Energy deal

Thursday, 11, Sep 2008 12:00

The government has extracted nearly £1 billion from energy companies to insulate homes.

It's the result of weeks of negotiation, with the threat of a windfall tax looming over energy firms.

The long-term measure is balanced by a series of short-term moves designed to offset opposition claims nothing is being done for this winter. Prices fixed for the lowest-income households and winter fuel benefit improvements are included here.

Despite the measures many campaigning groups are angry the government is not going further to meet its commitment to eradicating fuel poverty.

And trade unions, who spent the week pressuring for a windfall tax, have already made their disappointment clear.

Pundits say the government made a mistake in going too far with expectations about the package. Have they done enough? And will the moves announced today make a difference?