Nuclear Power

Jonathan Edwards Excerpts

Monday 4th June 2018 Commons Chamber

[Greg Clark]

No. The NAO report noted that all major energy projects have some involvement with the state. That is a feature of the current market not just in this country but around the world. We want to drive the best value for money for both the taxpayer and the bill payer.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Now that the British Government have decided to invest directly in nuclear projects, surely they will be doing the same for other energy projects, such as the Swansea Bay tidal lagoon, or will this be determined solely on the basis of the contract for difference financing model?

Mineworkers’ Pension Scheme

Jonathan Edwards Excerpts

Tuesday 5th December 2017 Westminster Hall

[Nick Smith]

I agree. More parliamentary consideration of this important initiative and where it goes next would be valuable.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

I congratulate the hon. Gentleman on securing this important debate, the tone of his remarks to date and the manner in which he and colleagues are campaigning. Will he explain why during 13 years of Labour Government the deal with the trustees was not renegotiated at all?

[Nick Smith]

The hon. Gentleman makes a fair point, but this is not about looking backwards but about looking forwards and looking after the hundreds of thousands of people I mentioned in my introduction.

The Government have provided the guarantee, which is an important commitment, but I would like to ask the Minister three things and I would like three answers today, please. How many other pension schemes that the Government guarantee have delivered them a windfall of billions similar to that in this instance? Do the Government still think that the 50:50 share of the surplus is fair? Importantly, will the Government consider taking a reduced share in the future?

It has been estimated that the Government will receive windfalls of £51 million each year between 2016 and 2019—another £200 million. Lots of people feel that that belongs to the retired miners, not the Government, and I agree with them. Today, I call on the Government to revisit the surplus sharing arrangements, and in particular I urge them to meet the trustees of the scheme to chart a way forward. I am sure that I speak for many colleagues in saying that there is support for change in our constituencies, and that we should do the right thing by retired mineworkers and their families. The time has come for a better way to help the trustees support our communities. This is the miners’ money. They earned it through years of hard work at the coalface, and they deserve a better and fairer share of it.

--- Later in debate ---

[The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Richard Harrington)]

It is an honour to serve under your chairmanship for what I think is the first time, Mr Paisley—I hope it will not be the last—and I thank the hon. Member for Blaenau Gwent (Nick Smith) for securing this debate, and other hon. Members for their contributions.

Pensions are complex, and I asked to respond to this debate on behalf of the Government because I was previously the Pensions Minister. Although I was not involved specifically with this case, that role gave me—I hope—an understanding of all aspects of pension funds. The Philip Green case received a lot of publicity, and there are lots of other cases, but this is the first time that I have come across a pension fund in such a situation of surplus, compared with the usual story these days of low interest rates and low returns for investors.

In his eloquent speech, the hon. Gentleman asked whether there were other schemes of a similar nature, and the only one that I have come across—again, this was in my previous role—is the rail workers’ pension scheme, which, as I remember, was significantly in deficit all the time. I have not previously come across this type of circumstance, but if by chance I find other examples, I will meet or write to the hon. Gentleman.

I know that time is limited and the hon. Gentleman may want to respond to the debate, so I will do my best to keep within the time allowed. The mineworkers’ pension scheme is big—it has 177,000 members, pays pensions at an annual cost of more than £800 million, and has assets in excess of £11 billion. It is managed by the trustees. The Government’s role is as guarantor. Officials in the Department meet the trustees regularly to discuss the operation of the scheme. Many hon. Members, including my hon. Friend the Member for Mansfield (Ben Bradley), have also met those trustees—they seem rather more open to meeting than other trustees I have known, which is good. I have not had the chance to meet them, but if I had had, I certainly would have done.

When the scheme was set up in 1952, members contributed no more than 20p a week, and benefits were small. From 1975, contributions and benefits were linked to members’ salaries, with British Coal making up the difference. At privatisation, the Government took on the role of British Coal, and the scheme had a surplus in 1994, half of which was used to enhance members’ pensions immediately, with the other 50% payable to the guarantor. The Government of the day agreed to leave their share of the surplus in the scheme as an investment return. Those arrangements were agreed between the trustees and the Government in their role as guarantor—hence the mineworkers’ pension scheme of 1994. At that time, all parties believed the equal sharing to be a fair settlement—this arrangement did not come about in conflict or anything like that; it was agreed to be a fair way of proceeding. The Government receive their share not because of their guarantor status—that is a big issue in the financial world, because it allows a much greater risk profile than a normal pension fund could have—but also because of the contributions that they have made to the scheme to make up the pool of money. Again, neither of those points are particularly controversial in themselves.

