Following sharp increases in the domestic costs of fuel and energy, the Department for Food, Environmental and Rural Affairs (Defra) has announced new policies to help the poorest members of society meet the increased price of heating their homes.

Among the proposals laid out by the department are legislative amendments to encourage data-sharing between utilities providers and the government to aid in identifying those most in need of monetary assistance. There will also be a new pilot scheme to allow those applying for Warm Front grants to seek advice from their energy provider to ensure that maximum savings are delivered, which will be trialled on 3,000 households.

Additional funding of 150,000 pounds will also be allotted to develop a Citizen’s Advice Bureau helpline to raise awareness for the Ofgem social assistance for the vulnerable campaign. Defra will also allot a further three million pounds for a pilot project within the low-carbon buildings programme (LCBP) to help fuel-poor communities to save money by making their homes more energy efficient. The new proposals follow an Ofgem summit last summer where delegates called for improved energy efficiency in UK homes.

For those who found that the cost of keeping their home warm during the winter left them struggling with their finances, taking out a consolidation loan may be of assistance in paying off suppliers. In entering this type of debt management solution, people may find that their monthly outgoings are spread over a long period of time, reducing the likelihood of missed payments.

“In the light of rising energy prices and the increasing global demand for energy we have to think long-term and carefully and provide sustainable solutions to those most likely to need help. As well as measures to improve the incomes of the vulnerable, a key part of this must be energy efficiency which will help bring people’s bills down in the future and keep their homes warm. It means using schemes such as the LCBP to ensure the fuel poor can benefit from the lower bills that modern technology can bring,” said energy minister Malcolm Wicks.

He added that the government had secured a commitment from utilities suppliers to provide an additional 225 million pounds for social assistance programs to help those most in need of financial assistance. Energy firms will be required to increase pledges to such programmes by 150 million pounds each year through to 2011.

Meanwhile, environment minister Phil Woolas said that the new energy efficiency drive would help reduce household bills and act as a counterbalance to the recent price hikes enacted by all major utilities suppliers. He added that fuel poverty was not only a problem during the winter but a year-round task of reducing reliance on heating, which the government was firmly committed to tackling.

For those struggling with payments owed to their supplier, taking out a debt consolidation loan may prove an effective way to curtail mounting debts. Earlier this month a report by financial advice service MoneyExpert suggested that with fuel costs increasing steadily, many people will find it increasingly difficult to take advantage of cheaper tariffs because of debt commitments to their existing supplier. It noted that as many as 726,000 people missed an energy payment in the past six months.

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