Energy companies are shortchanging consumers by dodging their responsibility to help people cut their fuel bills and in the process, are failing UK workers, town hall leaders will say today.

Under the government's Carbon Emissions Reduction Target (CERT) energy suppliers are set targets to cut the carbon emissions coming from people's homes. Councils say that at the moment, the target is too easy. Energy companies are meeting their commitment mainly by sending homeowners energy saving light bulbs, which save consumers just £3 a year each.

The Local Government Association (LGA), which represents councils in England, wants the government to toughen these targets so that energy companies have to insulate more people's lofts and walls. Town halls say this could help 1.4 million householders save £220 a year each, far higher than the £3 saving brought by energy saving light bulbs.

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The move would also help to create more jobs for workers in the UK, say councils. Energy suppliers are set to give out a staggering 280 million light bulbs, or 11 for every household in the UK, by 2011. Whereas these light bulbs will largely be manufactured abroad, the LGA says insulating more homes would help to create 4,000 UK jobs, which would be ideal for those in the struggling construction industry.

Cllr Paul Bettison, Chairman of the Local Government Association's Environment Board, said: "The failure of energy companies to really help householders cut their fuel bills is an outrage. Energy suppliers should be filling our lofts and walls with insulation, not filling our cupboards with light bulbs.

"The old fashioned light bulb is being phased out anyway, so more and more people are buying energy saving bulbs for themselves. Home insulation is a much more effective way to cut people's fuel bills and carbon emissions than sending out a light bulb, which only lasts around seven years. Home insulation brings savings for decades.

"Tougher targets for energy companies so they have to insulate more homes would help thousands of people move out of fuel poverty. The vulnerable and elderly could afford to keep their homes warm, instead of living in houses that are cold, damp and damaging to their health."

(CD/JM)