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Energy suppliers could fork out £500m in a windfall tax to lift families out of fuel poverty. Labour MP Dr Alan Whitehead has put forward an amendment to the Climate Change Bill, to be discussed at committee stage this week, which would mean utility companies had to partly fund a massive investment programme led by councils to insulate half of all homes in England for the next five years. It could cut household emissions by 20% and knock £200 a year off the bills of 10m householders. Dr Whitehead said: ‘Getting local authorities and energy companies to work together and match consumers contributions will be a very effective way to achieve lower energy use and better efficiency. ‘My amendment represents a straightforward way to underpin the targets and mechanisms in the bill with a way of making them happen at local level.' Around 10m homes still lack basic insulation and 12m homes have under-insulated lofts. Energy bills have been hiked up by as much as 15% and households now spend £8bn more on gas and electricity than they did five years ago – around a third of which has gone on utility company profits. The LGA already called for a similar scheme earlier this year with energy suppliers contributing to a national home insulation programme. The LGA's environment board chairman, Cllr Paul Bettison, said: ‘It's great news MPs have decided to pick up and run with our proposals to tackle fuel poverty and help hard-working families. Energy suppliers are making eye-watering profits at the expense of householders.'

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WHITEHALL

Families get £500m energy bills lifeline

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