Around 100,000 households could be lifted out of fuel poverty by an extra £225 million to help meet the rising cost of fuel bills, the Labour Government has announced.

A deal struck by domestic energy suppliers and John Hutton MP, Labour’s Secretary of State for Business, Enterprise and Regulatory Reform, will mean that households struggling to pay their fuel bills will receive significant extra help in warming their homes.

The deal follows last month’s Budget decision to increase the winter fuel payment and secure an increase in the amount of money energy suppliers spend on their social programmes.

John Hutton said: "Thanks to the cooperation of our energy companies the amount of money being spent on social programmes to help the poorest heat their homes is now set to treble. This could help 100,000 households who struggle to keep their homes warm in the winter.

"This is a significant boost to the billions already spent by Government and the energy companies and means we can now get this vital extra support to the people who really need it in time for the coldest months this coming winter.

"I do not underestimate the difficulties and anxiety that rising energy prices can cause but I believe that this extra cash, coupled with ensuring we have the most competitive market possible, will help us toward our goal of eradicating fuel poverty in the UK."

The increase to the collective total of at least £150 million a year will be reached in three stages, making the total extra spend over the next three years to £225 million.