Government rules out winter fuel handouts

5 September 2008

The government has ruled out plans to give families a one-off payment to help meet their gas and electricity costs this winter. Last month, it was revealed that ministers were considering handing out up to £100 to households in receipt of child benefit. But Gordon Brown said yesterday that the government would not resort to "short-term gimmicks or giveaways" when it comes to soaring energy bills. Instead, ministers will be working with gas and electricity providers to make homes more energy efficient, therefore helping to reduce bills "not just temporarily, but permanently". Commenting on the announcement, Tony Woodley, joint leader of the Unite union, said energy efficiency measures must be welcomed. However, he added: "At this moment in time people need immediate respite from the struggle to pay their gas and electricity bills. "There must be a rethink and cash assistance for every needy household in the land." Last week, Chancellor Alistair Darling said the era of cheap energy was over and indicated that consumers can expect to see higher bills for some time.