HELMS and the Green Deal

Debate between Angela Crawley and Alan Brown

Tuesday 23rd October 2018 Westminster Hall

[Alan Brown]

It is a shocking indictment and really disgraceful that people are trapped and cannot get into houses that are fit for purpose.

My hon. Friend the Member for North Ayrshire and Arran (Patricia Gibson) correctly highlighted the need for compensation, the issue of people who are unable to sell their homes, and the March 2016 feed-in tariff deadline that means that people are missing out on the tariffs they expected. It was good to hear a concession from the Minister about reviewing consumer regulation, and it will be interesting to see how that progresses. My hon. Friend issued a further challenge to the Government, and we all want to see action and intervention on this.

My hon. Friend the Member for Paisley and Renfrewshire North highlighted issues that are familiar to SNP Members but that the UK Government have so far chosen to ignore, despite numerous written parliamentary questions and letters from MSPs and MPs, including me. Surely today the Minister will confirm that the UK Government will take action and listen to our calls for a compensation fund for those affected.

Let me give some headline statistics: 162 households in my constituency have green deal finance with HELMS, and of those 142 have photovoltaic installations. Some 3,054 households in Scotland have HELMS green deal finance for PVs, and there are more than 4,000 across the UK. Other Members have mentioned the duration of loans: 93% of those loans in Scotland, including for 97% of my affected constituents, are in the range of 20 to 25 years. Think of that: a supposedly spend-to-save measure is being paid back over 20 or 25 years. No private company would take out such a loan to make projected minor annual savings because the risk is too great. We already know about the dodgy installations and wiring, but there is no way that those PV cells have a lifespan of 20 to 25 years. The additional ongoing maintenance required will offset any projected savings that people were led to believe they would get. Imagine having an asset that will not last for the life of the loan—it is criminal. Anyone aged 40 or over who has taken out a loan will still be paying it back when they reach state retirement age and beyond. That would be bad enough under normal loan ethics, but as we have heard, many people who took out those loans were duped by salesmen who said that savings would pay for a Government-backed scheme. What does the Minister say to the people who have been cruelly conned and left with long-term loans?

[Angela Crawley]

One couple who approached me had specifically been told that installing solar panels would help them make money on the sale of their home, but instead they have been paying double and triple the amount for their electricity. Does my hon. Friend agree that those who have been hardest hit are people in middle to low-income homes?

[Alan Brown]

I completely agree: this scheme is creating fuel-poor households, which is why Government intervention is needed.

How did this come about? For me, the situation results from a combination of a few factors. It was originally a Liberal Democrat policy that clearly had not been correctly thought through, and there was a Tory partner in the coalition Government who maintained a “hands off—market forces will prevail” ideology, which prevented direct Government intervention. There was always the desire not to get directly involved. Some unscrupulous businessmen saw a fantastic opportunity to make money at the expense of the vulnerable. The impact of events have since been compounded by successive Tory Governments who have refused to take a lead as the mis-selling scandal unravelled.

I find it incomprehensible that the UK Government have so far not seen fit to have a proper investigation into this matter and they are forcing victims to take out individual claims. That adds to the stress of the situation, and coupled with the non-disclosure agreement that is associated with any settlement offered from the Green Deal Finance Company, it is apparent that the initial approach is to minimise any refunds to those who deserve them. It is a classic “divide and conquer” approach, rather than an attempt to do the right thing.

When I read the debates on the Energy Bill in 2011, I noted that the current Minister of State for Energy and Clean Growth served on the Bill Committee. Given her familiarity with the legislation and the wider points debated in Committee and other debates, surely she would want to lead in fixing this mess. Indeed, as this mess has unfolded, it has become clear that the governance arrangements were not fit for purpose. Interestingly, the SNP spokesperson at that time, the former Member for Angus, Mike Weir, raised concerns on Second Reading, saying:

“One of the problems with energy mis-selling was that it was a long time before many of the cases came to light. Does the Minister have any thoughts on ensuring that the standards that are to be imposed on those selling green energy are regularly inspected to ensure that any problems can be detected at an early stage?”

