Fuel Poverty

Anna Dixon Excerpts

Wednesday 6th November 2024 Westminster Hall

[Anna Dixon (Shipley) (Lab)]

It is a pleasure to serve under your chairmanship, Sir Roger. I congratulate the right hon. Member for Orkney and Shetland (Mr Carmichael) on securing this important debate on fuel poverty.

I would like to highlight the impact of poor-quality housing on fuel poverty. I am acutely aware of that in my constituency of Shipley. We have some really poor-quality housing. As is typical for a northern town or city, we have a higher proportion of homes that are non-decent, which means that they do not meet the standards for a warm and dry home. That has knock-on effects for people’s health and wellbeing. As I know from my work, older people are more likely to live in those non-decent homes, which can have significant impacts.

Data from Friends of the Earth, shared with me, shows that in Shipley alone there are 17 energy crisis hotspots. Those are neighbourhoods that have below-average household income but above-average energy bills. We need to use those sorts of data to focus our efforts to tackle fuel poverty, and the excellent work that the Government are doing to invest in home insulation, on those energy hotspots. I am very proud that the Government are looking to invest in new homes, but it is critical that those homes are warm and energy-efficient so that we can reduce the incidence of fuel poverty in future with new social housing. I was pleased to see that the Liverpool city region is working with Octopus Energy and with home manufacturers to create homes that will be guaranteed zero bills for at least 10 years. They could do that at scale because of the new methods of manufacturing. In addition to home insulation, there are some huge opportunities to address fuel poverty as the Government embark on the housing programme.

There are clear links between fuel poverty and pensioner poverty: the two go hand in hand. It is a scandal that between 2010 and 2024, under the watch of the past Conservative Government, the number of pension credit claimants halved from 2.6 million to just 1.35 million. Sadly, over the same period, pensioner poverty rose from 12%, or 1.2 million people, to 16%, which is 2.1 million people. That is a real scandal.

I agree that we should be targeting winter fuel support to the poorest pensioners, but we must also do all we can to ensure that those who are eligible for pension credit, and thereby for a winter fuel payment, are brought on to pension credit. The Department for Work and Pensions estimated that almost 900,000 eligible households were not claiming that benefit. It is fantastic that colleagues in government are working to raise awareness of pension credit among our poorest pensioners and to ensure that support is available.

I pay particular tribute to local organisations in my constituency, such as Age UK Bradford and Citizens Advice Bradford, that support pensioners who experience fuel poverty. I also thank housing associations and Bradford council, which provide both advice and direct support to tackle fuel poverty and to ensure that people have the right advice and benefits. I hope that the Government will continue to make efforts to ensure that the poorest pensioners receive the support available to them.

Obviously not everyone in fuel poverty is a pensioner and not every pensioner is in fuel poverty, so I am glad that the right hon. Member for Orkney and Shetland is holding this broader debate on the subject. We must recognise that fuel poverty affects not just older people, but families of all ages.

A lot has been done through the Budget to raise people out of poverty by increasing the national living wage, but we must also target bills. Families who care for someone with a disability or a chronic condition can use much more energy, and therefore have much higher energy bills. For those families, it is really important that, through GB Energy, we invest in clean energy to get bills down.

This debate is really welcome. We must recognise that tackling fuel poverty requires a comprehensive approach that takes housing into account, lifts people out of poverty and gets bills down. I hope the Minister will outline how those actions together will reduce fuel poverty for people of all ages.

--- Later in debate ---

[Jim Shannon]

The hon. Lady illustrates a point that she rightly says is replicated regularly among all our constituents. This debate today is about them, and that is why we are here. We are here to make a point on behalf of our constituents who are in those predicaments and under other incredible pressures.

From a quick survey I did in my own office, one staff member sets her heating temperature at 21°C, while the rest of the staff would set it at less, as they would just take the chill off by sitting under blankets. Fuel poverty may affect more people than perhaps the Minister, shadow Minister or anyone really understands. That staff member said that she has to do so because she has children, so she has to prioritise heat. That is understandable: if there are children in the house, we would want to keep them warm.

Here are some stats and figures, which are quite stark: the staff member’s gas statement showed that last November she topped it up with £294. She did the same in December and January, and then in February it was down to £245. For her, in that four-month period, the gas cost £1,127. If we add that up over the year, it is almost £3,500 for the energy, just to keep the house warm. Thank the Lord for summer and the heat that it sometimes brings—maybe it is not as much as we wish, but none the less it brings heat and we can have the gas on less.

