Lib Dems back move to help the fuel-poor

Energy Secretary Ed Davey is one of the Lib Dem's most powerful coalition Ministers (PA)

The Liberal Democrats have become the first major UK political party to back a campaign calling for carbon revenue to be used to fund a bigger energy-efficiency programme to insulate all the homes of the fuel-poor.

Campaigners claim there is enough carbon revenue to make more than half a million fuel-poor homes super-energy-efficient every year. They point out that the Treasury will raise £60bn in carbon revenue over the next 15 years, but none of the cash is earmarked to be used to help people to insulate their homes.

The decision to back the campaign was made at the Lib Dem conference this week when delegates voted through a Green Growth, Green Jobs policy paper which includes a commitment to use carbon revenue to insulate fuel poor homes.

The move will put pressure on Energy Secretary Ed Davey, one of the Lib Dem's most powerful coalition Ministers.

Ed Matthew, director of the Energy Bill Revolution campaign, said: "The UK has one of the worst insulation records in western Europe, with thousands dying from living in cold homes each year. Using carbon revenue to insulate homes can slash energy bills, create 130,000 jobs and save lives."

Today, Ecotricity, the green energy company, will announce it will undercut the standard tariffs of the Big Six power companies, supplying green electricity for less than the price of their standard brown tariffs from 1 October. "It will mean slightly lower bills for our customers," said Dale Vince, Ecotricity founder.