Fuel Poverty

Debate between Lord Harrington of Watford and James Heappey

Tuesday 11th December 2018 Commons Chamber

[Richard Harrington]

I respectfully disagree with the hon. Lady, and I will outline the £3 billion-worth of Government help.

Our 2017 clean growth strategy sets an ambition of improving as many homes as possible to energy performance certificate band C by 2035, wherever practical, cost-effective and affordable, but the truth is that the most vulnerable must be helped first. We are committed to improving the homes of the fuel poor to band C five years earlier, by 2030, and we have set interim milestones to keep us on track. As many fuel-poor homes as reasonably practical will be improved to band E by 2020, and to band D by 2025.

A key way in which we are delivering energy efficiency measures to meet that ambition is through the energy company obligation, which has led to energy efficiency upgrades to nearly 2 million homes across England, Scotland and Wales since 2013. Recognising the need to support low-income and vulnerable households first, we have taken action to ensure that ECO is targeted at those who need it most.

When the scheme was first introduced in 2013, 30% of ECO spending was focused on addressing fuel poverty, and by 2015 it had been increased to 70%. Today 100% of the energy company obligation is focused directly on low-income and vulnerable households, and we have introduced a new innovative element that will bring down the long-term cost of low-carbon measures.

[James Heappey (Wells) (Con)]

The ECO programme has been very successful indeed, but does my hon. Friend agree that it is not just the barrier technologies of insulation in roofs and better windows, doors and floors that make a difference but the introduction of clean tech in homes? Clean tech can often deliver significant savings, too, so I hope that, as a result of the recent consultation, things like smart thermostats will now be included in the ECO catalogue.

[Richard Harrington]

As usual, my hon. Friend is well informed and well spoken on this subject. I share his hope, and he makes a significant point. I hope he will see this come to pass.

We are also clear that landlords should play a role in upgrading the energy efficiency of the properties they rent out. The private sector regulations will require landlords to improve the energy efficiency of band F and band G properties so that their tenants will be living in properties rated band E or above by 2020. We expect that these regulations, which require landlords to invest up to £3,500 on their property, will enable all privately rented F and G properties to receive support, and about half of these homes will be improved to an energy performance level of band E. This action to tackle the worst homes first—those rated F or G—is consistent with the approach set out in our fuel poverty strategy, but we will be consulting on options to ensure rental properties are improved to the band C target level by 2030. The private rental sector has to make its contribution as well.

We recognise that long-term sustainable solutions such as the ones I have mentioned are little comfort to those who are cold now. It is important to complement this approach with more immediate support, which is why we extended the warm home discount to 2021, so that it can continue to provide more than 2 million low-income and vulnerable households with a £140 rebate off their energy bill each winter.

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[Richard Harrington]

I will make one small change to what the hon. Gentleman said, in that I have read that report and I have met Dieter Helm. I will happily send the hon. Gentleman a copy of the recent energy speech that my right hon. Friend the Secretary of State made. If the hon. Gentleman does not have a copy, I will send it to him with my compliments—I might even get the Secretary of State to sign it for him for Christmas.

We extended the warm home discount to 2021, so that it can continue to provide more than 2 million low-income and vulnerable households with a £140 rebate off their energy bill each winter. In addition, the winter fuel payments provide all pension households—people of pension age in the households—with additional financial support worth up to £300. Cold weather payments also provide relief to the elderly, the vulnerable and those who need extra support with their fuel bills during spells of cold weather. Last year, that alone provided an estimated £98 million in cold weather payments to keep people warm in vulnerable households.

[James Heappey]

The Minister, or at least the Treasury, will know who receives cold weather payments. Is any measure taken of the energy-efficiency of the homes in which those recipients live and therefore of whether, rather than just spending money every time the weather is cold, we might improve the energy-efficiency of those properties and so reduce the requirement for those payments to be received in the future?

[Richard Harrington]

If it is acceptable to my hon. Friend, I will write to him on that subject, because I need to speak to the Treasury about its analysis, which is what his question is about.

