UK families may see the cost of their bills increase after proposals to introduce a new 'green tax' were unveiled by a government-supported think tank.
The Green Fiscal Commission (GFC) put forward proposals for a 'polluter pays tax' to be applied to the cost of household utilities.
This initiative, designed to cut carbon emissions in view of the government's 2020 target of a 34 per cent cut in emissions, would see tax on gas and electric bills rise each year over the next decade.
But Rebecca Atkinson, news editor at Moneywise, said that the tax may hit those who are already struggling to get credit due to rising unemployment and high household bills.
She added: "Most households saw their utility bills rocket last year - a time when many could ill afford to pay more for their energy usage."
Recent findings from uSwitch.com show that there are now an estimated 5.2 million households living in fuel poverty.
The data reveals that 30 per cent of pensioner households are in fuel poverty, as are 20 per cent of families with one income and 17 per cent of single person working households.
