Fuel poverty `to increase`

The Government`s Fuel Poverty Advisory Group has suggested that a `clear plan` should be set out to reach the target of eliminating fuel poverty by 2016, The Telegraph reports.

Fuel poverty (when a household is spending at least 10% of its total income on energy bills) is on the rise. A report has revealed levels `more than three times the rate of five years ago`, which may suggest that more households are facing the prospect of debt.

Chairman of the Government`s Fuel Poverty Advisory Group, 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."

He went on to say, "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 debt management expert for Gregory Pennington said: "During an economic downturn, many households` finances will be strained. Some people may find they need to take on further debt in order to afford essentials such as utility bills.

"Anyone struggling with their everyday expenses or their debts should speak to a professional debt adviser as soon as possible."

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