Alex Cunningham
Main Page: Alex Cunningham (Labour - Stockton North)(13 years, 1 month ago)
Commons ChamberRead Full debate Read Hansard Text
Chris Huhne
The hon. Gentleman needs to examine the situation for households. It is clearly the case that Sweden has a lot of hydroelectricity and a lot of industries are very dependent on it. My point was about households and the household use of heating, which is key.
Millions of households could save just by switching tariffs or payment method. From now on, suppliers will write to customers to tell them about these savings—that is another outcome from Monday’s energy summit.
Alex Cunningham (Stockton North) (Lab)
This debate covers the important topics of rising energy prices and their effects. The combination of a sharp rise in energy prices and an economic downturn has resulted in families already feeling the pinch. The coming winter is predicted to be the coldest on record, yet there is no substantive action from the Government. We must challenge that, or many more people will suffer.
I am proud of Labour’s record in office on energy issues, and especially on fuel poverty. We ensured that support was focused on the most vulnerable groups. The winter fuel payments were introduced by Labour, and they have helped more than 12.7 million people in 9.2 million households to keep their homes warm. Warm Front was the Government scheme for the fuel poor, and it has helped more than 2 million vulnerable households across England since its inception in 2000. I was very disappointed to learn that the current Government are phasing that programme out, thus ending 30 years of Government-funded programmes. The north-east led the way in many of those endeavours. There were tremendous schemes in my area, Stockton-on-Tees, as well as in Redcar in Cleveland, and in Newcastle and Gateshead. However, as the hon. Member for Hexham (Guy Opperman) said earlier, fuel poverty levels are still high in our region.
Labour also started the process of energy market reform, which would have opened up the market to new entrants, thus increasing competition and thereby giving consumers greater choice. To ensure that that was not merely an empty gesture, we wanted to back it up with tough legislation to protect consumers from the vested interests of the big six energy companies. However, it seems that this Tory-led Government are showing their true colours. They are siding with big business over ordinary people by failing to take on the big six at the very time the country needs them to take decisive action in order to stop many ordinary families plunging into fuel poverty and debt.
Perhaps the Government are ready for action, however. I, too, am delighted that they have decided to accept our motion. It recognises that the forecast of a cold winter and the cuts in Government support will lead to millions of people struggling to heat their homes. The Government accept that tonight, and I hope they are going to do something about it. More importantly, their acceptance of the motion means they agree that we need to break up the dominance of the big six by requiring them to sell power into a pool to allow new entrants into the market. Does the Minister plan to announce tonight that the Government will compel the big six to pool their energy, thus driving down prices?
What are the Government’s plans? We need to see people get help with their energy bills—this is such a basic need—so that they are not pushed into financial hardship. I wish to concentrate my remarks on fuel poverty. Lower bills are always the answer. The best way to reduce fuel poverty is to put money in people’s pockets, but this is not just about excessive energy prices; it is also about more fundamental issues, such as the poor-quality heating and insulation in too much of the country’s housing stock, and low household income.
I know that the energy suppliers have a responsibility to play a substantial part in helping to eradicate fuel poverty through meeting the cost of energy-efficiency measures, but the Government have a tremendous role to play too. Under the last Labour Government, we saw tremendous success for the Warm Front programme and initiatives such as the warm zones, with which I was personally involved. Millions of homes benefited from the schemes, with well-insulated homes and efficient boilers saving individual households hundreds of pounds a year. There was an extra dividend of better health, thanks to people living in warm, dry homes. I well remember taking executives of the then Lattice Board, the parent company of my employer, Transco, now part of the National Grid Company, to visit houses in Thornaby on Tees, in my neighbouring constituency. One resident invited the executives to feel the wall and said, “Its warm, isn’t it? It used to be stone cold.” We had a warm zone fan there.
Sadly, the Tory-led Government have not seen fit to build effectively on what was achieved under Labour, when the number of people in fuel poverty tumbled from more than 5 million to slightly over 1 million. Since then, the price rises, some of them justified but others doubtful, have meant that that figure has rocketed upwards and we are back to having the disgraceful number we inherited from the Tories in 1997. Yes, we had success, with people in my local Stockton-on-Tees borough council area faring better than most, but still some of the hardest to heat homes with solid walls remain cold, with families and individuals unable to afford their energy bills even before the recent hikes in prices. According to statistics from the Department for Communities and Local Government, more than 1.3 million children are estimated to be living in the coldest, worst-insulated homes. That is truly shameful in 21st century Britain.
The energy companies have obligations to consumers and manage them in different ways, with mixed success, often through no fault of the companies themselves. Many of the schemes require further investment or match funding by the local authority, and failure on its part to find such funding means that the very schemes to improve people’s homes and cut their fuel bills simply cannot go ahead. That will occur more in the future as the Government’s huge cuts to local authorities restrict their ability to invest in this vital work.
We need to see a change in the Government’s proposals to make homes more energy-efficient. We must ensure that the resources the energy companies are compelled to spend on these measures are properly targeted at those in greatest need in the homes hardest to heat, without there being a need for councils, or perhaps housing associations, to find match funding they simply do not have. Energy companies do work hard to try to meet their obligations and some achieve the necessary credits, doing so more efficiently than others by taking advantage of their massive size and buying power. We can all understand their taking that advantage, but perhaps it is time to look at a way in which each company would be responsible for a financial commitment to energy-efficiency schemes, rather than meeting specific energy targets. This is perhaps a personal view, but is there not a case for companies to pay a fixed levy, based on turnover and profitability, directly into an independently managed fund, which would ensure that all that hard cash finds its way to the households that need it most and that we get the best value for money?
MPs should be under no illusion: many ordinary families and pensioners in Britain are facing incredibly tough times at the moment. The toxic combination of rising unemployment, rising food and fuel prices, the increase in VAT and the freezing of wages leads to ordinary people facing a huge struggle just to make ends meet. The cost of a typical dual fuel bill has increased by 48% since 2007, meaning that energy bills are now one of the single biggest outlays a household faces. The latest fuel poverty statistics show that 5.5 million households in the UK cannot afford to heat their homes adequately. It is time to change. The bills need to be cut now and the big six need to become many more.