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Fuel bills deal being finalised Fuel bills deal being finalised
(about 4 hours later)
Ministers are putting the finishing touches to a fuel poverty package - but without the windfall tax on energy companies demanded by the unions.Ministers are putting the finishing touches to a fuel poverty package - but without the windfall tax on energy companies demanded by the unions.
More than 10 million households are expected to be offered help to cut bills through loft insulation, double glazing and other measures.More than 10 million households are expected to be offered help to cut bills through loft insulation, double glazing and other measures.
Customers will also get help in finding the best gas and electricity tariffs.Customers will also get help in finding the best gas and electricity tariffs.
The government says such measures are a more long-term solution to cutting bills than one-off payments. Earlier Gordon Brown said the government would do "everything that we can" to help people with energy bills.
It is understood that the energy companies will also make increased contributions to the government's carbon emissions reduction targets scheme. The government is due to unveil a package of measures to help people with rising electricity and gas prices on Thursday. It says they will be a more long-term solution to cutting bills than one-off payments.
Energy-saving measures in the homeEnergy-saving measures in the home
The £1bn package is expected to be unveiled on Thursday after weeks of negotiations with the energy companies. Asked about the package at a press conference with Italian PM Silvio Berlusconi, Mr Brown said: "We're doing everything that we can.
"For example with the winter allowance for pensioners, to help people with their fuel bills during the winter months, as well as help people make long term savings through cutting the costs of energy by insulating, draft-proofing, getting better heating in their homes and taking all the conservation measures that are necessary".
'Crackpots''Crackpots'
It is understood that the energy companies will also make increased contributions to the government's carbon emissions reduction targets scheme.
The £1bn package is due to be unveiled after weeks of negotiations with the energy companies.
But it is likely to prompt fresh calls from the unions and many Labour MPs for a windfall tax on the energy companies' profits.But it is likely to prompt fresh calls from the unions and many Labour MPs for a windfall tax on the energy companies' profits.
Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter Tony Woodley Joint General Secretary, UniteWithout help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter Tony Woodley Joint General Secretary, Unite
Tony Woodley, joint leader of Britain's biggest trade union, Unite, said people needed immediate relief from soaring prices.Tony Woodley, joint leader of Britain's biggest trade union, Unite, said people needed immediate relief from soaring prices.
"This can't be addressed by lagging the loft as some crackpots around the prime minister have suggested," he told the TUC conference in Brighton on Tuesday."This can't be addressed by lagging the loft as some crackpots around the prime minister have suggested," he told the TUC conference in Brighton on Tuesday.
"Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter.""Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter."
Mr Woodley claims the oil companies will make an extra £15bn out of the British public over the over the next four years.Mr Woodley claims the oil companies will make an extra £15bn out of the British public over the over the next four years.
HAVE YOUR SAY The fuel companies will sign up but they will drag their heals in implementing any change Fred Harris, Irchester Send us your commentsHAVE YOUR SAY The fuel companies will sign up but they will drag their heals in implementing any change Fred Harris, Irchester Send us your comments
But Chancellor Alistair Darling cautioned against a windfall tax, saying the government's ambitions to invest in green energy and alternatives to oil and gas depended on "continuous investment over many years" from the power companies.But Chancellor Alistair Darling cautioned against a windfall tax, saying the government's ambitions to invest in green energy and alternatives to oil and gas depended on "continuous investment over many years" from the power companies.
He told TUC delegates: "We have to strike a balance between long-term investment and helping people, particularly people really feeling the squeeze as a result of gas and electricity prices."He told TUC delegates: "We have to strike a balance between long-term investment and helping people, particularly people really feeling the squeeze as a result of gas and electricity prices."
Warmer receptionWarmer reception
The TUC has backed a motion criticising energy companies and urging the government to impose a windfall tax.The TUC has backed a motion criticising energy companies and urging the government to impose a windfall tax.
It criticised the "big six" energy firms for making £1.6bn last year and raising prices by 42% this year.It criticised the "big six" energy firms for making £1.6bn last year and raising prices by 42% this year.
A report published on Monday suggested almost a quarter of the population will be pushed into fuel poverty by the end of next year.A report published on Monday suggested almost a quarter of the population will be pushed into fuel poverty by the end of next year.
The National Housing Federation said by the end of 2009, 5.7 million UK households will be spending at least 10% of their income on energy bills.The National Housing Federation said by the end of 2009, 5.7 million UK households will be spending at least 10% of their income on energy bills.
Average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900.Average household electricity bills are expected to increase to more than £500 per year by 2010, and gas bills to around £900.
ENERGY-SAVING MEASURES 1. Loft insulation: Prevents 15% of heat lost through the roof. 2. Tank and pipe insulation: A hot water cyclinder jacket of at least 75mm cuts heat loss by 75%. 3. Cavity/solid wall insulation: About 30% of heat lost through walls. Homes built after 1920 - with cavity walls - can be injected with insulating material. Older houses with solid walls can be fitted with an extra layer.4. Double-glazing: Can cut heat loss by about 50%. The two panes of glass trap air between them which acts as an insulating barrier. 5. Draught-proofing: About 20% of heat lost through poor ventilation and draughts. Measures include fitting brushes to letterboxes. Source: Energy Saving Trust ENERGY-SAVING MEASURES 1. Loft insulation: Prevents 15% of heat lost through the roof. 2. Tank and pipe insulation: A hot water cylinder jacket of at least 75mm cuts heat loss by 75%. 3. Cavity/solid wall insulation: About 30% of heat lost through walls. Homes built after 1920 - with cavity walls - can be injected with insulating material. Older houses with solid walls can be fitted with an extra layer.4. Double-glazing: Can cut heat loss by about 50%. The two panes of glass trap air between them which acts as an insulating barrier. 5. Draught-proofing: About 20% of heat lost through poor ventilation and draughts. Measures include fitting brushes to letterboxes. Source: Energy Saving Trust
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