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Eleven million homes are to be given help to reduce bills in the biggest state-backed programme to modernise household energy use for more than 40 years.
Utility companies will fund most of an additional £1 billion for energyefficiency measures over the next three years, Gordon Brown is likely to announce tomorrow.
About four million of Britain’s poorest households, people on benefit and people over 70, will be eligible for free loft and cavity insulation. More affluent households, yet to be defined, will be able to claim discounts on household improvements designed to reduce energy consumption.
But the package will fail to satisfy Labour MPs and union leaders demanding a windfall tax to pay for immediate help for families to meet rising bills this winter.
Alistair Darling, the Chancellor, faced a hostile reception yesterday from trade unionists in Brighton, where the TUC conference was dominated by soaring energy bills and energy companies’ profits.
Tony Woodley, joint general secretary of Unite, made a pre-emptive attack on the expected energy-efficiency package, saying that the issue “can’t be addressed by ‘lagging the loft’, as some crackpot has suggested”.
He added: “Without help with fuel bills now, we’ll be lagging the coffins of the elderly if we have a cold winter.”
Mr Darling was greeted by jeers as he refused to make a commitment to a windfall tax during a question-andanswer session after his speech, and defended planned energy-efficiency measures. “If we could cut people’s fuel bills, not just for this winter [but] next winter and into the future, then that actually is a good thing, so don’t let anyone knock it.”
A plan to provide six million poorer families with fuel vouchers worth between £50 and £100 was scrapped after ministers failed to agree how it should be funded. The option of increasing the price of pollution permits sold under the European Union carbon-trading scheme was ditched after opposition from Brussels.
Nevertheless, ministers will claim that persuading energy companies to volunteer almost £800 million of extra funding vindicates their decision to pursue a negotiated settlement with Britain’s biggest utility providers.
The money will be raised by increasing by up to 30 per cent contributions that the big six power companies are already required to invest in the carbon emissions reduction target programme. The existing three-year, £3 billion scheme obliges them to pay for measures such as loft and cavity wall insulation as well as low-energy lightbulbs.
Price increases from Britain’s big power companies this year mean that 5.4 million households face fuel poverty — defined as having to spend more than 10 per cent of income on energy. The biggest beneficiaries of the energy measures are likely to be loft laggers, double-glazing installers and other home-insulation specialists.
Loft insulation is a good starting point. It prevents 15 per cent of heat loss through the roof. A 270mm layer of insulation costs £500 to install but average savings are £155 a year. DIY insulation costs about £250, with payback after two years.
Insulating cavity walls can save one third of heat loss from a home and reduce bills by 15 per cent, or £120 a year. Only homes built after about 1920, however, were constructed with two layers and a cavity.
Converting the masses
— The plan to help about 11 million households to instal home insulation almost matches in scale the programme to convert from manufactured to natural gas 40 years ago
— In a ten-year programme beginning in 1967, gas engineers visited 13 million homes and factories to convert 34 million boilers and other household appliances
— Whole areas were isolated from the gas network on set days as an army of engineers went from house to house changing the appliances, sometimes taking a week before the new natural gas supply was connected
— Ministers sanctioned the conversion after the discovery of natural gas reserves in the North Sea in 1965. Previously, gas was manufactured through the costly processing of coal. The conversion cost British Gas, then state-owned, £563 million
Source: Times archive
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Companies don't pay tax. People pay tax. We pay the utility company for the energy, plus VAT. They then pass on the VAT, and a further proportion, to the government. Why don't they just give everyone who has paid for fuel a rebate? Why still pay VAT on these life essentials? We get what we deserve
David Glen, Glasgow, Scotland
Who will foot the bill for this? Those who pay their bills without any assistance. Is McBroon really saying that 4 million households are in poverty? If so, then that's a shameful legacy of NuLabour failings.
ws, manchester,
This insulation proposal reminds me of the old wisdom that it is better to teach a man how to fish than to give him a fish. Makes perfect sense to me.
Jim McLaughlin, Calgary, Canada
This will be helpful if it is explained just how it will work and how to actually claim to have it done.
Even more helpful if it is all properly regulated -such that the poorest and most vulnerable-are protected from rip-off cowboy traders?
William Grierson, Kimpton, UK
My disposable income after mortgage, bills, council tax etc is less than someone on income support. I don't qualify for any benefits so am unlikely to get help with energy saving measures - yet financially I need this help just as much!
Lizzie, shropshire,
The time is surely approaching where it will become very obvious that renationalisation of all the energy companies and the grid is the only sensible way forward.
Scamp, Aberdeenshire,
Labour continues to do what is right, not what looks good in the papers, and I applaud that. A windfall tax and token gestures with money are easy to do. Trying to change our habits so we can rely less on foreign power/fuel is the best way to go.
Tony, Islington, London, UK
So you are already insulated, as many already are, you have low energy light bulbs, you turn the thermostat down and you still can't affort the bills... what then Mr Brown? Looks like a choice of eating of heating again.. back to square one.
Mark, Peterborough, uk
As always in our wonderfull capitalist society - business priorities come first, every time. The priorities of society?..... who cares!
John Graham, Southampton, England
I live in a maisonnette. Where am I suppose to put cavity wall insulation or loft insulation? I don't think there are spaces for either of these options. Last winter I had to sit with extra clothes on and I try to keep energy use to a minimum but the bills are still high for low income people.
