Budget 2008: Energy poverty to be tackled

Wednesday, 12 March 2008 12:00 AM

The chancellor is looking to tackle energy poverty, get a better deal for prepayment customers and increasing winter fuel payments.

Pensioners will see winter fuel payment for over 60s up from £200 to £250 and for the over 80s from £300 to £400.

Mr Darling said: "Nine million pensioner households will be better off."

The poorest energy customers will also be targeted - but the chancellor is relying on energy firms to act without legislation.

"We want to see the five million customers on prepayment meters given a fairer deal and energy companies to increase their support to vulnerable customers," the chancellor said.

Unless changes are taken place, Mr Darling said he would legislate.

He also called for energy companies to increase spending helping those on social tariffs.

"Energy companies currently spend around £50 million a year on social tariffs. I want to see this rising to at least £150 million a year over the period ahead."

Firms were also pushed to continue with the Carbon Emissions Reduction Target to give customers better deals for energy efficiency and therefore cut bills.

Tags:
• budget
,
• economic policy
,
• economy
,
• economy and finance