The guarantee means, of course, that however bad the work of the trustees—it is not bad; please do not think I am saying that, but in theory the trustees could be really poor investors who did not do their job—the Government would have to stand by and underwrite the money to pay the pensions. That is what a guarantee would do. We see adverts all the time in which people are lent money with someone else guaranteeing it, but they do not quite say that the guarantor will pick up the bill if the person concerned does not pay. That principle is true in this case. It ensures that guaranteed pensions, including inflation increases, will always be paid, as long as the Government can pay—and hopefully that will be so for the rest of our lifetimes and many more to come.

It is indeed the case that early projections underestimated how well the scheme would perform. It was not expected to perform as well as it has.

[Jonathan Edwards]

How many times since the 1994 deal was struck have the Government had to step in with any cash to bankroll the scheme?

[Richard Harrington]

I think the implication of the hon. Gentleman’s question is that he knows the answer, which I do not, and that it is zero, but I should like to write to him formally, because I do not want to inadvertently mislead anyone. I do not have the information to hand, but if he will bear with me until later today, I shall make sure he gets a letter or email straight away. It is a reasonable question, but, if I may put words into his mouth—although one never should—I think he really means to say that the Government have never been called on to put money in. I think that is a reasonable assumption; the scheme is unlike others, in that respect. However, Governments get a reward, as anyone would, for risk, and just because things are working one way, that does not mean that they always have or always will. I think that most people would accept that. By the way, I heard nothing unreasonable in the speeches that hon. Members made during the debate. There is realism here; it is a question of judgment about what to do with the surplus.

Some hon. Members have argued that the Government are taking money from scheme members. I think the word “robbery” was used, which is a bit inflamed, but I know what it means—that it is something improper. Others say that the pensions would be higher if the Government did not take their share of the surplus. Both those views might be true, but they do not present the full picture, because pensions are paid according to the scheme rules, so that the sums due to scheme members would not change. They could potentially benefit from bigger bonuses if they had a greater share of surpluses, but in that environment the trustees’ investment strategy would be more risk-averse, and returns could be less than they currently are. In any event, would it be fair to ask taxpayers to take all the risk with none of the benefits?

The scheme has been a success, and at least the money is there.

Budget Resolutions

Jonathan Edwards Excerpts

1st reading: House of Commons
Tuesday 28th November 2017 Commons Chamber

[Greg Clark]

My hon. Friend is absolutely right to say that hydrogen offers big advantages. It is a clean fuel, and this country has great expertise in developing and applying it.

Let me say something about business finance, which has already come up in the debate. In a strategy that connects our areas of strength, it is essential that we allow the businesses that are growing across our country to benefit much more than previously from our financial services sector, which is one of the most significant in the world. The deep pool of capital that we have should be available to growing companies up and down the country. The Budget therefore includes a new £2.5 billion investment fund, incubated in the British Business Bank, to drive forward more investment into growing companies across the country. The British Business Bank will establish a network of regional managers by autumn next year, ensuring that it is not just in London and the south-east that these sources of finance and advice are available, as it is essential that they are in place right across the UK.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The reality is that the Office for Budget Responsibility downgraded forecasts for business investment, productivity and growth in the economy for the entire forecasting period, so what the Chancellor announced in last week’s Budget clearly does not go far enough.

[Greg Clark]

I think the hon. Gentleman misunderstands what was said. The OBR recognised that its forecast that the productivity rate would recover after the financial crisis, which it has been making for many years, has not been realised. There has been no new event; it has just recognised what has happened, which has had consequences for the financial forecasts. Faced with that, the right thing to do is to look seriously for the long term—I do not think that this matter divides Members—at how we can act on the foundations of productivity. Talking about investment in research and development, the infrastructure that we depend on and sources of finance for growing businesses in every part of the country is a serious response to the OBR’s revised productivity forecast.

