Rising prices from energy suppliers could produce more fuel poverty - 13/07/2009

Many homeowners may be looking to switch energy companies in search of a better deal, but rising unemployment could also increase fuel poverty, reports the BBC.

Figures from the Fuel Poverty Advisory Group reveal that around four million UK households are already having to allocate more than ten per cent of their annual income towards energy bills, with prices having risen by nearly 130 per cent over the last five years.

The government originally pledged to eradicate fuel poverty by 2016 and says it has already spent £20 billion addressing the issue, but unemployment has now become an additional problem.

Jonathan Stearn, an energy expert with Consumer Focus, told the BBC: "If the government is serious in its aim to end fuel poverty, it needs to do much more to help the most vulnerable households."

Energy and climate change minister David Kidney acknowledged that rising prices have hindered government efforts to reduce the number of households living in fuel poverty.

All the major energy companies increased their prices last year and have been criticised for introducing only marginal reductions in the spring.

Mark Todd of energyhelpline said: "UK households feeling the pinch should look at comparing and switching to their cheapest option. If they have internet access then there's more money to be saved by managing your account online and providing your own meter readings."

If you want to find out more about switching energy suppliers and how you could save up to £378 in minutes, click here.