The Minister for Business, Energy and Clean Growth (Anne-Marie Trevelyan)
I beg to move,
That this House has considered fuel poverty.
I am pleased to be able to open this debate, which is an annual opportunity for Members to raise their constituents’ views on the important question of fuel poverty. The past year has been a challenge for everyone, yet the impacts of the pandemic have not been felt equally. In particular, it has had a devastating impact on those already on a low income. The issues being faced by those in fuel poverty are not unique to the pandemic. The health implications of living in a cold home remain as serious as ever. Work is ongoing to address the issue and support those who are most vulnerable.
Alan Brown (Kilmarnock and Loudoun) (SNP)
I appreciate the Minister giving way so early. She is illustrating the impact of covid and people in fuel poverty. Does that not underline the need to retain the £20-a-week universal credit uplift?
Anne-Marie Trevelyan
I will continue, if I may, and I hope I will answer the hon. Gentleman’s points.
Government-led energy-efficiency upgrades over the last decade have reduced the cost of heating homes, building resilience for all households, especially those on low incomes. I will come on to the energy-efficiency schemes that have kept households warm over the past year and the further action we are planning to take to accelerate progress towards tackling fuel poverty.
I would just like to acknowledge the importance of the strong relationships built with energy suppliers, which have been crucial during the pandemic. I thank them and their staff for their total commitment to looking after customers, despite risks to themselves. These relationships enabled us to quickly secure a voluntary agreement to support customers impacted by covid-19, which has been hugely successful in protecting those most vulnerable or at risk of debt, and came top of the Citizens Advice ranking of protection measures by industry. There is no doubt that more immediate support for those struggling to pay their energy bills and ensuring fairness within the energy market is important and I will come back to that later.
It is important to note that fuel poverty is devolved and that the Department for Business, Energy and Industrial Strategy has a responsibility for England. Each nation remains committed to tackling the issue and I welcome contributions from all hon. Members today as they raise their own nation’s issues.
In February this year, we published an updated fuel poverty strategy, “Sustainable Warmth: Protecting Vulnerable Households in England.” The strategy details our focus on energy efficiency, which enables warmer homes at lower cost, while also reducing carbon emissions in line with net zero. Our strategy reiterates the 2030 fuel poverty target in England, which is to ensure that as many fuel-poor homes—indeed, all homes—as is reasonably practical achieve a minimum energy-efficiency rating of band C by 2030.
A great deal has been achieved in the last decade, but there remain a significant number of households in need of support on our journey to the 2030 target. As of 2019, there are 3.18 million households in fuel poverty in England. That is a reduction of 1.6 million households since 2010. The main reason for the reduction in fuel-poor households over the last 10 years has been energy-efficiency improvements—improvements that are of benefit for many years to come.
Cold homes will often have issues with mould and damp. By installing energy-efficient measures, we are improving the comfort of our constituents’ daily lives. They are crucial in protecting and improving people’s health and helping to reduce the burden on the NHS, as well as reducing energy use and thereby reducing bills. We are focusing on improving the least energy-efficient homes first, to ensure some of those in the homes that are the most difficult and expensive to heat are prioritised. There has been significant progress.
Compared with 2010, there are now 1.3 million fewer low-income households living in the least energy-efficient homes—that is bands E, F or G. Our sustainable warmth strategy details the energy-efficiency schemes currently in place.
The green home grant local authority delivery scheme will deliver £500 million of energy-efficiency and low-carbon heating measures across the owner-occupied, private and social rented sectors. The home upgrade grant will support low-income households, with upgrades to the worst performing off-gas grid homes in England, providing energy-efficiency improvements and low-carbon heating alternatives.
In the 2019 Conservative manifesto, we committed to a £3.8 billion social housing decarbonisation fund over a 10-year period to improve the energy performance of socially rented homes. We have committed to a four-year, £4 billion successor scheme to the energy company obligation—the ECO, as it is known—across Great Britain. That will accelerate our efforts to improve homes to meet fuel poverty targets.
