It claims two million elderly and disabled people in England now spend at least £1 out of every £10 on energy - making them "fuel poor". That's DOUBLE the number three years ago and follows a whopping £350 hike in average gas and electricity bills since 2003. The Fuel Poverty Action Group is urging the Chancellor to loosen the purse strings - or see the crisis spiral out of control. It says the government has no chance of eliminating fuel poverty among the vulnerable unless more cash flows into energy efficiency schemes. The group wants him to commit an extra 30 per cent over the next four years. In order to find the money, it's calling for a possible windfall tax on giants such as Scottish Power.

The Chancellor already draws an estimated £13billion from taxes on the oil and gas industry. Ministers are also being asked to consider new rules to force energy suppliers to offer cut-price tariffs for the needy. "The significant increase in the number of households in fuel poverty is a very big setback after years of progress," says action group chairman Peter Lehmann. The call comes days after npower hit six million customers with their second inflation-busting price hike since January. Bosses blamed a four-fold increase in wholesale energy costs in the past three years. But it pushed up average npower bills by another £114 a year - matching the increase in this year's basic state pension. Npower's hike followed record-breaking increases from British Gas and Powergen last month. As a consequence, one household is falling into fuel poverty every 44 seconds, uSwitch.com claims. More than two thirds of the estimated 3.5 million fuel poor across the UK as a whole are "vulnerable" - either drawing disability benefit, in retirement or a low-income family. FPAG warns that while the government and energy watchdog Ofgem have made progress in tackling the crisis, the reaction has not been "strong enough". Most low-income customers use prepayment meters and these are typically 10 per cent more expensive than direct debit payments. But FPAG argues that new, cheaper prepayment meters trialled in Northern Ireland could close the gap - meaning a saving of up to £60 a year on the average bill. The Chancellor committed an extra £45million to fuel efficiency schemes for pensioners - such as Warm Front - in his pre-Budget report last autumn. But FPAG claims the increase isn't enough to keep pace with rising bills. It adds that the huge hikes in wholesale energy costs show the market may not be working. And it argues that intervention, through rules to keep prices down or forcing companies to share savings from mergers or takeovers, should be looked at. "It's very important for government and Ofgem to strain every sinew to ensure that prices are as low as possible for low-income customers in a high-price environment," says Mr Lehmann. "There is now little time left and further resources are required to meet the 2010 fuel poverty target." FOR some of those struggling with ever-rising bills, the government's Warm Front scheme may help. It awards grants of up to £2,700 to make homes warmer and heat efficient. With this, you can receive insulation or heating improvements tailored to the needs of your home. Insulation improvements include loft insulation, draught-proofing and cavity wall insulation. Heating improvements include gas, electric or oil central heating and repairs to your existing system. You qualify for Warm Front if you receive one of a range of benefits and allowances, from Working Tax Credit to Disability Living Allowance. You can also claim if you're pregnant, have a child under 16 or you're aged over 60 when on income support, or housing benefit, council tax benefit, or draw an income-based jobseeker's allowance. For more information, call Eaga Partnership, Warm Front on 0800 316 6011. SAVE IT.. 1 Ensure your heating and hot water is only switched on when you need it. 2 Shelves above radiators push heat into the centre of the room rather than letting it collect on the ceiling. 3 Fix dripping taps quickly and turn hot water taps off properly. 4 Regular defrosting of fridges and freezers reduces running costs. 5 Put lids on saucepans and turn down the heat when the food starts to boil. 6 Close your curtains at dusk to keep heat from being lost through the windows.

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