048 a year," she added.
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"This is the clearest evidence yet that those in fuel poverty cannot expect the Government to lend them a helping hand out of the trap - this puts greater emphasis back on households to help themselves."
In his debut Budget speech last month, chancellor Alistair Darling had hoped British Gas, E.On, Scottish Power, Scottish & Southern, EDF, and NPower would boost social tariffs to £150m a year.
Instead, spending will rise from £50m to £100m this year, then increase to £125m in 2009-10 and £150m in 2010-11.
