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Brown to unveil energy measures | Brown to unveil energy measures |
(about 1 hour later) | |
A package of measures designed to help people struggling with rising gas and electricity bills are due to be unveiled by the government later. | A package of measures designed to help people struggling with rising gas and electricity bills are due to be unveiled by the government later. |
More help with energy efficiency, like loft insulation, new boilers and double glazing, is likely to be offered. | More help with energy efficiency, like loft insulation, new boilers and double glazing, is likely to be offered. |
But ministers have ruled out one-off cash rebates and a windfall tax on energy firms demanded by trade unions is thought unlikely. | But ministers have ruled out one-off cash rebates and a windfall tax on energy firms demanded by trade unions is thought unlikely. |
The Tories say it is clear the government has "nothing to offer". | The Tories say it is clear the government has "nothing to offer". |
The package follows last week's announcement aimed at boosting the housing market, which included a 12-month stamp duty holiday for properties worth £175,000 or less. | The package follows last week's announcement aimed at boosting the housing market, which included a 12-month stamp duty holiday for properties worth £175,000 or less. |
Energy-saving measures in the home | Energy-saving measures in the home |
Following weeks of negotiations with energy companies it is thought the government has agreed a £1bn deal - where it will increase contributions to energy saving schemes by up to 30% to help poorer households. | Following weeks of negotiations with energy companies it is thought the government has agreed a £1bn deal - where it will increase contributions to energy saving schemes by up to 30% to help poorer households. |
Sources say, for the first time, power generators such as Drax will contribute, as well as the big energy providers. | Sources say, for the first time, power generators such as Drax will contribute, as well as the big energy providers. |
But last week ministers denied "caving in" to the firms, by not insisting on cash rebates for people to help with bills immediately. | But last week ministers denied "caving in" to the firms, by not insisting on cash rebates for people to help with bills immediately. |
The government argues that more long-term measures are needed - average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900. | The government argues that more long-term measures are needed - average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900. |
We are doing everything that we can Gordon Brown | We are doing everything that we can Gordon Brown |
Chancellor Alistair Darling has already said he has "serious reservations" about a windfall tax and Prime Minister Gordon Brown did not mention one when he was asked about the package on Wednesday. | Chancellor Alistair Darling has already said he has "serious reservations" about a windfall tax and Prime Minister Gordon Brown did not mention one when he was asked about the package on Wednesday. |
He did mention the winter fuel allowance as well as better insulation. | |
BBC political correspondent Carole Walker said government sources believe the deal with the energy companies is worth more than what would have been raised through a windfall tax. | BBC political correspondent Carole Walker said government sources believe the deal with the energy companies is worth more than what would have been raised through a windfall tax. |
Thursday's announcement follows a National Housing Federation report suggesting that almost a quarter of people will be in fuel poverty by next year - defined as spending more than 10% of their income on energy bills. | Thursday's announcement follows a National Housing Federation report suggesting that almost a quarter of people will be in fuel poverty by next year - defined as spending more than 10% of their income on energy bills. |
Many campaigners say improving energy efficiency does not go far enough and want pricing reforms, or payments to the poorest families. | Many campaigners say improving energy efficiency does not go far enough and want pricing reforms, or payments to the poorest families. |
Child Poverty Action Group chief executive Kate Green said energy efficiency should already be a national priority but added: "The government has just a few weeks to rescue millions from fuel poverty this winter." | |
The Conservatives said Mr Brown had actually cut the budget for energy efficiency grants for people on benefit last year, and was simply restoring the budget. | The Conservatives said Mr Brown had actually cut the budget for energy efficiency grants for people on benefit last year, and was simply restoring the budget. |
Shadow business secretary Alan Duncan said: "People who will really struggle to heat their homes this winter have been waiting for months for this announcement - but now it's become clear that Labour has got nothing to offer." | |
For the Liberal Democrats, Vince Cable told BBC Radio 4's The World Tonight that while the measures leaked so far appeared "very sensible" the money involved was "a tiny fraction" of the amount energy companies had raised as a result of being given free carbon trading permits by the government. | For the Liberal Democrats, Vince Cable told BBC Radio 4's The World Tonight that while the measures leaked so far appeared "very sensible" the money involved was "a tiny fraction" of the amount energy companies had raised as a result of being given free carbon trading permits by the government. |
ENERGY-SAVING MEASURES 1. Loft insulation: Prevents 15% of heat lost through the roof. 2. Tank and pipe insulation: A hot water cylinder jacket of at least 75mm cuts heat loss by 75%. 3. Cavity/solid wall insulation: About 30% of heat lost through walls. Homes built after 1920 - with cavity walls - can be injected with insulating material. Older houses with solid walls can be fitted with an extra layer.4. Double-glazing: Can cut heat loss by about 50%. The two panes of glass trap air between them which acts as an insulating barrier. 5. Draught-proofing: About 20% of heat lost through poor ventilation and draughts. Measures include fitting brushes to letterboxes. Source: Energy Saving Trust | ENERGY-SAVING MEASURES 1. Loft insulation: Prevents 15% of heat lost through the roof. 2. Tank and pipe insulation: A hot water cylinder jacket of at least 75mm cuts heat loss by 75%. 3. Cavity/solid wall insulation: About 30% of heat lost through walls. Homes built after 1920 - with cavity walls - can be injected with insulating material. Older houses with solid walls can be fitted with an extra layer.4. Double-glazing: Can cut heat loss by about 50%. The two panes of glass trap air between them which acts as an insulating barrier. 5. Draught-proofing: About 20% of heat lost through poor ventilation and draughts. Measures include fitting brushes to letterboxes. Source: Energy Saving Trust |
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