Commenting on the Government's announcement on home insulation, Margaret Eaton, Chairman of the Local Government Association (LGA) said the plans are a step in the right direction.

She said: "Energy saving measures will cut bills year after year and will help tackle the twin problems of climate change and fuel poverty.

"A national home insulation programme will not be achieved overnight. It is good news that the energy suppliers have been asked to contribute more towards cutting carbon emissions and household bills, but this investment must not be a one-off gesture.

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"It is vital that the Government ensures the energy suppliers do not pass on the costs to consumers. The average household is already paying £33 a year extra on their bills towards energy efficiency schemes, and they simply cannot afford to pay any more.

"Councils have argued for six months that a national home insulation programme is the only way of driving down household bills year after year. This is a victory for common sense, and it is good news that the Government has recognised that these ambitious plans cannot be delivered without local authorities."

(CD/JM)