Latest government figures on fuel poverty published today show that fuel poverty in the UK is on the increase.

In 2007, there were around 4m fuel poor households in the UK, up from 3.5m in 2006.

Councils want to build on the example of Kirklees Council which has offered to insulate every house in its area for free. If a similar council led scheme was expanded across the country, it would save £2 billion on current plans to put basic insulation into every home.

Cllr Gary Porter, Chairman of the Local Government Association Environment Board, said: "Millions of homes across Britain are still draughty, cold and energy inefficient. Councils want to make homes that are fit for the 21st century. Home insulation saves the average family around £220 a year. Insulating lofts is a fast, effective way of helping people cut their fuel bills but at the moment, many homes are missing out.

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"Too much money is being wasted on a raft of green schemes and people who need help insulating their homes are not getting it. A locally led home insulation programme would dramatically reduce carbon emissions and harness the desire of householders to make their homes more energy efficient.

"It is only councils that have both the knowledge of a local area and a strong connection with households. Councils are already proving they can deliver home insulation and make this money go further. It’s time the government cut the red tape around its green schemes and created a single pot of money so council can get on with the job in hand."

(CD/GK)