§ Mrs. Renée Shortasked the Secretary of State for Energy if he will seek to abolish standing charges in order to help pensioners.
§ Mr. Buchanan-SmithGas and electricity tariffs including standing charges are a matter for the industries concerned. At the Government's suggestion, British Gas and most area electricity boards have agreed to limit standing charges to no more than 50 per cent. of a consumer's total bill. About half the beneficiaries of this measure are pensioners.
Abolition of standing charges even for pensioner households alone would cost the two industries together some £300 million a year in lost revenue. This would have to be recovered from other consumers, many of whom would also be less well off consumers. This would not be a cost-effective means of directing help to those most in need. Instead the Government are spending well over £350 million this year in direct assistance to less well off consumers and some 2.25 million people are benefiting, of whom 1.5 million are pensioners.