Oral Answers to Questions

James Heappey Excerpts

Tuesday 12th December 2017 Commons Chamber

[Richard Harrington]

My hon. Friend is absolutely right, and that is very much an important part of the industrial strategy.

[James Heappey (Wells) (Con)]

Does my hon. Friend agree that the key is policy certainty, to enable our growing green finance industries to come forward to finance these initiatives themselves, so that the initiatives do not need to rely on Government subsidy?

[Richard Harrington]

I agree totally with my hon. Friend. I am very impressed by the way in which the finance industry generally is adapting to the clean projects ahead of us.

Nuclear Safeguards Bill

James Heappey Excerpts

2nd reading: House of Commons
Monday 16th October 2017 Commons Chamber

[James Heappey (Wells) (Con)]

I am genuinely pleased that this issue has been given such importance. That is not because, as some might have suggested, it is a sort of remoaner ambush, but because it reflects the importance of our nuclear industry, which in turn reflects the importance that the Government have attached to nuclear technologies in the UK as part of our industrial strategy. The valued engagement of the industry is most welcome. It is great to hear its very legitimate concerns over Euratom. The industry would obviously want no change whatsoever: of course not; nobody can blame it for seeking certainly and therefore advocating the status quo.

Let us be clear: there is absolutely nothing wrong with Euratom. It has proven very effective at regulating the nuclear industry. If the treaty did not require us to leave after triggering article 50, I am pretty sure that we would not do so, but as it does require it, a new arrangement must be sought. I genuinely have no doubt that this new arrangement will be characterised by keen agreement and co-operation between the UK and our EU partners. The nuclear industry is, after all, international and interdependent. We have significant French ownership of our nuclear power stations, and further international ownership is promised with the remainder of the new nuclear fleet. Similarly, Germany has a great deal of nuclear waste being processed in Sellafield. With the UK, France and Germany so interdependent on one another on matters nuclear, one might expect the wind to be on our backs, not in our faces, when seeking a deal on our future relationship on nuclear matters.

An associate membership is probable—highly probable, even. For the more ardent Brexiteers among us, that should not bother us either. Euratom has been a remarkably consensual organisation—I do not believe there have been any votes—and therefore the jurisdiction of the EU Court should not be a concern for us in this case. However, regardless of that probable outcome, we need something else in case good sense deserts our EU partners and nuclear safeguarding becomes part of the wider wrangling over Brexit. That is why the Government are to be congratulated on introducing the Bill so soon. This regulation will give the nuclear industry the certainty that it so reasonably demands. Nuclear safeguarding is not something on which we take risks. Pursuing a favourable post-Brexit relationship with Euratom is important and should obviously be our preference, but legislating for increased powers in the Office for Nuclear Regulation so that Euratom’s capabilities are duplicated as being sovereign within the United Kingdom seems very prudent at this early stage.

After this debate, it is important to pause and reflect on what neither the Bill nor Euratom does. Euratom does not do nuclear safety—that is already regulated in the United Kingdom by the ONR. My constituents who live as neighbours to Hinkley Point know that the safety regulations that govern the operation of that site are entirely unaffected by the Euratom issue. Nor does the Bill affect isotopes used in medicine. The scaremongering on this has been unfortunate, and I hope that it will not continue as the Bill progresses.

[Drew Hendry]

I am interested in the hon. Gentleman’s comments. Does he, then, disagree with the Nuclear Industry Association? It has said:

“Leaving the Euratom Treaty without alternative arrangements in place would have a dramatic impact on the nuclear industry including the UK’s new build plans, existing operations and the waste and decommissioning sector which all depend, to some extent, on cooperation with nuclear states.”

[James Heappey]

I am absolutely at a lost to understand the SNP’s position on this. We have an excellent relationship with Euratom, which we want, ideally, to continue as an associate member. But, as the hon. Gentleman quite rightly points out, the nuclear industry is very concerned that, if that arrangement turns out not to be possible, we should have some sort of contingency in place to ensure that the industry can continue to operate safely and co-operate internationally. That is exactly what the Bill will do, so I do not understand why he is not welcoming it with open arms.

[Drew Hendry]

I thank the hon. Gentleman for giving me the opportunity to clarify. The key is in the final part of the quote, which talks about the impact on existing operations and the waste and decommissioning sectors. That cannot be carried forward by the Bill in isolation; there are many unanswered questions.

[James Heappey]

I am not sure that the hon. Gentleman adds anything to his earlier intervention. There is a system in place through Euratom for the regulation and safeguarding of the movement of fissile materials and other issues connected to nuclear regulation. We would ideally stay within Euratom as an associate member, but if that is not possible, we seek to legislate for a contingency, so that we have those powers sovereign. One would assume that the Government—I think that this has been made very clear in the Secretary of State’s opening remarks and all the Government’s commentary on the matter thus far—expect to continue everything exactly as it is, so that we can continue to operate seamlessly internationally. The Bill will provide a contingency plan to avoid the hard exit or cliff edge that so many in this place and in the media seem so vexed about. I just do not understand why the SNP does not welcome the Bill, when it appears to give the party exactly what it wants by delivering certainty post Brexit.

