Warm Home Discount (England and Wales) Regulations 2022

Lord Best Excerpts

Monday 20th June 2022 Grand Committee

[Lord Best (CB)]

My Lords, I am delighted to follow the powerful commentary of the noble Baroness, Lady McIntosh of Pickering. I declare my interest as president of the Sustainable Energy Association, and I take this opportunity to thank the Minister for a very engaging and encouraging speech at our annual reception last month.

While welcoming the new measures, I am asked to raise the position of the more than 500,000 private renters whose landlords manage their bills. When it comes to accessing the £150 the warm home discount affords, these 585,000 people may be barred from applying as they do not pay their energy supplier directly as the WHD stipulates. There is no legal requirement for landlords to pass on the energy grant to their tenants, and there seems to be a lack of guidance on how the process should be managed by landlords. By extension, this would be the case for the £400 energy grant which the Government will be offering this October. This can be a particular problem for those living in park homes, where the site owner pays for the energy supply and passes on costs to the residents. I believe Sir Peter Bottomley MP has been in touch with the Minister on this subject. Can the Minister share plans for ensuring that the warm home discount directly supports those who are in need of its help but who do not pay their suppliers directly? Will the Government be providing any guidance to enable fair management of the moneys by the landlords involved?

[Lord Teverson (LD)]

My Lords, it is a great pleasure to follow both the noble Baroness and the noble Lord, who asked excellent questions, particular the question about park homes. There are some 85,000 residents in park homes in this country, and they do not always have the sort of landlords we would like them to have. They are a big issue generally.

Although I welcome this secondary legislation in principle, it is worth noting that this is a reflection of a policy failure over decades, in that we have such a requirement to help people with energy bills because our housing stock is nowhere near the standard it should be. All this, including the £15 billion being spent by the Treasury on the cost of living, specifically around energy issues, is about standing still rather than investing in the future. I know the Minister will say that the Government are investing, but it is a trickle in comparison to what we need. Past Governments have been equally bad at resolving that. This is a symptom of a policy failure over decades in this country.

I shall ask a couple of technical questions on this and will then come on to one or two other things. The figure that rather shocked me—it may be because I misunderstand it—is in paragraph 7.2 on page 3 of the Explanatory Memorandum:

“The Impact Assessment models an improvement to the fuel poverty targeting rate of the scheme from 39% to 47%.”


Does that mean we have moved getting it wrong to 61% from to 53%? I would like to understand that. I remember going through these statutory instruments for Governments, and I understand the problem of trying to target these things correctly and that somehow the statistics or working with data from other departments does not work. But it is worth understanding whether that figure is what I understand it to be and how we improve that for the future because, my goodness, if that is it, we certainly need to improve it.

The next page refers to an algorithm that there were the largest concerns about. We all know the problem with algorithms. They can be great things but, as the Department for Education found out on A-level results, they can be disastrous. I am interested to understand what that issue was and whether it was resolved or was altered in the final prospectus.

Like the noble Lord, Lord Best, what I do not understand—the Minister will forgive me if I have missed it—is how private renters get their money back from prepaid meters. It seems straightforward when the core group are just paid the electricity on their bills. What happens in terms of prepayment meters?

I want to ask about one more thing before a more general point. This is for England and Wales; it talks about Scotland coming on later on but Northern Ireland is not mentioned. Northern Ireland has a much higher rate of fuel poverty than England and Wales—18% historically, though I am sure it will be a lot larger by the end of this year. We do not have a functioning Executive or Assembly in Belfast. Can the Minister say whether the Government will have to legislate directly regarding schemes over there or are schemes that have already been agreed carrying on? Clearly, fuel poverty is a big issue in Northern Ireland.

Lastly, I have a more general question for the Minister. We had an announcement today—it came through on the news—that, rightly, the Government wanted to protect the additional money paid by consumers to retail energy companies that tended to get washed out when they went bankrupt. The answer seemed to be—I know that news reporting is not necessarily accurate—to ensure that the balance sheets of these companies were better in order to solve it. If a company goes into administration, it goes into administration; the balance sheet is washed out automatically in that case. Why cannot we put that money into an escrow account or find some way in which that can be isolated from the company and remains the consumers’ money in trust? I do not understand why that is not a way forward. If the Minister could give me some clue on that, I would be very grateful.

