The Institute for Public Policy Research (IPPR) have called for a revolutionary new approach to energy provision to help people with low incomes out of ‘fuel poverty’, or the situation many find themselves in of having to ration their use of heating and light.

The IPPR says that many on low incomes are paying for their energy via prepay metering, which costs more than paying by direct debit, and so the energy industry effectively penalises people for having a low income.

The thinktank has proposed that the government bulk-buys energy and distributes it to unemployed people and pensioners, deducting the costs from their income support or pension payments.

The thinktank said a similar scheme conducted in the USA saw the energy bills of 60,000 low-income people fall by up to 18%, and that the proposals could save an average of £60 per low income household if implemented in the UK.

Follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.