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Body calls for cheap energy payments to be withheld from higher earners - 10/06/2009

The Environment Committee has recommended that payments designed to tackle energy supplier prices should be withheld from higher earners.

At the moment, over-60s are paid £250 to help with their energy bills under the winter fuel allowance and over-80s get £400, but stopping the payment to higher earners who do not necessarily need it could help tackle more needy homeowners.

Around £250 million would become available each year and could be spent helping to reach the government's target of completely eradicating fuel poverty by 2016.

Michael Jack, chair of the Environment Committee, told the BBC: "We need action and clarity - not further consultation - to tackle the three elements that drive fuel poverty: prices, incomes and energy efficiency levels."

Winter fuel payments of over £2.7 billion were allocated this year, but fewer than 15 per cent of recipients were actually in fuel poverty.

Energy companies have been criticised in recent months for failing to reduce prices during the harsh winter months.

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