Money News
15th August 2008
Energy vouchers planned for low-income families
Low income families are to be issued with vouchers to help them meet soaring energy bills, it has been suggested.
Under the plan, families who receive tax credit would be granted tokens of between £50 and £100.
The proposals would cost the government around £600 million and would benefit around six million families.
However, the scheme has been slammed by as "seriously bad idea" by Vince Cable, the Liberal Democrats' Treasury spokesman, who claims that it does not tackle the underlying affordability issues that poorer families face with energy tariffs.
He told Channel 4 News: "The underlying problem is that poor families pay much more for their power than better off families. If you're on meter the charges are much higher than on direct debit.
"They also live in badly insulated homes. The programme has to target those problems rather than flows of income."
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