Millions Face 'Fuel Poverty Threat'

The number of UK households struggling with fuel poverty could hit six million in the next year, the Times reports.

Pressure group National Energy Action (NEA) has released the prediction, following reports suggesting that gas and electricity prices will increase by 40 per cent over the course of the year. If the forecast proves true, it would mean an increase of 2.1 million over last year's fuel poverty number, and a rise of almost 150 per cent over 2001's total.

It would also represent a hammer blow to the government's pre-existing pledge to eliminate the problem by 2010.

A household falls into fuel poverty when ten per cent of more of its total outgoings is spent on electricity and gas; pensioners and other low-income groups are generally affected more harshly by the problem.

Gordon Lishman, director-general of Age Concern, said: "Many pensioners will be horrified to hear that energy bills could rise by a further 40 per cent this year, potentially pushing a further 750,000 [of them] into fuel poverty. There can be no doubt that radical measures are needed to bring the government's fuel poverty targets back within reach." He added: "The government must urgently look at ways to fund measures to reduce fuel poverty, including using the extra VAT revenue gained from increased energy bills to help those struggling the most."

Fuel poverty is scheduled to be a topic under discussion at an upcoming parliamentary select committee meeting, which takes place tomorrow. MPs are set to question representatives of the "big six" energy suppliers, including market leaders British Gas, on a range of topics relating to the industry.