Energy News

Energy price cuts have had little impact on fuel poverty

Monday 15 June, 2009

By becca.talbot@consumerchoices.co.uk

Recent energy price cuts have had little impact on fuel poverty figures in Britain, and the current average annual energy bill is up by more than a third compared with January 2008, according to figures from uSwitch.com.

Reductions in gas and electricity prices since the start of this year average just £50 on an annual dual fuel energy bill - lifting just 155,000 households out of the fuel poverty trap.

More than 5 million homes in Britain still live in fuel poverty, despite government measures to tackle the issue, according to the Department for Environment, Food and Rural Affairs (DEFRA).

Tom Lyon, energy expert at uSwitch.com, said the government currently has no “cohesive or well thought through plan” to tackle the issue.

He said: “If this government is to stand any chance of tackling fuel poverty it has got to get a grip on the issue and it has got to do it now before further energy price rises push yet more households over the top.”

Over the last year, the average annual dual fuel bill has risen by £381.

According to figures from uSwitch.com, three in 10 pensioners currently live in fuel poverty, spending more than 10% of their annual income on energy bills.

However, fuel poverty is no longer just a “pensioner issue,” as a fifth of families with one income, and 17% of single person working households are also living in fuel poverty.

Chris Eagle, commercial manager at EnergyChoices.co.uk says: “These figures show that fuel poverty affects more than just the elderly, and highlights the need for a Winter Fuel Payment that’s available to everyone, not just those over the age of 60.”

“You could make huge savings on your energy bills by switching suppliers, so compare the market for the best tariff to suit your needs,” advises Eagle. “Review your current supplier and your payment method to see where savings can be made. You can save hundreds of pounds* on your energy bills by switching to a better deal. Compare energy prices today and see how much you can save.”

* Between 16 April 2009 and 14 June 2009, customers using our service saved an average of £147.20. The maximum saving was £1,703.

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