§ Mr. Meacherasked the Secretary of State for Energy if he will estimate the cost of abolishing standing charges for gas and electricity for (a) all households and (b) pensioner households only, giving for each (i) an estimate of the gross annual cost, and (ii) an estimate of the cost net of any savings in social security payments.
§ Mr. Buchanan-SmithAbolition of standing charges for all gas and electricity consumers would cost each of the402W industries concerned some £550 million a year in lost revenue. Abolition for pensioner households alone would cost both industries about £300 million a year in total.
The revenue so lost would have to be recovered through increased unit prices. Any effect on social security payments would be negligible. Moreover, the increased unit prices would penalise those with large heating needs, many of whom are elderly and among the least well-off.
§ Mr. Leadbitterasked the Secretary of State for Energy what discussions he has had with the chairman of the Central Electricity Generating Board and British Gas to consider schemes of assistance to old people who are at risk during periods of excessively cold weather.
§ Mr. Buchanan-SmithMy Department has been kept in touch with the schemes of assistance and other measures which the electricity and gas industries take to assist the elderly and others in need. These include easy payment schemes, the code of practice safeguards on disconnection, advice on insulation, and other measures in order to help ensure warmth in cold weather.