Brown under fire for ruling out fuel payout to the poor
Opponents and pensioner groups say he ‘raised expectations’
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Prime Minister Gordon Brown was under fire from pensioner groups and politicians last night after ruling out one-off payments to help Scotland’s most needy families cope with soaring energy bills.
He was accused of “raising expectations” as families struggle to make ends meet after a series of big rises in the cost of heating and lighting their homes.
But UK Government ministers denied he had backed down in the face of pressure from the big energy companies.
The prime minister faced an angry backlash after he used a keynote speech to the Confederation of British Industry in Glasgow to make clear there would be no “short-term gimmicks or giveaways” when his government reveals its energy plan next week.
Trade unions and Labour MPs responded with fresh demands for a windfall tax on the profits of the energy companies.
Environment Secretary Hilary Benn rejected claims that the government had buckled in the face of pressure from the companies.
“Nobody has caved in to anybody,” he insisted.
He said discussions with the companies were continuing and the government still expected them to make a “contribution”.
He refused to be drawn on whether a windfall tax had been ruled out. “I think it is only fair that the energy companies should make a further contribution to assist customers this winter,” he said.
Help the Aged spokesman Lindsay Scott said: “The decision not to provide payments to vulnerable people is ill-advised because fuel poverty is at crisis point.
“We agree with Gordon Brown that we need long-term solutions, but we also need short-term solutions because the situation is only going to get worse.”
The SNP’s Westminster energy spokesman, Mike Weir, said: “Yet again Gordon Brown has raised expectations over the summer just to crush them.
“Energy companies are making huge profits. Some of that should be ploughed back into helping consumers as a matter of urgency.”
The Scottish Liberal Democrats’ leader, Shetland MSP Tavish Scott, said the UK Government must recognise the reality of the rocketing energy bills. “They have got to have concrete ways to help people at this time,” he said.
Norman Kerr, director of Energy Action Scotland, sympathised with Mr Brown’s comments to an extent. He said many houses in Scotland were not properly insulated, so heat was escaping.
“The long-term solution has to be increased investment in energy-efficiency measures that will help vulnerable people,” he said.
“I hate to agree with the prime minister, but the one-off payment is a gimmick that will not solve the underlying problem.”
A Scottish Government spokeswoman said ministers would continue to lobby Westminster to take decisive action. “We have already earmarked £46million per annum for fuel-poverty programmes for the next three years, which is proportionately more generous than provision south of the border, where the fuel poverty budget has been cut,” she said.
“We have also tasked the Scottish Fuel Poverty Forum with recommending how we can improve the focus of this spend to tackle fuel poverty more effectively.”
Unite union general secretary Tony Woodley warned that voters would “punish” the government unless it showed it was prepared to stand up for “the ordinary people”.
The issuing of fuel vouchers worth between £50 and £100 to up to 7million of the poorest households had been expected to form the centrepiece of next week’s energy package after the government held talks with the major suppliers.
Mr Brown has made it clear that the announcement will concentrate on measures to improve energy efficiency.
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