Saturday 6 September 2008

Heat on Brown over cost of energy

The prime minister has been accused of letting Scottish households "plunge into fuel poverty" by not acting to address rising energy prices.

It comes after Gordon Brown told business leaders in Glasgow he had decided a one-off cash rebate would only be a gimmick.

First Minister Alex Salmond said the windfall gains of energy giants should be used to help people with bills.

Mr Brown has indicated the focus should be on improving energy efficiency.

Mr Salmond said this showed the prime minister was out of touch with real people.

He said: "Gordon Brown may think that helping people with their fuel bills this winter is a 'short-term gimmick'.

"The reality is that it is a pressing need for households which have been plunged into fuel poverty by soaring energy prices."

Energy efficiency

A UK Government statement on energy prices is expected next week, but it is thought a windfall tax will not be among the measures announced.

Ministers were hoping to unveil a package of help with fuel bills, including payments of between £50 and £100 per head.

But after energy firms refused to help provide the cash, the focus is now being put on improving energy efficiency, rather than securing immediate savings.

Accusations of "caving in" to the energy companies over cash rebates have been denied.

Fuel poverty is defined as when more than 10% of household income is spent on fuel bills.
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