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Household bills News - Last Updated Monday 2nd June 2008 → Syndicate this
Fuel Poverty To Be Tackled By UK Government




Monday 2nd June 2008

The UK government has announced plans to share customer income figures with energy companies to ensure that those who are in the fuel poverty trap receive the help that they need. The term fuel poverty relates to households which spend more than 10% of their monthly income on energy costs.

The UK government estimate that around 2.5 million people are currently in the fuel poverty trap, but Energywatch claim that this figure is actually more than 4 million. The move has been welcomed by a number of charities but there are concerns how secure the income data will be and how the price reductions will be funded.

The authorities claim that by targeting existing fuel poverty funding they will be able to lift the vast majority of those suffering, out of the fuel poverty trap. The government are also likely to encourage further use of the so-called ‘social tariffs’ which are reserved for those in the greatest need of financial assistance.

This move has been on the cards for some time since the government threatened the energy companies with sanctions unless they addressed the problem. Rather than give the government reason to implement additional tax charges on the sector, the energy companies appear to have caved in to the government’s demands.

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