Fuel Poverty

Debate between Patricia Gibson and Drew Hendry

Tuesday 11th December 2018 Commons Chamber

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

I will rush through my notes because other Members want to speak, but we need more time for this kind of debate in the House, not the curtailed version we have tonight.

Far too many people are suffering cold and damp, in fuel poverty, and they should not be doing so. As my hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) pointed out, two of the most important drivers for fixing fuel poverty are reserved to this place: low incomes and fuel prices. Austerity has been one of the key drivers of fuel poverty for people across the nations of the UK. The UN special rapporteur has been mentioned tonight, so I will not cover that ground again, but he said that the

“manifestations are clear for all to see.”

Westminster austerity increases winter austerity for people.

[Patricia Gibson]

What my hon. Friend is saying is very important. I grew up in a household where the heating was never put on, and I remember trying to do schoolwork with my freezing hands trying to hold a pen. He has talked about the factors that drive fuel poverty. Does he agree that the high cost of nuclear will do nothing but exacerbate the high cost of energy, with the extortionate price rates involved hitting poorer families hard?

[Drew Hendry]

Indeed. I can only agree with my hon. Friend, and I will come back to that.

The key thing is that universal credit is driving the problems that people face in their houses. They have a genuine problem and have to endure pain in choosing whether to eat or put on the heating. That is not a cliché. It is a fact of life for people living in fuel poverty. Over the past five years and more, we have seen it in my constituency, with people suffering from the pilot of universal credit to its roll-out today.

The worst fuel poverty comes in areas of low income and, typically, rural areas. Unemployment levels are almost irrelevant when it comes to universal credit. The measures that the Chancellor introduced in his Budget do nothing for those already struggling on universal credit. They do nothing to reverse the cuts and nothing for those who are caught by the odious rape clause. Indeed, they do nothing to address the benefits freeze—even the transition funding will not come into place until next year. The Resolution Foundation has pointed out that the benefits freeze will cost low-income families £210 in 2019-20. Those are poor people, women, ethnic minorities, children, single parents and those with disabilities.

Measures can be introduced to reduce fuel poverty—for example, on insulation. The UK Government cut grants in 2015, and as a result, new insulation dropped by 90%. The new ECO programme is cautiously welcomed, but as green think-tank E3G pointed out,

“At least twice as much support is needed for low income households who struggle with their energy bills.”

It went on to say that the Government of Scotland grasped the importance of energy efficiency and that, including ECO support, they

“invest four times and twice as much per capita respectively in low income household energy efficiency as is invested in England.”

Low-income households need energy efficiency, and they need that to be invested in.

The Scottish Government’s green homes network has helped thousands of people to stay warm and save energy. It is clear to everyone except the UK Government that new industries such as carbon capture and storage and hydrogen need to be invested in. After the betrayal of Peterhead, with that £1 billion project withdrawn, it will not cut it for the UK Government to replace that with 10% of the investment promised. These new technologies need proper investment.

The Energy Saving Trust said that Scotland is not only “leading the way” in energy efficiency but

“regularly outperforms the rest of the UK when it comes to slashing carbon emissions.”

On public and community ownership, Local Energy Scotland, the Scottish Government’s arm, is going forward with local energy projects and community and renewable schemes through the community and renewable energy scheme—CARES. However, Ofgem’s consultation seems targeted to hit homes and businesses that generate their own electricity. The aim, it says, is to shift the burden to others; those who use more will pay less, and those who use less will pay more. That disproportionately hits those in areas of high fuel poverty.

We need fair pricing. People who are living off the grid need to be treated fairly. We need an off-grid regulator, and we need to bring forward payments for off-grid people. In 2012, my former colleague Mike Weir MP introduced a private Member’s Bill, the Winter Fuel Allowance Payments (Off Gas Grid Claimants) Bill, to help bring forward the timing of winter fuel payments to enable people to purchase fuel at a time of year when prices were likely to be lower. Yet this is not regulated.

Ofgem seems more interested in protecting the energy companies. It has also refused to do anything about the differential that households, particularly those in Highland and other rural areas, pay in energy unit prices. In Highland, it costs 4p a unit more for people to pay for their energy than in other parts of the UK. An Ofgem spokesman recently said to The Press and Journal:

“Network companies face different costs for serving customers in GB regions, for both gas and electricity. Licenced network operators recover their allowed revenues, set by Ofgem under the”—

RIIO, or “revenue = incentives + innovation + outputs”—

“price control arrangements, from customers located within their licensed areas... This is a reasonable way to allocate these costs between customers. Ultimately it would be for Government to decide if changes should be made to these existing arrangements. Typical network costs are around 25 per cent (about £250) of overall energy bills.”

