Chancellor calls for cut to fuel bills for elderly

Gordon Brown has been pressing electricity and gas companies to cut pensioners' fuel bills for this winter.

Treasury officials spent last week urging leading energy firms to join a scheme to give discounts to the elderly and those on low incomes.

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Average household bills have risen from about £600 to about £1,000 a year and prices are not due to come down until the New Year at the earliest, even though wholesale costs have fallen in recent months.

The Treasury believes the energy firms have a "shared interestî in tackling fuel poverty, but it is understood several of the companies have rejected Mr Brown's call. They say they have already paid large sums in corporate tax. Many offer their own discount schemes, including Eon UK's partnership with Age Concern to offer rebates for customers over 60.

The Chancellor has come under strong pressure from pensioners' groups to increase the winter fuel allowance paid by the Government every year. It is worth £200, with an extra £100 for those aged 80 or over.

Some of the groups have called for the allowance to rise by a further £100 for all, but with public finances tight it is unlikely the Chancellor will agree. He has has pushed up the allowance way above inflation since it was first introduced in 1997.

Mr Brown's initiative may have made some progress with other energy firms and he could announce his scheme in the Pre-