The Minister for Energy and Clean Growth (Claire Perry)
I am genuinely interested to hear the comments of the hon. Member for Preston (Sir Mark Hendrick) tonight. The points he makes about damp living conditions and the impact that has on people’s health and whether their homes are fit for purpose also apply in my constituency and are of enormous importance.
I will start by saying that I do not think that what has happened has been good enough. I will also say something that I will repeat at the end of my speech, which is that I am going to instruct one person in my Department to act as the broker and bring together all the people who have played a part in the problem and can also be part of the solution. I hope that that reassures the hon. Gentleman. I am also going to take a moment to set out where the issues the hon. Gentleman raised about this scheme are being addressed fully in the latest iteration of the schemes we are using to help people living in fuel poverty—the ECO3 scheme.
As the hon. Gentleman will know, the scheme he is referring to in his constituency was the community energy saving programme, or CESP, which was set up by the previous Labour Government. All the shortcomings of that scheme—no guarantee and no list of installers—were a function of the scheme design at that time. That is one reason why that scheme was closed by the coalition Government in 2012, and a number of penalties were issued for companies under that scheme because, as the hon. Gentleman’s constituents well know, it had not delivered what had been required both in terms of the carbon savings and the quality of work.
Fishwick was then part of this mitigation activity that was undertaken by InterGen. I totally agree that solid wall insulation is not a suitable way to reduce energy consumption in many homes in the country, but that was part of InterGen’s mitigation scheme. As the hon. Gentleman knows only too well—it is one of the reasons why he is a long-standing champion in this place—this issue has been going on for many years. There were problems as a result of those installations. Ofgem then received complaints from 62 households, although I know the complaints pool is much larger. Those were offered remedial work which was delivered by E.ON. But as the hon. Gentleman also knows, there are real concerns about the quality of that work, because, as he said, it is not good enough to rip the cladding off and leave holes in the wall; people expect to have a warm home that can breathe and is fit to live in.
I understand that E.ON provided some additional funding to carry out the necessary structural work. I am told it carried out full structural surveys, but if the hon. Gentleman is telling me that that was not the case, that is certainly something to investigate further. Some homeowners of course declined to have extra work; there were issues gaining entry and so forth. If full surveys were not carried out, we need to know that, which is why I am keen that we have one point of contact in my Department to get to the truth of the matter.
Since that work was undertaken in the summer of 2017, more complaints have emerged—over 180. As the hon. Gentleman set out, the installer no longer exists. We are insisting on appropriate guarantees through ECO, but the Fishwick homes, which are a strong failure of the scheme put in place by that Labour Government, did not have any guarantees required from any installer, and the Solid Wall Insulation Guarantee Agency now set up to be a backstop did not exist at the time.
Sir Mark Hendrick
I fully take what the Minister is saying to be correct, but I would have expected the guarantees and quality of work that we saw in the Warm Front programme to be carried over into this scheme if it was indeed put together by the Labour Government prior to the coalition. I am very surprised to hear that that was not the case, but obviously I believe what the Minister says.
Claire Perry
The great thing about these debates is that we do not have to focus too much on the politics, but the hon. Gentleman is right to say that some very good designs and functions were put in place under the warm home scheme, and they have very much influenced the design of the energy company obligation, which is the replacement for CESP.
Perhaps I can give the hon. Gentleman some comfort in relation to other constituents who are receiving measures under this scheme by telling him that the design flaws have been addressed. We have worked with the British Standards Institution to develop new standards over and above building regulations standards for any eco-obligation, and any installer that wants to be part of the scheme must meet those technical standards. All solid and cavity wall installations must be accompanied by a guarantee that gives financial assurance even if the company providing the guarantee cannot honour it. There has to be a bond in place to provide sufficient coverage of at least 25 years, including full replacement or remediation, and to provide a verified quality assurance tick, which we would expect our constituents to be able to rely on in terms of the quality of the work and the products that are being installed.
In July 2015, we commissioned the “Each Home Counts” review. This has been a further key driver of developments in this area. The hon. Gentleman might also have heard of the TrustMark scheme that I launched last week during Green Great Britain week. It sets out a clear code of conduct for businesses. He might also receive complaints, as I do, about cold calling and the aggressive selling of these products, which are completely unacceptable. A process guarantee and rigorous new technical standards to tackle poor design and installation will be published next spring. I entirely agree with him that robust monitoring is key, and enforcement activities are the way to ensure that this happens.
I want to bring comfort to the hon. Gentleman’s constituents, but I know that it is no comfort to learn that some of the failings in the scheme design of 2009 that have caused such problems for them have given us lessons from which we have learned. I was pleased this week to bring forward the next set of measures to support ECO3. It will now be focused 100% on the alleviation of fuel poverty right across the UK, and I hope that some of his constituents will benefit from that.
Sir Mark Hendrick
Just before the Minister finishes, will she address the matter of finance for the remaining homes and whether the Government can be of any assistance?
Claire Perry
The hon. Gentleman anticipates my final remarks. I am fully sympathetic towards what he said, and I am sorry that he has been given the runaround over the years, because he has been doughty in raising such points. There is such a complex array of people involved. He referenced Preston City Council, and I am disappointed that it has been less than active historically, particularly in working with some of the agencies with which he has set up relationships. It sounds as though InterGen, E.ON and Ofgem also need to be corralled into a place where we can come up with a solution.
The scheme’s design, under which insulation is independently installed, never included a backstop to Government finance, although the hon. Gentleman may say that that ought to be a requirement. I therefore do not have any money in any of my budgets to meet the funding requirements, but given that many of the companies are still in operation and will still want to work during the scheme—the market for them is substantial—I feel strongly that they ought to do the right thing and work out ways to fix the problems and ensure that residents are happy.
I will write to the hon. Gentleman shortly with the name and contact details of a person in my Department whom I will task with bringing things together and who will report back to me with progress on a regular basis. I am happy to discuss that progress with the hon. Gentleman, either in the Tea Room or more formally. Lessons have been learned, although I appreciate that that is no comfort for residents who have been bedevilled with problems, but we can work together to try to sort things out.
Question put and agreed to.