THE Government last night hailed figures which showed it had reduced the number of homes suffering from so-called fuel poverty.

But campaign groups warned that more work was needed to tackle the problem of those on low incomes struggling to heat their homes.

Figures released by the Department of Trade and Industry showed that in the North-East in 2001, 106,000 homes were in fuel poverty compared to 331,000 five years earlier.

The definition of fuel poverty is when ten per cent or more of a household's income is spent on heating.

Almost ten per cent of the region's 1.37m homes are in fuel poverty.

Overall in England, the number of households in fuel poverty has now fallen below two million.

Factors contributing to the reduction include winter fuel allowances, and free television licences for the over-75s.

An energy efficiency scheme has also helped 500,000 homes in receipt of benefits to pay for insulation and heating.

In the North-East, Stockton has been chosen as one of five pilot zones, where the aim is to reduce fuel poverty by up to 50 per cent.

Every year, an estimated 30,000 deaths, mainly those of pensioners, are attributed to cold weather.

Energy Minister Brian Wilson said: "The fuel poverty strategy we launched in 2001 set out policies to end fuel poverty in vulnerable households by 2010. Trends we are seeing are very positive."

Dave Abrahams, director of the Newcastle office of the Campaign Against Pensioner Poverty, said: "There has been some inroads made this in direction, but more still needs to be done."