Yahoo Finance Energy Bills: Govt Gives £50 Savings Breakdown
The Government says it has outlined how it will cut household energy bills by £50 - as Ed Miliband dismissed the plan as "smoke and mirrors".
The Labour leader insisted in a speech that the "cosy deal" reached with the 'big six' power firms will still see bills going up this winter, saying ministers do not "get" the cost-of-living crisis.
Chancellor George Osborne will announce full details of how the Government will achieve its pledge of reducing energy bills by £50 a year in his Autumn Statement on Thursday.
But a breakdown was released in advance of that speech, saying £12 of the figure will come in the form of a government rebate.
A reduction of between £30 and £35 will be achieved through cutting green levies, ministers say, while voluntary action by energy companies to cut network costs will mean a one-off £5 saving.
The Government also said it will introduce measures that will boost energy efficiency, worth £540m over three years.
These include offering buyers of new homes up to £1,000 to spend on energy-saving measures, or up to £4,000 for particularly expensive measures.
Some of the large energy companies released statements in the wake of the Government's announcement, detailing how they will contribute to savings.
Speaking in Parliament, energy secretary Ed Davey denied the measures would not help households.
"Our proposals are real measures, based on real facts and they are going to help people across the country," he said.
"We've pushed real competition (in the energy market). The big six were created by the (Labour Party)."
The energy issue has dominated the political agenda since Mr Miliband promised to freeze prices for 20 months if he wins the next general election.
Mr Miliband launched his attack while addressing staff at the VW National Training Centre in Milton Keynes.
"A lot of people think that David Cameron and George Osborne are trying to catch up with One Nation Labour on the cost-of-living crisis: from pay-day lending to energy bills," he said.
"But the truth is they are struggling to catch up with the British people who live at the sharp end of an economy where the link between the wealth of our nation and family finances has been broken. That is the cost-of-living crisis that is happening in our country today."
Mr Miliband said the Autumn Statement should feature "a real price freeze and action to reset the market to stop them overcharging again in the future".
"It's right that the debate in Britain is now about the cost-of-living crisis. Political leaders need to understand the new challenges our country faces. That is the test of this Government this week. All the signs are that they simply don't get it."
Friends of the Earth Energy campaigner Sophie Neuburg also criticised the announcement, saying: "The Government has crumbled in response to pressure from the big six, leaving the fuel poor and the environment to pick up the bill.
"The effect of all the measures announced today is that funding for energy efficiency has fallen by over £700m, condemning thousands of people to shiver in heat-leaking homes."
But Mr Osborne has insisted that families will benefit from the plan.
For Labour, shadow energy secretary Caroline Flint said the taxpayer rather than the energy companies who would be left to foot the bill for the changes.
"Even after these changes to levies, energy bills are still rising and the average household will still be paying £70 more for their energy than last winter," she said.
"Any help is better than none, but you can judge this Government by who they're asking to pick up the tab - the taxpayer. The energy companies have got off scot-free."
Mr Cameron and Nick Clegg confirmed on Sunday the plan to reduce the burden on consumers by cutting the green taxes, which add £112 to each bill.
The cost of the Energy Company Obligation Scheme, which funds energy efficiency measures for low-income households and makes up the vast majority of the environmental levies, will be halved under the plan.
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