Industrial Strategy

Jonathan Edwards Excerpts

Monday 27th November 2017 Commons Chamber

[Greg Clark]

I am grateful to my hon. Friend for what he has said. I particularly commend the Mayor of Tees Valley, Ben Houchen, who was instrumental in, for instance, the proposals for the regeneration of former sites of special scientific interest that has been so well received on Teesside. I am aware that my hon. Friend initiated a successful Westminster Hall debate on this subject. As he knows, we want to get on with testing technology for carbon capture, utilisation and storage, and Teesside offers a particularly attractive environment for that because of the connections between the different users and suppliers in the area, but there needs to be a competition that can lead to an award. I know that my hon. Friend is proceeding with that, and I know that Teesside will be very well placed.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Page 218 of the White Paper shows that, after decades of economic misrule from Westminster, gross value added per hour worked in central London is 150% of the UK average, while in Wales it is only 81.4%. Therefore, a litmus test for the Secretary of State’s strategy should be how it tackles geographic productivity and wealth inequalities. What benchmarks is he using to determine success or failure in addressing those challenges?

[Greg Clark]

The hon. Gentleman is right to raise the issue. The productivity challenge that we face is about disparities. We have some of the most productive people and places in the world, but we have other places that are behind that level. The relentless focus of the industrial strategy is therefore on how we can close that gap by raising the earning power of those who are following. He will see that Wales—its industries and training and education system—is a prime area of focus throughout the strategy. I was pleased to work with Ken Skates, the Minister in the Welsh Assembly Government, to co-ordinate our work precisely to close that gap.

Student Loans Company

Jonathan Edwards Excerpts

Monday 20th November 2017 Commons Chamber

[Joseph Johnson]

Mr Lamey did not live up to the standards the SLC board felt were required for his role, so it took action to dismiss him, and the Department for Education followed on by removing his function as accounting officer. We want the SLC to continue to be a high-performing organisation, and we should remember that overall it is a successful organisation, with just 0.1% of its customers complaining every year. Many private sector organisations would envy such a record.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

In his initial response, the Minister referred to last week’s “Panorama” revelations. Is he aware of any Welsh higher education institutions that have been caught up in fraudulent activity, and what discussions has he had with the Welsh Government?

[Joseph Johnson]

I am personally not aware of any such allegations, but they would be a matter for the Higher Education Funding Council for Wales and the Welsh regulatory authorities. If the hon. Gentleman is aware of any, he should not lose any time in relaying his concerns to the appropriate bodies.

European Union (Approvals) Bill

Jonathan Edwards Excerpts

3rd reading: House of Commons & Committee: 1st sitting: House of Commons & Report stage: House of Commons
Tuesday 10th October 2017 Commons Chamber

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It has been said by some that this Bill lacks substance, that this is a perfunctory debate and that it has little significance. I think that could not be further from the truth. For our actions here in the House this evening demonstrate beyond any discernible doubt that up to and until the point that we leave the European Union, we will continue to use our rights and obligations as full members of that institution, demonstrating that in the United Kingdom the European Union will retain the closest of friends, the strongest of allies and the most dependable of partners.

In that spirit, with our desire to do the right thing by our neighbours and echoing the Prime Minister’s comments yesterday when she reaffirmed our commitment to a peaceful, secure and prosperous future for Europe, it is right that we approve the decisions of the European Union Council. Few other single acts could better signal our desire for a peaceful and prosperous Europe than the granting to Serbia and Albania of observer status in the European Union’s Fundamental Rights Agency.

We cannot forget that it was less than 20 years ago that British and other NATO troops were deployed in the Balkans in the midst of an horrific conflict that we hoped we would never see the likes of in Europe again. While I am sure that all in this House would agree that more should and could be done, with the Council of Europe among others, regarding the pursuit of war crimes in Serbia, and on judicial reform, anti-discrimination policies, illegal migration, organised crime and protections of fundamental freedoms, it is surely a mark of the huge progress made in all these areas by the respective countries that the Council of the EU has seen fit to recommend that they be granted observer status as part of their EU candidate status.

Using our rights and obligations to the full until we leave, as we should, it is right that the UK supports Albania in its accession efforts and Serbia in its reform projects. Our giving consent to these—

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

The hon. Gentleman makes an important point about encouraging the enlargement of the EU across the Balkan countries. On that count, does he also support the application of countries such as Montenegro, Macedonia, Kosovo and Bosnia?

[Andrew Bowie]

Each application has to be looked at in its own individual context. It is obviously not for me or this House to decide where each state is in terms of its candidate status, but for the Council of the European Union. I know that that is going through at this very moment.

