Fuel Poverty

Jim Cunningham Excerpts

Tuesday 21st March 2017 Commons Chamber

[Marion Fellows (Motherwell and Wishaw) (SNP)]

I want to approach today’s debate from the perspective of older people and those who are particularly vulnerable as a result of fuel poverty. I want to be a voice for the people in Scotland who are disproportionately affected by fuel poverty, as others are across the United Kingdom. I commend my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) for talking about the difficulties faced by those in his constituency and throughout the highlands.

In Scotland, 58% of single pensioner households are in fuel poverty, as are 44% of pensioner couples. The UK as a whole has one of the highest rates of fuel poverty and one of the most inefficient housing stocks in Europe. Fuel poverty rates are higher in Scotland. It is an indisputable fact that more often than not it is colder in Braemar than in Bournemouth, and that means that houses must be heated from a lower ambient temperature and for longer periods throughout the year.

Today in London the sun is shining, and although it is cold, older and vulnerable people could probably venture outside. This morning I received two picture messages showing snow lying on the ground outside my Wishaw home. Not many older or vulnerable people will be venturing outside there until it thaws. They will need to heat their homes in the meantime, and the cost of heating those homes is a burden that many of them simply cannot afford. That is shameful. When people are old, infirm or immobile, the cost of heating can be excessive, especially for those on low fixed incomes.

Many in fuel poverty will be using prepayment meters to pay for the cost of heating their homes. Consumers who are in arrears with gas or electricity bills can be switched to prepayment meters. According to Ofgem, more than 90% of those consumers are currently not repaying a debt, and are therefore unable to switch to different tariffs that could cut their fuel costs. Switching is absolutely impossible for them.

There are two main ways of tackling fuel poverty. One is to make homes more energy-efficient, and, as housing is a devolved competence, the Scottish Government have poured significant resources into making homes more affordable to heat.

[Mr Jim Cunningham (Coventry South) (Lab)]

Is the hon. Lady aware that electricity prices have risen by about 125% overall, and gas prices have risen by about 75%? More important from the point of view of older people, the Government have withdrawn their green deal. Houses could have been insulated against cold weather. I hope that the Minister will respond to that point when he winds up the debate.

[Marion Fellows]

I thank the hon. Gentleman for making that point. Thank goodness I live in Scotland, because the Scottish Government are pouring even more money into making homes more energy-efficient. I myself have benefited from a deal whereby my loft was insulated at no cost, because by that time both my husband and I were of pensionable age. In fact, I think that it was only my husband who was of pensionable age. May I make a plea for that?

--- Later in debate ---

[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.

[Mr Jim Cunningham]

We debated this matter in the previous Parliament, but we never seem to resolve it. The Prime Minister has hinted that she may put a cap on prices, but if she is going to do that, she should really tackle the big six cabal, which was raised in the House last week. It is not good enough to tell people that they should shop around and get a different supplier—that does not work. It is about time that this Government put their money where their mouth is and tackled the big cartel.

[Gill Furniss]

My hon. Friend’s intervention is timely in that several hon. Members have put that case well. The Labour party’s last manifesto proposed to freeze the energy prices of the big six.

--- Later in debate ---

[Jesse Norman]

If the hon. Lady had attended closely to my opening remarks, she would have heard me acknowledge that the scheme has been reduced in size but that funding for more vulnerable groups has been increased. If we combine that with the wider support through the warm home discount, let alone the national living wage and other applicable measures, we see that the Government are doing a great deal in that area.

[Mr Jim Cunningham]

The Minister just said that funding for vulnerable groups has actually increased. By what does he measure that? What is the actual figure?

[Jesse Norman]

I have just covered that. I am embarrassed that my remarks should be so ill-attended. The regulations for the new scheme, which launches on 1 April 2017, represent an increase from £310 million to £450 million a year. Combined with the warm home discount, that gives £770 million of support for low-income and vulnerable customers in 2017-18.

We have also taken steps to improve targeting. The eligibility criteria for the ECO scheme, which is proposed to run from April 2017 to the end of September 2018, will improve the targeting rate to 34%. We do not believe that is enough. The targeting rate can go higher, and the Digital Economy Bill, which the hon. Member for Sheffield, Brightside and Hillsborough mentioned, is currently going through Parliament and will enable greater data sharing and give the Government the opportunity to improve the targeting of the next generation of fuel poverty schemes, including the warm home discount.

When the regulations were made last summer, the Government stated that there is more to be done to target the schemes at those who most need them. That is still true, with the current targeting rate of fuel poor households at around 15%. However, Members should note that increasing that proportion in the current scheme, which is committed to 2021, would be at a cost to other low-income households. We will be mindful of that factor when making decisions on the future direction of the scheme.

The hon. Member for Motherwell and Wishaw (Marion Fellows) criticised the Government, whom she regarded as presiding over stagnant real incomes. All I can do is direct her to the fact that, last year, full-time pay grew by 0.7% in Scotland, whereas it grew by 1.9% in the UK as a whole. According to Scottish Parliament numbers, it fell for the three years following 2012.

I yield to no one in my admiration for the hon. Member for Ross, Skye and Lochaber (Ian Blackford), and I was grateful for his support in being elected Chair of the Culture, Media and Sport Committee. He also comes from a nation I deeply revere and whose history I greatly respect, but I am afraid that he has embarrassed himself in this debate with an unworthy attempt to personalise a very serious set of issues. Mine was a response to the gap, which the stricture on unparliamentary language prevents me from describing as anything more than disingenuous, between his words and his deeds. The fact of the matter is that these matters are devolved. Even so, the Government have offered support, as I described, through the ECO, the warm home discount and a hydro benefit replacement scheme of £58 million to reduce energy distribution charges. Were network charges made universal across the country, as he desired, 1.8 million people in Scotland would face higher bills, and only 0.7% would see reductions. Does he really wish to add to the bills of 1.1 million Scotsmen and women?