Fuel Poverty

Chris Evans Excerpts

Wednesday 26th October 2011 Westminster Hall

[Chris Evans (Islwyn) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship for the first time, Sir Alan. This is the second time that I have secured a debate in Westminster Hall on fuel poverty. The first time was last January, when we had just had the coldest December on record and, as we spoke, many of us continued to feel the effects of the cold. I called for that debate because I was troubled and concerned about the number of constituents who had contacted me to tell me that they were feeling the effects of the terrible cold weather. I said then, as I say now, that fuel poverty is a black mark on society. It is up to us to do something about poverty anywhere, whenever anyone is impoverished. I say that not from the point of view of the Government or as a politician, but as a human being.

I was heartened and encouraged by last January’s debate. After listening to the response of the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry), I really felt that we got it. However, I find myself talking about the subject again today. Ten months later, the average annual bill for a dual fuel customer is £1,293, or 6% of median household income, compared with 3.3% in 2004. That means that an average family on an average income are edging ever closer to the disastrous figure of 10% of their income going on fuel bills.

[Anne Marie Morris (Newton Abbot) (Con)]

I share the hon. Gentleman’s concern. My constituency in Devon, which is a rural community, has low income and great rurality. There is a higher percentage of pensioners in Devon than in any other part of the country. Many members of my rural community use fuel oil, as opposed to gas, and it is twice the price, so I share his concern about this problem.

[Chris Evans]

I thank the hon. Lady for raising that concern. Rural communities are harder hit because, as she has said, they use oil, the market price for which is out of control. Something needs to be done. I will not mention that too much during the debate, but I hope that the Minister of State, Department of Energy and Climate Change, the hon. Member for Bexhill and Battle (Gregory Barker), will touch on it when he responds.

If an average family is being put into fuel poverty, we have serious problems. We talked about fuel prices in the main Chamber last Wednesday and it was evident that the Government need to review their energy policy. I am not going to talk today about how bad the energy companies have been—I mentioned that enough during my contribution to last Wednesday’s debate—but there needs to be root-and-branch reform. If I started going on about that today, I do not think that it would add to the debate in any respect, because, at the end of the day, fuel poverty is a matter of life and death for so many people and so many of our constituents. It means making the heart-breaking decision between eating a meal and heating their house.

I could cite a number of examples of older people who only put on one bar of their fire, or who heat only one room, to reduce their fuel costs. As I said in the Chamber last week, constituents have said to me, “I sit in the living room with my coat on, because I can’t afford the heating,” and, “I go bed at 8 pm, because when I’m in bed I don’t use heating.” It is absolutely terrible.

It is in vogue at the moment to blame the Labour party for everything. When buses are late or trains do not turn up, I am sure that, somewhere along the line, somebody will blame the Labour party. Despite such brickbats, I am proud that the previous Labour Government did all they could to address fuel poverty and improve the energy efficiency of homes.

[Jessica Morden (Newport East) (Lab)]

Does my hon. Friend find it deeply worrying that this Government’s only answer to rising fuel bills is to tell people that they are to blame for not shopping around?

[Chris Evans]

As I said during last week’s debate, it is all very well to tell people to shop around but, if all the energy companies are putting up their prices across the board, how can people shop around? I also said that energy is not a luxury item—people have to have it. It is not possible to have superfast energy in the same way as it is to have superfast broadband. How can people shop around? It is a failure of the market. If we are going to ask people to shop around, the Government need to encourage more entrants into the market.

[Guto Bebb (Aberconwy) (Con)]

I congratulate the hon. Gentleman on securing this debate. On the failure of the market, energy prices in Scandinavia—in Sweden and Denmark—are higher than those in the UK, possibly because the UK has a more free market. In Scandinavia, however, they make a more comprehensive effort to make sure that they are energy-efficient, which makes a real difference in terms of fuel poverty, because their prices are actually higher.

[Chris Evans]

I still believe that the only way to drive down prices is to have more competitors. We have only six companies as competitors, they all seem to be pushing up their prices together—I am not saying that that is what they are doing, because a number of inquiries have said that they are not—and the regulator does not seem to be doing anything about it. I do not agree with that situation. We need to look at ways to bring in more entrants into the market. As I have said, however, that is not a debate for now.