The third and fourth decisions of the EU Council are necessary to implement a co-operation agreement between the European Union and Canada on competition enforcement. Canada is one of the United Kingdom’s oldest and closest partners: we have been allies in conflicts for over a century and we have a shared past, strong family links and shared values. As if to underline that closeness, Canadian and British troops, as well as European and other NATO service personnel, are working closely, side by side, as part of Exercise Joint Warrior along the north coast of Scotland. It is because of this closeness, and our shared history and values, that many in this House and beyond find it so frustrating that it has taken over eight years for the Comprehensive Economic and Trade Agreement to be agreed between the European Union and Canada. Even then, it almost came unstuck due to the complex internal machinations of Wallonian politics—I was going to make a comment about unchecked devolution, but I have thought better of it. I just wonder whether a UK-Canada free trade deal might take a slightly shorter time.

Taylor Review: Working Practices

Jonathan Edwards Excerpts

Tuesday 11th July 2017 Commons Chamber

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Disappointingly, the report does not go far enough on the issue of zero-hours contracts. The Labour Welsh Government have failed to support the prohibition of zero-hours contracts in devolved areas on seven occasions. Is it not the case that vulnerable workers in Wales are being let down by both the Tories and the Labour party?

[Margot James]

As I have said, many individuals want to work in the flexible way that is afforded by zero-hours contracts, and almost 70% of people on those contracts are happy with their hours. As I have also said, we must take steps to promote the value of good work as an opportunity for the third who are not, whether they are in Wales or the rest of the United Kingdom.

European Union (Approvals) Bill

Jonathan Edwards Excerpts

2nd reading: House of Commons
Tuesday 4th July 2017 Commons Chamber

[John Redwood (Wokingham) (Con)]

Will the Minister give way?

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

Will the Minister give way?

[Margot James]

I will make a bit of progress. I am concluding my remarks on Canada and trade. I will give way to my right hon. Friend the Member for Wokingham (John Redwood) when I have made further progress.

It is therefore clearly in the UK’s interests to approve the draft decisions. Delaying the decisions could have a negative impact on the UK’s exit negotiations, including discussions on any future framework. There will, of course, be further opportunities to examine more fundamental aspects.

--- Later in debate ---

[Margot James]

I accept the first part of what my right hon. Friend says, but I do not wish to predict what the UK and Canada may find it important to discuss in their trade relationship in the years to come.

[Jonathan Edwards]

Will the Minister give way?

[Margot James]

I will make a bit more progress and then I will give way.

The first two decisions will enable two countries, the Republic of Albania and the Republic of Serbia, to be granted observer status in the EU’s Fundamental Rights Agency. Before I go any further on that point, I will give way to the hon. Gentleman.

[Jonathan Edwards]

I am grateful to the Minister for giving way. I was not going to raise a point on CETA this afternoon, but as it has been raised by her colleagues I just wondered what estimate the UK Government have given to renegotiating a CETA-type Canada deal following Brexit.

[Margot James]

I thank the hon. Gentleman for his intervention, but I remind him of the scope of the Bill. It does not include much detailed discussion about our future trade relationship with Canada. For the avoidance of doubt, the Canadian decisions are about competition law, not trade.

The Fundamental Rights Agency was set up to support EU institutions and EU member states by improving the knowledge and awareness of fundamental rights issues in the EU, with a view to ensuring respect for fundamental rights. The agency does this through the collection and analysis of information and data. It can also formulate opinions on specific topics, either on its own initiative or at the request of EU institutions. It also has a role in communicating and raising awareness of fundamental rights, but it cannot hear individual complaints. EU accession candidate countries can be given observer status at the agency. This allows the agency to collect and analyse fundamental rights data from those countries, but it does not allow them the right to vote in decisions as part of the agency’s management board.

--- Later in debate ---

[Margot James]

To correct the hon. Gentleman, I do not think I said that I thought there would be improvements; I said that I thought it would be a mark of progress. I was trying to limit my enthusiasm to that degree, mindful of what he says about Croatia. However, I would say that it is early days and we can only go down the path of progress. The UK continues to support Serbia on its reform path, including through funding projects in Serbia.

