HC Deb 20 April 1999 vol 329 cc477-8W
Mr. Jim Cunningham

To ask the Secretary of State for the Environment, Transport and the Regions what measures the Government have taken to tackle fuel poverty in pensioner households. [80944]

Mr. Meale

We have taken a number of actions to help people suffering from fuel poverty, including pensioner households.

We have reduced the level of VAT on fuel, so that people can more easily afford to keep warm. We have also reduced the VAT on energy saving materials installed through Government grant schemes, so that they can more easily insulate their homes. We are now exploring with the European Commission the possibility of a wider reduction in VAT on energy saving materials.

We have released substantial additional funds to help improve our housing stock; in total some £5billion is being made available over the lifetime of this Parliament for investment in housing. Most of the additional resources are going to local authorities and will be spent according to the needs and priorities identified in their housing strategy. We estimate that around one third of the money is likely to lead directly or indirectly to improvements in energy efficiency.

We have also allocated an additional £150 million specifically to tackling fuel poverty through domestic energy efficiency improvements. This is in addition to the existing £75 million a year expenditure on the Home Energy Efficiency Scheme, our main programme to help insulate the homes of the neediest householders.

But we recognise that many of today's pensioners face particular difficulties, and, in his recent Budget statement the Chancellor announced an increase in the annual Winter Fuel Payment to £100 for every eligible pensioner household.

We are additionally reviewing our fuel poverty policy, to establish how our increased programme can deliver more help to the most vulnerable households. My Department has held discussions with over 60 organisations active in this field. We will shortly publish our proposals on the way ahead for consultation, reviewing them in the light of responses, with the intention being to act as soon as possible thereafter.

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