There are two issues that the Bill does not cover, quite understandably, but that are worth discussing. First, nuclear technology, materials and engineers need to be able to move freely, so we must achieve a quick and lasting agreement with other countries. Our nuclear programme is international, and we must recognise that in the arrangements that we make. I have every confidence that we will, and that the countries with which we seek to work will warmly welcome our approaches.

Secondly, there is the matter of funding for research and development. As we decarbonise our heating and transport systems, our demand for electricity will rise sharply. Renewables and our new nuclear programme are the answer for now, but the prize that we have all been looking for, for half a century, is fusion power. That has been eight to 15 years away for a very long time, and quite possibly it is still eight to 15 years away. When the Select Committee on Energy and Climate Change went to the United States last year, however, it was clear that progress is starting to be made quickly on that side of the Atlantic. When we returned home, we were pleased to find after further inquiries that progress on this side of the Atlantic has been even quicker still. The UK, with our European partners, is ahead on the matter. It is absolutely vital that the Government commit, as they have done, to continuing to fund the research and development of fusion power. The opportunities are huge, and it is a prize on which the Government should keep their eyes.

In conclusion, I absolutely understand the concerns that nuclear industry representatives have raised with me, and I understand why they want certainty. They work in an industry in which there is absolutely no appetite or tolerance for risk, so it is entirely understandable that they seek the certainty of continued membership of Euratom. They should be reassured that the Government’s first preference is associate membership of Euratom, as a result of which nothing would change. If that is not possible, how prudent it is for the Government to seek, at the very first opportunity, to legislate to provide a contingency to assure the UK nuclear industry that safeguarding regulations are firmly in hand. Those regulations will be familiar to the industry, because they will look remarkably similar to the ones that we have now.

Clean Growth Strategy

James Heappey Excerpts

Thursday 12th October 2017 Commons Chamber

[Claire Perry]

I hope that the hon. Gentleman will take back a positive message about the opportunities for businesses in Yorkshire and the Humber from the clean growth strategy and urge those CBI members to bring forward their ideas, so that we can capture them, make the investments and create the thousands of good jobs that we need.

[James Heappey (Wells) (Con)]

I warmly welcome the Government’s clean growth strategy—an excellent document with 30 new policies among the 50 policies and plans that have been announced. I pay particular tribute to the focus on energy efficiency. Will the Minister confirm that the 10-year extension of the energy company obligation will have a fantastic effect on the supply chains that do so much for home efficiency, and within commercial premises as well?

[Claire Perry]

I thank my hon. Friend for highlighting the fact that there are many new initiatives, particularly to do with the energy efficiency angle—especially business energy efficiency. Yes, there is the extension for ECO. Not only does that support a brilliant supply chain, but it helps the many people who struggle with fuel poverty. We are keen to use the money effectively to help upgrade more than 1 million homes and extend support for home energy efficiency until 2028 at the current level of ECO funding.

Oral Answers to Questions

James Heappey Excerpts

Tuesday 12th September 2017 Commons Chamber

[Richard Harrington]

I absolutely can confirm that maximum continuity of supply is very important to us. We have an excellent relationship with the EU on this, and it is the Government’s responsibility to make sure that it continues. I am sure that that will satisfy the hon. Gentleman.

[James Heappey (Wells) (Con)]

It looks like membership of the internal energy market is not connected to single market membership but that membership of a couple of key industry and regulatory bodies, such as the Agency for the Co-operation of Energy Regulators and European Network Transmission Systems Operators and Council of European Energy Regulators, comes as a prerequisite. Has the Minister had any discussions with those organisations to see whether the UK can be a member when not a member of the EU?

Euratom Membership

James Heappey Excerpts

Wednesday 12th July 2017 Westminster Hall

[Albert Owen]

What is important for future investment is not what I think but what the industry thinks and what the experts have told me. I am looking forward to the Minister’s reply, but I will outline in detail those three options: remaining in Euratom, associate membership, and third-country membership. The hon. Gentleman’s description of the Swiss and Ukrainian models is a bit crude, because different countries are involved. The Swiss enjoy associate membership, but other countries, such as Japan, the United States and Canada, have a different relationship. I want the best relationship for the United Kingdom. If it ain’t broke, why start fixing it? That is where I start from.

Those options do exist. Alternative membership under article 206 of the European treaty allows the UK to leave but to continue co-operation, as the hon. Member for Henley (John Howell) argued, and establish an association involving reciprocal rights and obligations, common actions and special procedures. However, that will take time, and I do not think that the timeframe set out by triggering article 50 is helpful; it will hinder rather than help, and put at risk many new build projects.

[James Heappey (Wells) (Con)]

The hon. Gentleman is being generous with his time. Does he agree that exactly because of the exposure that the French Government have to our new nuclear programme, and indeed to EDF’s business in the UK generally, we have an excellent ally in Paris in trying to ensure that whatever our new arrangement with Euratom is, it comes about quickly, because that is in the French interest as much as in ours?

