7 December 2006
Gordon Brown's pre-Budget report may have upset a few industries with its green emphasis yesterday, but few will be complaining about the boost to the Warm Front campaign which will ensure that central heating is more affordable for the poorest consumers.
Mr Brown announced that as of next year "an extension of Warm Front and going community by community will make it possible for 300,000 pensioner and other households most vulnerable to fuel poverty to have free insulation and central heating".
However, Tony Herbert from Citizens Advice was restrained in his praise for the chancellor's proposals. He said: "The additional £7.5 million to improve the effectiveness of The Warm Front initiative is welcome - we hope that this is with immediate effect in order to be of benefit to vulnerable people such as low-income families and pensioners this winter.
"We are however disappointed that the government is not extending winter fuel payments as we have asked to include poor households, disabled people, chronically ill and low income families, as well as pensioners."
Shona Dobbie, head of Alliance Trust Research Centre, added: "This looks quite generous until we consider what has happened to fuel prices over the last year. The most recent inflation figures tell us that electricity prices rose by more than 27% in the 12 months to October, while gas prices rose by nearly 41%.
"Overall, fuel prices have risen by 30% over the last year, implying that the value of the winter fuel payment has fallen significantly when measured in real terms."
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