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Finally some good utilities news for UK households

The government has announced plans to spend £1 billion on helping Brits cope with rising utilities bills

As the long winter nights start to draw in, consumers have been given at least a little boost with the news that the government is to roll out almost £1 billion to help struggling households meet their energy and gas commitments.

While the new measures may well stop short of the windfall tax on utilities companies' profits that had been called for by many consumer groups and charities, they nevertheless represent good news for those homeowners who have been shopping around and comparing utilities and switching suppliers rates only to find that all the 'big six' have passed substantial price hikes in the past few months.

Of course, it's a fair bet that a large proportion of the households affected would have preferred to have a cash handout to spend on the rising cost of living in general, but the fact that the new funding is aimed at allowing Brits to make their homes more energy efficient means most will be far better off in the long-run.

Under the initiative, the £910 million will be used to provide pensioners with free insulation or cut-price cavity wall insulation – both measures proven to significantly reduce heating bills as well as levels of harmful emissions.

According to the government, the aid package will go a long way towards helping every UK household stay warm over winter, but some critics are far from convinced, signalling that further help could well be around the corner.

Mervyn Kohler, special adviser at Help the Aged, argued that this "flimsy and failing package" will do little to help older people cope with gas and electricity bills that are expected to reach £500 and £900 a year respectively before too long.

"If the Government wants to meet its legal obligations to eradicate fuel poverty and reduce carbon emissions, ministers are going to have to deliver a lot more than this," he argued.

What's more, the measures just cover households in England, Wales and Scotland, meaning hard-pressed consumers in Northern Ireland will be left to struggle with rising tariffs.

This is in spite of the province seeing a 33.3 per cent rise in energy prices over the past year alone, leaving many consumers fuming.

With Gordon Brown set to visit Belfast in the next few days, it seems a safe bet that he will be called upon to review the government's fuel help package and so the more optimistic consumers are sensing that further help could be on the way.

Until that happens, however, struggling consumers are advised to look into these new measures to see how they can benefit, while simultaneously shopping around and switching utilities suppliers.

11/09/2008
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