§ Mr. McCrindleasked the Secretary of State for Energy if he will have further discussions with the industries concerned regarding the problem of standing charges faced by pensioners; and if he will make a statement.
§ 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 agreed to limit standing 83W charges to no more than 50 per cent. of a consumer's total bill. Many of 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 including the less well-off. This would not be an effective means of directing help to those most in need.
However, since the Conservative Government came to power the basic supplementary benefit rates have more than kept pace with increases in the retail price index, and in addition the Government are spending some £380 million this financial year on extra heating for those receiving supplementary benefit who need additional warmth. Some 2.5 million people, of whom 1.5 million are pensioners, are benefiting from these supplementary benefit heating additions.