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Help for poor on fuel bills and insulation is attacked as 'useless'
Joe Murphy, Political Editor11 Sep 2008
Gordon Brown faced a Commons revolt on a windfall tax today as his £910 million energy aid package was criticised for not going far enough.
Rebel Labour MPs said they would try to force a vote when the package goes before Parliament, aiming to punish energy firms netting record profits during the global price crisis.
The Prime Minister hailed his measures as a "better alternative" to a windfall tax on the sector.
He said it amounted to nearly £1 billion of new money being pumped in from private firms, including those who own power generators, to fund long-term help like free insulation.
All homes will qualify for half-price lagging and cavity wall insulation - with the poor and pensioners getting it free. There will be a price freeze for half a million poor families on social tariffs this winter and an extra £16.50 a week for the elderly and young if temperatures fall below zero for seven consecutive days or more.
But unions attacked the measures as "ridiculous" and inadequate. Campaigners Help the Aged said: " Halfbaked measures such as these are not going to address the social emergency of fuel poverty."
Labour MP Lindsay Hoyle said he and other backers of a windfall tax would meet over coming days to discuss tactics and may put down an amendment to promote the levy on energy firms.
"These measures should go alongside a windfall tax on the immoral earnings from excessive profits by the fat-cat energy companies.
"I thought the idea was that we needed to do something quickly. These measures are more long-term rather than suitable to help people this winter," he said.
Mr Brown, who launched the package at his monthly press conference, had hoped to unveil £100 vouchers for the poor, paid for by the firms. But the industry refused to pay.
He defended the package, saying: "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."
Families could save up to £400 a year from the help offered and by taking steps towards home efficiency, he said.
For the first time, power generators such as Drax will contribute to energy programmes. But Derek Simpson, joint leader of Unite, said: "It is ridiculous to believe these measures are a partial or complete solution."
For the Liberal Democrats, Vince Cable said the energy firms had "got off lightly".
Tory spokesman Alan Duncan said: "People have been waiting for months for this - but now it's become clear that Labour has got nothing to offer."
Environment Secretary Hilary Benn admitted he could not predict how many homes would get extra insulation this winter.
The Government said it wanted every home lagged fully by 2010. The £910 million is spread over three years.
Some £560 million will be raised from energy companies for loft and cavity wall insulation, helping up to two million households. The other £350 million would fund house calls offering help in deprived areas.
It comes on top of industry pledges to spend £2.8 billion over three years helping customers cut consumption, and the Budget pledge of a £50 winter fuel allowance boost for the elderly.
Reader views (2)
when will brown wake up to the fact, that he has no credability whith the public he and his labour mob,cannot govern that great country.for gods sake go.
- Don Burchell, durban south africa, 11/09/2008 15:34
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"Families could save up to £400 a year from the help offered and by taking steps towards home efficiency, he said." - What planet does this man live on?
- Tony Miller, London, England, 11/09/2008 14:57
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