UK News

Editorials praise Brown’s energy package

Unions and energy watchdogs lashed out at Gordon Brown’s aid package aimed at helping householders cope with soaring energy bills, saying it was ”too little, too late”. Even  pensioners’ charities gave a frosty response.

But newspaper editorials on the whole were supportive, describing it as “bold politics. More importantly, it was good policy”, as The Times said.

From The Guardian to the Financial Times, the editorials praised the “eminently sensible” measures which concentrated on big companies helping householders to lag their lofts and cavity walls.

It may not have delivered on the pre-hype, but the editorials blame the government for bumping up the publicity in a desperate attempt to boost its poor showing in the opinion polls.

But the government resisted the temptation to impose a windfall tax on big power companies — a target on so-called excess profits.

Instead, the utility companies have been persuaded to invest 910 million pounds in helping householders pay the cost of insulating their homes.

The editorials said the government was right to resist pressure from Labour MPs and unions to impose a tax.

Is the energy package enough?

Gordon Brown has unveiled an energy package designed to give some relief to householders struggling with ever-rising gas and electricity bills.

The six major energy suppliers will contribute to a one billion pound, three-year energy-saving initiative — but will not face a windfall tax on their profits.

Pensioners and people on low incomes or benefits will receive free loft and cavity wall insulation, while others will receive a 50 percent discount. The government says 12 million elderly households will benefit from the plan this Winter. 

Other measures include:

* A freeze on this year’s bills for 500,000 poor customers

* Partial reversal of the cut to the warm front programme giving free central heating to poorest pensioners

* Cold weather payments to go up from £8.50 a week to £25 a week for pensioners, the disabled and families with children under five – if temperatures drop below zero for seven consecutive days

Who’s to blame for the gas price rise?

As 16 million people digest the news that their gas bills are going up 35 percent, courtesy of British Gas, blame for the staggering rise is flying thick and fast.

Centrica, the British Gas parent company, says it is unable to resist the sharp rises on world oil and gas markets and that any attempt to impose windfall taxes would crimp its investment programme.

Energy watchdogs question how the company can be allowed to impose such steep rises at the same time as it makes healthy profits for its shareholders.

Opposition political parties say the government has not built sufficient gas storage facilities and has failed to negotiate an open market across the European energy sector.

What do you think? Are you going to feel the pinch this Winter?

Energy windfall tax — lifeline or legalised piracy?

A union leader has called for a windfall tax on oil companies after BP reported a big rise in profits.

Supporters say this “Robin Hood” tactic would help hard-pressed households struggling to meet eye-watering energy and petrol bills.

Critics, however, have variously described the idea as “economically illiterate”, “legalised piracy” and “just plain daft”.

Unite General Secretary Tony Woodley said: “It is high time our government moved to stop the fuel corporates picking the pockets of the poor and needy.”

That would be grossly unfair, say the energy firms. Chief executives say they already pay huge amounts of tax and they should not be penalised just because global oil prices have been rising.

The Association of Electricity Producers said a windfall tax would “send out a dreadful signal” to investors.

“Windfall taxes are not a measure that should be associated with a G8 country,” it said.