Fuel vouchers to be given to low income families

15 August 2008

Vouchers worth up to £100 to be issued by government

Ministers are set to announce the introduction of a scheme where vouchers worth up to £100 will be issued by the government to try to help the hundreds of thousands of low income families to meet the rising cost of gas and electricity.

Sources last night confirmed that the Treasury and Downing Street are formulating plans with other government departments which will see low income families receive energy vouchers worth between £50 and £100.

Reports from Channel 4 News indicated that the vouchers would be aimed at a proportion of the six million families who are currently in receipt of child tax credit. Other families that may qualify are those claiming working families tax credit.

According to the Institute for Fiscal Studies, talking to Channel 4, it would cost the government £600m to give a £100 payment to energy companies on behalf of each of the families currently in receipt of child tax credit.

This cost would be halved if the government took into account the incomes of each of the families, as reported on the child tax credit forms, and then only gave the vouchers to the poorest 50% of claimants.