News that the Government plans to make a one off token payment of £150 to the seven million families in receipt of child benefit, to help them meet the rising energy costs, will in reality be of little significant benefit. With the average fuel bill now at £1,058, and with energy bills expected to rise from between 25 per cent to 70 per cent this year, this gesture is a one hit wonder at best, says the Federation of Master Builders (FMB).
Brian Berry, Director of External Affairs at the FMB said:
"The number of people in the UK living in fuel poverty has doubled since 2004 and the increase in energy prices will only make matters worse. We know that even before the recent hike in energy bills a staggering 1.25 million pensioner households live in fuel poverty and that 22 per cent of older people living in fuel poverty go without gas or electricity in order to make ends meet. More worrying is the fact that in 2006 25,000 people over the age of 65 died of cold related illnesses."
Berry continued:
"If the Government is serious about lifting people out of fuel poverty and helping people meet the ever rising costs of energy, then a far better and lasting solution would be to reduce VAT on all building repair and maintenance work from 17.5 per cent to five per cent so that families can better insulate their homes and make them more energy efficient."
Berry concluded:
"The current high rate of VAT on building repair and maintenance work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed. What makes this worse is that those at risk tend to be the most vulnerable people in our society."
11 August 2008
