Energy Efficiency and the Clean Growth Strategy

Debate between James Heappey and Steve McCabe

Thursday 8th March 2018 Westminster Hall

[Steve McCabe (Birmingham, Selly Oak) (Lab)]

It is a pleasure to serve under your chairmanship, Mr Walker. I congratulate the hon. Member for Eddisbury (Antoinette Sandbach) on her efforts to secure the debate. I find myself in agreement with many things that she and the hon. Member for Wells (James Heappey) have said.

We can hardly claim that our country has been a model of consistency in its approach to energy policy and energy efficiency over recent years. Changes from one Government to the next, and even significant changes within Governments, have come thick and fast, all of which has led to a rather unsettling period in our approach to the subject. I recall a series of parliamentary questions that I tabled only to try to ascertain when and how the Government would publish and then respond to the Bonfield review. It was as if I was trying to get blood out of a stone.

The review was finally published in December 2016. While I acknowledge that this Government seem set to embark on a particular course of action on energy efficiency and clean growth, there has been a lot of time lost and it is still not clear to me how the Government will achieve some of their ambitions. To the best of my knowledge, there has not yet been any real opportunity properly to scrutinise the proposals set out in the clean growth strategy. That is one reason today’s debate is so welcome.

The recent report by the independent climate change think tank E3G has highlighted the fact that public investment in energy-efficient homes in England has fallen; I think the figure I saw was that it had fallen by about 58% since 2012. That seems to flow from the coalition Government’s decision to end the Labour Government’s Warm Front scheme, which offered support to poorer households for better insulation and things such as boiler upgrades. Of course, we also experienced what I can safely call the disaster that was the green deal. According to E3G, Wales now spends twice as much as England per person on insulation, Northern Ireland three times as much and Scotland four times as much.

In my own region of the west midlands, fuel poverty is particularly acute. We have the highest level of fuel poverty in England, with about 13.7% of households—roughly 315,000 homes—classified as fuel-poor. The newly appointed Metro Mayor for the West Midlands combined authority has recognised the importance of carbon emission reductions and clean growth in his aims and objectives for the area. I am interested to see what he will do, when he comes forward with his plans, to translate those into tangible results.

My understanding—I am grateful to the Sustainable Housing Action Partnership for a very helpful briefing—is that there are a number of encouraging activities, especially at local authority level, attempting to build on previous initiatives in the west midlands, with the aim of achieving a breakthrough in demand for wholesale investment in high energy-efficient housing stock and other energy improvement and retrofitting schemes. I think the hon. Member for Wells referred to some of the things he had seen in Birmingham on his recent visit. However, SHAP is clear that, for real progress to be made in this area, there needs to be a strong promotion of housing as infrastructure, which is the very point that the hon. Member for Eddisbury made in her fine speech.

Indeed, SHAP actually looks favourably on some of the things that the hon. Member for Wells said he had seen in Scotland that had impressed him. It points out that that is exactly what they do in Scotland: energy efficiency is considered as infrastructure. A long-term commitment to energy efficiency schemes there seems to be leading to improved, high-quality planning, design and delivery schemes. There are things around that we could learn from, but they require some obvious courses of action: clear messages from the Government, access to investment, a long-term commitment and the seeing of these projects as infrastructure projects.

Energy efficiency is obviously a key part of the Government’s wider decarbonisation plans, as well as being one of the better ways to tackle fuel poverty. I hate to think what will happen when fuel bills land after the recent cold snap, and I wonder what we will learn in the coming months about the people who suffered during that period because of their fears over fuel poverty. I was grateful to the Minister for her clarification on the gas scare story, but one thing it exposed is how reliant we in this country have become on gas and how much of a need there is for greater diversity in our energy supply.

Other hon. Members and I are pleased to see the Government reaffirm their support for the EPC band C target for fuel-poor homes, and indeed their proposals to extend that to all rented homes. It is also good to know that the energy company obligation—ECO—will continue until 2028. However, we would all be helped immensely if the Minister put a little more meat on the bones. Is there an implementation plan to ensure that the band C target for all homes by 2035 will actually be achieved? What particular steps will the Minister take to achieve the band C target for social housing and private rented homes? What are her thoughts on phasing out high-carbon heating systems in homes? I would also like to know what is to be done to incentivise able-to-pay homeowners to make the necessary energy efficiency improvements to their homes; other Members have mentioned that issue.

[James Heappey]

I did not talk about the able-to-pay market, but I wonder whether the hon. Gentleman has heard about companies that are starting to look at providing heat as a service? The consumer defines comfort, and the company then delivers that comfort, but the company takes responsibility for delivering energy efficiency into the consumer’s home because that is how it makes its margin when providing heat as a service.

[Steve McCabe]

I have heard about a scheme of that nature, but I have to confess that I do not know very much about it; I would be interested to learn a bit more. We definitely need to think about how we both improve energy efficiency and make it affordable for people who can afford it on paper, but who we know in practice can often find it difficult.