HC Deb 22 November 1999 vol 339 cc46-7W
Mrs. Gilroy

To ask the Chancellor of the Exchequer what recent discussions he has had with the European Commission and other European Union member states concerning the introduction of lower rates for VAT on energy-saving materials and installation. [99104]

Mr. Timms

There have been no such discussions within the last year.

Mrs. Gilroy

To ask the Chancellor of the Exchequer what are the Government's projected spending levels over the planning period for(a) income subsidies aimed at assisting people with fuel bills and (b) investment programmes aimed at improving energy efficiency for the fuel poor. [99112]

Mr. Andrew Smith

Personal subsidies made from the Social Security social fund provide one-off single payments to vulnerable people most likely to be at risk from the cold. There are two separate programmesWinter Fuel Payments were increased to £100 for every eligible pensioner household in Budget 99. My right hon. Friend the Chancellor announced in his Pre-Budget Statement earlier this month that this payment would be made every year. The increase in the payment will mean annual expenditure of around £800 million. Almost £3 billion has been committed over the lifetime of this Parliament to provide winter fuel payments. Cold Weather Payments of £8.50 are made to vulnerable people receiving income support or income-based jobseeker's allowance when the average temperature over a seven day period is recorded as, or forecast to be at or below freezing point in their local area. The total expenditure in any particular year will depend on temperatures.

The Comprehensive Spending Review announced a significant increase in resources for the Home Energy Efficiency Scheme. Spending on this scheme will rise from £75 million in 1999–2000 to £125 million in 2000–01 and £175 million in 2001–02.

A significant number of those suffering fuel poverty live in local authority housing. The Comprehensive Spending Review allocated an additional £3.6 billion for local authority housing capital over the review period. Central government support for local authority housing is planned to almost double over the period 1998–99 to 2001–02, from £1.4 billion to £2.7 billion. Decisions about the composition of their housing capital programmes are for local authorities to determine. On the basis of data collected to monitor the impact of the Capital Receipts Initiative, around one third of capital spending on local authority housing is likely to be spent directly or indirectly on measures which will improve energy efficiency.