After food banks, now poor to get fuel banks

CONSUMERS who cannot afford their energy bills are set to receive free vouchers for gas and electricity at so-called ‘fuel banks’.

Energy giant Npower is planning to offer millions of pounds worth of free energy to claimants around the country in much the same way food banks give out emergency food parcels or supermarket vouchers.

The plans, to be piloted this summer, were welcomed by some MPs as a ‘breakthrough’, but critics say they could represent another example of handouts to benefits claimants.

The terms under which people could get the vouchers are not yet clear but are likely to be similar to those of food banks, where vouchers can be obtained from social services, the Citizens’ Advice service, GP surgeries and schools. Npower has been working with food bank charity the Trussell Trust on its plans, which could see vouchers equivalent to two weeks’ worth of gas and electricity handed out up to three times a year to those in need.

A voucher for two weeks’ worth of energy is worth about £50. The most likely recipients are people already on pre-paid meters. Price comparison site uSwitch estimates there are 5.9million people on pre-paid meters in the UK, and the vouchers will be available to anyone in need, not only Npower customers.

The Trussell Trust operates more than 400 food banks in the UK and will roll out the fuel scheme to 280 of them by 2017. It is likely to cost Npower up to £20million.

David McAuley, chief executive of the Trussell Trust, confirmed it had signed an agreement with Npower to give out energy vouchers at existing food banks in the pilot.

He said: ‘Npower has, crucially, agreed to provide vouchers for all clients, not just those who are Npower customers.’

The pilot scheme is timed to make sure the programme works efficiently before being rolled out during the winter.

Labour has cited the rise in food banks as proof that the Government’s policies have hit the poorest hardest, while Tory Minister Michael Gove said people who use food banks ‘are not best able to manage their finances’.

Last night Labour MP Frank Field said Npower ‘deserves huge credit’, adding: ‘The other energy companies now must take similar action to ease some of the pressure on their poorest customers.’

Npower’s launch of fuel banks may also be interpreted as a further attempt to stem criticism of its pricing from consumer groups.

Conservative MP Peter Bone said: ‘What would help more would be more transparency in their pricing system.’