Ministers Plot Fuel Bill Help for Poor

By Jayne Davison
Published on 5 Aug 2008
AddThis Social Bookmark Button
Ministers Plot Fuel Bill Help for Poor

The government is to roll out a new home insulation scheme to cut bills - but is holding off from making more radical changes.

New proposals from the government seem set to help Britons on low incomes meet their rising energy bills.

In particular, a three-year, £2.75 billion home insulation scheme is to be rolled out nationwide. Using funding from the energy providers themselves, cavity wall and loft insulation will be installed in some of Britain's poorest households under the terms of the project. This should improve energy efficiency, and result in long-term reductions to bills.

Ministers are also currently discussing whether or not they can switch the £2 billion annual winter fuel allowance, currently granted to pensioners only, to cover low income families as well, the Guardian reports.

However, the proposals come at a time when the UK's energy firms are imposing steep price rises to their general plans. Market leader British Gas announced last week that it would be putting up electricity by nine percent and gas by 35 percent due to high wholesale energy costs; other firms are expected to mirror these increases in weeks to come.

In addition, the government appears to be shying away from more radical reforms of the energy market. Calls from consumer groups to impose windfall taxes on providers, and using the proceeds to help poorer households, are understood not to have found favour with chancellor of the exchequer Alistair Darling.

The average annual energy bill in the UK currently stands at £1,200.

Compare Gas & Electricity Suppliers via money.co.uk

Money Saving Newsletter

Already registered? Login Here

Email:

We will NOT pass your details on to any third party.

See some of the recent tips you could have benefited from.

Your privacy:

Read our privacy policy.
We are registered with the Data Protection Act (1998): No. Z6245956
details
We are regulated by the Financial Services Authority: No. 415689
details



Add Your Comment

Name: 
Comment: 
You have 1000 characters left.

Latest Gas, Electricity & Water Articles & News

Gas, Electricity & Water Articles

Npower Fined by Ofgem
Npower Fined by Ofgem

The regulator indicated that it had not seen enough improvement in the energy supplier's doorstep sales techniques.

Government 'Could Change Law to Cut Energy Bills'
Government 'Could Change Law to Cut Energy Bills'

Harriet Harman suggested that new legislation could be put forward at Prime Minister's Questions yesterday.

Opec Moots Big Oil Production Cut
Opec Moots Big Oil Production Cut

The reduction could result in higher energy bills for consumers, if wholesale prices rise sharply as a result.

Ofgem Calls for More Energy Bill Cuts
Ofgem Calls for More Energy Bill Cuts

Gas and electricity firms could even face a Competition Commission investigation if the reductions are not made, the regulator has indicated.

Government Tells Energy Companies to Cut Bills
Government Tells Energy Companies to Cut Bills

The government has put pressure on energy companies to make sure consumers benefit from lowering wholesale prices.

British Eco Energy Calls for 'Green Law' Changes
British Eco Energy Calls for 'Green Law' Changes

Campaigners called for a change in the law today, in order to help homeowners switch to low-carbon heating alternatives to gas and electricity.

E.ON Reduces Bills Following Probe
E.ON Reduces Bills Following Probe

A report on industry competitiveness from Ofgem has led to the price changes, which will see costs cut for customers by £14 a year.

Age Concern Issues Warning Over Heating Costs
Age Concern Issues Warning Over Heating Costs

The Met Office is predicting a colder winter this year - but many pensioners are worried about their energy bills in the downturn.

Popular Related Articles

The UK's First £9 a Month Mobile Contract
The UK's First £9 a Month Mobile ContractThree have launched the first £9 a month mobile contract ever available in the UK.

Latest Related Headlines

Parties Connect on Universal Broadband
Parties Connect on Universal BroadbandBoth of the UK's main political parties have indicated that they want to provide universal super-fast broadband to the entire country.
RSS FeedGas, Electricity & Water News
RSS FeedLatest Headlines
Free Services Money Saving Newsletter
The best money saving deals, freebies, rate alerts and advice emailed to you every week.
Enter your email:
Find Companies Related Guides RSS Feeds - Subscribe!
The "advice" given in our money saving tips is for information purposes only and should not be construed as "financial advice".
money.co.uk recommends you seek professional advice before proceeding with any investment or financial decision.
Site Map | Privacy Policy | About Us | Contact Us
money.co.uk is a trading name of Dot Zinc Limited, who are authorised and regulated by the Financial Services Authority. FSA Registration Number: 415689.
Copyright © www.money.co.uk / Dot Zinc Limited 2002-2009. All rights reserved.
Home | Login | Sign Up