[Albert Owen]

It is in everybody’s interest because this is a global industry, but we must put the UK interest first and argue from a UK perspective, because we are making the decision to leave and we do not expect everyone else to do our bargaining for us. We need to have a strong position, which is why I am arguing today that we need transitional arrangements in place that suit us. We cannot rely on French investment going forward, but we can create and maintain the high levels of skills that we have in this country, and the high level of investment.

--- Later in debate ---

[Albert Owen]

I agree that many of the existing and potential new nuclear sites are on the periphery, but we also have in Oxfordshire and many other counties of the United Kingdom huge investment that we need to improve and move forward. I also mentioned the Royal Marsden, which has given me a briefing on nuclear’s importance to the city of London. It is the whole United Kingdom. The industrial strategy talks about spreading wealth across the whole United Kingdom, and here is a good example of where that works, so we should continue that and not take risks.

I mentioned nuclear’s importance to low-carbon and to skills, but we are also at the forefront of research and development. We need to maintain that, but I believe that we could hinder that if we were to have a cliff edge or to exit Euratom just because of a timetable and legal reasons.

[James Heappey]

Will the hon. Gentleman give way?

[Albert Owen]

Yes, but this will be the last intervention I will take.

[James Heappey]

The hon. Gentleman has been generous, especially in indulging me twice. He mentions our technical edge. Before he sits down, can I encourage him to mention our position as a world leader in fusion power generation? That is the Elysian fields of future low-carbon generation. I know that he will want to remind the Minister of just how successful we have been in leading that research and how important it is that we remain in the vanguard.

[Albert Owen]

I know that other right hon. and hon. Members want to make their pitch, so I will not repeat my opening remarks, but the hon. Gentleman is absolutely right and has made the point for me, and the Minister has heard it.

I have based my speech on evidence that I heard as a member of the Business, Energy and Industrial Strategy Committee, and I pay tribute to its previous Chair. I am making a bid for that position today, so I may as well take advantage of being on my feet for 20 minutes in this debate. The Committee did a serious piece of work on the pros and cons of exiting the European Union, whether for internal markets or supply.

Energy Price Cap

James Heappey Excerpts

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

No, it was this Government who referred the whole industry to the Competition and Markets Authority. When the right hon. Member for Doncaster North (Edward Miliband) was Energy Secretary, I urged this measure on him, and he rejected it flat, so it is this Government who have exposed the level of the detriment, and it is this Government who are acting to put a cap in place to prevent this abuse—that did not happen under Labour.

[James Heappey (Wells) (Con)]

As welcome as a price cap will undoubtedly be, does the Secretary of State agree that the real key to bringing down prices for consumers is the liberalisation of the energy market through the digitisation of the energy system, storage in front of and behind the meter, and a demand-side response?

[Greg Clark]

My hon. Friend, who is well informed about such issues, is absolutely right. The opportunity that smart meters bring is that people can have much more knowledge and control of their energy use, and use that to get the best deals available. That is why the roll-out of smart meters is such an important part of our reforms to the energy market.

Fuel Poverty

James Heappey Excerpts

Tuesday 21st March 2017 Commons Chamber

[Mr Hurd]

It is not a claim about ambition; the ambition is set out in long-term statutory targets. The figures I have given show that these are substantial investments. As I will come on to clarify, there is some £770 million of support for low-income and vulnerable consumers in the financial year 2017-18, so there is no shortage of ambition or of investment. The hon. Lady and I share a strong belief in the importance of energy efficiency. I am trying to stress that what we are doing will increasingly focus on the most vulnerable, and, with public finances constrained, that must be the right priority.

[James Heappey (Wells) (Con)]

May I welcome the efforts that the Government have made and their clear success in improving energy efficiency? My hon. Friend is so right to highlight the fact that making the obvious saving of getting people to spend less on energy through using less is much more important than the amount we give people to subsidise their energy costs or any intervention we make in the market to cap energy costs.

[Mr Hurd]

I could not agree more with my hon. Friend. As I have said, previously, he is one of the most thoughtful Members of the House on this subject. He will know that we are on the cusp of something very interesting in our relationship with energy and our ability to manage it more intelligently. Such an opportunity must be just as much available to well-to-do people as it is to those struggling with their bills, and that must be a priority for us. That is partly why I stressed the point that the reforms we are making to the existing policy instruments will increasingly focus on the most vulnerable and the poorest in our communities.

However important it is to improve the energy efficiency of people’s homes, it will inevitably take time, and Government recognise that people also need immediate support with energy bills. We therefore have in place the second pillar of the strategy, the warm home discount. This scheme now provides over 2 million low-income and vulnerable households with a £140 rebate off their energy bill each winter, when temperatures are lowest and bills are highest.

