§ 24. Mr. SutcliffeTo ask the Chancellor of the Exchequer what measures he has introduced to reduce pensioners' fuel bills. [41698]
§ Dawn PrimaroloIn his July 1997 Budget, the Chancellor announced the reduction in VAT on fuel and power for domestic users from 8 per cent. to 5 per cent. This cut took effect from 1 September 1997. VAT on the costs of installing energy saving insulation materials where those costs are funded by certain grant schemes reduced from 17½ per cent. to 5 per cent. This will allow more pensioner and low-income households to improve the insulation of their homes and helps to reduce their fuel bills. This tax cut will take effect from 1 July. The Chancellor also announced that the Gas Levy would be cut to zero with effect from April 1998. The levy distorted the energy market and meant higher prices for consumers.
In his November 1997 Pre-Budget report, the Chancellor announced the introduction of a new Winter Fuel Payment giving additional help for all pensioners with their fuel bills. Last winter, every pensioner household received £20, with 494W the poorest pensioner households receiving £50, to help with their fuel bills. Nearly ten million payments have been made to pensioners in seven million households.