Energy saving instead of windfall tax

Eleven million British homes will be covered in a government backed programme to improve their energy efficiency.  In the biggest ever such programme in last forty years, the government claims it is the best way to reduce energy bills instead of a windfall tax.

The energy efficiency measures, likely to be announced on September 11 by Mr Gordon Brown, will have energy companies providing £1 billion over a three year period.

Citizens over the age of 70 and people living on benefit will receive free cavity and loft insulation work done for their homes. They account for nearly four million households. More affluent households, which are yet to be classified, will be eligible for discounts for improving the energy efficiency of their homes.

Mr. Brown’s relief package is unlikely to satisfy the trade unions and most of his Labour MPs. They have been demanding for a windfall tax on energy companies to facilitate immediate help to families suffering from fuel poverty.

The funds for the relief package will be generated by raising the contribution of six big energy companies in carbon reduction programme by 30 percent. This £3 billion programme includes cavity wall and loft insulation rework and provision of low-energy light bulbs.

The hike in fuel bills have put 5.4 million homes into fuel poverty which is defined as having to pay 10% of a household’s total income on gas and electricity bills.

The biggest actual beneficiaries of government’s energy package will most likely be the home-insulation providers like double-glazing installers and loft laggers.