Quick Loans taken out to pay Fuel Bills
First published - Wednesday 4th March 2008
The cost of gas and electricity has been increasing rapidly recently and many UK householders are facing expensive bills from their energy suppliers.
A significant number of householders are struggling to pay these higher bills and there are reports of people using their credit cards or taking out a quick loan to solve the problem.
The Government are putting forward a set of proposals to help those having difficulty paying their fuel bills. Recent price increase have increased the number of people who have to contribute more than 10% of their income towards their heating costs and this is threatening Labours plans to eliminate fuel poverty by 2016.
The scheme would allow qualifying customers to apply for fuel vouchers funded by the energy companies who currently budget less than 0.20% of their turnover towards aiding fuel poverty.
Household fuel bills are now averaging over £1000.00 per annum and energy company profits continue to grow putting pressure on these companies to increase their efforts to reduce fuel poverty, but turning to credit sources and taking out a loan to pay the bills is not the answer.
The Government recently met with leaders of the UK´s biggest fuel suppliers and further details of the plan are expected to be disclosed in next weeks budget.
Both the Energy Retail Association and the Shadow Business Secretary were critical of the plans.
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