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Further fuel poverty misery as debt management worries grow

The number of people struggling to repay their energy bills looks set to grow even more, as more people struggle with their debt management issues, according to government figures.

Figures from the Department of Energy and Climate Change show that around 4.6 million households could be suffering from fuel poverty this year. This figure equates to almost one in four families struggling to keep warm.

The common definition of fuel poverty is where a household spends more than ten per cent of its income heating the home.

Despite recent wholesale prices dropping in the energy market, this hasn’t been fully passed on to consumers, and the cost of heating a home has risen steadily over the last decade.

Rising unemployment coupled with a stagnant jobs market has only compounded this, as greater numbers of people have been affected and their finances stretched to breaking point.

More peopel are resorting to building up outstanding overdrafts, loans and credit card debts to cover their essential living expenses.

Ivan Cooper, Chairman at debt advice specialists Chiltern, said: “More people are finding that as living costs have grown, their wages haven’t followed suit, and they are struggling to cover essentials.

“As unemployment has risen too, and there are less jobs around, more people than ever are finding that their unpaid gas bills are just part of their wider debt problems.

“It’s always recommended to seek impartial advice over any debt management matters, as a positive outcome can usually be achieved if they are dealt with sooner.”

The report was based on the latest figures for England and Scotland along with extrapolated estimates for Wales and Northern Ireland.

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