Rosy Knight, Sheffield,
The option of increasing the price of pollution permits sold under the EU carbon-trading scheme was ditched after opposition from Brussels
What a cop out! The government knew full well that what they were asking for was against the rules
They are trying to blame Brussels for their incompetance
Peter GODDARD, EPSOM, England, EU
How does this differ from the existing Warmfront scheme which gives over 65 year olds & benefit claimants loft / cavity wall insulation?
Nulabour recycling old policies or energy companies pretending to do something again?
peter, worthing,
The government should foot the bill for the installation of Solar Panels on every household roof throughout the country. It's one of the ways which will help everyone cut higher electricity bills which will only get worse.
joe, Liverpool, UK
I have 250mm of insulation in the loft, I have cavity wall insulation, I use low energy lightbulbs in all rooms. My fuel bills have doubled over the last 2 years my pension hasn't. What help?
AWB, Wretton, UK
We enquired a couple of months ago about cavity wall insulation and were quoted a government subsidised £150.By the time they came and did the survey that had risen by a third to £200 because the government subsidy had been cut.This is all just more spin.
Andy, Bristol, UK
"people on benefit and people over 70" what about the ordinary tax paying worker
Mike, Sole Street, England
It's a good idea to reduce energy use and dependency. Shame this idea has taken a crisis to come to fruition. Visionary politicians are proactive. Failing politicians are reactive. Which camp does this once promising labour government fit into?
Rob, London,
This is another NuLab spin. Without being able to audit the promise it means nothing.
Mike, Sole Street, England
What use is insulation if you can't afford to turn the CH on? I lost £245 of my £330 cost of living rises on my Widow's & State Pension due to the abolition of the 10% Tax Band. I am left with £1.64 a week rise to pay for all my increased bills. I only need money. I already have the insulation.
Dragon, Windsor, England
This is a load of horse manure. A windfall profits tax would keep the utilities from gouging their customer base and all would benefit. With this no one benefits. There should be tax breaks for all that upgrade to more efficient and cleaner/greener utilization.
Paul Bahre, Granby, CT, USA
I didn't know that ALas UK PLc is Broke ? I am getting to try and offload my shares pronto! Discounts on double glazing would be far more effective..BUT..far more expensive. It seems they are relying on global warming to stop the Winter death Toll, doesnt happen in Norway, Sweden,Finland.. why?
Dromo, London, UK
Well David Marusza, do you feel any better now that all the money has been spent by this Labour government and there is nothing left to finance the future. I think you are already living with Alice.
Brian Faulkner, Bridgwater,
The option of increasing the price of pollution permits sold under the European Union carbon-trading scheme was ditched after opposition from Brussels.
This is why we should have had a referendum but Brown went butt-licking to Brussels by not having one.
Samuel, Tameside, UK
Don't hold your breath!
"Many of the least well insulated houses in Britain are occupied by older people. No pensioner should be in a position where for reasons of finance they cannot adequately insulate their homes."
Gordon Brown. Budget Speech. 2nd July 1997.
What happened?
eddie foster, mirthios, crete, greece
I live in a Council flat. Our gas heating comes from a central boiler and is paid for on a card meter. We can't switch suppliers. Two years ago we had a price increase of 40%. Profits and bills should be reduced instead of keeping prices high while subsidising insulation for some!
Robert, Manchester, UK
The best bandwagon in the world to get on is the legendary UK benefits handout scheme. Come one come all from around the world and enjoy your free perks.
Roger, Surrey,
Jon, London. Valid point. Sadly this government think we're all so stupid and continue to insult our intelligence.
Agains this show's how arrogant they are. Where were these cretins educated and do they actually bother to think !
Still we have to endure them until the general election.
Alec, West London,
Another labout gimmick. insulating loft alone would not save much for people on low income, maybe £20 p.a.
How many houses in this country has cavity walls? what are they going to do for the houses without cavity walls? knock then down and rebuild?
ming, london, uk
Blah... blah..., new homes are supposed to be insulated to very high standards but on a development of 50 homes the building inspectors check 1 or 2 houses. Once the builder is given the all clear, the remaining properties are not insulated properly! We talk the talk but never enforce!
Graham, St. Albans, uk
How will this work? Surely none of the Uk's 4 million poorest actually own their own home so this money will mainly benefit the landlords (and building firms!). And most will live in small flats where thereare no lofts to lag and cavity wall insulation may not make sense.
jon, london,
I applied for a loft insulation grant. Although I met the financial requirements - poverty - the assessor decided that, despite the howling gale from under the eaves, my loft had no external ventilaltion. No approved ventilation - no insulation.
Bernard, Edinburgh, Scotland
Yet another con from crooked labour. Rather than them giving us something, we have to pay money out. When is something going to be done about these out and out thieves. I can only say I'm glad I bloody left and while horses couldn't drag me back.
Paul, ex pat, Kissimmee, USA
In response to Damian, do you think you would have got better healthcare, state pensions, and local services under a tax-cutting, budget-cutting, Tory administration. If so, do enjoy your sojourn in Wonderland along with Alice, The Red Queen and the Mad Hatter - for they are equally realistiic.
David Marusza, Cardiff, Wales
A small step but good news! It has been estimated that £100 billion needs to be urgantly invested in UK energy. Alas UK plc is broke (arguably one of the most indebted country's on the planet). So the investment must mostly come from the private sector. Hardly the time for a "windfall tax".
Dave , Luton, UK
I fear growing old and retiring in this country as anyone that has at any time for a long period held down a good job is once again left in the cold by the government.
Labour is doing a fine job of convincing us time and time again they are no longer fit to run the country.
Damian, Isle of Wight, UK