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Five million low-income families will get cheaper electricity and gas automatically under plans to share data with power firms.

Energy Secretary Greg Clark’s scheme means providers will know who is eligible for the “safeguard tariff”.

The rate set by regulator Ofgem caps bills for pensioners, and vulnerable and disabled customers who use pre-payment meters or qualify for Warm Home Discount, saving them up to £300 a year.

Data protection law will have to change to allow Whitehall to share personal ­details with suppliers. But customers on benefits could be identified and moved to the cheapest tariff if they agree to their information being passed on.

Mr Clark said: “Energy price rises are often felt most by those on the lowest incomes. This change would make it easier to identify who is at risk of fuel poverty and needs extra help.”

(Image: Getty)

Adam Scorer of National Energy Action added: “Schemes to take people out of fuel poverty have been hamstrung by an inability to target support on those who need it most. Data matching is a necessary part of the answer.”

Data sharing has been a key plank of the Sunday People’s long-running fuel poverty campaign.

Meanwhile, Jeremy Corbyn has pledged that 60 per cent of Britain’s energy will come from renewable sources by 2030 if he ­becomes Prime Minister.

The Labour leader said yesterday: “The challenge of climate change requires us to radically shift the way that we organise our economy.”

Rebecca Newsom of Greenpeace UK added: “This could bring more jobs and lower energy bills.”

Brit Gas turn-off

British Gas lost a ­million customers last year, industry experts believe.

That includes 823,000 who switched to other ­energy suppliers from January to October.

The extent of the exodus is to be laid bare when the energy giant reveals annual results on February 22.

The news comes as the Government considers an energy price cap on standard tariffs that could come into force as soon as December.

Voice of The Sunday People: Energy - keep up the heat

The news that five million low-income families could see energy bills slashed is to be welcomed.

Fuel poverty is one of the biggest issues facing Britain. Around two and a half million families cannot heat their homes.

This newspaper began to campaign against fuel poverty more than a decade ago. We have regularly reported on the soaring costs of gas and electricity, and the plight of some of the most vulnerable who live in freezing conditions.

For millions of people – often the elderly and low paid – to live like this in the 21st century is shameful. Particularly while energy companies enjoy growing profits.

The Government’s policy looks like an attempt to tackle this.

Under their plans, families will automatically be moved on to the cheapest tariff. But there is a catch – energy firms have been given the go-ahead to raise prices.

The lowest tariff could rise by up to £60, undoing the good intentions.

If ministers really want to tackle fuel poverty, they need to take a hard line with energy firms.

Because if these fat cats are allowed to continue the way they are going, policies like this will

be worthless.

Switching website ­energyhelpline.com said the arrival of 60 small energy suppliers meant “the market is more competitive”.