Serbia has more work to do on anti-discrimination policies, improving the situation for vulnerable people and ensuring freedom of expression. Observer status at the Fundamental Rights Agency should help Albania and Serbia to reform in the areas we are discussing. Albania and Serbia should also be allowed to benefit from instances of good practice and evidence from other EU member states in relation to human rights. The Government are therefore satisfied of the need to support these two decisions.

The third and fourth decisions are necessary to implement a co-operation agreement between the EU and Canada on competition enforcement. The decisions will allow the agreement to be signed and allow conclusion of the agreement after it has been approved by the European Parliament. This competition co-operation agreement will replace an existing agreement that has been in place since 1999. It replicates and builds on the provisions in the earlier agreement by allowing the European Commission and the Canadian Competition Bureau to exchange evidence obtained during investigations, including confidential information and personal data.

The existing co-operation agreement with Canada dates from June 1999, and at that time the exchange of evidence between the parties was not regarded as needed. In the meantime, the bilateral co-operation between the European Commission and the Canadian Competition Bureau has become more frequent and deeper in terms of substance.

[Jonathan Edwards]

The Government have already told the Exiting the European Union Committee, on which I served during the last Parliament, that following our withdrawal from the EU we will no longer benefit from, for instance, the information exchange agreements between our competition regulator and the Canadian Competition Bureau. That renders much of the Bill rather pointless, does it not? Can the Minister explain how pulling us out of global deals such as the one that we are discussing will be helpful?

[Margot James]

I have explained that the purpose of the decision is primarily to support our role as a continuing member of the EU until the negotiations are complete, in two years’ time. Until then we will be covered by it, but after that date we shall have to see what has been agreed during the negotiations. The existing competition agreement with Canada does not allow the sharing of confidential information, but the new one does. I shall return to that point in a few minutes.

The absence of the possibility of exchanging information with the Canadian Competition Bureau is regarded as a major impediment to effective co-operation. The proposed changes in the existing agreement will allow the European Commission and the Competition Bureau to exchange evidence that both sides have obtained in their investigations. That will be particularly useful in all cases in which the alleged anti-competitive behaviour affects transatlantic or world markets. Many worldwide or transatlantic cartels include Canada and, via Canada, the Commission will gain a good opportunity to have access to additional information concerning those cartels.

Co-operation with third-country competition authorities is now standard practice in international competition investigations. In addition to the agreement with Canada, the EU has concluded dedicated co-operation agreements with the United States, Japan, Korea and Switzerland.

I now return to the intervention by the hon. Member for Carmarthen East and Dinefwr (Jonathan Edwards). I omitted to say that even after the Brexit negotiations have been completed, the competition agreement with Canada will continue to apply to British companies if they are trading with the single market of the European Union.

The most advanced agreement is the one with Switzerland, which already contains provisions on the exchange of evidence, and the proposed update would bring the agreement with Canada to the same level as the one concluded with Switzerland.

I am sure Members will agree that the ability to share information is increasingly important for effective and efficient international competition enforcement. Access to information from other jurisdictions can be important to the reaching of a robust enforcement decision. Co-operation and information sharing between jurisdictions can help to ensure that enforcement bodies do not reach different decisions based on different sets of information.

The agreement contains general safeguards for the transfer of information, and additional safeguards for the transfer of personal data. Personal data can be shared only with the express written consent of the person or company to whom they relate. In the absence of consent, such data can be shared only when both competition authorities are investigating the same related conduct or transaction. Furthermore, the transfer of the data will be subject to independent oversight. The agreement also contains safeguards for information provided by a company under the EU cartel immunity or leniency programme. Such information cannot be shared without the express written consent of the individual or company that provided it.

As I have noted, the decisions will have no financial implications for the UK. I confirm that I do not consider that any of the Bill’s provisions interfere with the rights set out in the European convention on human rights, so no issues arise in connection with its compatibility with those rights.

Energy Price Cap

Jonathan Edwards Excerpts

Monday 3rd July 2017 Commons Chamber

[Greg Clark]

I agree with my hon. Friend. While there should certainly not be barriers in the way, it also should not be necessary for people to spend every evening on the internet checking whether their bill has gone up by an outrageous margin. If people are loyal to a brand, it is not unreasonable for them to expect to be treated reasonably, especially as that brand may be a trusted brand. The regulator should enforce that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

We produce far more electricity in Wales than we use, yet we pay the highest electricity prices in the British state. More than a third of our households are in fuel poverty. Does that not suggest that Westminster control over Welsh energy policy is not working?

