Brown gives up on energy rebate

PM Gordon Brown has finally admitted to failing in getting £1bn funding from energy companies for poor families. This was disclosed by him while talking to a Scottish business group on September 4.

Households suffering from fuel poverty due to rising fuel bills are unlikely to get the much awaited rebate when a new economic relief package is announced by Mr. Brown next week. The government seems to have given up on the short-term “quick-fix” to solve the rising fuel bills issue.

Next week’s package is likely have a more modest approach in getting funds from energy companies to improve energy efficiency. The focus will be on improving the energy efficiency of households which is a more long lasting solution to the current crises.

Energy companies will, no doubt, be elated to have fought-off the threat of windfall tax. But many Labour MPs are furious over energy sector for not doing anything to offset the rise in fuel bills, especially for the poor households.

Mr. Brown’s statement is a complete U-turn from the government’s rhetoric in early summer that it wanted to raise a £1bn fund as a one time payment to nearly 7 million families who are receiving child benefit.

The Prime Minister seems to have shifted his public stance after being warned by his chancellor that UK could be facing worst global economic conditions since the WW II. However, he expressed his confidence in the underlying strength and long term resilience of British economy. To put it in his own words, he is “cautiously optimistic” over UK’s economic prospects.