One in four face fuel poverty

Gas and electricity hikes mean a quarter of people now face falling into fuel poverty.

Research by the National Housing Federation (NHF) shows 5.7 million homes will be spending at least ten per cent of their income on energy bills by the end of 2009 – a doubling since 2005.

This is the equivalent of 13.4 million people or 24 per cent of the population.

Furthermore, by 2010 the report forecasts combined annual gas and electricity bills to stand at £1,400.

The NHF finds lower income homes, which are more likely to be using prepayment gas and electricity meters, are set to suffer most – as they pay higher rates due to the costs involved in running the meters and local payment.

The body estimates by 2010 the charges made to prepayment customers will be up to £65 higher than those for quarterly billed customers.

Ruth Davison, NHF director of campaigns, said: “The findings of our survey are shocking and show that we now have a full scale national energy crisis.

“The government needs to grasp the nettle and take strong and radical action to protect the nation’s energy customers.”

Ms Davison added greater regulation was needed to protect customers.

“Energy companies must be regulated so that they can no longer charge prepayment meter customers grotesquely high tariffs, a cap must be put on the prices they charge, and they must be made to use their profits to pay for their social and energy efficiency responsibilities rather than piling these costs on the already crippled consumer," she said.

Those on prepayment meters are advised to shop around – as with billed customers – to find cheaper suppliers. Some providers, for example Scottish Power, offer rates below those paying by quarterly bills.

However, these bills are still high than for those paying online tariffs.