Energy giant spends £32m on football sponsorship - but just £4.4m on helping elderly customers

E.On, formerly known as Powergen, has come under fire from campaigners who say it has got its priorities wrong for paying out £32 million on the four-year FA Cup deal while just £4.4 million is allocated for a scheme to protect customers over 60 from price rises.

The Stay Warm scheme fixes prices for the over-60s who live in homes with no more than three bedrooms and pay by direct debit.

The company defended itself today, arguing that the scheme was just one of a range of measures that help vulnerable customers.

But Karl Brookes, from independent watchdog Energywatch, said: "That a company spends millions sponsoring a Cup, entertaining their favoured friends with prawn sandwiches and freebie tickets, is arguably marketing.

"However, when people realise they spend considerably more on sponsoring this rather than warming the homes of some of the most vulnerable consumers, some might say it's not brilliant marketing and even a bit of an own goal by E.On."

Energywatch estimates that there are 4.5 million households in "fuel poverty", meaning that they have to spend 10 per cent or more of their disposable income on energy bills, said.

Watchdog researchers say Britain's energy supply companies spend 0.11 per cent of their £24 billion turnover on measures to help poor households meet their energy costs.

Energywatch's criticisms of E.On follow an attack in the Commons last month by Liberal Democrat MP Paul Rowen.

He said: "That company spent £4.4 million a year on that social tariff, yet it is spending £32 million sponsoring the FA Cup."

He asked: "Do you think that's a good use of priorities for the profit that that company is making?"

Mr Rowen has arranged a meeting with E.On next week when he will ask for a commitment for their money-saving scheme to be extended to include all low-income households, the Manchester Evening News reported today.

He said the football sponsorship spending showed there was something "drastically wrong with the priorities of energy companies like E.On".

A spokeswoman for E.On said today that the company would be happy to discuss Mr Rowen's concerns with him.

But she added: "We have a very broad range of initiatives to help improve the warmth and comfort of older and vulnerable customers.

"As well as the Stay Warm scheme, we offer a second tariff for older people through a link with Age Concern.

"We also have a £100 million Caring Energy fund ... to help customers get free cavity wall insulation and ensure they are receiving all the benefits they are entitled to."

The FA Cup sponsorship also involves many community activities, the spokeswoman added.