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Peter Smith, from fuel poverty charity National Energy Action, said the move was shortsighted.
Proponents of these schemes argue that it helps to rescue people from fuel poverty.
But in recent years savings from energy efficiency improvements have been outpaced by energy prices and can't, in the short term, remove all vulnerable consumers from fuel poverty.
But the CMA resisted calls from fuel poverty campaigners for a breakup of the big six energy companies and instead recommended a price cap on high-cost tariffs.
He said he would be leaving without regrets that Centrica should have done things differently despite mounting criticism from fuel poverty campaigners in recent years.
"Osborne is axing insulation for tens of thousands of the poorest households, condemning thousands of families to cold and damp homes with unaffordable high bills for decades, whilst allowing the Big Six to continue their profiteering just a week after a huge rise of deaths from fuel poverty have been reported," said Clare Welton from Fuel Poverty Action.
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Addressing delegates, she said: "We will provide that funding from central government resources and that will mean direct government funding for fuel poverty schemes of at least £200m every year.
About two million households struggle to pay their gas and electricity bills, twice the number in 2003, a report from the Fuel Poverty Advisory Group warned last week.
"There is a large social housing sector in the UK and it's a very attractive option because it provides the tenants with free electricity, so from a fuel poverty point of view there is a lot to commend it.
A global shift towards a vegan diet is vital to save the world from hunger, fuel poverty and the worst impacts of climate change, a UN report said today.
He proposed shifting the £110 of green and social policy costs from customer bills into general taxation, "shifting the cost away from those [in fuel poverty] who can't afford to pay and on to those who can".
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