Fuel Poverty

Jonathan Edwards Excerpts

Tuesday 21st March 2017 Commons Chamber

[The Minister for Climate Change and Industry (Mr Nick Hurd)]

I beg to move,

That this House has considered fuel poverty.

I am delighted to open the first annual debate on the important issue of fuel poverty. The fact remains that far too many of our fellow citizens and constituents struggle to afford to keep their homes at reasonable, comfortable temperatures. As I will argue, we are making progress, with some 780,000 fewer fuel-poor homes in 2014 than in 2010, but there is a lot more to do to meet the demanding targets we have rightly set ourselves, as a country, for 2030. It is quite right that the Government of the day are regularly held to account for what they are doing, and encouraging others to do, in the face of this stubborn and complex social challenge.

The debate is important because it is an opportunity for Government and Parliament to hear directly from MPs from across the nation about their experience and insights. In our day-to-day work, we, as MPs, come across the consequences of fuel poverty, not least its impact on the wellbeing and health of our constituents.

Before we get into the discussion, I want to set out the context. Over the past five years, Government have taken action to overhaul the framework for tackling fuel poverty in England. At long last, we have a long-term strategic framework for action on fuel poverty, which is rooted in the 2015 fuel poverty strategy and the long-term statutory target. The journey began in 2012 with the independent review of fuel poverty led by Professor Sir John Hills. The review found that fuel poverty is a distinct issue, separate from income poverty.

However, the debate clearly links to other areas of policy, such as the action the Government are taking to improve living standards by means of the national living wage and by increasing tax thresholds for the lowest-paid. Likewise, we could not have made clearer our determination to make sure that the energy market works for all. Ofgem’s introduction of a prepayment meter tariff cap is a welcome first step. As the Under-Secretary of State for Business, Energy and Industrial Strategy, my hon. Friend the Member for Hereford and South Herefordshire (Jesse Norman), indicated last week, a consumer Green Paper will be out shortly.

Today, I want to focus on the policy framework that is specific to fuel poverty. The journey to this point started with Professor Hills’s review, which reflected on previous activity and measures to tackle fuel poverty. The review highlighted the fact that although the 10% indicator that had, until that point, been used to measure fuel poverty was well-meaning, it was fundamentally flawed. In 2013, the Government confirmed that the findings of the Hills review of fuel poverty would be adopted, including the low income, high costs indicator. That measure finds a household to be living in fuel poverty if its income is below the poverty line and it has higher-than-typical energy costs.

In 2014 the Government introduced the fuel poverty target for England. The target is to ensure that, so far as is reasonably practicable, fuel-poor households are improved to a band C energy efficiency rating by 2030. In 2015 we saw the publication of “Cutting the cost of keeping warm: a fuel poverty strategy for England”, which set out the principles that the Government would apply and the approaches to be taken when making progress towards the fuel poverty target. The strategy set out the importance of effective levels of public accountability and the role that the Committee on Fuel Poverty, a non-departmental public body formerly known as the Fuel Poverty Advisory Group, will play in that. I welcome the insight and challenge that the committee brings as we look to tackle the serious and long-term societal issue of fuel poverty.

Recognising that 2030 is some way off, the strategy includes interim milestones to guide activity in the shorter term, helping to focus our attention on making progress as we move forward. The milestones are to ensure, so far as is reasonably practicable, that fuel-poor households are improved to a band E rating by 2020 and to a band D rating by 2025. That is the framework.

The fuel poverty target is certainly ambitious, and I have not heard anyone argue to the contrary. The band C target is set at a level that only 7% of fuel-poor households currently enjoy. We are aiming high, and it is right for us to do so. As the Committee on Climate Change reiterated in its report last week, the target is extremely challenging. However, we must be clear that meeting that challenge may provide huge benefits for households that need support. Improving those E, F or G-rated homes to band D can reduce energy costs by an average of £400. I am pleased to be able to say that although the challenge is significant, progress is being made.