Together the schemes mean that, as I have said, there will be at least £770 million of support for low-income and vulnerable consumers during the financial year 2017-18. This is a significant level of support for households across the country. Other policies will also make a contribution, such as the prepayment safeguard tariff, which I hope the House welcomes, and the roll-out of smart meters. Smart meters are regularly debated in this place, and the evidence is already showing the consumer popularity of this technology and its ability to help people save money and manage their energy use in a smarter way.

Making progress cannot be just about subsidy; regulation will play an important role as we take action to ensure that tenants can live in a home that keeps them comfortably warm. The private rented sector regulations will target the least efficient F and G-rated properties from 2018 by requiring landlords to improve those properties to at least a band E, unless a valid exemption applies. The Department is currently considering options for the implementation of the regulations, with a view to ensuring that they can be implemented effectively by April 2018.

Of course, there is more work to be done. One key area will be to improve targeting on the households most in need. The Digital Economy Bill, which is currently going through Parliament, will be important in that regard, as it will make available better data on householders and properties. We believe that that will in turn reduce the costs that energy suppliers face in identifying the households most in need, and allow more measures to be installed for the same cost.

The actions I have described are all led by the Government. However, fuel poverty is a problem for all of society, and the Government cannot tackle it alone. That is why partnership is a key theme of the fuel poverty strategy. It is important for the Government to play a leadership role, but also to work in partnership with local government, businesses and the charitable sector. Only by making the most of the varied skills and resources of each of those partners will we, collaboratively, be able to tackle fuel poverty.

--- Later in debate ---

[Mr Hurd]

I am very sincere in what I say about partnerships—when I was the Minister for Civil Society, it was absolutely core to our approach—so we are very keen to get good information about what is working and what is not working with partnerships, because they are easy to talk about, but they are actually quite hard to implement in practice. We are doing some work with local authorities, but the hon. Gentleman has made an important point about the sharing of knowledge and information so that we can get a better understanding of what works. Some of this stuff is quite complex in relation to breaking down the social barriers to people accepting help when it is offered.

[James Heappey]

The hon. Member for Brighton, Pavilion (Caroline Lucas) quite rightly said that we must be ambitious in the way we design buildings, and I could not agree more, although I am not sure that this is really connected to Brexit. The fact is that it is not merely the affordability of purchasing or renting a building that is so important, but the affordability of the operation of that building thereafter. By having good design principles for energy efficiency and insulation in its design process, we can make a building more affordable to live or work in, rather than simply making it more affordable to buy in the first place.

On co-operation and partnerships, what are the Minister’s plans for using the data owned by the Data Communications Company from smart meters not only to nudge people to switch tariffs, but to make the data available to other organisations that could advise people on emerging technologies, such as demand management, so that they can load shift to minimise their bills in that way?

--- Later in debate ---

[Rebecca Long Bailey]

The hon. Gentleman makes a very interesting point. There is scope for communities to regain control of their energy supplies in the longer term. That is certainly something the Government should look at. There are a number of other important points that I would like the Minister to address today, so I will continue with my submission.

The health impacts of fuel poverty are worst for those who are most vulnerable—for example, disabled people who find it difficult to move around and do not get the chance to warm up; young people, who run twice the risk of developing a respiratory condition such as asthma; and adolescents, who face a fivefold increase in the likelihood of mental illness. Evidence also highlights that infants living in cold conditions have a 30% greater risk of admission to hospital or primary care facilities. Older people also face a significantly high risk, as the Marmot review team highlighted, stating that they are almost three times more likely to suffer from coughing, wheezing and respiratory illness.

Sir John Hills, professor of social policy at the London School of Economics, states that there is a body of persuasive evidence that links low temperatures with a number of health impacts, ranging from minor infections to serious medical conditions that can ultimately prove fatal. Sadly, that has proven to be the case, with the NEA finding that an average of over 8,000 people in England and Wales die each winter because they cannot keep their homes warm at a reasonable cost. That estimate includes eight attributable deaths in my constituency of Salford and Eccles—eight deaths.

[James Heappey]

The shadow Secretary of State makes an important and compelling point on the importance of heat to providing a healthy home. Does she agree that one solution is to give more encouragement to heat networks, particularly those that take waste heat from industry or business and use it to heat homes in the immediate vicinity, as I believe happens at MediaCity in Salford in her own constituency?

[Rebecca Long Bailey]

The hon. Gentleman makes another important point. That is certainly something that the Government should be giving due consideration to.

[James Heappey]

They are. They are encouraging it.

[Rebecca Long Bailey]

They need to give greater consideration to it and provide greater investment. I will move on.

Fuel poverty has a greater social impact. Children who live in cold homes see an impact on their ability to achieve, whether because of illness or simply because of a poor quality home environment. The financial and emotional stress it can place on families can damage relationships and lead to long-term stress-related mental health issues.

