Best Debt Solution:Fears of fuel poverty rise
Monday, 20. July 2009
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Government advisers have warned that more households face fuel poverty.
They say that without “radical action” by the Government many more people will face unaffordable fuel bills. Rising energy prices and the continuing risk of unemployment are pushing people into debt, meaning they are unable to afford the essentials such as home energy costs.
A new report by the Government’s Fuel Poverty Advisory Group (FPAG) stated that a clear plan needs to be set out in order to meet the Government’s target of eliminating fuel poverty by 2016.
The rate of fuel poverty today is more than three times that recorded five years ago. According to the report the scale of the problem is too large to be dealt with by existing measures.
While Government measures will deal with the rising fuel debt in time, the lesson to the consumer today is to seek personal finance help. There are safety nets available to help with rising debt problems.
Advice on which is the best debt option for you, such as loan restructuring or an IVA, is available from dedicated debt advisers.
Chairman of the FPAG, Derek Lickorish, said: “Energy prices are going to become even more of an issue as the cost of tackling carbon emissions grows, unemployment rises and the energy market remains volatile.
“The measures in place to deal with fuel poverty now are simply inadequate to tackle the rise in fuel poverty that this cocktail of issues could create.
“Unless fuel poverty is tackled head on, many hundreds of thousands more vulnerable pensioners, families and disabled people will struggle to afford their energy bills. A thorough strategy, with decisive action on social tariffs and energy efficiency, is needed from the Government to help lift the poorest households out of fuel poverty.”
More than 10 per cent of household income is spent on energy in England and Wales. The advisory group reports that over four million households in England are experiencing fuel poverty.