Fuel Poverty (Wales)

Siân C. James Excerpts

Tuesday 19th March 2013 Westminster Hall

[Mrs Siân C. James (Swansea East) (Lab)]

Fuel Poverty in Wales has reached an unacceptably high level, and despite much intervention by the UK and Welsh Governments, the problem is not improving; indeed, it is increasing at an alarming rate. We have heard some of the facts and figures, but according to Fuel Poverty Charter in Wales, 33.5% of the population or, in numerical terms, 425,161 Welsh households spend more than 10% of their income on heating bills. That figure grows daily, and Transform UK predicts that more than 9 million households across the UK will be in fuel poverty by 2016. What we really need in Wales is energy-efficient homes, decent incomes and affordable, reasonably priced utility bills. If we address those three issues, we will have a fighting chance of reducing fuel poverty for many of our constituents.

Fuel poverty is nothing new to us, because we have a legacy of poor housing stock. The quality of housing can be improved only if there is investment now to enable public and private landlords to drive up standards and ensure that all housing stock is dry and safe and meets basic needs. It is depressing to hear people in our surgeries talk about living in damp, poorly insulated homes. The excuse they are always given is that the damp is the result of condensation. I am sad when that happens, and it happens with alarming regularity.

Year on year, housing is getting damper and more run-down, and energy is disappearing out of poorly insulated homes and inefficient heating systems, which means that costs are rising. We should seriously consider giving further support to the Energy Bill Revolution campaign, which comprises more than 100 charities, organisations, private businesses and unions that are calling on the Government to use money raised from the carbon tax to fit all houses with effective insulation to stop heat being lost through roofs and walls. The group says a nationwide programme, insulating all homes across the country, could save the average family £310 a year on its fuel bill.

However, improving housing stock alone will not be enough. The Government need to work harder at bringing down the everyday costs of running our homes, cooking our meals and keeping warm. National Energy Action says that, as of March 2012, the average gas and electricity bill for households in Wales was more than a massive £1,250 per year. Many consumers could get better deals if they changed tariffs. Many of my constituents are adept at switching, which they do with a regularity that amazes me, but I am one of those people who rarely changes supplier. I have been with the same energy provider since the day I got married, and, for better or worse, I have stuck it out with that company because I know it. However, even I am seriously thinking about swapping. None the less, that is a big step, and many people cannot comprehend the bewildering number of tariffs and offers available. As I say, switching is often the most difficult step to take.

[Mr Mark Williams]

I know how much work the hon. Lady does on this important issue in her constituency. Does she accept that we have a particular problem in rural areas? We have no choice of energy sources, and most of my constituency is not gas-enabled, so we still rely on oil companies and suffer from what are sometimes their monopolistic practices.

[Mrs James]

I thank the hon. Gentleman for his intervention. Yes, it is clear that there is no choice. In Wales, 264,000 households—more than a quarter of a million homes—have no access to mains gas, so they have no option. I take on board his point.

[Guto Bebb (Aberconwy) (Con)]

Will the hon. Lady give way?

[Mrs James]

I will carry on.

Although I welcome the Government’s plan to introduce a scheme in 2014 under which utility companies must automatically swap people on to their cheapest tariff, I am concerned that that will be a price too far for some. Once the scheme is introduced, energy companies will remove the discounted tariffs available to those who can swap at will, and I fear that those people will then pay even more for their energy.

The problem of fuel poverty is exacerbated in Wales because we are also dealing with lower incomes and a higher prevalence of part-time work. Both factors make it difficult for families to pay their bills and have money left over to put food on the table. According to the Office for National Statistics, wages in Wales in 2013 have sunk back to 2003 levels. If the Government put more focus on the economy and created more full-time jobs, they would help my constituents and those of every Member in the room enormously. Only by providing full-time jobs with decent wages can we help ensure that people in Wales can afford to meet their heating costs.

The green deal does not go far enough. It is far from perfect, and it is not doing enough to address the problem of fuel poverty. It might be useful for households to take out a loan to carry out home improvements, but the interest rate is set far too high, at 7%. It is odd to expect a home owner to pay up front for an assessment of their home, typically at a cost of £80 to £150. How does that help someone who is already struggling with their bills? The short answer, of course, is that it does not.

The Welsh Government have set a target of ending fuel poverty by 2018, and they have implemented the Nest scheme. Although I am pleased with the scheme overall, and I am pleased they are investing £100 million in it over five years, there needs to be better reviewing and measurement of fuel poverty in Wales. We need to see the statistics to judge for ourselves whether energy efficiency improvements are successful and result in cheaper bills. As far as I am aware, the last measurement of fuel poverty was carried out as part of the Living in Wales survey in 2008. If any Member knows differently, or knows of more up-to-date information, I would be grateful to receive information from them.

We should not forget that the impact of fuel poverty on a household is enormous and potentially fatal. In winter 2010-11, there were an estimated 1,900 excess winter deaths in Wales and England—an increase on the five-year average of 1,786 excess winter deaths a year. I am sure a number of facts contributed to that increase, but the Hills review estimated that 10% of winter deaths can be attributed to fuel poverty. If the Government had acted sooner, they could have prevented 190 deaths.

Fuel poverty inflicts much misery on too many people in Wales. To use an old pun, it is time to give it the cold shoulder.