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Fuel poverty back on the agenda Summit aims to ease fuel poverty
(about 4 hours later)
Ministers and consumer groups are meeting for a summit soon to find ways of lifting the poor and elderly out of fuel poverty. Ministers, consumer groups and energy firms have met in London to discuss ways of lifting the poor and elderly out of fuel poverty.
The meeting, organised by regulator Ofgem, will discuss how to target spending on those in the most need. Organised by regulator Ofgem, the "summit" looked at how best to target spending on those most in need.
Energy firms have promised to increase funds to help the four million fuel poor, after raising prices this year.Energy firms have promised to increase funds to help the four million fuel poor, after raising prices this year.
A home is judged to be in fuel poverty if 10% or more of the household income is spent on energy bills.A home is judged to be in fuel poverty if 10% or more of the household income is spent on energy bills.
And some charities have criticised the government for failing to do enough to help these households.
Energy Minister Malcolm Wicks and Environment Secretary Hilary Benn are set to attend the summit on Wednesday, and could expect some strong questioning during the discussions.
The agenda is likely to include views on the extra levy on those using pre-payment meters - including about a third of the fuel poor.
'Strategy in disarray''Strategy in disarray'
A coalition of Age Concern, Child Poverty Action Group, and National Energy Action suggested ahead of the summit that the government's strategy was in "disarray". Those attending the event included energy minister Malcolm Wickes, Ofgem chairman Sir John Mogg, the chief executives of Scottish Power, Npower and Scottish & Southern and groups such as Energywatch.
The action taken so far is nowhere near enough to help those pushed into fuel poverty this year, let alone in the future Gordon Lishman, Age Concern It turns out that the very poorest consumers often have to pay hundreds and hundreds of pounds more than the rest of us Alan Asher, Energywatch
The coalition claimed that the average annual fuel bill for somebody aged 65 to 74 had risen to £1,010. Energywatch chief executive Alan Asher said electricity prices were unreasonably high and that many people faced "choosing between heating and eating" over the winter.
That is 15% of the average income of a single pensioner of that age, and 10% of the income of a couple in the same age bracket. The government has been criticised for failing to do enough to help low-income households having to pay an extra levy to use pre-payment meters.
They said that lone-parent families on basic state benefits faced a fuel bill taking up 11% of their income. "It turns out that the very poorest consumers often have to pay hundreds and hundreds of pounds more than the rest of us," Mr Asher added.
A coalition of Age Concern, Child Poverty Action Group, and National Energy Action has suggested the government's strategy was in "disarray" and called for fresh initiatives.
HAVE YOUR SAY I see no reason why pensioners should not be able to get their homes insulated for free Benjamin Platt, Liverpool Send us your comments
The coalition claimed the average annual fuel bill for those aged 65 to 74 had risen to £1,010 - equivalent to 15% of the average income of a single pensioner of that age.
Lone-parent families on basic state benefits saw fuel bills eating up 11% of their income, the group added.
"The action taken so far is nowhere near enough to help those pushed into fuel poverty this year, let alone in the future," said Gordon Lishman, director general of Age Concern."The action taken so far is nowhere near enough to help those pushed into fuel poverty this year, let alone in the future," said Gordon Lishman, director general of Age Concern.
"The government's fuel poverty strategy is in disarray; ministers must pledge fresh action at the summit." Ministers have yet to comment on the discussions, although Ofgem is expected to make a statement later.
Price risesPrice rises
An estimated four million people in the UK are in fuel poverty and experts expect the government to miss its target of ending fuel poverty in England by 2010. Experts expect the government to miss its target of ending fuel poverty in England by 2010.
The government says it has introduced a range of measures to tackle fuel poverty and the big six energy providers had also committed to an extra £225m over the next three years on their social assistance funding. Ministers say they have introduced a range of measures, while the big six energy providers have also committed to putting an extra £225m over the next three years into their social assistance funding.
All six have raised bills this year. But all six have raised bills this year.
Scottish and Southern Energy was the last, on 1 April, to make the move with an average 14.2% increase in electricity bills and a 15.8% lift in gas charges for domestic customers. Electricity bills have risen sharply
From 1 April, Scottish and Southern Energy customers have been paying, on average, 14.2% more for their electricity and 15.8% more for gas.
In early January, Npower put prices up for its electricity customers by 12.7%, while its gas price rose by 17.2%. EDF put up electricity tariffs by 7.9% and gas prices by 12.9%. British Gas increased gas and electricity prices by 15%.In early January, Npower put prices up for its electricity customers by 12.7%, while its gas price rose by 17.2%. EDF put up electricity tariffs by 7.9% and gas prices by 12.9%. British Gas increased gas and electricity prices by 15%.
Scottish Power increased gas bills by 15% and electricity bills by 14%, and E.On put up gas bills by 15% and electricity tariffs by 9.7%.Scottish Power increased gas bills by 15% and electricity bills by 14%, and E.On put up gas bills by 15% and electricity tariffs by 9.7%.
The coalition want the extra VAT revenue from these rises to be spent by the government directly on tackling fuel poverty. The coalition wants the extra VAT revenue from these rises to be spent directly on tackling fuel poverty.
They have also called for more money for the Warm Front Grant which makes homes more energy efficient and for the Winter Fuel Payment to be extended to vulnerable groups rather than just the elderly. They have also called for more money for the Warm Front Grant which makes homes more energy-efficient and for the Winter Fuel Payment to be extended to vulnerable groups rather than just the elderly.

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