I am concerned that, although some work has been done in this area, the fact remains that the number of homes in fuel poverty has slowly been creeping up. The fuel poverty gap, which is a measure of the difference between a household’s energy bill and what it can afford to pay, increased from £235 in 2003 to £371 in 2014. At the same time, we have seen stagnating wages, or a lost decade in earnings as the Bank of England has termed it. What is more worrying is that after the recent Budget, the Institute for Fiscal Studies stated that, on the Government’s current economic trajectory, average wages in 2022 will be worse in real terms than before the financial crash. The Minister will appreciate that as inflation pushes up, the differential between price increases and wage growth will continue to close. Even if energy prices are capped, which I know is an option being considered by the Government, the amount that families have to spend on bills will still get smaller and smaller.

It is not enough, therefore, simply to tackle fuel poverty as a stand-alone issue. The Government must tackle the causes of fuel poverty. Without investing in the tools that businesses need to drive up wages and productivity, wages will continue to stagnate in the long term. Sadly, in the Budget we did not see the investment required from the Government that would in any way go towards bringing us in line with other industrial countries. It is therefore no shock that Britain is the only large developed country where wages fell even as economic growth returned after the crash. I digress slightly, Madam Deputy Speaker.

--- Later in debate ---

[Marion Fellows]

The hon. Gentleman is cheering me on from the Benches behind me.

By 2021, the Scottish Government will have spent more than £1 billion to ensure that Scottish homes and other buildings are warmer. Since 2008, more than 1 million energy efficiency measures have been installed in nearly 1 million households across Scotland, and the proportion of homes with the three highest energy ratings has increased by 71 per cent since 2010.

Scottish local authorities have also had an additional £10 million this winter to ensure that homes are energy efficient. The Scottish Government do not do that because it is a nice thing to do; they do it because it is absolutely necessary and imperative, to protect the most vulnerable people living in Scotland. Also, rather than simply throwing money at the problem, the Scottish Government have taken a consultative approach, working with many independent stakeholders and acting on their recommendations. My hon. Friend the Member for Ross, Skye and Lochaber mentioned the independent Scottish Fuel Poverty Strategic Working Group, and it has commended the Scottish Government; I will come back to that later.

Progress has been made. In 2015 almost 100,000 fewer households were in fuel poverty than in 2014. Energy to heat our home is a basic human right that no one should go without. That is especially true for older and vulnerable people in our society. Action has been, and will continue to be, taken in Scotland during the course of this Parliament, and a warm homes Bill will be introduced to set a new target for tackling fuel poverty so that it may be challenged head on.

I received an email from Age Scotland this morning. It welcomes the fact that the Scottish Government have designated energy efficiency as a national infrastructure priority. They have also given a commitment to invest half a billion pounds over the lifetime of this Parliament to tackle fuel poverty and promote energy efficiency. That is crucial, and it is what the UK Government need to do for homes in England and Wales, and to help in Northern Ireland. I know this does not come under the competency, but the Westminster Government is the largest Government in the UK and they must set an example.

As has been said, rural communities have particular issues with fuel poverty. In Scotland, the fuel poverty rate is 50% in rural areas compared with 32% in towns and cities, and a staggering 71% of homes in the Western Isles are in fuel poverty. Due to the demographics of these islands, pensioners are largely affected. Only this month, on 8 March, the Scottish Government announced a pilot scheme that will see 220 rural households offered support specific to the needs of older people in these islands to cut their energy bills. The pilot and its review will be used to develop the Scottish Government’s new fuel poverty strategy, due to be published later this year.

The Scottish Government have made huge efforts to minimise the number of older people affected by fuel poverty but are hampered by realities such as many rural homes being off the mains or off-grid, which means they cannot access gas supplies as the majority of us do—something most of us in this Chamber take for granted.

New powers to the Scottish Parliament will maintain winter fuel payments for pensioners in Scotland. Furthermore, early payments to almost 80,000 pensioners who live off-grid will also be made available so that they can take advantage of lower energy prices available during the summer months. That is a common sense idea that will help improve the lives of many older people. In addition, the winter fuel payment will be extended to families with children in receipt of the highest care component of disability living allowance.

As I have shown, the Scottish Government are already taking great steps to address fuel poverty. However, only so many powers to do so are located north of the border; the rest lie here at Westminster, and it is therefore here that the responsibility must lie. As has been mentioned, the fuel poverty rate for 2015 would have been 8.4% instead of 31% if fuel prices had only risen with inflation. Instead, the UK Government have allowed corporations to hike up energy prices, to the detriment of vulnerable groups who are in greater need of a warm home—a basic necessity which, let us be honest, can make the difference between life and death. The current cost of fuel poverty to NHS Scotland is calculated at £80 million per annum, and that must be much higher in the rest of the UK.

Increases in prices can outweigh everything that the Scottish Government are trying to do on fuel efficiency. No matter how much the Scottish Government spend, they can still have little impact on fuel prices across the UK. However, a Scottish Government Minister chaired a summit on 14 December last year urging energy companies to make a difference to low-income households living in fuel poverty and facing a poverty premium tax.