The Minister responded:

“I can assure the hon. Gentleman that we will keep all elements of the green deal under close review…we will need continually to monitor all aspects of it, especially those relating to selling and mis-selling… If we identify any areas in which we think improvements can be made, we will not hesitate to make them.”—[Official Report, 14 September 2011; Vol. 532, c. 1049.]

Unfortunately, Mike Weir has been proved right. The UK Government did not uphold their end of the bargain regarding the governance and review that they said they would undertake.

On governance, the length of the loans alone should have prompted an automatic red flag. The 242 complaints about cold calling between October and December 2014 offering “free” solar panels should have resulted in much quicker clampdown on the actions of HELMS, but the Government were too slow to act. We know what the then Energy Minister, Greg Barker, thought of HELMS—he praised it for its entrepreneurial start-up skills. Mr Barker is okay now: he stepped down in 2015 and was promptly made a life peer in the House of Lords. The Secretary of State for Energy at that time lost his seat in 2015 but was knighted in the 2016 new year honours list and is now back as an hon. Member in this House. I am sure that my constituents will want to know why those who got it wrong have been rewarded and, as we have heard, those who have been wronged are still fighting for justice and have been ignored by the UK Government.

As we have heard, someone else who did okay out of this was the director, Robert Skillen, who was up to his neck in it. As my hon. Friend the Member for Paisley and Renfrewshire North said, Mr Skillen has some amount of brass neck to come back and campaign to protect people from the mis-selling that he was involved in. That is shocking. I hope the Minister will confirm that all necessary agencies and authorities will look into his ongoing activities and see what can be done to prevent further fraudulent action by him.

Coming back to governance, in a written answer to my parliamentary question on what review the Government had undertaken of the so-called golden rule and how it was working, the answer was “None.” Once the scheme was up and running, why did nobody look at whether the golden rule was working and whether the savings that had been predicted were being generated? That is another dereliction of duty. Who would think that basing a whole scheme on one year’s savings against a loan was a good idea? We need a proper root-and-branch review of HELMS installations, and I suggest that we need to extend it to wider green deal installations elsewhere.

The Tory Government pulled the green deal, but what analysis did they do when they put a block on it? When will we hear why they pulled it and what lessons were learned? While the Tory Government has stood back, it has been left to MSPs, MPs and citizens advice bureaux to try to assist affected constituents, but we are doing so with both hands tied behind our back because we do not have the address information. Only the Green Deal Finance Company, and therefore the Government, know exactly who has these green deal finance deals from HELMS. Again, that is why we need Government intervention. Before I conclude, I must put on record my tribute to the work done by my local CAB, particularly Linda Corbett, who has done fantastic work on digging into HELMS, understanding the issue, taking it forward and helping people, and to a local constituent, Isobel McNicol, who started a HELMS awareness and campaign group. However, it should not be left to those people to act; Government intervention is needed.

In the ministerial response to me the Government rejected the assertion that the whole issue is shrouded in secrecy, but I suggest there is still not enough transparency. We need to know how many people have been defrauded of their feed-in tariff. In response to a written parliamentary question of mine, I was told that it is not the Government who hold the information on whose feed-in tariffs have been transferred, but Ofgem. The Government need to get an understanding of the matter, because we have heard that there has been widespread fraud on the transferring of feed-in tariffs.

As others have said, this has been a flawed energy policy from the start. The problems will set back efforts to get people to sign up to future energy efficiency measures. Some people who are fuel poor and deserve to have energy efficiency measures installed in their homes will be afraid to do so. The Government must get a grip, set up a compensation fund, do a proper investigation and start taking collective action.

Housing and Social Security

Debate between Angela Crawley and Alan Brown

Thursday 22nd June 2017 Commons Chamber

[Angela Crawley (Lanark and Hamilton East) (SNP)]

I should like to associate myself with the comments made by right hon. and hon. Members across the House about the tragic incident at Grenfell Tower. We on these Benches welcome the inquiry and believe that lessons must be learned from this event.

