Fuel Poverty

Jim Shannon Excerpts

Thursday 8th July 2021 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

As always, it is a pleasure to speak on this issue. As others have said, fuel poverty is a devolved matter, but energy prices and incomes are the responsibility of this place, so this debate is as pertinent to my constituents as it is to anyone elsewhere. I was involved in this issue in my former role in the Northern Ireland Assembly, and also on the council, where we had many initiatives to address fuel poverty. It was good to be involved in those initiatives, because those sorts of issues were coming into my office on a regular basis.

The pandemic has exacerbated the issue of fuel poverty. For me, when I was at home and unable to do visits, I was still able to do some of the work around the farm. I am sure everyone has heard people being described as a Jack of all trades and a master of none. I would not say that I was a master of none. I can probably make sure the carpentry stays together and the electrics do not break down, but does it look pretty? Probably not. Maybe that is the difference between a skilled person and me.

For many others, however, lockdown was almost a time of captivity, and those on the poverty threshold who lived above the benefit cap and whose wages were then reduced to 80% had to make every penny count when they were restricted to their homes. When people are in their homes for a long period of time, their heating bills go up. For those who worked in offices, HMRC allowed an allowance to be claimed against tax when they were working from home. That was not available for those on furlough, however. Fuel poverty in our nation is very real and it has been felt more than ever during the covid lockdown. People could not head to their mum’s or their sister’s for the day to use their heating; they had to heat their own home or sit there in blankets and extra clothes, as others have said. That is not a picture I normally associate with the UK, yet data has shown that that was the case.

In August, Citizens Advice estimated that 2.8 million UK adults had fallen behind on their energy bills. The Policy Institute at King’s College in London estimated that three in 10 people had experienced a reduction in their income as a result of coronavirus, that three in 10 people had cut back on non-essential spending, and that only two in 10 had more money left at the end of the month. The combination of reduced incomes and increased debt has had a profound impact on householders. A National Energy Action survey of organisations working to support fuel-poor households found that three quarters said that there was a high risk of an increased build-up of fuel debt as a direct result of the pandemic.

I chair the all-party parliamentary group for healthy homes and buildings, and one of the things we are interested in is the insulation of homes and making homes more suitable for people. We have done an inquiry on that, and for me this issue is incredibly important. The APPG on fuel poverty and energy efficiency has produced a marvellous briefing with a number of key points that I absolutely agree with. One of the most pertinent is that, within the upcoming heat and building strategy, the UK Government must set out a clear energy efficiency standard for both the private and social rented sectors. The briefing further highlighted that in the Government’s plans to reach net zero, regulating retail energy markets and increasing incomes must work alongside energy efficiency improvements to support all UK nations to end fuel poverty and to achieve a fair and affordable energy transition.

It is said that meeting the net zero targets could result in as much as a 20% increase in energy costs. If the experts are right and that is the case, we could have a problem. It is great to set targets for ourselves, but they must be achievable. I could set myself a target to learn Mandarin Chinese during recess, if I had the time and I was not so busy, but the reality is that learning that beautiful, complex language in that short space of time is highly unlikely. The point I am making is that targets must be achievable, which means that resources must be in place and schemes must be available to all earners and non-earners to update wall insulation, which cuts energy bills and as a bonus is better for the environment. We must commit to resourcing those schemes.

We must also commit not simply to uplifting income for some families but to changing the way they spend their money. A households is said to be in fuel poverty if it needs to spend more than 10% of its income on energy costs. In Northern Ireland, the rate of fuel poverty is 22%. Three factors can and must be addressed by the Government: income, the cost of energy and the domestic energy efficiency of homes. The need is clear and the path is clear. We must begin the journey remembering to bring the working poor and those who are on benefits with us. If we do that—and I believe the Government have that commitment—we can achieve something.