Brown’s £150 rebate on energy bills for families ‘doesn’t go far enough’

Published on Sunday 10 August 2008 22:29

PLANS to give millions of families a £150 rebate on their energy bills would do little to counter massive price rises experienced since the start of the year, campaigners warned yesterday.

Gordon Brown, the Prime Minister, is understood to be considering emergency help for the 7.5 million families who receive child benefit as part of an attempt to regain the political agenda this autumn.

Details of the secret 1 billion proposal emerged yesterday after a top civil servant was overheard on a train discussing them with a colleague.

But the one-off payment, which ties in with the Prime Minister’s motivation to target help at children, would fail to go even halfway to wiping out the price hikes imposed by the “big six” energy firms.

According to price comparison website moneysupermarket.com, average domestic gas bills from British Gas have soared 56 per cent since January, from 568 to 885. The total paid by customers the firm also supplies with electricity are 1,328 – more than 400 extra.

Similar charges are also experienced by EdF customers, which last month increased its gas bills by 22 per cent and electricity by 17 per cent. Its combined bills are around 200 higher than at the start of the year.

Ann Robinson, director of consumer policy at price comparison website uSwitch.com, said a payment of 150 would be little more than a “sticking plaster”.

She told The Scotsman: “Obviously for those families who would benefit, it’s very welcome news, but it doesn’t go far enough. We are looking at energy bills on average going up 400 since the beginning of the year.

“I think the government has this idea it will do a bit here and a bit there without really addressing the problem. What they really need to do is think quite fundamentally about some of these issues and how best to make sure people can afford the energy they need.

“Energy, like food and shelter, is a basic necessity. As a civilised society we must make sure that everybody can afford the basic necessities.”

Government officials yesterday stressed that the one-off payment had not been given final approval, but said that extra help with fuel bills was being considered. The government is already committed to increasing the winter fuel allowance for pensioners over 60 by 50, taking them to 250, and by 100 for those over 80, giving them 400. This move, announced in the March Budget, will benefit nine million households.

The plan to offer help to families receiving child benefit emerged after Sir Brian Bender, the most senior official at the Department for Business, Enterprise and Regulatory Reform (Berr), said ministers were keen to give cash to “ordinary people”.

When he was asked by a fellow first-class passenger on a train journey from Leeds to London last month whether the money would be targeted at disadvantaged groups, Sir Brian reportedly replied: “No, a fuel rebate for everybody on child benefit.”

This was interpreted as a sign that Mr Brown was keen to win favour with “Middle England” families, in whose hands his success at the next General Election will be mainly dependent.

Child benefit is a universal benefit paid regardless of parental income and works out at 16.50 a week for the eldest child and 11.05 for subsequent children. It is currently paid for about 13 million children aged up to 16, or 19 if they are in full-time education.

Michael Fallon, Conservative chairman of the Commons Treasury scrutiny committee, said: “This is blatant indiscriminate electioneering in one of the final winters before the General Election.”

Mr Brown has come under sustained pressure to act to curtail energy and fuel prices, but his efforts to date have been limited to begging major oil producing nations to increase oil production in an effort to prompt a fall in forecourt petrol prices.

A Berr spokesman said: “The protection of those least able to heat their homes is a priority for the government. We will continue to work with energy companies, amongst others, on measures to help the most vulnerable to reduce the amount of energy they use and to lower their bills.

“With high fuel prices, the coming winter will be difficult for many families and we are committed to supporting them. The government is continuing to consider the best ways of meeting this challenge.”

More voters would back Labour if PM quit, poll reveals

VOTERS would be more likely to back Labour if Gordon Brown stood down, a poll revealed yesterday.

The survey showed 46 per cent thought Mr Brown should stand down as Prime Minister, while 36 per cent say he should stay.

Asked who they would vote for if a general election was tomorrow, 46 per cent said the Tories, 26 per cent said Labour and 17 per cent the Liberal Democrats.

With Labour 20 points behind the Tories, 21 per cent said they would be more likely to vote Labour if Mr Brown was not the leader, while just 7 per cent say it would make them less likely to back Labour.

The poll found 13 per cent prefer Mr Brown to Mr Blair and only 5 per cent trust Mr Brown to manage the economy, while 32 per cent do not trust him.

Asked which Labour MP they thought would make the best prime minister, 12 per cent said David Miliband, the Foreign Secretary, who is widely suspected of preparing the ground for a possible leadership challenge.

One in ten thought Mr Brown would do the best job, 7 per cent said Jack Straw, the Justice Secretary, and 3 per cent backed Alan Johnson, the Health Secretary.

Ben Glanville of pollsters YouGov said: “These results are bad news for Gordon Brown.”