This Queen’s Speech seems to me to be one of the most shambolic and lame legislative programmes in my lifetime. The Tories, cowed by their unnecessary election defeat, are working on a weak mandate with no authority. Since the start of the month, we have seen promises ditched as they face defeat across the House. Pledges on introducing an energy price cap, disastrous social care plans, a free vote on foxhunting, the introduction of grammar schools and the setting of an immigration target have all been dropped—and yesterday we witnessed no mention of the deliberately harmful plan to scrap the triple lock on pensions.

Yet again, this Queen’s Speech proves one thing: the Tories will continue their obsession with austerity in spite of a sea of evidence against it. Let me be clear: another Parliament of cuts is a choice, not a necessity, and it is a choice that has been decisively rejected by voters across the country. The Resolution Foundation has warned that the continuation of austerity will drive the biggest inequality since the times of Margaret Thatcher. Much of the power to legislate on housing has been devolved to the Scottish Government. We ended the right to buy some time ago, taking the view that unless housing is replaced, many people are left disadvantaged and lacking the opportunity to obtain affordable housing. That is something that this Government have failed to learn.

Today’s debate also focuses on social security. The High Court ruling on the benefit cap highlights the fact that it causes real damage to single families. When will this Government learn their lesson? The incomes of the poorest third of working-age households will fall by 10% over the next four years, driving a further 1 million families across this country into poverty. By 2021, there could be more than 5 million children across the UK—a number equivalent to the total population of Scotland—living in poverty. This is one of the wealthiest countries in the world, and that is a disgrace.

We on these Benches choose to take a different approach. Unlike those on the Government Benches, and many on Opposition Benches, the Scottish National party has consistently and unapologetically opposed austerity. Our approach to the public finances would balance the UK budget for day-to-day spending by the end of the Parliament. It would set debt on a downward path and, crucially, free up an additional £118 billion of public investment. With our plans, we could stop the further £9 billion of additional social security cuts that this Government will inflict. That would mean that those on low incomes who rely on in-work social security, and the vulnerable and disabled, would not have to face further punishment. Despite the rhetoric from the Labour party, its plans fail to provide the same protections.

In my constituency, the cost of welfare reform is clear. Despite my constituency’s assets, almost 25% of the children in Lanark and Hamilton East grow up in poverty. Under this Government, my constituents have had to endure a reduction in employment support allowance, a freeze on in-work support, cuts to their personal independence payments and the removal of their mobility cars. Worst of all, they are now subject to a family cap and a despicable rape clause. Austerity has failed my constituents in Lanark and Hamilton East and it has failed constituents up and down the country. However, we are, for now, in a better position than some.

My constituency is yet to face the massive ramifications of the roll-out of universal credit. Later this year, the UK Government intend to introduce universal credit in South Lanarkshire. Only a few weeks ago, the Scottish Federation of Housing Associations highlighted the policy as a key concern in tackling homelessness across the country. The Scottish Government have plans to mitigate some of the worst elements of the UK Government’s welfare reforms, including the roll-out of universal credit, but that will not help families across the rest of the UK. It is completely unreasonable to suggest that we should spend nearly £400 million mitigating poor decisions made by this UK Government. Universal credit will make some of my constituents homeless, and despite the work of the local authority and the third sector, the UK Government are intransigent and unrelenting in their approach.

It is clear that austerity has failed the economy and failed society. It has driven the people we should protect into poverty, hunger, humiliation and crippling debt. I had perhaps naively hoped that their defeat earlier this month would make the UK Government reflect on their approach to social security, listen to the experts, and inject the investment necessary to genuinely rebalance the economy and create a fairer society. At its very heart, that is what a social security system ought to do, yet that is exactly what this UK Government have failed to do.

[Alan Brown]

My hon. Friend is absolutely right that austerity has failed and that the social security system is not providing the necessary safety net. Does she agree that the application of a proposed cap on housing benefit for supported accommodation is another issue that this Government need to reflect on? Otherwise, this austerity will hit the most vulnerable: those in women’s refuges and other vulnerable adults in supported accommodation.

[Angela Crawley]

Absolutely. Statistics already show that over 80% of the cuts fall on women. That is simply not good enough.