My example illustrates the problem. My staff member is not in the house from 8.30 am until 5.30 pm, but for those months she is still in fuel poverty. By the way, she is well paid; I say that to make the point that many people find themselves in a predicament on this issue. How much more so for our pensioners, who are not out of the house and warm in their workplace—for the stay-at-home parents, for our disabled, or for all those people who have different pressures? I often think that when we illustrate something with an example, there are so many other examples of people who are in different circumstances but under the same pressures.

We have told people for years to get rid of the fire and get a cleaner heater that uses oil or gas. Now people cannot afford to turn it up, and that is all before we take into account the crushing blow of the removal of the winter fuel allowance, which affects millions in the UK. It particularly affects my constituents in Northern Ireland, who are so reliant on oil as their method of heating.

[Anna Dixon]

Does the hon. Gentleman agree that part of the solution is building more higher-quality housing for older people? In many of our communities, people are living in unsuitable homes that are cold and damp, but they do not have affordable alternatives to move to within their own communities. Does he agree that part of the solution is providing more high-quality but affordable housing to give older people, such as those he was describing, opportunities to move into much better-insulated homes that are easier to heat?

[Jim Shannon]

The hon. Lady is right. Others have illustrated the issue of house building. We live in older houses: that is a fact. The Government have committed themselves to 1.5 million new homes in this Session, and I wish them well in that, because I want to see that happen. We can only hope that those homes will be energy-efficient. I chair the healthy homes and buildings all-party parliamentary group, and one of the things we are pushing for is to ensure that whenever new homes come through, they will be energy-efficient and enable people with disabilities, vulnerable people or elderly people to have that quality of life in their homes. Within that, we must also look at upgrading older homes that do not have all the things rightly asked for by the hon. Lady, which we also try to bring forward.

By way of comparison, the figures in the latest census indicate that 62% of households in Northern Ireland use oil. Every time we have a war, we become incredibly worried, because oil prices will go up and the cost of oil in our central heating will therefore increase. Every time that happens, it affects 62% of households in Northern Ireland. The cost of oil is down a wee bit now, and it is good to have it down, but it is still an incredibly expensive way to heat a home.

Many houses in Northern Ireland depend entirely on oil, whereas the percentage of households in England and Wales was just 4%. Again, that illustrates the pressures that we have in Northern Ireland compared with other places. Oil can be expensive and inconvenient for Northern Irish consumers while also having high associated carbon emissions. Although the use of gas has expanded since 2011 to around 200,000 households, the usage of gas is still firmly behind that of oil, which has led to higher levels of fuel poverty.

Northern Ireland is currently preparing an energy strategy. The Minister is diligent, and he may have had the opportunity for discussions with his compatriots in Northern Ireland. Has that happened and what was the outcome? The energy strategy is due for release in 2025, so the skeletal story of what the energy strategy will be is probably there already, although it has not been released just yet. I quote its aim:

“Alleviating fuel poverty will have a positive impact on both mental and physical health,”—

the right hon. Member for Orkney and Shetland referred to that earlier—

“especially for more vulnerable populations. In addition, making our homes more sustainable and easier to heat”—

as the hon. Member for Shipley (Anna Dixon) said—

“will help fight climate change”.

The issue of climate change cannot be ignored either. It is all part of the strategy that the Government try to bring together, and it will lead to a more just transition. We all have aspirations, my goodness, but along with them we need factual, actual, physical help to make them happen.

The hon. Member for Winchester (Dr Chambers) referred to attendance allowance forms. I was on the election trail back in July and knocking on doors, as I do. I am of a certain age now, so I resonated with the pensioners, and I recognise that we can do things to help. During my time on the doors, I managed to get slightly over 80 of those applications filled in. They take an hour and a bit to do, and it took us quite some time to get them cleared up, but it helps those who have had their winter fuel allowance removed. If they are pensioners, have disabilities and are on medication, it is quite possible, as the hon. Member for Winchester said, that they will qualify for that attendance allowance. That is just a thought, but we should have a more positive reaction from Government to address those things and let people know their rights.

