Fuel poverty figures 'could be 5.4m'

The number of households in fuel poverty has risen to 5.4 million after the latest round of price rises, according to research.

The rising cost of energy has added £4.3 billion in total to household bills, according to price comparison site uSwitch.com.

While the average household now faces an annual energy bill of £1,292 – up by £380 from £912 at the beginning of the year – more and more people are falling into the fuel poverty trap, uSwitch claims.

Fuel poverty is defined as when a household needs to spend more than ten per cent of its income on energy bills. The estimated number of those in fuel poverty is currently 4.5 million.

Although pensioner households make up the largest group in fuel poverty, with 30 per cent in the category, 20 per cent of families with one income and 17 per cent of single person working households now fit the definition.

Ann Robinson, director of consumer policy at uSwitch.com said: "2008 is set to be remembered as the year Britain was crippled by inflation, soaring fuel bills and the rampant growth of fuel poverty.

"Government failure to stamp out fuel poverty has not only allowed it to tighten its grip on our pensioner population, but spread its roots into other parts of society too.

"Now single income households, including families, face a real threat to their standard of living as fuel poverty becomes part of everyday British life."

Consumers can expect further price increases as forward wholesale gas prices remain high and the impact of the closure of a key North Sea gas pipeline at the end of August is felt, uSwitch warned.

More price rises are likely early next year, uSwitch said, with bills going up by as much as 14 per cent - adding a further £175 onto the average household energy bill, taking it to as high as £1,467.