May 2008

Westminster fiddles while the number living in fuel poverty rockets, says Cut the VAT Coalition

Today's measures outlined by the Westminster Government will do little to help the quarter of Scottish household's now experiencing fuel poverty. The Government by comparison is profiting handsomely from the 5 per cent VAT they charge on fuel.

The growing problem of fuel poverty is highlighted in the latest Scottish House Condition Survey which reveals that fuel poverty, defined as a household spending more than 10 per cent of its income on heating, rose from 18 per cent of households in 2004/2005 to 23 per cent of households in 2005/2006.

Richard Hyslop, Cut the VAT Coalition Coordinator said,
"Today's announcement by the Westminster Government does not go far enough in helping to tackle the growing problem of fuel poverty in Scotland. The number of people living in fuel poverty in this country has doubled since 2004 and the increase in energy prices will only makes matters worse. The Government cannot sit by and let the most vulnerable people in society suffer any more."

Hyslop continues,
"The Government could stop this desperate situation from getting even worse if it cut VAT on all energy efficient home improvements from 17.5 per cent to 5 per cent. This simple cut would enable thousands of families to upgrade their homes to make them more energy efficient and enjoy a warmer winter. The truth is that the current high rate of VAT on building repair work prevents people, particularly those on low-incomes, from maintaining their homes. In many instances, this results in people living in misery because they cannot afford to have basic repairs or central heating installed. How much higher do fuel bills have to rise before the Government will wake up and cut VAT on measures to make our homes warmer?"

30 May 2008

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