22 March 2007
Chancellor Gordon Brown has "missed the opportunity" to get consumers using green electricity tariffs in his 11th Budget, uSwitch.com has said.
According to the independent comparison and switching service, yesterday's Budget provided an opportune moment for Mr Brown to focus on measures which would help the average Briton reduce their carbon footprint.
The group believes that instead the government has grabbed headlines by deciding to remove stamp duty on all new-build zero-carbon homes up to a value of £500,000.
While other measures implemented, including offering grants to pensioners for installing insulation and central heating in their homes, will be beneficial, uSwitch believes that by not removing the 5% VAT on green energy tariffs the government has missed an opportunity to get more people taking on such deals.
Ann Robinson, Director of Consumer Policy at uSwitch, said that while a "carrots rather than sticks" approach from the government was to be lauded, in not removing VAT on green energy tariffs he had missed the "biggest opportunity" to incentivise people.
"Removing the VAT would on average make green tariffs cheaper than standard tariffs, enabling people to save money and help save the planet," she added.
Figures released by uSwitch show that green tariffs are 4% more expensive than standard packages, adding an extra £13 a year on to green electricity bills.
Making small changes to your gas and electricity use can help save the planet and save you money too.Read tips on energy efficiency and see if you can Save by switching your gas and electricity supplier by using uSwitch.com's free and impartial comparison and switching service.
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