In FPAG’s 11th annual report, Derek Lickorish said that while the group welcomed the government’s intention to extend some aspects of Eco to 2017, more needs to be done to “deal with the scale of the fuel poverty problem”.
Lickorish also warned that energy prices are set to increase, due to a combination of rising wholesale prices and because of the political conflict which “will increase the cost of borrowing”.
He added that FPAG is “extremely concerned” about the prospect of rising bills over the next 10 years and that levels of fuel poverty are increasing.
The report stated “the government needs to “significantly increase the level of resources available to stop the annual winter cold homes crisis”.
Recommendations made to government included “the use of carbon tax revenues to fuel poverty-proof poor housing” and “as a matter of urgency” to set up a publicly funded scheme to protect low income housing from the worst impacts of increased energy prices.
Alongside these, the report also called for Eco to target poor and fuel poor households first with easy to treat energy efficiency measures.
Adam Scorer, director of Consumer Futures said the FPAG report highlights the government’s energy efficiency plans remain “woefully inadequate”.
He added: “A much more radical energy efficiency programme is not only vital to slashing fuel poverty levels, it would also treat the causes of fuel poverty, create economic growth, create thousands of jobs and cut carbon emissions. “
Energy secretary Ed Davey defended the government’s actions and said the government is doing “everything within its power to help hard-pressed consumers keep their energy bills down”.
He added that this includes the £50 reduction to the average bills, increasing competition “to offer consumers real choice”, and “direct help” to the most vulnerable via the winter fuel payments worth up to £300, cold weather payments worth up to £25 a week, and the £135 the Warm Home Discount rebate.