Domestic Energy Efficiency: Retrofitting

Lord Best Excerpts

Monday 1st March 2021 Lords Chamber

[Lord Callanan (Con)]

My noble friend’s reference to local authorities reminds me that the other part of the scheme, the local authority delivery scheme, is working extremely well. We are working closely with a number of local authorities. He is right that we need to invest more in training. We have awarded more than £7.5 million of funding to support the development of new and better retrofit technologies.

[Lord Best (CB) [V]]

My Lords, can the Minister confirm that Her Majesty’s Government agree with the Sustainable Energy Association—I declare an interest as its president—and the Committee on Climate Change, that a target for all domestic properties to reach energy performance certificate band C by 2035 is important and realistic as the halfway marker to achieving the Government’s net-zero goal by 2050?

[Lord Callanan (Con)]

We remain committed to getting as many homes as possible to EPC band C by 2035 where it is practical, effective and affordable.

Gas Boilers and Heaters: Replacement Programme

Lord Best Excerpts

Tuesday 12th January 2021 Lords Chamber

[Lord Callanan (Con)]

They are one option. Air source heat pumps are another option and hydrogen a third. Domestic retrofit of community energy systems will also play a role. We will need to use a number of different technologies, but ground source heat pumps are certainly one possible technology.

[Lord Best (CB) [V]]

My Lords, it is clear that retrofitting all UK homes with low-carbon heating is a long way off. Very many households will depend on heating by electricity, which is at present much more expensive than its fossil fuel alternatives. Will the Minister confirm that the Treasury’s net zero review is looking at rebalancing the cost of electricity to make it more affordable, not least for those otherwise facing deep fuel poverty?

[Lord Callanan (Con)]

The Treasury’s net zero review, to which the noble Lord referred, is considering how the transition to net zero will be funded. Alongside this we are publishing a call for evidence by April to begin a strategic dialogue between government, consumers and industry on affordability and fairness. We have also expanded government support schemes, which I referred to earlier, to those on low incomes, who are likely to benefit from them or to be at risk of fuel poverty. We will respond to our consultation on fuel poverty in due course.

Green Homes Grant Scheme

Lord Best Excerpts

Wednesday 6th January 2021 Lords Chamber

[Lord Callanan (Con)]

I understand the noble Lord’s point, but we specifically designed the local authority delivery element of the scheme to directly target owner-occupiers in private and social rented sectors but also to allow local authorities themselves to be responsible for the design of those schemes so that they more closely matched the requirements of their area. If we had a national instruction on how to do it, I think that would cause other problems. On balance, it is probably best to allow local authorities to decide how it works best in their areas.

[Lord Best (CB) [V]]

My Lords, I declare my interest as president of the Sustainable Energy Association. Bearing in mind that there have been delays in issuing the vouchers for Green Homes Grant spending, which are leading to a likely underspend in this financial year, can the Minister confirm that the Government will carry over this phase 1 underspend beyond the end of March into phase 2 spending, so that valuable funding support is not lost?

[Lord Callanan (Con)]

We announced the extension of the scheme until March 2022, as I am sure the noble Lord is aware. In the 2020 spending review, the Chancellor allocated over £1 billion to make public sector buildings and homes greener, including £320 million for this scheme in 2021-22.

Carbon-neutral Homes

Lord Best Excerpts

Thursday 10th December 2020 Lords Chamber

[Lord Callanan (Con)]

I agree with the noble Lord that we need to invest further in training opportunities and upskilling. There are many jobs available in this sector and that is exactly what we are doing under the green home grant scheme. As well as grants to home- owners and the local authority delivery scheme, we are also investing in training places to bring those new jobs into fruition.

[Lord Best (CB) [V]]

My Lords, much of the problem of poor energy efficiency in homes is found in the private rented sector. Although the Government have launched their fund for the decarbonisation of social housing, what combination of sticks and carrots are they planning to deploy to secure decarbonisation and energy efficiency in the private rented sector?

[Lord Callanan (Con)]

The noble Lord makes a very good point. Our stick is that we are consulting on raising the minimum energy efficiency standards of privately rented homes, and our carrot is that landlords can apply through the green homes grant scheme to get grant aid to help them.