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The Government has decided to increase significantly the proportion of Energy Company Obligation (ECO) spending which will target households in fuel poverty.
Originally ministers proposed that 25 per cent of the annual ECO spend of £1.3 billion would cover measures designed to provide so-called “affordable warmth”.
However environmental groups, fuel poverty campaigners and the Coalition’s own Hills Review said that was not enough, arguing at least 50 per cent should be used to fight fuel poverty.
Ministers have listened and today deputy prime minister Nick Clegg announced that at least £540 million of the ECO programme would help the poorest families reduce energy bills.
The deputy PM said: “We will be requiring the energy companies to provide an estimated £1.3bn a year of support for energy efficiency in our homes with at least £540m to fund energy saving improvements in the worst off homes.”
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