Cash-strapped families in Lancashire should borrow against their homes in a bid to cut their fuel bills, a government minister has said.
Environment minister Phil Woolas told the Evening Post that, despite the credit crunch, families should put themselves further in debt to improve the insulation of their homes and make their heating systems more efficient.
Lancashire MP Tory Nigel
Evans today said Mr Woolas's comments were "staggering" and proved the government was on "another planet".
The controversy erupted as Prime Minister Gordon Brown unveiled a £910m package to help struggling households cope with soaring energy prices, promising it would be funded by suppliers and producers.
The energy-saving measures will see the 400,000 poorest households and pensioners offered free loft and cavity wall insulation during the next three years.
This will mainly be available to households claiming means tested benefits.
Additionally, every household in Lancashire will be eligible for a grant covering 50% of the cost of new insulation and other measures like low energy light bulbs, energy saving plugs and real time displays.
But Mr Woolas was quizzed about households who will not be eligible for free home improvements and will not be able to afford to pay for 50% of the work.
He replied that despite the credit crunch "...the people who want to invest in their homes have got an asset to borrow against.
"Loft insulations are expected to save homeowners up to £250 a year, which means the speedy repayment of any loan," he explained.
"The difficulty with the credit crunch is you can only get 75% of a mortgage.
"If you are an existing householder it is easier to borrow against this energy efficiency initiative because the pay-back period is so good."
But Ribble Valley MP Mr Evans said: "It is a staggering comment.
"The government has already hit the poor by abolishing the 10p income tax rate and now they are saying that if you want to save cash in the long term you need to borrow money in the short term. There is nothing the government touches that doesn't go badly wrong."
Mervyn Kohler, special adviser at Help the Aged criticised the measures, saying: "This is a flimsy and failing package which does little to help older people struggling to cope with soaring fuel bills.
"The statement simply lacks energy."
