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| Version 1 | Version 2 |
|---|---|
| Brown warned over fuel bill anger | Brown warned over fuel bill anger |
| (9 minutes later) | |
| The government has been warned it faces a backlash over its decision to rule out handouts to households struggling with soaring fuel bills. | The government has been warned it faces a backlash over its decision to rule out handouts to households struggling with soaring fuel bills. |
| Tony Woodley, leader of the UK's biggest trade union, Unite, branded the move a "downright disgrace". | Tony Woodley, leader of the UK's biggest trade union, Unite, branded the move a "downright disgrace". |
| And backbench MP Fabian Hamilton said the consequences could be "very serious indeed" for Labour. | |
| There were hopes the government would unveil handouts of up to £150 after talks with the power companies. | There were hopes the government would unveil handouts of up to £150 after talks with the power companies. |
| But they are now expected to focus instead on energy efficiency measures. | But they are now expected to focus instead on energy efficiency measures. |
| In a speech on Thursday, Prime Minister Gordon Brown said there would be no "short-term gimmicks or giveaways". | In a speech on Thursday, Prime Minister Gordon Brown said there would be no "short-term gimmicks or giveaways". |
| 'Greedy utilities' | |
| But the decision is likely to be savaged by union leaders at next week's TUC conference in Brighton. | But the decision is likely to be savaged by union leaders at next week's TUC conference in Brighton. |
| Unite, currently the Labour Party's biggest donor, said "greedy" fuel companies had won out over struggling consumers and people needed an "immediate respite" to rising energy costs. | Unite, currently the Labour Party's biggest donor, said "greedy" fuel companies had won out over struggling consumers and people needed an "immediate respite" to rising energy costs. |
| FROM THE TODAY PROGRAMME More from Today programme | |
| Unite general secretary Tony Woodley told BBC Radio Four's Today programme: "This is no longer about lagging the lofts, this is about looking after people who are going to be in very very serious trouble to heat their homes." | Unite general secretary Tony Woodley told BBC Radio Four's Today programme: "This is no longer about lagging the lofts, this is about looking after people who are going to be in very very serious trouble to heat their homes." |
| He said the government should introduce a windfall tax on the energy giants or go "even further". | He said the government should introduce a windfall tax on the energy giants or go "even further". |
| "We need to legislate to cap these prices rises from these greedy utilities here so that we help the ordinary family in our country - if we don't do that then we would have betrayed our people and betrayed our party." | "We need to legislate to cap these prices rises from these greedy utilities here so that we help the ordinary family in our country - if we don't do that then we would have betrayed our people and betrayed our party." |
| Backer warning | Backer warning |
| Left-leaning pressure group Compass, which has been campaigning for a windfall tax, said the real disappointment would be felt by the "fuel poor who will go cold this winter". | Left-leaning pressure group Compass, which has been campaigning for a windfall tax, said the real disappointment would be felt by the "fuel poor who will go cold this winter". |
| Labour backbencher Fabian Hamilton has warned ministers they could lose support from people who need help paying bills. | Labour backbencher Fabian Hamilton has warned ministers they could lose support from people who need help paying bills. |
| Mr Hamilton is one of more than a 100 Labour MPs have publicly backed calls for a windfall tax. | |
| What we want to try and do is try to ensure that we bring down household bills permanently, not a temporary one-off fix Phil Hope Cabinet Office minister | |
| "The consequences for Gordon Brown and the government could be very serious indeed," he said. | "The consequences for Gordon Brown and the government could be very serious indeed," he said. |
| "They could further lose support from those people who look to the government for the help that they need right now." | "They could further lose support from those people who look to the government for the help that they need right now." |
| Mr Hamilton also said support from Labour's strongest backers "might fade away considerably". | Mr Hamilton also said support from Labour's strongest backers "might fade away considerably". |
| Permanent fix | Permanent fix |
| It comes as research found the "big six" energy suppliers increased their shareholder dividend payouts by 19% last year. | It comes as research found the "big six" energy suppliers increased their shareholder dividend payouts by 19% last year. |
| The suppliers paid £1.64bn in dividends in 2007, £257m more than the year before, a study commissioned by the Local Government Association said. | The suppliers paid £1.64bn in dividends in 2007, £257m more than the year before, a study commissioned by the Local Government Association said. |
| Acting LGA chairman Sir Jeremy Beecham said the report "torpedoes" the companies' argument that they needed to protect their profits to pay for future investment in infrastructure. | Acting LGA chairman Sir Jeremy Beecham said the report "torpedoes" the companies' argument that they needed to protect their profits to pay for future investment in infrastructure. |
| But the Energy Retail Association - which represents the big suppliers - said that companies were at liberty to decide their dividends and that shareholder payouts did not effect investment plans. | But the Energy Retail Association - which represents the big suppliers - said that companies were at liberty to decide their dividends and that shareholder payouts did not effect investment plans. |
| In a speech on Thursday to the Scottish Confederation of British Industry, Mr Brown said the government was working with utility firms "to address the problems caused by the impact of world oil prices on gas and electricity bills". | In a speech on Thursday to the Scottish Confederation of British Industry, Mr Brown said the government was working with utility firms "to address the problems caused by the impact of world oil prices on gas and electricity bills". |
| Mr Brown also said he was "cautiously optimistic" about the state of the economy. | Mr Brown also said he was "cautiously optimistic" about the state of the economy. |
| The Cabinet Office minister, Phil Hope, insisted help would be targeted at middle and low-income families. | The Cabinet Office minister, Phil Hope, insisted help would be targeted at middle and low-income families. |
| "What we want to try and do is try to ensure that we bring down household bills permanently, not a temporary one-off fix but permanent, and also provide some immediate help to those families that need it the most." | "What we want to try and do is try to ensure that we bring down household bills permanently, not a temporary one-off fix but permanent, and also provide some immediate help to those families that need it the most." |