£225m to help 100,000 households with their fuel bills.

by charles Friday 11 April, 2008

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

Categories for this post: Money Saving

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Comments

ray says:

Friday 11 April, 2008 / 19:04

I have used uswitch in the past I can tell you its only for people with money you have to pay off your bill so if you pay monthly you could as I did have to find £100 and the ones I switched to I had to pay a months bill before they would put me on a monthly bill never again its ok if you have £200 to spend but if you are already hard up this does not help and I dont think you should be telling people they can save money unless you are going to tell them about the pit falls Ray

paul trenholm says:

Sunday 13 April, 2008 / 13:04

I 'Switched with Which?' to my current supplier some 18 months ago and had a similar experience to Ray. The object of the operation was to ease my current financial situation by reducing my monthly outgoings on a permanent basis so I switched to save perhaps £20 pcm. only find that: (1) I had to pay off £200 arrears (that I wasn't aware of) with the old supplier and (2) the new supplier put up their rates to beyond what I had been paying after a few months (on the excuse of rising energy prices-we'll never find out what excuse they'd have come up with if that little serundipity hadn't happened to come along whan it did). So all I achieved was a £200 instant worsening of my current financial position . . . Now I have tried 'uswitch' they claim I can save nearly £20 pcm. by 'switching' to my existing supplier!!! What is going on??? The energy suppliers are taking us for a very expensive ride courtesy of dodgy software that purports to be trying to help us. Are these schemes funded behind the scenes by the energy companies??? Do they target recent switchers with their latest price rises on the assumption that because thay have made a saving they must be able to pay more??? Is the software too simple? Perhaps it simply makes you a number of offers of up to £20 pcm. cheaper to simulate an investigation that hasn't taken place and the companies wear it in the knowledge that they will soon recover it and have an extra customer to boot??? It all looks rather pointless, if not downright suspicious.
Is there anyone 'out there' who has made a genuine, long term saving by switching supplier?
Depleted Paul.

Janet Holness says:

Monday 14 April, 2008 / 12:04

Why is it always the tax payer who picks up the tab for people who cannot manage their financial affairs. I bet a great number of those in the so-called 'fuel poverty trap' have got Sky TV, cars, DVD players, eat convenience food, throw a lot away and so on and so on. Put a jumper on!
It is criminal that these big energy companies are allowed to make such big profits through charging the customers high rates and then when the crunch comes the ordinary paying man in the street have to pick up the difference.

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