[James Heappey]

The hon. Lady is right that there are ways of insulating people from the volatile cost of energy, the most obvious of which is the electrification of heat. Will she share what the Scottish Government’s plans are for delivering that?

[Marion Fellows]

No, I cannot, because I am not here representing the Scottish Government. The electrification of heat is a joke in some of the far-flung places in the highlands and islands. If we electrify heat, we are then causing more carbon emissions in many regards, depending on what fuel we use. We in Scotland already have huge power resources run by water power, and the Scottish Government only recently opened a new dam that would produce—[Interruption.] The hon. Member for Wells (James Heappey) is chuntering from a sedentary position; I beg his pardon, but I can only answer what I have been asked. Recently the Scottish Government opened a new dam, producing power, but we have the real difficulties of getting power from Scotland on to the grid at a reasonable cost.

[James Heappey]

Will the hon. Lady give way?

[Marion Fellows]

No, I am sorry, but I will continue my speech.

There are of course other ways that the UK Government can take action. They can increase household incomes, but instead they have allowed wages to stagnate, adopted a false living wage for select age groups, and pushed people further into poverty through their welfare cuts. The truth is that this Government do not do enough to help our most vulnerable people.

The Scottish Government have now taken over control of some of the new welfare powers. They have hit the ground running by doing what they can to support vulnerable groups, and please be assured that the new Scottish Government welfare powers will be built on a foundation of respect and dignity—things that are severely lacking in the UK welfare regime. For older people, the Scottish Government have launched a campaign to ensure that all groups are able to access the public funds they are entitled to; for example, one third of pensioners are entitled to pension credit but do not claim it. The new best start grant has already been referred to, and the Scottish Government have spent almost £58 million mitigating the impact of Tory austerity cuts to welfare on homes across Scotland. A £7.7 million increase in funding for discretionary housing payments will be made as the Scottish Parliament takes over more welfare powers. Between April 2013 and March 2016, local authorities will have made 321,000 discretionary housing payment awards totalling £129 million.

I can tell the House from personal experience how important these discretionary housing payments and the Scottish welfare fund set up by the Scottish Government to mitigate these cuts were to people when I was a local councillor. Since becoming an MP, I can also tell of the numbers of people attending my surgeries in real poverty, and that impacts especially on their ability to keep their houses warm; they are in real fuel poverty as a direct result of some of the actions taken by this Government.

The Scottish Government have also taken steps to mitigate the impact of the bedroom tax. All of this has helped the most vulnerable groups in Scotland. However—this will come as no surprise to the House—I agree with the First Minister that the Scottish Parliament’s finances and powers should be used to tackle poverty at its core, rather than being a plaster over Tory neglect. Given the powers that they currently have, the Scottish Government are doing what they can to alleviate fuel poverty in Scotland. Much of what they have done has helped with energy efficiency, thus reducing bills. The World Health Organisation attributes 30% of preventable deaths to cold and poorly insulated housing. Inroads have been made in Scotland to improve housing. In fact, some new houses were built and allocated recently in my constituency and they have been built to the highest specifications. This will enable the people living in them to spend far less on fuel than is currently the case in most houses across Scotland.

It is imperative that the UK Government urgently address the cost of energy across the UK. The large energy firms must be made to fulfil their social responsibilities. It is shameful that so many folk across the UK have to juggle heating and eating. Rolling out smart meters is not enough when people have no means of keeping warm. The fact that the Minister refers to an annual debate on fuel poverty should give us all pause for thought.

--- Later in debate ---

[Gill Furniss (Sheffield, Brightside and Hillsborough) (Lab)]

We are in a cold homes crisis, with more than 4 million households in fuel poverty across the UK. Across the UK in 2014-2015, there were 43,900 excess winter deaths. According to the World Health Organisation, a minimum of 30% of those deaths resulted from cold homes. In my constituency, there are 7,241 households struggling in fuel poverty. Life in fuel poverty is miserable. No one should be choosing between heating their home and eating. Children should not be growing up in cold, damp rooms. Old people should not have to stay in bed or live in just one room because they cannot warm their house.

This debate is happening because the last Administration’s fuel poverty strategy, published in 2015, mandated it to happen. The current statutory target is to lift as many fuel-poor households up to band C energy efficiency standard “as is reasonably practicable” by 2030. This Government’s record on fuel poverty and their performance against that target are abysmal and going nowhere fast. The charity National Energy Action estimates that at this rate we will miss the target by 80 years. Yes, 80 years. A baby born today will not see the end of fuel poverty in the UK in her lifetime. That is a scandal. That is approximately calculated by noting that around 30,000 fuel-poor houses per year are being brought up to band C. That is so far from what is needed that I do not know how the Government can defend it.

What response to this striking lack of progress have we had from the Government? They say that they will spend less on energy efficiency measures—measures that are recognised in their own fuel poverty strategy as the most sustainable way to make permanent progress on fuel poverty. Under a Labour Government in 2007, we saw 2.5 million energy efficiency measures implemented in a single year. That number has now fallen off a cliff. Under this Government’s policies, we will see 12% of that. Total investment fell by 53% between 2010 and 2015, and England is now the only UK nation without a Government-funded energy efficiency programme. That has not been the case for 30 years.

