LGA calls for annual levy on gas and electricity providers

28 August 2008

The Local Government Association (LGA) has argued that gas and electricity providers should be charged an annual levy to fund a national home insulation programme. Insisting such a move would be more effective at helping hard-pressed families than a one-off payment to aid with bills, the group of MPs said it would lift 500,000 out of fuel poverty. Councillor Paul Bettison, Chairman of the LGA Environment Board, said: "There are ten million homes in this country that still lack basic insulation. Making these properties more energy efficient would take around £2 billion off fuel bills each and every year." Such a programme would also help to tackle climate change, he added, as better insulation would mean fewer greenhouse gas emissions. Earlier this month, it was reported that Chancellor Alistair Darling was considering imposing a windfall tax on gas and electricity suppliers to help low-income families facing fuel poverty ahead of the winter. Meanwhile, a survey by Saga Home Insurance has revealed that 46% of British consumers blame successive governments for rising gas and electricity costs.