Your location: New measures on fuel poverty
15 September 2008
The Prime Minister, Gordon Brown, has announced a new scheme requiring utility companies to contribute an additional £910 million towards energy-saving initiatives - on top of their existing commitments. The government estimates this extra funding could help up to two million households save money on their fuel bills.
Mr Brown said he did not expect energy companies to pass these costs back to consumers through future prices. However, some experts want the government to ask for guarantees that this will not happen.
The money will be used to provide loft and cavity wall insulation free of charge to the elderly and people on low-incomes. Other households will be entitled to a 50 percent discount.
Further funds are being made available to provide advice to people in up to 90,000 homes on improving their energy efficiency and reducing their bills.
The government plans to negotiate lower tariffs with energy companies for up to 600,000 homes, and to increase cold weather payments from £8.50 to £25 per week in severe conditions. It will also provide additional payments on top of Winter Fuel allowances of £50 to the over-60s, and £100 for the over-80s.
Shelter chief executive Adam Sampson said: 'The government’s fuel package goes a long way towards making homes more energy efficient and helping many vulnerable households with their future fuel bills.
'However, there are many people who do not qualify for cold weather payments, including low income couples and families with children over the age of five, while for everyone, these payments are only triggered if temperatures drop below zero for 7 consecutive days.
'The reality is that many vulnerable households will still be unable to afford to heat their homes this winter, while energy companies continue to see their profits rise.'