The fact is that words on paper have no impact on the pensioner who did not know that they could have saved more of their pension to get their oil this year, but they expected to have help with the winter fuel allowance that they relied on. I know that that is not the Minister’s responsibility—it is for the DWP—but I believe there is an onus on Government to introduce that option to as many pensioners as will qualify. The pensioners who I know had no time to prepare and save their pennies, and the outcome will be an uplift in cold-related illness and perhaps even cold-related death.

I will conclude, as I realise that I have gone on a wee bit longer than I thought. I seriously urge Government to do the right thing, even at this stage, and to reinstate this much-needed help for pensioners in the country. We discuss fuel poverty in this place, and yet Government then take help for warmth from them. I do not know about anyone else, but that certainly leaves me a lot colder and a lot poorer in spirit.

--- Later in debate ---

[Mr MacDonald]

What is absolutely clear is that the electricity companies are not losing money. Their total profits add up to tens of billions of pounds, but the costs are being borne by the poorest people in our society.

[Anna Dixon]

Will the hon. Gentleman therefore join me in congratulating the Chancellor on increasing the windfall tax on gas and oil companies in recognition of the excess profits they are making? That money is being invested in some of the priorities that we have been talking about, such as home insulation.

[Mr MacDonald]

That is also Liberal Democrat policy, so I am pleased to support that.

Interestingly—I know you will find this interesting, Sir Roger—France, Italy, Ireland and others have an equalisation of standing charges. Ofgem’s reluctance to reform standing charges has been raised many times in Westminster Hall and in the main Chamber, so we need to get proper answers.

Town gas is by far the most affordable way of heating a house, but 60% of houses in the highlands do not have access to it. As my right hon. Friend the Member for Orkney and Shetland says, kerosene, bottled gas, electricity, wood and coal are very much more expensive, but people in the highlands have no option but to use them.

It is easy for us to have a go at the policy of stopping the winter fuel allowance. I do not understand why the figure was set at £13,000, rather than at the average household income of £34,000. That would have been a huge relief to many of the people who have been most affected, and it would probably have been much more popular for the Government.

In the highlands, incomes are much lower than in the rest of Scotland and Britain as a whole, and we have a much older population. The cost of living is between 15% and 30% higher than in the rest of Scotland, according to the Scottish Affairs Committee in 2021. We have a substantial depopulation problem and the highest cost of living in the UK, to which fuel is a major contributor.

I know the Energy Minister has heard this from me before, but community benefits from renewables are potentially the biggest saving grace from this. My No. 1 call is for fuel vouchers to be given to affected locals, and of course in the highlands we have lots of renewables. That would make a very big difference. The second thing the Minister could do is to get Ofgem to review standing charges. I estimate that if they were equalised, there would be a £75 a year saving at no cost to the Treasury. Thirdly, we should concentrate the winter fuel allowance on the most deserving people, who tend to be the older, the poorer and the more remote.

--- Later in debate ---

[Andrew Bowie]

I agree. I would love to see the Government commit to a review of EPC ratings and how homes are judged. Maybe the Minister will speak to that if there are any plans coming through the Department for Energy Security and Net Zero, or indeed any other Departments that would be responsible for that as well.

The hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald)—it is taking time to get used to that constituency name—raised some very interesting points and concerns that I share, as I represent a vast rural constituency myself. However, he is entirely wrong: God, of course, comes from Aberdeenshire, not the Isle of Skye, although Skye probably comes a close second.

I wonder what the constituents of the hon. Member for Inverness, Skye and West Ross-shire and the right hon. Member for Orkney and Shetland, as well as companies reliant on the oil and gas sector, think of the Liberal Democrats’ support for the extension of the energy profits levy—something also raised by the Liberal Democrat spokesperson, the hon. Member for Mid Dorset and North Poole (Vikki Slade). As we will be voting on the Budget resolutions in a few hours’ time, they may go away and reconsider their support for those Government measures. The Conservatives will certainly be voting against any extension.

Keeping homes warm this winter will be at the forefront of people’s mind in many households across the United Kingdom. We can feel the temperature falling outside as we speak. As a consequence of various pressures such as Putin’s illegal invasion of Ukraine and the ongoing instability in the middle east, the cost of heating homes has risen and has hit many families hard.

