The Parliamentary Under-Secretary of State for Business, Energy and Industrial Strategy (Dean Russell)
I congratulate the hon. Member for Manchester, Gorton (Afzal Khan) on securing this important debate. His wider engagement on the matter clearly demonstrates his commitment to his constituents in Gorton, to Manchester and to those households facing financial challenge more widely across the UK. I thank him for that. I understand the challenges that people face when they are severely cold in their own homes. I remember how, when I was a student—I am not trying to create a comparison—and our heating had gone, I had to sleep at night with jeans and tracksuit bottoms on just to try to keep warm. This is a very real issue for people, and at the heart of all of this we must remember the individuals facing these challenges. I was pleased to see his humanity come through in his speech. I welcome our engagement on the debate, because this is truly an important matter.
I also thank the hon. Member for Manchester, Withington (Jeff Smith) for his contribution. I remember fondly our time co-chairing the all-party parliamentary group on mental health. I know of his passion for people and, in particular, as was alluded to, the mental health impact of fuel poverty, especially as we hit the cold of the winter months.
I assure the hon. Member for Manchester, Gorton that fuel poverty remains a key concern for the Government. Recent increases in energy prices and the cost of living are having a significant impact on all households, but we know that many low-income households were already struggling. I assure him that the Government are taking the situation very seriously and have already taken action to support many of those in greatest need.
I thank everyone who has spoken for sharing their experience today. For all the reasons discussed, the Government are committed to tackling fuel poverty and supporting households in both the short and long term. This winter we are focusing on how best to help those struggling to keep their homes warm against the backdrop of high energy bills and cost of living pressures. That is why the Government are providing direct support to households. The energy price guarantee and the energy bill relief scheme are supporting millions of households and businesses with rising energy costs, and the Chancellor made clear they will continue to do so until April next year.
Those recent announcements are in addition to the wider support to help households with the impacts of unprecedented global gas price rises set out earlier in the year. Most households will be impacted in some way by high energy prices. That is why the Government are providing support through the energy bill support scheme, which provides a £400 discount for around 29 million households. I reassure the hon. Gentleman that that will no doubt help many of his constituents and reassure them.
However, we recognise that not all households will be impacted equally and that we need to ensure targeted support is available to those who need it most. That is why, in May, the Government announced a support package to combat the increased cost of living. This support is targeted particularly at those with the greatest need, providing 8 million of the most vulnerable households with up to £1,200 of support in instalments across the year. That includes support for those on means-tested benefits, older households who are more vulnerable to the cold, and households requiring disability support who may have higher energy costs as a result. Further help is available for low-income and more vulnerable households through established schemes such as the winter fuel payment, the cold weather payment and the warm home discount. The warm home discount has been extended to 2025-26 and expanded to support 750,000 more households, while increasing rebates to £150. We have also reformed the scheme in England and Wales to provide more rebates automatically and to better target households in fuel poverty.
As well as immediate support to help households stay warm this winter, improving the energy efficiency of homes —this was mentioned by the hon. Gentleman in his excellent speech and in interventions—remains the best long-term solution to reducing energy bills and, therefore, tackling fuel poverty in a more sustainable and long-term way. Energy efficiency improvements can help make it cheaper and easier to heat a home, enabling warmer, safer homes with reduced carbon emissions. The hon. Gentleman mentioned the floods in Pakistan. They had a dramatic impact on many people in my constituency of Watford, where there was a fundraiser for the many friends and family members who were impacted by the floods. Climate change is a huge issue for us all and the Government are committed to tackling it.
The energy company obligation is delivering measures across Great Britain. ECO4, the current iteration of the scheme, which runs until 2026, has an increased value of £1 billion per year. In Gorton, up to March 2022, over 10,700 households had been in receipt of ECO measures. I believe that that is in the upper scale of communities across the UK who have received them. That help is ensuring long-lasting, sustained improvements are available for those households.
We have also recently announced energy efficiency support through ECO Plus, which will help hundreds of thousands of households reduce their energy bills. ECO Plus will be worth £1 billion and deliver an average household saving of around £280 per year, with at least half of the support directly targeted at the most vulnerable, which is where we are really making sure that we are supporting as best we can. The local authority delivery scheme is prioritising homes with some of the lowest energy efficiency ratings. More than 200 local authorities took part in phase 1 of the scheme and participation increased further through phase 2. The first phase of LAD led to 560 homes being upgraded in Greater Manchester and more than 630 homes have been upgraded in phase 2.
The social housing decarbonisation fund will upgrade a significant amount of social housing stock to an energy performance certification rating of C. The total sum committed for that fund and associated demonstrator is more than £1 billion. Manchester City Council received around £3 million in grant funding to upgrade around 90 homes under the SHDF demonstrator, and Greater Manchester Combined Authority received around £10.5 million in grant funding in SHDF wave 1 to upgrade 1,286 homes. The engagement of local authorities, energy companies, industry and the local community and support sector has been pivotal in delivering those schemes and will remain essential. I thank everyone for their continued commitment.
I thank the hon. Gentleman, in particular, for raising this issue. This is such an important debate, but hopefully, when his constituents hear about it—he will no doubt share the video or the Hansard entry—they will note the number of schemes available to them, which will help to reassure them about the support that is available. We are trying to ensure that, at the heart of Government, we provide support to those who are struggling with their energy bills and energy costs, and particularly to those who are in fuel poverty, which is a key part of this. I also reassure them that, although there are challenges, and I appreciate the concerns that they may have—we mentioned mental health earlier—help is out there. I am sure that if his constituents write to him, they will get guidance on where to find that support. Finally, I thank him and the hon. Member for Manchester, Withington for their excellent points and for raising this issue.
Question put and agreed to.