Pre-pay meter campaign recognised in Budget
12th March 2008
Alan Whitehead has welcomed the announcement in the Budget of measures to tackle fuel poverty – an issue he has been campaigning on in Parliament.
The Chancellor responded to Dr Whitehead’s parliamentary campaign for a better deal for energy customers on pre-payment meters, by announcing that the government planned to work with energy companies to take forward further action on the matter, and would introduce legislation if necessary.
Currently more than 3 million people nationwide pay for their energy via prepayment meters – and overall, pay millions of pounds more for their energy every year. The higher charges made to prepayment meter customers have been recognised as a major contributing factor to fuel poverty, where those on low incomes struggle to pay for the gas and electricity they need. A tripling in spending by energy companies on social tariffs from £50m to £150m was also announced.
Dr Whitehead further heralded the budget as fantastic for families and pensioners in Southampton, with increases to Child Benefit and the Winter Fuel allowance as follows:
- Over 15,000 pensioners in Southampton Test will benefit from the increase in Winter Fuel Allowance from £200 to £250 for the over 60s and from £300 to £400 for the over 80s.
- Over 10,000 Southampton Test families will receive increased child benefit.
New measures to tackle climate change were also announced including:
- New non-domestic buildings to become zero-carbon from 2019.
- The allocation of £26 million to the newly created Green Homes Service in 2008-09. This will help over two million people will help people to improve the energy efficiency of their homes, choose lower emissions transport, reduce waste and conserve water.
- The government to introduce new laws by 2009 to tax plastic bags if shops do not do more to charge for their use.
- Support for microgeneration at individual and community level, with a consultation into options including feed-in tariffs.
Dr Whitehead said:
“I was delighted that the government have heeded my advice on fuel poverty and pre-payment meters. This will help Southampton residents who live in flats and HMOs where prepayment meters are more common. Energy companies are using unfair tariffs on prepayment meters to rip off their most loyal customers and some of the poorest people in society – even though these customers offer 100% security of payment. This is wrong.”
He added:
“The measures on climate change will have a real impact on reducing our carbon emissions and developing the renewable energy industry. I am particularly encouraged by proposals to provide further support and incentives for low carbon emitting vehicles, the funding for the Green Homes programme and the forthcoming examination of feed-in tariffs for small-scale and domestic power generation. All these changes will make a real difference.”
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More information
- More information on how the budget will affect you can be found on the budget section of the directgov website.