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Benn denies fuel bill cave-in | Benn denies fuel bill cave-in |
(40 minutes later) | |
The government has denied "caving in" to the energy companies over cash rebates for households struggling with soaring fuel bills. | The government has denied "caving in" to the energy companies over cash rebates for households struggling with soaring fuel bills. |
Ministers were accused by the unions of betraying poor families after they ruled out the one-off payments. | Ministers were accused by the unions of betraying poor families after they ruled out the one-off payments. |
But Environment Secretary Hilary Benn said the energy saving measures promised instead would offer a more "long-term" solution to rising prices. | But Environment Secretary Hilary Benn said the energy saving measures promised instead would offer a more "long-term" solution to rising prices. |
The government also insisted a windfall tax was still an option. | The government also insisted a windfall tax was still an option. |
Mr Benn told BBC News: ''Nobody's caved into anybody. | |
"We are continuing to discuss with the energy companies what further help - I think it is only fair and right - that they should give to assist people with their energy bills this winter. And we will be making an announcement next week. | "We are continuing to discuss with the energy companies what further help - I think it is only fair and right - that they should give to assist people with their energy bills this winter. And we will be making an announcement next week. |
"So people I hope will look at the help that's already available and then when we make an announcement next week to see what further assistance there is. | "So people I hope will look at the help that's already available and then when we make an announcement next week to see what further assistance there is. |
"The really important thing is that we do concentrate on helping people to get those bills down for the long term, permanently and that makes a lot of sense." | "The really important thing is that we do concentrate on helping people to get those bills down for the long term, permanently and that makes a lot of sense." |
'Greedy utilities' | 'Greedy utilities' |
But Tony Woodley, leader of the UK's biggest trade union, Unite, branded the decision to rule out the handouts a "downright disgrace". | But Tony Woodley, leader of the UK's biggest trade union, Unite, branded the decision to rule out the handouts a "downright disgrace". |
He told BBC Radio Four's Today programme: "This is no longer about lagging the lofts, this is about looking after people who are going to be in very very serious trouble to heat their homes." | He told BBC Radio Four's Today programme: "This is no longer about lagging the lofts, this is about looking after people who are going to be in very very serious trouble to heat their homes." |
He said the government should introduce a windfall tax on the energy giants or go "even further". | He said the government should introduce a windfall tax on the energy giants or go "even further". |
FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
"We need to legislate to cap these prices rises from these greedy utilities here so that we help the ordinary family in our country - if we don't do that then we would have betrayed our people and betrayed our party." | "We need to legislate to cap these prices rises from these greedy utilities here so that we help the ordinary family in our country - if we don't do that then we would have betrayed our people and betrayed our party." |
The government has been accused by opponents of allowing speculation about a one-off payment to run wild over the summer, after a senior official was overheard discussing the plan on a train. | The government has been accused by opponents of allowing speculation about a one-off payment to run wild over the summer, after a senior official was overheard discussing the plan on a train. |
Ministers were thought to have been pushing the energy companies to fund a £1bn cash rebate programme. | Ministers were thought to have been pushing the energy companies to fund a £1bn cash rebate programme. |
Labour backbencher Fabian Hamilton warned ministers they could lose support from people who need help paying bills. | Labour backbencher Fabian Hamilton warned ministers they could lose support from people who need help paying bills. |
"The consequences for Gordon Brown and the government could be very serious indeed," he said. | "The consequences for Gordon Brown and the government could be very serious indeed," he said. |
"They could further lose support from those people who look to the government for the help that they need right now." | "They could further lose support from those people who look to the government for the help that they need right now." |
Mr Hamilton also said support from Labour's strongest backers "might fade away considerably". | Mr Hamilton also said support from Labour's strongest backers "might fade away considerably". |
The government's decision also cast doubts on Labour MPs' campaign for a windfall tax - although Downing Street is insisting all options are still on the table in negotiations with the energy companies. | The government's decision also cast doubts on Labour MPs' campaign for a windfall tax - although Downing Street is insisting all options are still on the table in negotiations with the energy companies. |
'No gimmicks' | 'No gimmicks' |
It comes as research found the "big six" energy suppliers increased their shareholder dividend payouts by 19% last year. | It comes as research found the "big six" energy suppliers increased their shareholder dividend payouts by 19% last year. |
The suppliers paid £1.64bn in dividends in 2007, £257m more than the year before, a study commissioned by the Local Government Association said. | The suppliers paid £1.64bn in dividends in 2007, £257m more than the year before, a study commissioned by the Local Government Association said. |
Acting LGA chairman Sir Jeremy Beecham said the report "torpedoes" the companies' argument against a windfall tax, which they claim would harm long-term investment. | Acting LGA chairman Sir Jeremy Beecham said the report "torpedoes" the companies' argument against a windfall tax, which they claim would harm long-term investment. |
But the Energy Retail Association - which represents the big suppliers - said that companies were at liberty to decide their dividends and that shareholder payouts did not effect investment plans. | But the Energy Retail Association - which represents the big suppliers - said that companies were at liberty to decide their dividends and that shareholder payouts did not effect investment plans. |
In a speech on Thursday to the Scottish Confederation of British Industry, Prime Minister Gordon Brown said there would be no "short-term gimmicks or giveaways". | In a speech on Thursday to the Scottish Confederation of British Industry, Prime Minister Gordon Brown said there would be no "short-term gimmicks or giveaways". |
He said the government was working with utility firms "to address the problems caused by the impact of world oil prices on gas and electricity bills". | He said the government was working with utility firms "to address the problems caused by the impact of world oil prices on gas and electricity bills". |
Mr Brown also said he was "cautiously optimistic" about the state of the economy. | Mr Brown also said he was "cautiously optimistic" about the state of the economy. |