Fuel Poverty

Debate between Drew Hendry and Andrea Leadsom

Wednesday 3rd February 2016 Westminster Hall

[Andrea Leadsom]

I have just addressed that point. Conceptually, the hon. Gentleman makes a good point, but he must realise that many would be worse off. It is important to note that while fuel poverty is a devolved issue, some of our schemes to help tackle fuel poverty—

[Drew Hendry]

Will the Minister give way?

[Andrea Leadsom]

I will not; this is not really about Scotland per se. Some of our schemes to tackle fuel poverty are GB-wide, including the energy company obligation, which has delivered energy efficiency measures throughout Great Britain. Some 83% of the ECO was delivered in England, 12% in Scotland and 5% in Wales, meaning that 35.3 households per 1,000 homes were treated in Scotland, which is the greatest share of the policy.

The issue of the high energy costs that many face was also rightly highlighted during the debate. For instance, households that are off the mains gas grid are more likely to face higher energy costs and are more than twice as likely to be in fuel poverty as households connected to mains gas. Off-gas grid households pay more for their energy and are more likely to live in a solid-walled property with a low energy efficiency rating. We have announced £25 million in funding through the central heating fund, which will be managed by local authorities, specifically to help support non-gas fuel-poor homes. We expect the fund to deliver up to 8,000 new central heating systems to low-income households in England.

My hon. Friend the Member for Castle Point (Rebecca Harris) and the hon. Member for Strangford mentioned the specific challenge of the energy efficiency of park homes. I can tell them that the ECO is now being offered in park homes. Solid-wall insulation has been provided for a few hundred, with more still to come.

As many have mentioned, support must be available to help people with their energy bills during winter. In the long term, the cheapest energy is that which is not being used, which is why energy efficiency is so important. On that point, I fully agree with the hon. Members for Aberdeen South (Callum McCaig) and for Norwich South (Clive Lewis). People also need help with their energy bills right now, which is why we are supporting 2 million customers a year with the warm home discount. We have increased the level of the discount, and over 1.4 million of the poorest pensioners received £140 off their electricity bill in 2014-15, with more than 1.3 million of them receiving the discount automatically. Some 600,000 low-income and vulnerable households, including families, will also benefit from £140 off their bill. Altogether, a total of £1.1 billion of direct assistance has been provided to low-income and fuel-poor households since the scheme began. The hon. Member for Burnley (Julie Cooper) mentioned the over-65s, and I can tell her that the winter fuel payment, which went to around 12.5 million older people in 9 million households last winter, will continue alongside the cold weather payment, which is paid to vulnerable people during periods of very cold weather.

I would like to emphasise the point raised by my hon. Friend the Member for St Ives about the importance of local action. The Government also have several energy efficiency schemes that are delivering through local authorities. My hon. Friend the Member for Castle Point mentioned health-focused schemes, and I can tell her that we have provided £1 million of funding to local GPs to provide health-related referrals for local people.

I hope that hon. Members are persuaded that the Government are absolutely focused on tackling fuel poverty, on prioritising those in the greatest need and on doing everything that we possibly can in this Parliament to try to ensure not only that costs come down, but that people can choose how and when to heat themselves.

Motion lapsed (Standing Order No. 10(6)).

Oral Answers to Questions

Debate between Drew Hendry and Andrea Leadsom

Thursday 17th September 2015 Commons Chamber

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

The FITs review covers a wide range of technologies for which deployment across the UK varies depending on the specific benefits of that region. For example, there is more solar deployment in the south-west and more wind in Scotland and the north. The effects of the review will therefore affect all in different ways, and the impact assessment acknowledges this.

[Drew Hendry]

Just this week the National Farmers Union Scotland expressed deep concern that the FITs proposals will have a damaging impact on those looking to diversify. Why did the Government not consider a steady and more gradual reduction of FITs for small-scale solar and wind as recommended by the industry itself in a strategy published last year?

[Andrea Leadsom]

As I think my right hon. Friend the Secretary of State and I have made clear, this review is required under EU state aid rules and it is now out for consultation. We hope the NFU and other organisations will feed in their response to the consultation, which closes on 23 October, and only at that point will we look at the right balance between keeping bills down and continuing to support the industry.