The introduction of winter fuel payments, central heating programmes and the energy efficiency commitment have all played their part in easing the pain that people have felt in meeting their energy costs. However, I cannot talk about fuel poverty or pensioners in my constituency without mentioning the cut to the winter fuel payment.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on bringing this matter to the Floor of Westminster Hall. Today, I met a group of about 20 people from Age Sector Platform in Northern Ireland. They indicated that approximately 770 people died from the cold in Northern Ireland last year. Does he share my concern that the changes to the winter fuel payment will contribute greatly to more people dying because they are not able to get the correct money?

[Chris Evans]

I agree with the hon. Gentleman completely. In Wales, 1,700 people are dying from the cold every year. As I have said, in this day and age, what does it say about us as a society when people are dying from the cold? It is absolutely terrible. I cannot put into words the shame that we all should feel if somebody dies from the cold.

On the reduction in the winter fuel payment, the Chancellor and Government Members have said, “It was only ever a temporary increase and we stopped the increase because Labour put it up.” It is all very well saying, “Oh, it was a temporary increase,” but once someone has got used to that money coming in, they tend to feel the pinch when it has gone. The Government need to reconsider that terrible decision.

The hon. Member for Strangford (Jim Shannon) mentioned the number of pensioners dying from the cold in Northern Ireland. In my constituency of Islwyn, there were 41 winter deaths. If we get nothing else from the Minister today, I hope that he will make a commitment to do all he can to ensure that nobody else is added to that tragic statistic.

[Katy Clark (North Ayrshire and Arran) (Lab)]

My hon. Friend represents a Welsh constituency. Some 26% of Welsh households are said to be in fuel poverty. In Scotland, that figure is 32.7%. We are expecting a cold winter. Does he agree that there is a crisis and that the Government need to consider introducing measures to ensure that we do more to help people with their heating costs?

[Chris Evans]

Absolutely. I agree with my hon. Friend entirely. Scotland and Wales have a lot in common. We are Celtic cousins, as is the hon. Member for Strangford. We share the same problem of fuel poverty and something needs to be done as a matter of urgency. I hope that we will hear something from the Minister about that.

Today, I want to talk about a group of people who are hardly ever mentioned. I want to pay tribute to Macmillan Cancer Support, to which I have spoken about cancer patients. This is a very important issue. Anyone who has had the heartbreaking news that they have cancer or who knows someone who has cancer does not need to be told how hard life can be. They are faced with months of treatment, heartache and worry, and the last thing that any family of a cancer patient should worry about is whether they can pay their energy bills.

Cancer patients are particularly vulnerable to plummeting temperatures and rocketing fuel bills. Many will be faced with fuel poverty because they have increased energy needs at a time when their income has dropped dramatically. Since getting involved in this campaign, I have heard many harrowing stories that underline just how hard people living with cancer feel the effects of high energy bills. The following story stood out. One woman said:

“My immune system is so weakened that I am very prone to colds and infections but I can’t afford to keep warm all the time. I cover myself in blankets and hot water bottles to help keep my joints warm. I am always in debt and behind with payment to the energy companies, even during the summer. It makes me panic. I try and give them £10 whenever I can, but to be honest I’d rather be in debt than get even more ill. I wish the government would realise that it’s not just the old who get cancer and suffer the cold.”

During treatment, 70% of cancer patients under the age of 55 lose, on average, 50% of their household income. That is why fuel poverty disproportionately affects those with cancer, and why one in four cancer sufferers also suffer from fuel poverty. Despite evidence that living in fuel poverty has a negative impact on the health and well-being of people with cancer, one in five cancer patients turn off their heating during winter because they are so worried about their bills. The problem is made worse by the fact that people living with cancer spend longer at home when they recuperate and as a result may be less active. They also have a higher use of appliances, such as washing machines and tumble dryers. The effects of chemotherapy may also make cancer patients more susceptible to the cold. As I have said in the past, one way of combating fuel poverty is by increasing the income of those who find themselves struggling with bills.

