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National fuel poverty

3:15pm GMT, Monday, 8 September 2008

One quarter of the British population will experience fuel poverty by 2009. One quarter of the British population will experience fuel poverty by 2009.

A report by the National Housing Federation has revealed that as a result of higher energy bills, a quarter of the UK population is to face fuel poverty– an increase of 100% compared with 2005.

The report, Energy Prices and Debt, has revealed that 5.7 million UK households will spend at least 10% of their income on energy bills by 2009, with bills reaching upwards of £1,406 compared with £676 in 2005. This means that 23% of the population – 13.4m people – will be affected by fuel poverty in the next two years.

The Federation, which represents not-for-profit housing associations, believes customers who pay via pre-payment meters are the worst affected. Ruth Davison, Federation Director of Campaigns and Neighbourhoods, said: “The findings of our survey are shocking and show that we now have a full-scale national energy crisis.

“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.”

The report comes after the major gas and electricity suppliers raised their prices, including British Gas which recently announced a record price increase of 35% for gas and 9% for electricity.

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