The Government lack the necessary political will and determination to address this injustice. It is so frustrating, not just because it condemns thousands of households to continued misery, indignity and ill health, and not just because the youngest, the oldest and the poorest in our society are hit hardest by fuel poverty, but because the solutions are so clearly and obviously sensible.

Properly addressing fuel poverty would ease the burden on the NHS. National Energy Action estimates that £1.6 billion is spent each year on treating the impacts of cold homes. Labour’s commitment to insulate 4 million homes would create over 100,000 jobs and apprenticeships, as well as training programmes across every region of the country. Those homes would have reduced energy bills, which is another key driver of fuel poverty. A report by Cambridge Econometrics and Verco found that every £1 invested in an ambitious energy efficiency programme such as Labour’s would return £3. The plan would reduce natural gas imports by 26% by 2030 due to reduced demand, save £8 billion a year on energy bills, increase relative GDP by 0.6% by 2030 and reduce carbon emissions.

One of the ways to bring energy efficiency measures to fuel-poor households is through the energy company obligation or ECO. The newly costed ECO will cost £640 million a year—a 42% reduction compared with the previous phase of the programme. While the Government may say that that is more tightly focused on fuel poverty, the reality is a massive funding cut. This Government are betraying those in fuel poverty and snubbing their own legal targets.

A key risk factor for those in fuel poverty is living in a household that is off the gas grid. Non-gas households rely on more expensive fuels, such as electricity and oil, to heat their homes and often live in harder-to-treat, energy-inefficient properties with no central heating or solid walls. Some 20% of fuel-poor households are off the gas grid, yet they have received only 1.4% of the measures under the affordable warmth element of ECO since 2013.

[James Heappey]

That ties in with the earlier point made by the hon. Member for Motherwell and Wishaw (Marion Fellows). We could encourage the electrification of heat as a solution for those who are off the gas grid. Heat pumps can operate efficiently and reduce heating costs for those who would otherwise be at the mercy of the oil market. Does the shadow Minister agree that that should be a priority for such customers?

[Gill Furniss]

The hon. Gentleman makes a good point. We must be bold in these areas and consider everything that we possibly can. I thank him for that intervention.

Gas distribution networks, which manage the network infrastructure that transports gas to homes and businesses across GB, should deliver 14,864 new connections to fuel-poor households, but funding for new central heating systems available through the ECO is limited to 4,000 systems, so funding is lacking for over 10,000 households. In the spring Budget, the Chancellor completely failed to act on that and provided no extra funding to ensure that the most affected fuel-poor households are given the support to stay warm. Regrettably, that seems to be a running theme in the Government’s approach to tackling fuel poverty. Given the shortage of funds, I hope the Minister can explain how exactly the Government intend to tackle the off-gas homes that are most at risk of severe fuel poverty.

The warm homes discount is an annual payment of £140 to around 2.1 million households to relieve pressure on their energy bills, but it was revealed last year that only 15% of those in receipt of the discount were actually in fuel poverty. The Treasury, then under the new editor of the Evening Standard, said that the system was working, but the scheme’s targeting is a total failure. The Minister for Climate Change and Industry said in a Delegated Legislation Committee last year that the Government would address that through better data-sharing in the Digital Economy Bill, but the Government are yet to explain how they will improve targeting.

A co-ordinated, comprehensive approach to fuel poverty at a local level can be key to tackling the cold homes crisis. In its 2015 cold weather plan, Public Health England made it clear that fuel poverty and reducing excess winter illness and death should be deemed core business by health and wellbeing boards and should be included in their strategy plans. However, research has found that 40% of the 152 health and wellbeing boards in England failed to address fuel poverty in their strategies. I have written to my local health and wellbeing board to ask them about its progress on implementing the National Institute for Health and Care Excellence guidelines. It replied that the savage cuts to local funding and the lack of Government funding to address fuel poverty directly have made it difficult to implement the NICE guidelines fully. This Government have been standing still on fuel poverty and going backwards on energy efficiency measures to address it.

--- Later in debate ---

[Gill Furniss]

That is absolutely the way forward. We should be looking at new build homes that contain all the necessary measures, and many Departments have a part to play in that. Sheffield Heat and Power is good example of how to take waste and turn it into energy. That is what I mean when I said that we must be bold. We have to take every opportunity and learn lessons from other countries.

[James Heappey]

Will the hon. Lady give way?

[Gill Furniss]

No, I must move on.

The Government’s flagship green deal policy is universally recognised as a failure. It was well intentioned, but we warned at the time that implementation was going very badly. By the end, the green deal improved only 15,000 homes at a cost of £17,000 per home. No replacement policy is in sight so far as I am aware.

