Fuel price crisis - Windfall tax needed now

In response to the outcry following the recent savage increase in prices imposed by the energy suppliers, Fabian Hamilton MP called for the imposition of a windfall tax in order that those members of the community most at risk from fuel price poverty could be given additional support to meet their bills. He also tabled an Early Day Motion on the issue which attracted considerable parliamentary support. A statement issued to the press attracted widespread coverage in the media nation wide and sharpened the focus at Westminster on the difficulty the new charges are creating for many vulnerable members of the community. The text of Fabian's statement to the press on the 16th September 2008 was as follows: -


The publication this morning of the House of Commons Business and Enterprise Committee's report Energy prices, fuel poverty and Ofgem warns that the massive increases in gas and electricity prices in the UK will have: 'serious consequences for millions of households'. On Friday, energy company EDF raised its gas prices by 22% and electricity prices by 17%.

There is now a very real possibility of many more families in this country being thrown into fuel poverty by increases, linked to the price of crude oil, which are far above the rate of inflation. In addition, the lowest income earners often pay even higher prices because energy companies charge more per unit for pre-payment meters which have to be installed if the customer is deemed to be not 'creditworthy'.

Today, Leeds North East MP Fabian Hamilton is calling for the Government to implement his own Early Day Motion (EDM) which he tabled on 23rd January this year calling for a windfall tax should the energy companies make excessive profits out of these massive price rises. His EDM number 771 has the support of 63 MPs and the full text is as follows:

That this House notes with concern the decision taken by British Gas and Npower to increase the prices of gas and electricity greatly above the rate of inflation and the impact this has on vulnerable pensioners; and therefore calls on the Government to monitor closely the profits of the energy companies and to introduce a windfall tax in order to fund a one-off increase in the winter fuel allowance should those companies' profits rise excessively.

Fabian said this morning: "I am seeking a meeting with the Financial Secretary to the Treasury, Jane Kennedy MP, who is responsible for taxation policy. I think it's time we told the energy companies that if they make an excessive profit as a result of the huge price increases then they must be responsible for ensuring that the most vulnerable in our society are compensated.

"It is simply not acceptable for supply companies and their shareholders to benefit at the expense of the poorest. The Government can introduce a one-off windfall tax on these excessive profits and give it back to pensioners and other fuel-poor groups".

Fabian's office is speaking to the Financial Secretary's office today to try and arrange an early meeting. He will tell Jane Kennedy that he has been contacted by many pensioners and other constituents worried that they will be unable to afford to heat their homes this winter. He will say that there is considerable urgency and this should be done now whilst the weather is still warm.

Fabian supports the Select Committee's suggestion that some of the proceeds of a windfall tax should be used to bolster the Government's successful Warm Front scheme.