Soaring gas and electricity costs have forced more than a quarter of all UK households into fuel poverty, new figures show.
This means that over 5 million families spend 10 per cent or more of their incomes on energy bills, which is the official definition of fuel poverty.
The statistics, which have been provided to government watchdog Consumer Focus, show just how devastating an impact a string of price hikes by leading energy firms are having on the nation’s finances.
Previously, ministers had expected just over 4 million households to be in fuel poverty at the end of 2011.
Michelle Mitchell, charity director at Age UK, said: “Fuel poverty has a devastating effect on people’s mental and physical well-being and cold can and does kill.
“Households are cutting back on either heating or food to help make ends meet. They face a stark choice which could put their health at risk.”
Will costs fall?
The rising cost of gas and electricity is one of the main reasons that families are expected to be worse off in 2015 than they are at present.
The wholesale cost of energy – the price that suppliers pay for their gas – has in fact fallen over recent weeks due to the eurozone crisis, leading to hopes that Britain’s big six gas and electricity providers – British Gas, EDF, E.ON, npower, Scottish & Southern Energy and Scottish Power – would reverse this summer’s tariff hikes.
Adam Scorer at Consumer Focus said: “Consumer distrust is rife over energy pricing and firms have been making big profits.
“One smaller energy supplier has already abandoned its price rise in the face of wholesale cuts and the question for many people will be why aren’t the big players following this lead?”
But the big providers say that much of their wholesale gas for the coming winter was bought in advance during the summer when prices were considerably higher.
