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Brown unveils £910m fuel measures | Brown unveils £910m fuel measures |
(31 minutes later) | |
Gordon Brown has agreed a £910m package of measures with the big energy companies aimed at helping people with soaring gas and electricity bills. | Gordon Brown has agreed a £910m package of measures with the big energy companies aimed at helping people with soaring gas and electricity bills. |
It includes half price insulation for all households and a freeze on this year's bills for the poorest families. | It includes half price insulation for all households and a freeze on this year's bills for the poorest families. |
Pensioners and unemployed people with young children will get an extra £16.50 a week if there is a severe winter. | |
But the measures were attacked as "ridiculous" by the unions, who want a windfall tax on the energy giants. | But the measures were attacked as "ridiculous" by the unions, who want a windfall tax on the energy giants. |
| The package includes:
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The government says its aim is to insulate every home in Britain by 2020 - and energy companies, councils and voluntary organisations will be making door-to-door visits in deprived areas to promote the scheme. | The government says its aim is to insulate every home in Britain by 2020 - and energy companies, councils and voluntary organisations will be making door-to-door visits in deprived areas to promote the scheme. |
Half-baked measures such as these are not going to address the social emergency of fuel poverty Help the Aged | Half-baked measures such as these are not going to address the social emergency of fuel poverty Help the Aged |
"This is the right approach, giving priority to permanent - not just one-off - changes, with the offer of lasting benefits and fairness for all families, cutting bills permanently every year," said Mr Brown at his monthly Downing Street press office. | "This is the right approach, giving priority to permanent - not just one-off - changes, with the offer of lasting benefits and fairness for all families, cutting bills permanently every year," said Mr Brown at his monthly Downing Street press office. |
The prime minister said this was a "better way" than bringing in the one-off cash rebates for consumers paid for by a windfall tax on energy firms demanded by trade unions. | The prime minister said this was a "better way" than bringing in the one-off cash rebates for consumers paid for by a windfall tax on energy firms demanded by trade unions. |
And for the first time, power generators such as Drax will contribute, as well as the big energy providers. | And for the first time, power generators such as Drax will contribute, as well as the big energy providers. |
Energy-saving measures in the home | Energy-saving measures in the home |
Legislation will be passed requiring the energy companies to pay for the package, but Mr Brown said: "I do not expect the £910m that we raise to be passed on to the consumer by the energy companies. I think that's a very important point to make." | Legislation will be passed requiring the energy companies to pay for the package, but Mr Brown said: "I do not expect the £910m that we raise to be passed on to the consumer by the energy companies. I think that's a very important point to make." |
Mr Brown also hit out at a joke made by Mark Owen-Lloyd, head of emissions trading at energy company E.On, after he said continued high gas and energy prices would mean "more money for us". | Mr Brown also hit out at a joke made by Mark Owen-Lloyd, head of emissions trading at energy company E.On, after he said continued high gas and energy prices would mean "more money for us". |
The prime minister said: "I understand that there has been an apology from the company. | The prime minister said: "I understand that there has been an apology from the company. |
"These were totally inappropriate remarks, I think everybody is against people making remarks like that, and I'm pleased that there has now been a full and comprehensive apology." | "These were totally inappropriate remarks, I think everybody is against people making remarks like that, and I'm pleased that there has now been a full and comprehensive apology." |
Lucy French explains her struggle with power bills | Lucy French explains her struggle with power bills |
Last week ministers denied "caving in" to the energy firms, by not insisting on cash rebates for people to help with bills immediately. | Last week ministers denied "caving in" to the energy 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. |
Fuel poverty | Fuel poverty |
But Help the Aged said the package would do little to help older people struggling to cope with this winter's bills. | But Help the Aged said the package would do little to help older people struggling to cope with this winter's bills. |
Mervyn Kohler, special adviser to the charity, said: "Half-baked measures such as these are not going to address the social emergency of fuel poverty." | Mervyn Kohler, special adviser to the charity, said: "Half-baked measures such as these are not going to address the social emergency of fuel poverty." |
And the trade unions repeated their demand for immediate relief for consumers facing soaring bills and a windfall tax. | And the trade unions repeated their demand for immediate relief for consumers facing soaring bills and a windfall tax. |
Derek Simpson, joint leader of Britain's biggest union, Unite, said: "It is ridiculous to believe these measures are a partial or complete solution." | Derek Simpson, joint leader of Britain's biggest union, Unite, said: "It is ridiculous to believe these measures are a partial or complete solution." |
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. |
A NHF spokesman said the government's measures "looked good" on the surface but "ultimately many fat cat energy bosses will be able to sleep easy tonight". | A NHF spokesman said the government's measures "looked good" on the surface but "ultimately many fat cat energy bosses will be able to sleep easy tonight". |
HAVE YOUR SAYInsulation and other energy saving measures are the way forward Paul, KilburnSend us your comments | HAVE YOUR SAYInsulation and other energy saving measures are the way forward Paul, KilburnSend us your comments |
For the Liberal Democrats, Vince Cable said the measures were "eminently sensible, but very, very modest". | For the Liberal Democrats, Vince Cable said the measures were "eminently sensible, but very, very modest". |
"These are tiny initiatives. The prime minister has laboured mightily and produced a series of very small mice." | "These are tiny initiatives. The prime minister has laboured mightily and produced a series of very small mice." |
The Lib Dems did not back a windfall tax but did want a cap on price rises and a Competition Commission inquiry into the energy industry, he added. | The Lib Dems did not back a windfall tax but did want a cap on price rises and a Competition Commission inquiry into the energy industry, he added. |
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." | 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." |
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 create 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 create 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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