Fossil Fuels and Cost of Living Increases

Alyn Smith Excerpts

Wednesday 11th January 2023 Westminster Hall

[Caroline Lucas]

I thank the hon. Lady for her intervention, and she will not be surprised that I entirely agree that fossil fuel subsidies should go. Indeed, that has been said at several of the big climate global conferences—the conferences of the parties. There is supposed to be an agreement on getting rid of the subsidies, but we are certainly not leading by example, sadly.

I want to speak about prepayment meters, although I will come back to the subject of Rosebank. One of the ironies about Rosebank is that most of the oil extracted is for export in any case; we cannot even argue that it is doing anything to help us here at home. However, there is something serious going on with prepayment meters, and I am particularly alarmed by their forced installation. We have seen stories in the press, for example, of mothers returning home to find that meters have been installed while they were out. Locksmiths have come in and people have forced their way into homes to install prepayment meters. Not only that, but magistrates have been approving hundreds of warrants to install meters in just minutes—496 warrants in three minutes and 51 seconds, to be precise.

Prepayment meters should not be installed by warrant, and they certainly should not be approved en masse in such a manner, with no consideration of individual cases and individual vulnerabilities, but when I asked what assessment the Government had made of the impact on vulnerable people of the batch approval of warrants, I was shocked to receive an answer stating that

“the information which must be provided to the court is identical in each case”.

In other words, it makes no difference whether cases are considered individually or together, but that represents total disregard for individual people’s welfare and extraordinary complacency regarding the failings of the system. Surely the Minister sees that if magistrates are not provided with adequate information, they are unable to make informed decisions that take into account people’s vulnerability.

In answer to another question I asked, the Minister simply tried to pass the buck to Ofgem, but given that the Government have the power to implement a moratorium on the forced installation of prepayment meters by court warrant, that, frankly, does not wash. The forced installation of prepayment meters is hugely distressing; it is an invasion of privacy.

Will the Minister commit himself to introducing a much-needed ban and to putting an end to the intolerable situation in which vulnerable people are forced on to higher rates, which brings with it the added risk of self-disconnection? Citizens Advice has reported a significant increase in the number of people it sees who cannot top up their prepayment meters each month—from 1,119 in November 2021 to 3,331 in November last year. Forcing people on to prepayment meters quite simply should not be happening, which is why the ban is needed so urgently.

I want to emphasise that the difficulties facing households are not inevitable. Ministers are fond of blaming those difficulties on President Putin’s illegal invasion of Ukraine, with the Chancellor pointing to what in his autumn statement he called

“a recession made in Russia”.—[Official Report, 17 November 2022; Vol. 722, c. 855.]

While that is true in part, blaming it entirely on President Putin is, frankly, dishonest. The crisis is one of political choices—choices that have been made not just over the past 12 months, but during the past 12 years of Tory rule. As we now know, the decision by the Conservatives, under David Cameron’s regime in 2013, to cut the so-called green crap has added billions to household energy bills, with installations of loft and cavity wall insulation subsequently falling off the cliff by a staggering 92% and 74% respectively in 2013.

Indeed, while there were 1.6 million installations of loft insulation, for example, in 2012, that dropped to just 126,000 the following year. Installations of cavity wall insulation dropped from 640,000 in 2012 to just 166,000 in 2013, and in 2020 there were just 72 installations of loft and cavity wall insulation combined. That is a damning indictment of the Government’s approach.

The poor state of the UK’s inefficient housing stock meant that in June last year households at energy performance certificate band D or below were effectively paying what has been called an inefficiency penalty of about £900 on average per year. It is frankly unforgiveable that in response to the current crisis the Government have once again overlooked and paid insufficient attention to the importance of energy efficiency. Their own Climate Change Committee expressed regret in November that it was now

“too late to introduce new policies to achieve widespread improvements to the fabric of buildings… this winter.”

For almost a year, the Government refused to act on what was the cheapest and quickest way to cut energy bills and address the UK’s notorious leaky houses. This is nothing short of a scandal, and it is also such a wasted opportunity, because ending our society’s addiction to fossil fuels also brings with it an opportunity to create warm, decent homes for everyone, where households are not shackled to high energy bills or trapped in dank and draughty homes, unable to turn the heating on.

[Alyn Smith (Stirling) (SNP)]

The hon. Lady is making an excellent speech, as she always does, and I could not agree more on the importance of energy efficiency. Does she also agree that those who are off grid and reliant on heating oil have the most to gain from piling into renewables and greater energy efficiency, because it would lower housing costs and increase climate efficiency?

[Caroline Lucas]

I thank the hon. Member for his intervention and I entirely agree. I worry that people who are off grid in that way are essentially being hung out to dry. They are not being given the support they need, and they are some of the most vulnerable.

I am pleased that the Government have finally seen sense and committed to £6 billion of new funding from 2025 to 2028, but this is too little, too late for people who are struggling to stay warm right now and who will face the same situation next year. What is more, it is still not clear what that £6 billion will be used for, so can the Minister explain what exactly it will be allocated to? Is it for the establishment of new schemes or the continuation of existing ones such the social housing decarbonisation scheme?

Will the Minister also confirm when we will get more details about the energy efficiency taskforce? For months, I and many others have called for a nationwide, street-by-street, local authority-led, home energy efficiency programme to genuinely insulate households from high bills for the long term. It really is not rocket science. Just last week, the Environmental Audit Committee, of which I am a member—I am very pleased to see the Chair, the right hon. Member for Ludlow (Philip Dunne), with us this morning—released a new report calling for what we called a national “war effort” on energy saving and efficiency, with upgrading homes to energy performance certificate C or above to be treated as a national priority.

That would deliver a massive benefit to our constituents. Citizens Advice estimates that upgrading all UK homes to EPC C would save households nearly £8.1 billion a year at current prices. UK homes are notoriously leaky. They lose heat three times faster than those in other parts of Europe, which means that our constituents are more vulnerable to high global gas prices than their neighbours.