The Government have cancelled the zero-carbon homes initiative. By contrast, Labour would build 1 million new carbon-neutral homes and insulate 4 million more. Labour would roll out a £90 million “homes for heroes” programme that offers free home insulation to disabled veterans. The Labour party has committed to making energy efficiency a key infrastructure priority. That makes economic sense and is the right thing for the future of the UK.

Industrial Strategy Consultation

James Heappey Excerpts

Monday 23rd January 2017 Commons Chamber

[Greg Clark]

They are both important. The third of the three challenges I mentioned at the beginning of my statement was to make and keep the UK as one of the best places in the world to found or grow a business, and both of the policies my hon. Friend mentions are crucial to that. This country has succeeded in creating and hosting new businesses in recent years partly because we in the Conservative party have had that very much in mind.

[James Heappey (Wells) (Con)]

I congratulate the Secretary of State and his team on the Green Paper and welcome the recognition that the digitisation of our energy system and the inclusion of storage and demand-management technologies will improve productivity as keenly as any other infrastructure improvement. Does he agree that the UK could and should be the world leader in clean tech, and does he share my view that the south-west would be an ideal focal point for the UK’s growth in that sector?

[Greg Clark]

I certainly agree with the first proposition; we have an opportunity there. On the second, I would say that my hon. Friend is commendably vigorous in his promotion of the south-west, which will have a very big role to play. So, too, will other parts of the country: Cumbria, for example, with its strong nuclear cluster; and the east coast with its expertise in marine engineering and supplying offshore wind. All parts of the UK can benefit from our leadership in clean growth.

Oral Answers to Questions

James Heappey Excerpts

Tuesday 13th December 2016 Commons Chamber

[Jesse Norman]

All I can do is refer the hon. Gentleman to the earlier remarks of my hon. Friend the Member for Ruislip, Northwood and Pinner (Mr Hurd) on this topic.

[James Heappey (Wells) (Con)]

Will the Minister join me in congratulating Avalon community energy on completion of its solar PV installation at Brookside school in Street? Does he agree that such schemes create a greener and cheaper energy system and afford us greater security of supply?

[Jesse Norman]

I certainly do, and I am very glad that my hon. Friend has brought that to the attention of the House.

Smart Meter Roll-out

James Heappey Excerpts

Tuesday 6th December 2016 Westminster Hall

[James Heappey (Wells) (Con)]

It is a pleasure to serve under your chairmanship, Mr Gapes. I will not speak for long, so that the Minister will be able to reply to the right hon. Member for Orkney and Shetland (Mr Carmichael), with whom I had the pleasure of serving on the Energy and Climate Change Committee for 18 months. I rise to endorse all that he has said. He identified a lot of issues with the smart meter roll-out, and it would be good to know that the Government are aware of them. From all my conversations with Ministers, I am confident that they see the problems and are seeking to tackle them, but the timeline that was set, which the previous Secretary of State and the previous Minister of State in DECC both told our Committee they were fully confident of achieving, does not seem quite as achievable as the Committee was told it might be.

I hope that the Department for Business, Energy and Industrial Strategy will embrace the importance of digitising the energy system and the role of smart meters within that. Digitising the energy system is key to delivering a decentralised generation system and to being able to load-shift, and therefore being able to flatten supply and demand curves and achieve greater energy security through less demand. It is also key to achieving greater efficiency in how we use energy, which, of course, will lead to lower prices. Smart meters in homes and businesses are the linchpin of achieving that.

However, I also absolutely agree that there has to be a user experience. A mysterious grey box of tricks that gets put in underneath somebody’s stairs, and if it does not have the connectivity that it should, so that it does not work, the perception is immediately that it does not do anything and is a bit useless. We need to ensure that smart meters work from the get-go. They also need to be accessible. The in-home displays are great, but there is an odd thing whereby people can only start with a certain screen. Many consumers have said that it would be better if the default screen showed the financial usage, so changing that would be helpful.

We need to make sure that the energy market is set up to allow smart meters to deliver real savings through half-hourly settlement. At the moment, all that people can really do is go round their house like the Ghostbusters, with their in-hand displays, seeking the thing that is using energy at any one time. The savings are not insignificant, but they are a fraction of the savings that could be unlocked if we properly digitised people’s home and business energy by putting smart meters in and ensuring that they worked and that the market was set up to take advantage of that digitisation.

The arrival of the Department for Business, Energy and Industrial Strategy is actually a huge opportunity within the smart meter roll-out, because under one roof there is now responsibility for not only energy policy and the energy market but consumers, tech and innovation. Seeing all those things as part of the roll-out is helpful, instead of the Department of Energy and Climate Change potentially seeing it as an energy policy issue and the Department for Business, Innovation and Skills as a consumer issue.

My final plea is that the Department seizes the opportunity to make sure that smart meters are future-proofed, so that the internet of things can be operated through and around them and the home experience really works. My sense is that people will see the benefits of having a smart meter in an IoT-enabled home not purely from an energy perspective, but in terms of the wider consumer experience, and that they will be very grateful for the energy savings that come with it.