Fuel poverty soars as energy bills rise

By Jennifer Hill

LONDON (Reuters) - Half a million more people have been plunged into "fuel poverty" due to the rising cost of gas and electricity, but few are benefiting from so-called social tariffs, research shows.

For every 1 percent increase in household utility bills, a further 40,000 households are plunged into fuel poverty, according to the Department for Business, Enterprise & Regulatory Reform.

With average bills rising 12.5 percent following price increases pushed through so far this year -- to 1,026 pounds from 912 pounds -- a further 500,000 people are now "fuel poor", taking the total to 4.5 million consumers, according to price comparison Web site uSwitch.com.

However, Britain's big six energy suppliers have signed up fewer than 400,000 people to social tariffs, designed to help those struggling to meet energy costs.

Even if suppliers carry through current plans to widen social tariff provision, they would still only help less then one million customers, uSwitch said.

Meanwhile, the government's winter fuel allowance now covers just 19.5 percent of a pensioner's annual energy bill, compared to 34.5 percent four years ago.

Ann Robinson, director of consumer policy at uSwitch.com, said: "If the government is truly committed to breaking the stranglehold of fuel poverty in this country then it needs to work with the industry and regulator.

"We already know that patchy, piecemeal attempts to tackle this issue do not work.