Power companies will help up to 100,000 households who are struggling to pay their fuel bills.

An extra £225m will be provided by the six biggest energy firms according to Business Secretary John Hutton.

Mr Hutton said the companies would spend £150 million by the year 2010 on social assistance, on top of £100m over the next year and £125m in 2009/10.

The Government said that if the money was just used to offset bills it could remove up to 100,000 people from fuel poverty

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Mr Hutton said: "Thanks to the co-operation 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 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 towards our goal of eradicating fuel poverty in the UK."

(CD/JM)