While these energy-efficiency schemes are crucial in reducing fuel poverty in the long term, we also recognise the need for short-term help, so our support for households in the winter months continues with the warm home discount, providing 2.2 million households with £140 off their energy bill this year. We are continuing to improve the scheme by expanding it and consulting on new ways to improve targeting to reach those most in need. Since 2011, it has provided more than £3 billion of rebates to households, helping keep homes warmer over the colder months.
Winter fuel payments provide pension age households with financial support worth up to £300 each year and cold weather payments support vulnerable households through particularly cold spells. They provided more than 3.6 million households in Great Britain with support last winter.
Alongside all the direct support, the voluntary agreement with energy suppliers has been crucial over the past year in protecting vulnerable customers. Our work with energy suppliers to ensure the best protection for low-income and vulnerable consumers and promote best customer service in a thriving energy market is vital, so we are working to reduce the impact of debt on fuel-poor households and identify those at risk of self-disconnection or self-rationing. Ofgem rules require suppliers to offer emergency and “friendly hours” credit to all prepayment customers at risk of self-disconnection. We are also working to improve the communications and advice available to everyone, to ensure that better engagement and information are readily accessible to consumers.
I assure hon. Members that we remain fully committed to addressing and reducing fuel poverty for our most vulnerable constituents so that all households can be assured of a warm and affordable home. We will continue to drive forward on delivering energy efficiency measures to reduce energy bills and create warmer, safer living environments, while providing direct support with energy bills and working alongside the energy market to ensure a better consumer experience and protect customers. I am grateful for the opportunity to discuss this important issue and look forward to hearing from colleagues.
Anne-Marie Trevelyan
I thank all those who have spoken this afternoon. It has been a really powerful and important debate. I particularly thank my right hon. Friend the Member for Wokingham (John Redwood). It might be rare to see him and the hon. Member for Kilmarnock and Loudoun (Alan Brown) standing up together to lobby the Treasury on reducing or removing VAT on insulation and other green products, but who am I to stop such a bonding of those least likely to want to campaign together? It is a fascinating issue, and we should all watch closely and hope that this will be a new match to take on some of the green challenges that we all want to see fixed.
I thank the hon. Member for Kilmarnock and Loudoun for raising the issues that the all-party parliamentary group for terminal illness raised. I will make sure that I read that report and look at it in more detail. As I said, Scotland obviously has its own devolved controls over fuel poverty issues, but I recognise, as someone who lives in Northumberland, that the challenges of weather do cause differences, and we have to be conscious of that as we work towards finding those solutions.
I thank my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for being such a great and persuasive advocate for her constituency. She understands clearly and in depth that there are areas in her constituency that need more support. I hope that she will work closely with her local authority on the schemes it can deliver to help insulate homes and make sure that she drives it to greater success.
It is always a pleasure to hear from my hon. Friend the Member for Southend West (Sir David Amess), although we did not hear any calls for city status. His total commitment on this issue is heartening at every level. He has campaigned on it and has driven a change in many Government policies over the years. I hope that he supports the renewed drive and, indeed, supports bringing in the band C requirement as part of our fuel poverty strategy. That will not only drive the short-term ways we can help support families in fuel poverty, but will make sure we will change forever the landscape of our property mapping across the country. Properties in bands D, E and F will be brought up to scratch to ensure that we do that.
We must continue to take action to address the fuel poverty that still exists. As we move towards our 2025 milestone and our ambitious 2030 fuel poverty target, we are very aware of the challenges that remain. By focusing on energy efficiency and delivering 1.6 million households out of fuel poverty, and as we move to those low-carbon heating solutions and net zero by 2050, we have the opportunity to ensure that those on low incomes are not left behind. A fair and affordable transition will be key to protecting those who are in fuel poverty.
The social housing decarbonisation fund will deliver energy-efficient homes. Support such as the home upgrade grant, which is due to begin delivery early next year, with a commitment to a £4 billion successor energy company obligation scheme, will continue to help push forward a reduction in the homes that need to be improved.
For anyone whose questions I have not answered, I will make sure that we do so in writing. I thank everyone for their important and thoughtful contributions today.
Question put and agreed to.
Resolved,
That this House has considered fuel poverty.
Mr Deputy Speaker (Mr Nigel Evans)
We will suspend briefly for the sanitisation of both Dispatch Boxes, then we will resume with the next debate.