Gordon Brown’s offer to provide free attic-lagging and the like for those on low incomes appears to be ill-fated from the outset. Shortly after No 10 sent out press releases boasting of the biggest state-backed programme to modernise energy use since the 1960s, the price of oil dipped below $100 a barrel for the first time since April — from a peak of $147 in July.

While the timing is embarrassing, more broadly the programme falls well short of addressing the problems that British households face in the next few years. House prices are falling, banks are reining in offers for loans and inflation is rising. As Britain hunkers down for winter, it is also preparing for a very cold economic slowdown.

Even though the price of a barrel of oil slipped to $99.50 — as Opec failed to cut output and production in the Gulf of Mexico survived the hurricane season — only the foolish would take heart from such a fall. Households cannot win whichever way the oil price goes. If it rises, the cost of living increases, but if it falls it would most likely signify a sharp slowdown in demand from the powerhouses of China and India, upon both of which the British economy relies heavily.

Mr Brown cannot approach the crisis of soaring energy costs in the same way as he did when Labour first came to power. Then, the Chancellor gave £100 winter fuel allowances to pensioners to keep them warm during winter. With the recession of America sweeping towards Britain, it will take a good deal more than a cheque and free lagging to protect households from economic frostbite.

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