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Brown unveils £910m fuel measures | Brown unveils £910m fuel measures |
(about 6 hours 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. | 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 How to get help with billsIn quotes: Energy reaction href="/1/hi/business/7610873.stm">Case study: Winners and losers | |
"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 conference. | |
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, he added. | And for the first time, power generators such as Drax will contribute, as well as the big energy providers, he added. |
Energy-saving measures in the home | Energy-saving measures in the home |
The energy companies will be expected to pay for the £910m package and Mr Brown has urged them not to pass the costs on to consumers. | The energy companies will be expected to pay for the £910m package and Mr Brown has urged them not to pass the costs on to consumers. |
But David Porter, chief executive of the Association of Electricity Producers, which represents the "big six" energy firms, said they may not be able to avoid it. | But David Porter, chief executive of the Association of Electricity Producers, which represents the "big six" energy firms, said they may not be able to avoid it. |
"Someone has to pay for the green agenda, which is already costing a great deal of money," he told BBC Radio 4's The World at One. | "Someone has to pay for the green agenda, which is already costing a great deal of money," he told BBC Radio 4's The World at One. |
He said the companies would try to contain price rises "because they have to" but added: "It remains to be seen just how much of it ends up on the customers' bill in the long term." | He said the companies would try to contain price rises "because they have to" but added: "It remains to be seen just how much of it ends up on the customers' bill in the long term." |
Lucy French explains her struggle with power bills | Lucy French explains her struggle with power bills |
Business secretary John Hutton denied the government was being "soft" on the energy companies but said they had to be allowed to make a profit to guarantee future investment. | Business secretary John Hutton denied the government was being "soft" on the energy companies but said they had to be allowed to make a profit to guarantee future investment. |
He said the government did not have the power to fix energy prices but he stressed: "We don't believe there is any justification for passing this increase on." | He said the government did not have the power to fix energy prices but he stressed: "We don't believe there is any justification for passing this increase on." |
Fuel poverty | Fuel poverty |
Average household electricity bills are already expected to increase to more than £500 per year by 2010, and gas bills to around £900. | Average household electricity bills are already expected to increase to more than £500 per year by 2010, and gas bills to around £900. |
And the government's package received a lukewarm response from poverty campaigners, who have been demanding cash rebates to help people struggling with bills. | And the government's package received a lukewarm response from poverty campaigners, who have been demanding cash rebates to help people struggling with bills. |
Mervyn Kohler, special adviser to Help the Aged, said: "Half-baked measures such as these are not going to address the social emergency of fuel poverty." | Mervyn Kohler, special adviser to Help the Aged, 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 |
Chris Grayling, for the Conservatives, said the details of the package were "fine as far as it goes" but added: "Is this actually what we were promised?" | Chris Grayling, for the Conservatives, said the details of the package were "fine as far as it goes" but added: "Is this actually what we were promised?" |
"We've had lots of built-up expectations over the summer that there was going to be a major relaunch package in September that would deal with a whole range of the different challenges the British people are facing, but actually what we have had is a damp squib." | "We've had lots of built-up expectations over the summer that there was going to be a major relaunch package in September that would deal with a whole range of the different challenges the British people are facing, but actually what we have had is a damp squib." |
He said it would not transform the fortunes of the country or "people feeling the pinch". | He said it would not transform the fortunes of the country or "people feeling the pinch". |
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". |
He said it was "not even clear" that the energy companies were going to pay for all of the package, adding: "The effect on the average family is completely dwarfed by the increase in energy prices that we're all going to see." | He said it was "not even clear" that the energy companies were going to pay for all of the package, adding: "The effect on the average family is completely dwarfed by the increase in energy prices that we're all going to see." |
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. |
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 |
Return to story | Return to story |