Fuel Poverty

Debate between Rebecca Long Bailey and Eddie Hughes

Tuesday 11th December 2018 Commons Chamber

[Rebecca Long Bailey]

The hon. Gentleman is very learned on the topic of fuel poverty, and I agree with what he said. The Labour party has persistently stated that an energy price cap is a sticking plaster while the wider energy market is reformed, because it is not currently working in the interest of consumers. It forms part of the wider plan of Labour’s energy policy portfolio completely to reform the energy system as we know it.

Network costs represent over one quarter of the cost of a gas and electricity bill, but customers have been getting a bad deal. Citizens Advice estimates that network companies will make £7.5 billion in unjustified profits over an eight-year period. A recent report by the Energy and Climate Intelligence Unit found even more excessive returns captured by distribution network operators than Citizens Advice had predicted, with the six distribution network operator parent companies posting an average profit margin of 30.4%. By bringing energy networks back into public ownership, Labour would reinvest and pass on to customers the money currently paid out in dividends.

[Eddie Hughes (Walsall North) (Con)]

Will the hon. Lady give way?

[Rebecca Long Bailey]

I will make some progress before taking an intervention from the hon. Gentleman.

I turn to energy efficiency. A well-insulated home saves households money, makes homes naturally warmer and more pleasant places to live, and cuts energy use, helping to tackle climate change. At least £1 for every £4 spent heating UK homes is wasted due to poor insulation. Improving the energy efficiency of the UK’s housing stock, which is among the oldest and least efficient in Europe, really should be a no-brainer, so how are we currently faring?

According to the Committee on Climate Change, insulation rates have fallen by 90% since 2012. The energy company obligation—known as ECO—which is funded by a levy on bills, is the only remaining domestic energy efficiency delivery mechanism in England. It has also been cut from £1.2 billion a year when it was first introduced in 2013 to £720 million per annum in its second phase, and has been reduced still further to £640 million—effectively a 50% cut. It is therefore no surprise that the Government are off track to meet their targets.

In their 2015 fuel poverty strategy, the Government set a target of ensuring that fuel-poor homes are upgraded to an energy efficiency rating of EPC band C by 2030. But according to the Institute for Public Policy Research think-tank, the Government will not meet their target for upgrading fuel-poor homes until at least 2091. That is why, as a policy suggestion to the Minister, the Labour party proposed investing £2.3 billion a year to provide financial support for households to insulate their homes, and for local authorities to drive take-up and delivery of insulation schemes, in order to bring 4 million homes up to EPC band C by the end of one parliamentary term.

Labour’s plans included fully covering the cost of insulation for low-income homeowners and all social housing, which will particularly benefit older people living in fuel poverty and pensioners on low income struggling to cover the cost of sky-rocketing energy bills. This would have delivered savings of at least £270 a year to affected households. As well as this investment, Labour was also committed to tightening the regulation of privately rented homes, blocking poorly insulated homes from being rented out.

I have tried to set out just some of the measures that will tackle the causes of fuel poverty: low incomes, high fuel costs and poor energy efficiency. I am not seeking to make party political points, but rather to indicate the level of commitment needed if we are truly to address the problem, because what is the alternative? Are we really willing to accept preventable and shameful winter mortality at current levels? Are we really willing to accept that we live in a country where some people go to bed early to stay warm, leave the curtains drawn and even paper over their windows? Is it acceptable that people, often vulnerable people, have to seek out a library, a café or even an A&E department just to stay warm?

I do not believe that anybody in this House wants to see that, but wanting to end fuel poverty is simply not enough; rather, we must be willing to deploy the resources available to us to bring an end to what remains an avoidable indignity for millions.

Industrial Strategy

Debate between Rebecca Long Bailey and Eddie Hughes

Wednesday 18th April 2018 Commons Chamber

[Rebecca Long Bailey]

My hon. Friend made some pertinent points and I will talk about skills shortly, and the extreme worry that many of our business leaders across the country have voiced about both Brexit and the quality and adequacy of the supply we have currently in the UK.

Returning to the problems that are a barometer of the issues in our economy, will the Minister update us in his summing up on the Government’s rabbit-in-the-headlights approach to the risks currently faced by our steel industry as a result of recent discussions and the global crisis of overcapacity and dumping? This Government have been in power for eight years—the best part of a decade—and they must own these problems if they are to make any progress; they must own the fact that they have not solved the five problems I outlined earlier, and that instead they have festered.

The Secretary of State and I are in clear agreement on the need for an effective industrial strategy. I applauded the Government for adopting to some extent Labour’s mission-orientated policy approach and the Secretary of State outlined the challenges again today, but I am afraid that this is where the consensus ends. As I set out late last year, the detail and investment proposed in the industrial strategy White Paper simply did not match the surrounding rhetoric and fell far short of what was needed truly to boost our economy. Indeed, a Government source was recently quoted as saying:

“It’s all perfectly worthy, who could oppose any of it? But there is no money, and even if there was, no one has a decent idea of what to do with it.”

So for the benefit of the House let us look briefly at a few key snippets again.

The Secretary of State touched on innovation. Raising total R&D investment to 2.4% of GDP by 2027 is certainly better than where we were, but the UK has been below the OECD average of 2.4% of GDP for years, and we are way behind world leaders who spend over 3% such as Japan, South Korea, Finland and Sweden. Why are we simply aiming for average? It must also be noted that the R&D investment of many of our regions and nations is also well below average. Over half of all research funding goes to the south-east, for example.

[Eddie Hughes (Walsall North) (Con)]

I just cannot contain my anger: settle for average? We have some of the best universities on the planet in this country and investment by this Government in some of the most world-leading, cutting-edge technology. I visited Birmingham university and saw its work on quantum computing; it is absolutely world-leading. We are not average at all, and it is so dismissive of this country to say we would settle for average; we are excellent.

[Madam Deputy Speaker (Mrs Eleanor Laing)]

Order. The hon. Gentleman is not making a speech either, but I think the hon. Member for Salford and Eccles (Rebecca Long Bailey) has got his point.