Ofgem is more interested in looking after the energy companies than those consumers who are actually struggling. We need a fair redistribution of these costs, which does not mean costs rising for other people, but actually brings down the level for those who are suffering in rural areas. There is poor value and there are poor services.

In Scotland, despite benefiting from its energy wealth, Westminster has left an energy system in which consumers are struggling to pay their bills. Despite the huge renewable resources—25% of Europe’s offshore wind—and oil and gas tax revenues of £350 billion since the 1970s, investment has been in failing and failed nuclear power. Wylfa, for example, is rumoured to be benefiting from £6 billion in equity and £9 billion in debt funding from this Government. It has a strike price deal that, at £77.50, is way above a fair rate—it is, indeed, below Hinkley’s eye-watering £92.50, but way above offshore wind’s £57.50—and who pays? The consumer—those in fuel poverty.

The Scottish Government are bringing forward their publicly owned energy company, and we look forward to seeing the benefits of that. I will wind up soon, Madam Deputy Speaker, but you must understand that there is a lot of ground to cover in this debate, and we have been given very little time for everybody to do so. We look forward to bringing forward a publicly owned energy company to reduce bills for people in Scotland and to help them out of the poverty trap of fuel poverty, low wages and the crippling application of universal credit and austerity to people in their homes and across our communities. It is time that the UK Government took some responsibility for this and took action to alleviate the pain that people suffer on fuel poverty.

Budget Resolutions

Debate between Patricia Gibson and Drew Hendry

Wednesday 31st October 2018 Commons Chamber

[Drew Hendry]

What the hon. Gentleman fails to understand is that, if you put £1 in but, because of the rising cost, take £2 out, that is a cut effectively. What we have seen is a real-terms cut—[Interruption.] I have to educate him. That is what a real-terms cut means. As he has raised that issue, let us highlight other real-term and actual cuts that Scotland has endured: £400 million, due through the previous regulatory agreement for railways; the city deals are £387 million short of the match funding that the Scottish Government put in; £53 million is missing for the NHS from this Budget; and the VAT for fire and rescue services and for Police Scotland, at £175 million.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

My hon. Friend has rightly pointed out that £175 million has not been refunded to Scotland’s emergency services through VAT. Does he agree that it is bewildering that this money has not been refunded given that—[Interruption.] The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) is chuntering from a sedentary position, “You were told.” A special dispensation on paying VAT was given to academy schools in England, but not to Scotland’s emergency services.

[Drew Hendry]

My hon. Friend makes an excellent point.

Domestic Gas and Electricity (Tariff Cap) Bill

Debate between Patricia Gibson and Drew Hendry

2nd reading: House of Commons
Tuesday 6th March 2018 Commons Chamber

[Drew Hendry]

Yes, absolutely. There needs to be an acceptance that this is just one measure and there are many more measures—including on energy efficiency, which should have had much more attention from the Government.

There remains a need to remove legislative obstacles to data sharing for vulnerable customers to give them better consumer protection. There also remains—

[Patricia Gibson]

Will my hon. Friend give way?

[Drew Hendry]

Yes.

[Patricia Gibson]

I will make a very brief intervention if I may, Mr Deputy Speaker. As I said in my speech, we are having this debate because of the loyalty penalty that people pay. We see this in the energy industry, the insurance industry and a whole range of industries. Does my hon. Friend agree that we need more Government regulation across industries to stop people being punished for being loyal to their providers, whatever the market?

[Drew Hendry]

I absolutely agree. To assist, Mr Deputy Speaker, I will take no more interventions during the rest of this speech.

As I said, we need data sharing for vulnerable customers to give them better protection. There remains a risk, as was highlighted by the hon. Member for Rugby (Mark Pawsey), who is still in the Chamber, that suppliers may just increase their lowest prices to maintain profit. We will all be watching carefully to see how they react.

So what must now be done? In Scotland, the SNP Government are providing resources for financial health check-ups to help pensioners and those on low incomes to make the most of their money and to secure the best energy tariffs. The UK Government will, I hope, follow suit.

