Fuel Poverty

Andrea Leadsom Excerpts

Tuesday 24th November 2015 Westminster Hall

[The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)]

I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing a debate on such an important topic. I can absolutely assure him that, as my hon. Friend the Member for Central Suffolk and North Ipswich (Dr Poulter) explained, we are all here to try to make a positive difference, and my heart is absolutely in this debate.

As we all appreciate in this Chamber, the fight against fuel poverty is a significant challenge. Some 2.35 million households in England were fuel poor according to the latest statistics. In Scotland, as so many Members have mentioned, fuel poverty affects nearly 40% of the population. In Wales, 400,000 households are affected. In Northern Ireland, the figure is nearly 300,000. We all use different measures of poverty, but it is a very serious issue, and the Government are determined to make sure that the price people pay for energy is as low as possible, which is why we have been acting to ensure that the impact on bills of paying for clean energy is controlled, limited and, where we can, lowered. We are also committed to making sure the market works effectively for consumers, including through our commitment to implementing as fast as possible the final recommendations of the Competition and Markets Authority, once those are achieved.

As the hon. Member for Inverness, Nairn, Badenoch and Strathspey knows, action on fuel poverty is devolved. I am sure he and his hon. Friends will be raising their suggestions for action on fuel poverty with the SNP Government in Scotland, as well as with me. I am absolutely committed to the responsibility that we have in the UK to tackle fuel poverty, but I note that alongside different measures of fuel poverty, different approaches are being taken by our nations to tackling the issue.

So there are GB-wide schemes that are designed to tackle the underlying causes of fuel poverty: inefficient housing through the energy companies obligation, and low household income through the warm home discount. We are working with both the Scottish and Welsh Governments on how these policies can be effectively amended to tackle the root causes of fuel poverty in all nations.

The devolved nature of fuel poverty enables different nations to take the action that is appropriate for them. Each of our nations has policies tailored to address fuel poverty at the local level, such as Nest and Arbed in Wales, the central heating fund in England or the home energy efficiency programmes for Scotland.

[Ian Blackford]

Will the Minister give way?

--- Later in debate ---

[Andrea Leadsom]

I am sorry; I cannot give way.

I can assure hon. Members that we are working closely with the Scottish Government to set up a process and methodology for evaluating the impacts of schemes implemented in Scotland, on their own and in conjunction with schemes implemented in England and Wales, on the GB energy market, alongside other relevant UK obligations.

Hon. Members have mentioned energy prices for their constituents, particularly in Scotland. Our top priority is to keep bills down. This year, £57 million has been spent to protect bill payers in the north of Scotland from the high costs of distributing electricity. This represents a benefit of around £40 a year for each household in the north of Scotland.

Any move towards a single national network charge would produce winners and losers, a point highlighted in Ofgem’s recent report. For Scotland specifically, 1.8 million households would face higher bills and 700,000 would see reductions. It is not a simple question, but I can assure hon. Members that I am committed to launching a public consultation around the end of the year to review the most appropriate level of support for electricity distribution charges in the north of the country.

I want to turn briefly to the action this Government have taken to tackle fuel poverty. More than 1.2 million households are seeing lower bills due to energy efficiency improvements through the ECO. We are committed to ensuring that a million more get the same benefits by the end of this Parliament. But as the Secretary of State for Energy and Climate Change, my right hon. Friend the Member for Hastings and Rye (Amber Rudd), said last week, we are determined that the support available will be focused on those who need it most.

Our policies are having an impact. Since April 2010, Government policies have supported the insulation of 3.8 million lofts and 2.1 million cavities, and in 2013 we saw a fall in both the absolute number of households in fuel poverty, and in the fuel poverty gap. We are also determined to help households that, as hon. Members have mentioned, are off the mains gas grid and more likely to face higher energy costs, as well as more than twice as likely to be in fuel poverty. Off-gas-grid homes will have a focus in the central heating fund, specifically on dealing with the off-gas grid.

Finally, the hon. Member for Strangford (Jim Shannon) and my hon. Friend the Member for Central Suffolk and North Ipswich—

Fabian Hamilton (in the Chair); Order