Energy watchdog Consumer Focus has warned the government that to tackle high prices from energy suppliers, an annual spend of £3 billion will be needed for seven years.
The government has pledged to eradicate fuel poverty by 2016, but Consumer Focus has said that far greater spending is needed to achieve this aim and help households that are having to allocate more than ten per cent of their annual salaries towards fuel bills.
It added that £200 billion will be needed to address the pressing issues of climate change and improving the UK's energy infrastructure over the course of the next 15 years.
The organisation said: "The government's energy efficiency plans are too underfunded, untargeted and under-prepared to tackle the fuel poverty crisis affecting more than five million vulnerable pensioners, families and disabled people across the UK."
Nearly two million additional households could end up in fuel poverty if the funds are raised by increasing energy prices, it added.
All the UK's energy companies increased their prices last year and have been criticised for implementing only marginal reductions in recent weeks.
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