[Jim Shannon]

Is the hon. Gentleman concerned, as I am, that stress over financial issues adds to the health problems of people with cancer? It is important for those people to have money to get through such hard times.

[Chris Evans]

As I said, when someone has cancer, the last thing they need to worry about is money, paying the bills or meeting any other financial obligations. The top priority of someone with cancer and of their family should be to get better and beat that evil disease.

Cancer patients do not receive the support they need. For instance, the winter fuel payment is only paid to those who are over 60. Only 7% of cancer patients in fuel poverty are on a social tariff, and only those on certain benefits linked to low income are included in the carbon emissions reduction target super-priority group. People affected by cancer who are under 60 are not entitled to that support, even though roughly one in four cancer patients have not yet reached their 60th birthday. If this debate achieves anything, it is my sincere hope that the Government will give serious consideration to extending the winter fuel payment to particularly vulnerable groups, such as those with a terminal illness, the disabled or those undergoing treatment.

Cancer patients are poorly served by the Government’s schemes to reduce fuel poverty. Many rely on additional sources of financial help to pay high gas bills and, as a result, risk falling into debt. The warm home discount scheme is run by energy companies and provides certain groups of fuel poor energy customers with an annual rebate of £130 off their energy bills. That rebate can be provided either automatically or to other vulnerable groups as defined by the energy companies. Cancer patients will only be able to apply for support if they fall within the categories set by the energy companies. It is my fear that, unless the Government provide tighter guidance to energy companies regarding the eligibility for the WHD, vulnerable cancer patients will miss out. For instance, under the social tariffs set by energy companies, only 7% of cancer patients in fuel poverty receive support. I therefore hope that the Minster will say he will look again at the eligibility criteria of the warm home discount if it becomes apparent that it is not reaching the most vulnerable people.

One of the major problems with fuel poverty is that the people who are suffering from it are not always aware of the issue. I shall give an example. Many years ago, when I was working for my predecessor Lord Touhig, we secured a fuel poverty debate in Westminster Hall. At the time, he was president of the National Old Age Pensioners Association for Wales. He asked me to speak to the secretary. I phoned him up and said, “Ralph, Don is doing a debate on fuel poverty tomorrow and he is wondering whether you have any examples of it.” He said to me, “Well, the problem is that most people do not realise that they are suffering. Energy bills are a way of life. If we get cold, we put on an extra pullover or we put an extra bar on.” People do not seem to know that they are suffering from fuel poverty, which is a major problem when it comes to discovering other groups in fuel poverty, such as cancer patients.

The English housing survey currently used by the Government to calculate fuel poverty figures in England does not include questions related to a person’s cancer diagnosis, despite including questions about other disabilities. The Government must start collecting that data if they are to successfully target resources at those most in need. We need to consider targeting the winter fuel payment at the terminally ill. The Government should consider changing the English housing survey to include a question about cancer, alongside questions about other disabilities. Only by doing that will Government data give an accurate depiction of the number of cancer patients suffering from fuel poverty.

It is clear that more must be done by the Government to proactively prioritise people with long-term health conditions in fuel poverty who require support. The Government have acknowledged that the green deal will not work for fuel poor households as they are likely to be under-heating their homes and will be unable to take on debts or make significant savings. The Government have made provision to address that with the energy company obligation, which will subsidise energy efficiency measures for fuel poor households. However, I am concerned that the money available under the ECO will not be large enough to help all fuel poor and vulnerable households. Many cancer patients will not be able to access the support if eligibility is restricted to certain groups on very low incomes or qualifying benefits. That is why I am looking for assurances from the Minister that those diagnosed with cancer will be able to access support when the ECO comes into effect.

Energy companies are seemingly increasing their prices at will, and we are faced with the difficulty that people will fall into fuel poverty as soon as energy prices rise. My predecessor as Member of Parliament for Islwyn, Lord Touhig, was fond of quoting James Maxton, whose words have a special meaning now. He said that poverty is man-made and therefore open to change. If anything, fuel poverty is man-made, and with the political will we have the tools to do something about it.