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Energy Bills: Government outline how they will save us £50

Nobody likes paying the household bills but we all like to keep warm during the winter so everyone should be glad to hear that the government is about to outline how it will be cutting energy bills by £50. But not everyone’s impressed by the government’s proposal. If you listen to Labour Leader Ed Miliband, the proposals are just “smoke and mirrors.”

Miliband is not impressed with the government’s plan, saying that the country’s leaders have reached a “cosy deal” with the big power firms that will line their pockets by actually increasing the cost of energy over the winter period. Miliband said the country is heading for a cost of living crisis that the Chancellor’s plans will do little to abate. But in parliament, Energy secretary Ed Davey countered by saying “Our proposals are real measures, based on real facts and they are going to help people across the country.”

Chancellor George Osborne is due to announce how the Government’s pledge will be met in the Autumn Statement on Thursday. But ahead of that we’ve learnt that £12 of the £50 will come from Government rebates. The remaining £38 will be saved from a reduction in green levies of between £30 and £35, and the energy firms themselves will be absorbing the remaining £3 to £5 savings.

Miliband is calling for a price freeze because the Governments plans could see money given in one hand and taken away in another as the cost of living rises. But the Government has countered some of these negative claims by adding that measures they’re introducing to boost energy efficiency will cut into the cost of living rises that Miliband is basing his arguments on. Under the proposed scheme, owners of new homes will be offered £1,000 for energy saving measures, which could rise to £4,000 if particularly expensive measures are needed to make the home energy efficient.

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