We are providing all consumers, including the fuel poor, with more control over their bills. The smart meter programme will mean millions of customers will be in control of their energy use, helping them to save money. A new safeguard tariff coming into effect on 1 January will protect 11 million consumers from high bills. On average, households will save £76 a year, with some saving a lot more. Significantly, as a result of these measures, the average fuel poverty gap has decreased from £379 in 2011 to £326 in 2016. Over that five-year period, the total fuel poverty gap has decreased by £88 million in real terms. Although it is important to recognise that progress is being made, we acknowledge that we still have a long way to go. The clean growth strategy included an ambitious set of policies for homes, the extension of energy-efficiency support through to 2028 and at least £640 million per year. We will be reviewing what the best form of support this will be in 2022, and I would welcome the views on this topic of hon. Members here today.

We will update the fuel poverty strategy for England in 2019, and we look forward to receiving good ideas on how we can make further progress. The new strategy will align our work on fuel poverty with our clean growth strategy and industrial strategy. We had always planned for the fuel poverty strategy to be a living, evolving document, because changing technology and innovation will mean that what worked in the past will not necessarily be the best plan for the future.

Bombardier

Debate between Lord Harrington of Watford and James Heappey

Thursday 22nd November 2018 Commons Chamber

[Richard Harrington]

I am delighted to be able to give the hon. Gentleman the assurances he asks for. This is critical to my Department, and we hope that Bombardier’s model will be part of our future industrial strategy. The political stability that will, I hope, return to Northern Ireland in a field beyond my remit can only help the future of the workforce there. We work closely with trade unions and politicians of all political parties, and I am pleased to say that the aerospace part of my portfolio is to me the most exciting. I look forward to having many more models of wings produced in Belfast on my office desk.

[James Heappey (Wells) (Con)]

Having spent three of the past 12 years living in Northern Ireland, I know just how important Bombardier is to the economy there and what brilliant aeroplanes they make. Does my hon. Friend the Minister agree that there is an opportunity to work with Bombardier on the research and development of a new generation of aircraft using hybrid and electric propulsion, so that Bombardier can be in the vanguard of the future aviation industry and so that we can make a positive out of what is undoubtedly a setback today?

[Richard Harrington]

I absolutely agree with my hon. Friend. Hybrid technology is the nirvana for the future of jet engine propulsion and much of the money we have put in with industry for research and development is for hybrid technology. I am sure that Bombardier will be at the centre of that. This is about not just Bombardier but other companies in Northern Ireland that are in the supply chain. Northern Ireland is a significant hub. At the air shows I visit, the Northern Ireland exhibition stand is prominent and visited by companies from all over the world.

Oral Answers to Questions

Debate between Lord Harrington of Watford and James Heappey

Tuesday 12th December 2017 Commons Chamber

[Richard Harrington]

My hon. Friend is absolutely right, and that is very much an important part of the industrial strategy.

[James Heappey (Wells) (Con)]

Does my hon. Friend agree that the key is policy certainty, to enable our growing green finance industries to come forward to finance these initiatives themselves, so that the initiatives do not need to rely on Government subsidy?

[Richard Harrington]

I agree totally with my hon. Friend. I am very impressed by the way in which the finance industry generally is adapting to the clean projects ahead of us.

Oral Answers to Questions

Debate between Lord Harrington of Watford and James Heappey

Tuesday 12th September 2017 Commons Chamber

[Richard Harrington]

I absolutely can confirm that maximum continuity of supply is very important to us. We have an excellent relationship with the EU on this, and it is the Government’s responsibility to make sure that it continues. I am sure that that will satisfy the hon. Gentleman.

[James Heappey (Wells) (Con)]

It looks like membership of the internal energy market is not connected to single market membership but that membership of a couple of key industry and regulatory bodies, such as the Agency for the Co-operation of Energy Regulators and European Network Transmission Systems Operators and Council of European Energy Regulators, comes as a prerequisite. Has the Minister had any discussions with those organisations to see whether the UK can be a member when not a member of the EU?