A windfall tax on energy companies would create a one-off source of income and if this was put towards creating energy efficient homes and tackling fuel poverty then that would be helpful. But, a windfall tax would not be a sustainable source of income for the long-term project that would be needed to lift all families out of fuel poverty. ‘Fuel Poverty’ is when a household spends more than 10% of its income heating and powering their home sufficiently.

Poverty proofing homes requires us to create energy efficient homes. We will need to insulate them, provide fuel efficient boilers and give householders access to the most cost-effective form of fuel. The Government commitment to additional grants of £2,700 under the Warm Front scheme, targeted at low income and pensioner households, are therefore welcome, as is the £6.8bn to be spent on energy efficiency measures. However we must stop additional top up fees, payable when accessing the whole Warm Front package, if this is preventing people from accessing the benefit.

It is crucial that when tackling fuel poverty we give every householder the opportunity to cut their carbon emissions through energy efficiency measures. We also have to consider the position of people in rented accommodation who cannot directly access the funding.

Our long-term aim should be to produce our own energy (known as microgeneration), and this will make us all less dependant on energy companies and reduce fuel bills.

Tags: Fuel Poverty

Posted on February 10, 2009 in Environmental and Green Issues.