This deal has been agreed between the Government and the UK's six biggest energy companies to help certain households with their energy bills.
The "Big Six" (British Gas, E.On, Scottish Power, Scottish & Southern, EDF, and npower) have agreed to boost their collective annual spending on social assistance programmes by £225m over the next three years, in a deal brokered by Energy Secretary John Hutton.
John Hutton hopes to eradicate fuel poverty with the move, as it could address the needs of up to 100,000 homes who can't afford to heat their homes.
A home is judged to be in fuel poverty if 10% or more of the household income is spent on energy bills.
Mr Hutton was quoted as saying "I do not underestimate the difficulties and anxiety that rising energy prices can cause but I believe that this extra cash, coupled with ensuring we have the most competitive market possible, will help us toward our goal of eradicating fuel poverty in the UK."
The government does already pay winter fuel payments of up to £250 for over-60s, and up to £400 for over-80s. However, this does not heavily impact the younger & poorer households in the UK.
Earlier in the week, Friends of the Earth and Help the Aged said they were taking legal action against the government for not doing enough to end "the misery of fuel poverty".
If you are struggling with energy bills NOW then there are other ways of reducing your monthly expenditure. These include...
- Fitting alternative sources of energy to your home to supplement your usage – e.g. solar panels, for which you can get generous grants to install.
- Reducing and being focused about your usage – e.g. reducing the temperature by only a couple of degrees on your thermostat, boiling just enough water for your need, turning items off that are in rooms not in use, etc.
- The final way, and some would say the easiest, is to find out if you can save money just by switching supplier!
Below are some links you might find useful for that...
Uswitch Energy Calculator Energy Calculator – find out what you can trim off your bills today.
Uswitch link for saving on EVERYTHING – includes heating cover, loans, broadband, current accounts, water, car insurance, etc