Brown Unveils £1bn Energy Package

Gordon Brown has unveiled a £1bn package to help struggling households to deal with rising energy costs.

Low income and pensioner households will get free loft and cavity insulation, anybody not covered by the low income criteria will be entitled to half price energy-saving measures.

The Prime Minister said: "There would be immediate help for those who need it most.

"Our objective is nothing less than a sea-change in energy efficiency and consumption, at the same time as helping the most vulnerable households this winter."

Mr Brown said the Government will be legislating to ensure that energy suppliers and electricity producers would provide £910m in funding for the measures.

Over 600,000 low income households will also have lower social tariffs by the end of the year.

The measures should see six million homes insulated and the provision for helping five million homes between now and 2011.

In the event of severe weather this winter pensioners and families with children under five will get an extra £16.50 a week.

Ministers are eager for households to take up direct debits to pay their energy bills to make savings of between £100 and £150 a year.

Trade unions have renewed their calls a windfall tax.

Derek Simpson, joint leader of Britain's biggest union, Unite, said: "It is ridiculous to believe these measures are a partial or complete solution."

Help the Aged have said the package would do little to help older people struggling to cope with this winter's bills.

Mervyn Kohler, special adviser to the charity, said: "Half-baked measures such as these are not going to address the social emergency of fuel poverty."

In response to the package Business Secretary, John Hutton, said:"In a world where prices are likely to remain high, it's time for all of us to get more energy efficient. Thanks to Government and energy companies working closely together, an extra £1 billion will be available to spend on measures that will bring a lifetime of savings."

(GK/CD)