Myriad factors contribute to fuel poverty, including energy efficiency, income, housing costs and energy prices. That is why the Conservative Government took steps to support families to keep their homes warm. Through the energy bills support scheme and the energy price guarantee, we supported households the length and breadth of the UK at the height of the energy crisis. The steps we took amounted to approximately £1,500 for a typical household, covering about half the energy bill of every home in Britain. The warm home discount scheme meant support for 3 million households at risk of fuel poverty: that was 3 million families who could afford to keep warm and keep more of their money in their pocket. We stepped up support for our pensioners, delivering up to £600 in winter fuel payments and pensioner cost of living payments to 11.8 million pensioners. Some 1.1 million cold weather payments, worth £29.6 million, were paid out last winter alone. Those were all steps to support some of the most vulnerable people in our society in the cold weather.

[Anna Dixon]

Despite all the measures that the shadow Minister says the previous Government took, The Lancet and the Institute of Health Equity have estimated that 102 excess winter deaths in the Shipley constituency alone were due to cold homes. It seems to me that those are shocking figures and that nothing the last Government did actually reduced fuel poverty or deaths from cold homes.

[Andrew Bowie]

One death from fuel poverty or from living in a cold home is one too many, let alone the number that the hon. Member gave for her constituency. We must all look at what more we can do to ensure that homes are better insulated and that pensioners and other vulnerable people in society can keep their homes warm through the winter, but I am proud that over the energy crisis last year the Government stepped up and paid half the energy bill of everybody in this country. That was important, as were the other measures we brought forward to support so many people in this country. Could we do more? One person living in fuel poverty is one too many, but it is important that we recognise that the previous Government took steps to ensure that fuel poverty was addressed and that people could keep warm last winter.

I have no doubt that Members on both sides of the House will have heard from elderly constituents and their families how worried they are that the winter fuel payment is being taken away. For pensioners in my constituency and in other vast rural northern constituencies represented in the Chamber today, it is particularly alarming. They understand what it is to live in parts of rural Britain during winter. As I have mentioned before on the Floor of the House, Braemar in my constituency of West Aberdeenshire and Kincardine holds the coldest UK temperature record of minus 27°C; I believe it shares that record with Altnaharra in the constituency of the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone).

It is in such rural communities, which face the coldest temperatures more frequently, that support is so needed. That is why it is so regrettable that the new Government made the political decision not only to take critical funding away from those vulnerable pensioners, but to do so at the same time that they found an extra £11 billion from somewhere to hand out inflation-busting pay rises to public sector workers. That is a political decision that Age UK has said

“will leave millions of struggling pensioners without money they rely on”.

Without the lifeline that they so badly need, many pensioners will be left in serious trouble.

In February this year, it was estimated that fuel poverty would fall over 2024. In choosing this path, the Labour Government risk reversing that, pushing more vulnerable households into choosing between heating and eating. I never thought that I would see a Labour Government take such a decision. Prior to the debate, I had a look over the Labour manifesto—something that Government Ministers must have failed to do, seeing as they keep breaking the promises in it. Interestingly, there is a quote in that manifesto from a pensioner called Gary, who talks about the challenges of keeping on top of his energy bills and how apparently only Labour has a plan to help him. I wonder how Gary feels now, knowing that this Labour Government have taken away the support that pensioners like him are reliant on. Gary also talks about GB Energy. We heard a lot from the Labour party about how GB Energy would reduce bills by £300; we do not hear much talk about that any more.

Politics aside, all of us in this debate and in this building—across all parties and all parts of this United Kingdom, which are represented quite well in this room—want to see fuel poverty eradicated. I have visited the wind farm on Shetland that the right hon. Member for Orkney and Shetland mentioned. I, too, represent a rural constituency that also hosts a number of wind farms and associated energy infrastructure and that has too much fuel poverty, both because it is incredibly rural and because many people rely on oil and LPG to heat their homes, so they are far more exposed to wildly fluctuating prices. I do understand the challenges and I do understand why we must get a grip on this.

Six million people living in fuel poverty is far too many. One person living in fuel poverty is too many. Politics aside, despite what I have said in leading up to this, I assure the Minister, the right hon. Member for Orkney and Shetland and all hon. Members that His Majesty’s Opposition will work as constructively as we can to find solutions and find a way forward to tackle fuel poverty in this country and ensure that nobody has to choose between heating and eating.