We call on the Government to place a new duty on energy companies to set out a clear timetable for reducing the number of people on prepayment meters, to implement the Competition and Markets Authority’s call to reduce the costs for households and to introduce a requirement for energy companies to prioritise the roll-out of new-generation smart meters to households at risk of fuel poverty. That can all be done in short measure.

When it comes to disabled people, even more action is needed. Disabled people face higher energy costs because of issues related to their impairment or condition. Those extra costs have a detrimental impact on disabled people’s financial resilience and ability to fully participate in society. The price cap goes some way, but the UK Government must now put in place longer term plans alongside the price cap to improve support for disabled consumers, including increasing accessible communication and digital inclusion and, as I mentioned earlier, building on more effective data use.

The challenges for disabled people are that they have no choice but to consume more. They have limited mobility, use more heating to stay warm and run additional technology and equipment. Over a quarter—27%—of households with a disabled person spend more than £1,500 a year on energy, and nearly 800,000 households across the nations of the UK spend more than £,2,500.

There must be a different way to deal with this. In Scotland, the Scottish Government have announced a publicly owned energy company, supporting efforts to take fuel poverty and climate change targets seriously. We will provide people, particularly those on low incomes, with more choice and the option of a supplier whose only job is to secure the lowest price for consumers and who looks after the wellbeing of those who lack the confidence or ability to engage effectively in complex energy markets. That will also allow us to deliver on broader energy ambitions for renewable generation and the maximisation of community benefit. By the end of this parliamentary term, the conditions will be in place to meet the set-up challenges.

In welcoming the Bill, I once again stress that this action comes too late in the day for many. Progress on helping hard-pressed consumers must now be much more rapid and effective, especially for those who are hurting the most.

Social Security

Debate between Patricia Gibson and Drew Hendry

Monday 5th February 2018 Commons Chamber

[Drew Hendry]

I am going to make some progress, as this question needs answering. We are using the limited social security powers to support young families at key stages of children’s lives with the best start grant. We are providing free childcare—up to 45%. We are providing free school meals for primary 1 to 3 and expanding all early years. We are mitigating the Tory bedroom tax and maintaining council tax benefit. And we have the Scottish welfare fund.

[Patricia Gibson]

Will my hon. Friend confirm something that may be of interest to Conservative Members? Is he telling me that the Scottish Government have put in all these measures to tackle child poverty in the face of a £2.6 billion cut over 10 years?

[Drew Hendry]

My hon. Friend makes that point extraordinarily well; this comes against a background of having to backfill to deal with the poverty and misery caused by UK Tory policies. Lessons could be learned, but will they be? They should be, in order to provide justice, fairness and dignity. In order to achieve that—

Nuclear Safeguards Bill

Debate between Patricia Gibson and Drew Hendry

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

[Drew Hendry]

What we would support is a sensible approach to maintaining either full or associate membership of Euratom.

The European regulator oversees nuclear matters as diverse as plutonium storage and medically vital radiotherapy supplies. For example, our membership of the Fusion for Energy programme allows the UK to receive contracts. So far, the UK supply chain has been awarded contracts worth €500 million, and that would have been expected to rise to at least €1 billion. Leaving Euratom seems to serve no purpose other than to satisfy this Government’s hard Brexit mantra.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Does my hon. Friend agree that there seems to be a rigid consensus among Conservative Members that we cannot stay in Euratom if we leave the EU, and that they refuse to accept that legal opinion on the matter is divided? Does he agree that it is utterly incumbent on the Secretary of State to explore this divided legal opinion to see whether the UK can, indeed, stay in Euratom?

[Drew Hendry]

I agree that there are clearly unanswered questions about the legal position, which has not been challenged, exercised fully or even debated to any degree. Not only are our safety standards, research opportunities and business at risk, but we may see the most dramatic and negative effects of any withdrawal in the medical field.

--- Later in debate ---

[Drew Hendry]

My hon. Friend makes a key point about the breadth of issues that are not covered by the Bill’s narrow focus. Government Members would like to separate safety issues and the unanswered questions that are legion here tonight, but that is the real problem.

[Patricia Gibson]

I think all Opposition Members sense the unease with which Government Members are unwilling to talk about the Bill’s narrow scope, which leaves so many uncertainties and questions. We are all rightly concerned about nuclear safety, but in our discussions let us remember to give a break to the brave officers of the Civil Nuclear Constabulary, who work day in, day out to maintain nuclear safety across the UK.