Insulation deal with energy firms 'won't be enough'

10/09/2008

The government is to strike a deal with energy firms that would increase the amount of money they spend on improving insulation in homes, the BBC reports.

Under the terms of the proposed agreement, the gas and electricity providers would also pay increased amounts into the government's carbon emissions reduction scheme.

However, the insulation deal - which ministers claim will cut energy bills in the long term - is likely to be criticised by charities and trade unions.

These groups would prefer the government to impose a windfall tax on the firms' profits, which would then be used to cut the bills of low-income customers.

Pressure for the move has grown in the past year, during which providers have posted £1.6 billion in profits, and put bills up by 42 per cent.

Tony Woodley, joint general secretary of Unite, criticised the proposed insulation deal.

"[The situation] can't be addressed by lagging the loft," he commented.

"Without help with fuel bills now, we'll be lagging the coffins of the elderly if we have a cold winter."

Tags; Housing Debt and Bills, Young Family Finances, Retirement Money Problems,

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