MSE News: Queen's Speech: £150m+ to tackle fuel poverty

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This is the discussion thread for the following MSE News Story:

"Low income households are to be given greater help paying for their energy ..."


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  • Cardew
    Cardew Posts: 29,038 Forumite
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    The most interesting part of the article is this:
    Rebates for some on low incomes, with at least £150 million to be made available to fund this. This is already partly in place via an agreement with energy companies to help reduce over a million vulnerable customers' bills.

    This is the money made available by the energy companies to fund the 'social tariffs' (BG Essentials etc).

    The important part it was just a 'Peter pays Paul' exercise. A slight increase in all our tariffs to subsidise the social tariffs.

    From what I have read this £150 million is not any form of Government assistance to low income families, merely that we will all pay the £150million in increased gas and electricity prices for the Utility Company to give away in subsidies.

    I wonder how much it will cost for Utility companies to set up administrative sections check the eligibility of claimants.
  • kippen_noedel
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    Cardew wrote: »
    This is the money made available by the energy companies to fund the 'social tariffs' (BG Essentials etc).
    Yep more poilitical obfuscation

    why not just take off the vat from domestic fuel, after all vat was introduced as a "luxury" tax.
  • Haarlem
    Haarlem Posts: 345 Forumite
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    Cardew wrote: »
    The most interesting part of the article is this:



    This is the money made available by the energy companies to fund the 'social tariffs' (BG Essentials etc).

    The important part it was just a 'Peter pays Paul' exercise. A slight increase in all our tariffs to subsidise the social tariffs.
    .

    Which at the moment is an average of £38 per fuel per household. - quote by Dr Garry Felgate chief executive of the Energy Retail Association on Radio 4.

    This represents 5% on a total energy bill of £1520 which I regard as a hidden tax. So with VAT at 5% we on average pay 10% tax on our fuel bills

    Another stealth tax about to rise.
  • prowla
    prowla Posts: 13,245 Forumite
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    Basically this is going to be another of the grand announcements that is really just re-announcing spending plans that are already in place.
    Despite what it thinks, the government can't really magic up money out of thin air.
    It's not going to save the world and it probably won't amount to much in real terms (as the terminology goes, I think).
  • 1carminestocky
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    Cardew wrote: »
    The most interesting part of the article is this:



    This is the money made available by the energy companies to fund the 'social tariffs' (BG Essentials etc).

    The important part it was just a 'Peter pays Paul' exercise. A slight increase in all our tariffs to subsidise the social tariffs.

    From what I have read this £150 million is not any form of Government assistance to low income families, merely that we will all pay the £150million in increased gas and electricity prices for the Utility Company to give away in subsidies.

    I wonder how much it will cost for Utility companies to set up administrative sections check the eligibility of claimants.


    So, it's effectively Ebico but on a much bigger scale? ;)
    Call me Carmine....

    HAVE YOU SEEN QUENTIN'S CASHBACK CARD??
  • SwanJon
    SwanJon Posts: 2,333 Forumite
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    why not just take off the vat from domestic fuel, after all vat was introduced as a "luxury" tax.
    Europe AFAIK.
    5% is the lowest the government could get away with and still be EU compliant.
  • Haarlem
    Haarlem Posts: 345 Forumite
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    SwanJon wrote: »
    Europe AFAIK.
    5% is the lowest the government could get away with and still be EU compliant.

    I don't think this is true as for example children's clothing is 0% rated.

    It's not a secret that the tax will rise as part of the plan to reduce consumption.
  • SwanJon
    SwanJon Posts: 2,333 Forumite
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    With the caveat that the link is to Wikipedia, it seems that while it is a EU directive, the UK held off on some areas, but not all
    http://en.wikipedia.org/wiki/European_Union_Value_Added_Tax
  • sharpdeath
    sharpdeath Posts: 1,146 Forumite
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    Ofgem got rid of their powers back 2002. They believed the competition would be good enough to lower prices. Basically, there's an office being used for no value whatsoever.
    All the time you're watching your back, you can never look forward...
  • C_Mababejive
    C_Mababejive Posts: 11,658 Forumite
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    There is no fuel poverty and there is no right to fuel IMHO.

    If you cant afford it,dont waste it.

    If I couldnt afford my gas bill i.d get cut off.

    Whats the difference between me,,a hard worker,and a "single" mother/other assorted non workers etc etc?

    We could end up in the ridiculous situation where someone like me is out flogging my tripe,cant afford my gas bill,get cut off but my lazy,chavver neighbour can sit at home toking on a reefer,watching Jeremy Kyle and warm her asss on a social tariff which I am paying for via tax !! ROTL

    Only in Britain...
    Feudal Britain needs land reform. 70% of the land is "owned" by 1 % of the population and at least 50% is unregistered (inherited by landed gentry). Thats why your slave box costs so much..
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