Prime Minister's question asked in the House of Commons, by David Marshall (Labour). It was answered on Wednesday, 5 March 2008 on behalf of the Prime Minister.

Engagements

Question: In view of soaring energy costs for consumers and soaring profits for energy companies, will my right hon. Friend give serious consideration to imposing a windfall levy on those profits with a view to increasing the winter fuel allowance for pensioners by £200 for next winter?

Answer: As my hon. Friend knows, the head of Ofgem has set up an inquiry into the market in electricity and energy in this country. It is right that he pursues an investigation to see whether competition is working effectively in the industry. It is also true that as a result of the European emissions trading scheme windfall profits have been made by the energy companies. That is a matter on which the head of Ofgem has also commented. The energy companies have made additional money available this year to help people on low incomes pay their fuel bills, but that is a small amount in relation to what the Government are doing through the winter allowance. Our winter allowance is £200 for the over-60s and £300 for the over-80s. This winter, when people are experiencing high utility bills, the winter allowance that we are giving is crucial.

Secondary information

Type: Oral question
Reference: 472 c1743;472 c1741
Session: 2007-08
Oral question type: 1st Supplementary
Chamber / Committee: House of Commons chamber
Subjects: Energy Ofgem EU emissions trading scheme Prices Taxation Winter fuel payment
Contains statistics: Yes
Link: View this Prime Minister's question on www.publications.parliament.uk