Looking to our 2020 milestone, the percentage of fuel-poor households living in homes rated band E or higher has already improved from 79% in 2010 to 88% in 2014—the latest year for which statistics are available. Looking at the 2025 milestone, we see that the percentage of homes rated band D or higher has improved from 29% in 2010 to 59% in 2014.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

rose—

[Lady Hermon (North Down) (Ind)]

rose—

--- Later in debate ---

[Jonathan Edwards]

What consideration have the Government given to developments in currency levels? We live in an age in which sterling is devaluing. The harder the Brexit, the more sterling will have to devalue. The US dollar, on the other hand, is likely to strengthen as a result of Trump’s expansionary fiscal policy, and the Fed has increased interest rates. Oil is traded in dollars, and the gas price is pegged to oil, so those two developments inevitably mean that energy prices in the UK will increase significantly. What are the Government going to do to mitigate that?

[Mr Hurd]

As I said earlier, I do not think that anyone can be under any illusions; the Government are very serious in their intention to make the energy market work more effectively for all. We are all clear that it does not work effectively for all, and the steps that the Government will take will be set out in a consumer Green Paper very shortly.

I was talking about the Government’s performance against the 2025 milestone that we have set, and I stated that the percentage of homes rated band D or higher has improved from 29% in 2010 to 59% in 2014. That represents approximately 780,000 fewer fuel-poor homes rated E, F or G in 2014 compared with the position in 2010. I hope that the House will welcome that. In terms of the trajectory of improvement, there were 174,000 fewer E, F or G-rated homes in 2014 than there were in 2013, which shows that existing policies are making a difference. As an example, since the scheme started in 2013, approximately 700,000 measures have been installed in 500,000 low-income households as a result of the energy company obligation. That is part of a total of 1.6 million homes that have been improved under ECO.

--- Later in debate ---

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I am delighted to be debating such an important issue with the Minister in this, our first debate together in this Chamber. I welcome the comments he has made thus far.

As Members are aware, this debate is a statutory requirement. As such, it is a prime opportunity to examine the efficacy of the Government’s actions to date in tackling fuel poverty. As the Minister has said, it is an opportunity for Members to share experiences from their own constituencies on this matter.

My local authority has been championing its own fuel poverty strategy. “A Fair Energy Deal for Salford” is one campaign that it is working on with partners such as National Energy Action, energy companies, registered social landlords and landlords in the private rented sector to obtain a pledge to reduce the number of prepayment meters and replace them with standard meters. A shocking 22% of households in Salford have prepayment meters, whereas the national average is 15.1%, as the Minister knows.

In addition, the ability of my local authority to assist vulnerable households has been extended. It launched the “Warm Salford” campaign in 2015, which provides additional grants to give vulnerable households better access to energy company obligation products or to assist those who are vulnerable, but who do not meet the criteria of the national schemes.

We also launched the Warm Salford Referral Network in October 2014, which brings together a partnership of local authorities, the NHS and third-sector partners. It aims to reach those who are most vulnerable to fuel poverty. The good news is that from 2015 to December 2016, more than 310 vulnerable households were referred to it, given advice and referred on for the help they needed to access local, regional and national schemes.

Despite that positive news, 11,333 homes—that is 10.8% of Salford’s households—are still living in fuel poverty. Nationally, despite similar action by other local authorities, more than 4 million families and households are living in fuel poverty in the UK. That is 15 homes in every 100. Members from all parts of the House will no doubt have been contacted by their constituents about fuel poverty. If not, I suggest that they watch the film “I, Daniel Blake”, which shows in painful detail the desperation of one family trying to warm themselves on tea lights in a plant pot because they cannot afford to top up the prepayment meter.

I met one such constituent in Salford—a mother who was living in poorly maintained private sector accommodation, with small children sleeping beside walls covered in black mould. There was not enough money for that mother to pay the bills or even turn the heating on to alleviate the damp conditions. The desperation in that mother’s eyes when she told me she just could not cope any more, as I tried to find help out there, will haunt me forever.

Sadly, that is not a stand-alone case. A cold, poorly insulated home does not just mean that lots of heat is wasted, resulting in a high bill; it means people getting ill, repeated visits to the doctor, a much longer recovery time and, ultimately, greater pressure on the NHS.

[Jonathan Edwards]

If I heard the hon. Lady correctly, she said that 15% of households in the UK live in fuel poverty. In Wales, the figure is considerably worse at well over a third. The Welsh Government have failed to make any inroads into that over the past 20 years or so, despite Wales being an energy-rich nation and a substantial exporter of electricity. Does she agree that for the people of Wales, at least part of the answer should be Welsh communities getting control over their own energy resources?

[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.