Local SNP MSP Derek Mackay wants the UK Government to provide more relief to hard-pressed households facing massive winter fuel bills, after a parliamentary question revealed a higher percentage of fuel being used north of the border.



The question raised by Alasdair Allan MSP for the Western Isles, revealed that the estimated percentage of extra fuel required to heat houses was in some cases more than 50% compared to houses in areas of England.

The UK Government needs to do more to help vulnerable households in relation to tackling fuel poverty as it emerged that the Chancellor had pocketed £1.4 billion over the last year in VAT from domestic energy bills.

Sharp increases in energy prices by the big six energy companies over the summer could see that total increase by a further £150 million.

Commenting Mr Mackay said:

“While vulnerable households in Renfrewshire are worrying how they are going to afford their winter fuel bills the Chancellor is raking in record amounts of VAT from gas and electricity bills.

“Over the last year the Chancellor has pocketed £1.4 billion in VAT from soaring energy bills, but he has done precious little to help the people who suffer from fuel poverty in Scotland. It is high time that the UK government used some of this windfall to tackle fuel poverty.

“This comes at a time where some areas of Scotland are using over 50% more fuel than those houses south of the border, with local figures showing usage around 18% more in gas alone.

“Cold weather payments are, of course, very welcome for those households that are eligible, however the underlying problem is clearly energy prices which are at massively high levels.

“The Scottish Government is working hard on improving energy efficiency in Scotland’s homes.  Our £50million warm homes fund will build on the success of the energy assistance package helping those in communities worst affected by fuel poverty.

“The fundamental issues of energy price taxation and regulation remain with the UK Government and they must take action to provide relief to hard-pressed households.”


Notes

Total domestic sales of electricity and gas in 2010 were £27 billion (before VAT) making VAT receipts around £1.4 billion (Digest of UK energy statistics 2011, DECC). If current prices remain in place for a year, and consumption remains at exactly 2010 levels then VAT receipts would increase to by around £150 million (ONS Series DOBY, DOBX).

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