Home Insulation

Anna Dixon Excerpts

Wednesday 26th November 2025 Westminster Hall

[Peter Dowd (in the Chair)]

I will call Anna Dixon to move the motion and then I will call the Minister to respond. I remind other Members that they can only make a speech with the prior permission of both the Member in charge of the debate and the Minister. There will not be an opportunity for the Member in charge to wind up, as is the convention for 30-minute debates.

[Anna Dixon (Shipley) (Lab)]

I beg to move,

That this House has considered the impact of home insulation on energy bills.

It is a pleasure to serve under your chairship, Mr Dowd. Across the country, 12 million households are in fuel poverty, with almost 5 million of them spending over 20% of their income on energy. Like many other people across the country, my constituents in Shipley face a cost of living crisis, and energy bills are a huge part of that crisis.

Increasing the energy efficiency of our homes is a crucial way in which we can reduce bills, yet the rate of home insulation installations declined under the previous Government. I am pleased that this Labour Government have taken positive steps to reverse that decline with the warm homes plan. In addition, I particularly welcome today’s Budget announcement by the Chancellor to scrap the disastrous Tory energy company obligation scheme, which cost more than £1 billion per year and cost many families more money than it saved. All of this will bring down energy bills for the average household by £150 from next April, reducing the cost of living and lifting more people out of fuel poverty.

However, there is an urgent need to upgrade our homes. The UK’s housing stock is among the least energy efficient in Europe. According to research by Imperial College London, homes in the UK lose heat up to three times faster than homes in the rest of Europe. Perhaps that is not surprising, given that almost a quarter of properties in Great Britain with cavity walls have no cavity wall insulation.

[Jim Shannon (Strangford) (DUP)]

First of all, I commend the hon. Lady for securing this debate. I spoke to her beforehand. The problems that she is outlining in her own constituency of Shipley are similar to those we have in Northern Ireland, where 65% of dwellings have full cavity wall insulation, 15% have partial cavity wall insulation and 20% have no cavity wall insulation. Does she agree that more must be done to lower the threshold for programmes such as the boiler scheme insulation grant, so that more households can apply for such grants to support them in heating their homes properly?

[Anna Dixon]

It is vital that people in all types of tenure and even low-income households—indeed, everybody—can access modifications that could save them money on their bills.

Poor-quality housing particularly traps households in fuel poverty, because people need to spend a fortune to keep warm. Data from Friends of the Earth shows that there are 17 energy crisis hotspots in my own constituency. These are neighbourhoods that have below-average household income but above-average energy bills.

In Shipley, we also have a higher than average proportion of homes that are non-decent, which means they do not meet the standards for a warm and dry home. Indeed, 64% of homes in Shipley have an energy performance certificate rating of D or below. As a result of the extortionate cost of energy, the unnecessary additional high usage due to poor insulation and the flatlining of living standards under the previous Government, energy debt is soaring. Millions of households across the UK now have a combined energy debt of over £4 billion.

To help people to deal with this situation, fantastic organisations such as Christians Against Poverty work to tackle poverty. In Shipley, CAP provides a debt advice service. Across the country, this service has helped more than 20,000 people to become debt-free since 2010. We also have local food banks that offer fuel vouchers to those on pre-payment meters who cannot afford top-ups. However, energy companies must also act to support those people who have large unpaid debts, by bringing in programmes such as social tariffs and other forms of fair pricing to help those living in fuel poverty.

Poor-quality housing not only harms people’s finances; it also has a severe impact on their health.

[Afzal Khan (Manchester Rusholme) (Lab)]

It is well known that cold and damp homes are detrimental to both physical and mental health, with nearly three in every 10 children in cold homes at risk of developing health issues. Does she agree that home insulation is vital to improve public health alongside tackling fuel poverty?

[Anna Dixon]

My hon. Friend makes the point very well, and I absolutely agree that poor housing is part of a public health emergency. Young and old alike suffer from cold and damp homes. At the extreme, cold homes kill. It has been estimated that they contributed to 5,000 excess winter deaths among older people in 2022-23. For me, that figure is shocking and unacceptable.

Poor-quality housing affects people differently. The Centre for Ageing Better and the Fabian Society recently published research showing that as many as 80% of owner-occupiers aged over 55 live in poor-quality homes.

I probably should have drawn attention to my entry in the Register of Members’ Interests in that I am co-chair of the all-party parliamentary group on housing and care for older people. I support the proposals put forward in the “Forward Planning” report. One that is relevant to today’s debate is the suggestion that older homeowners could receive loan guarantees for improvements through the national wealth fund. That would reduce the cost of borrowing for those who want to use it to pay for improvements, as well as crowding in private investment.

There are significant inequalities. According to the End Fuel Poverty Coalition, 3.2 million of those in fuel poverty are pensioner households, with 964,000 pensioner households in deep fuel poverty. People on low incomes are also at greater risk of fuel poverty, as are renters and households with children, as my hon. Friend the Member for Manchester Rusholme (Afzal Khan) mentioned. The cost of poor quality housing is colossal; it affects the health and wealth of individuals and the prosperity of the country, and it exacerbates existing inequalities.

There are also inequalities between north and south. In the north of England 41% of homes were built before 1944, 1.47 million homes are considered non-decent and £1 in almost every £4 spent on household heating is being lost due to poor insulation. The cost to the NHS of those non-decent housing conditions is estimated at £588 million per year, in addition to the societal cost of £7.77 billion, according to the Northern Health Science Alliance.

In response to this crisis we see really strong, innovative local efforts. I pay tribute to the charity Groundwork, which provides a “warm homes healthy people” scheme across the Bradford district, including in my Shipley constituency. It installs energy efficient measures, including insulation, and offers support and advice on energy bills.

[Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)]

I thank my hon. Friend for securing this debate. While she is looking at good local organisations, let me say that National Energy Action has often said that Stoke-on-Trent ranks first in the country for fuel poverty, but we are very lucky to have Fiona Miller and her team at Beat the Cold, who for 25 years have helped lead the fuel poverty action group in Stoke-on-Trent. They work with a whole variety of organisations to help homeowners and renters look at small local actions that they can take to increase insulation and reduce their bills. Will my hon. Friend join me in encouraging the Minister to tell us what more he and the Department can do to help organisations on the ground today with those small acts that bring down bills before the big roll-out of energy insulation?

[Anna Dixon]

I commend the work of local organisations such as Beat the Cold and the charity Groundwork. I also hope that the Minister will say how he can help support those efforts locally.

Another local project that I would like to pay tribute to is Saltaire Retrofit Reimagined. It is a community-led home retrofit initiative supported by the UK shared prosperity fund, as well as the Footwork Trust and the Shipley area committee. It has focused on improving heating and energy efficiency in our beautiful listed heritage properties within the Saltaire world heritage site. The project engaged with homeowners, tenants and landlords to understand their perspectives on what effective energy and insulation retrofit should look like. Based on that, the team developed bespoke, heritage-sensitive guidance for upgrading listed homes that were originally built in the 1850s and 1860s, and which are some of the most challenging properties to retrofit. The blueprint and toolkit that it has produced removes both time and cost involved for individual homes to get surveys, and provides confidence that they will get planning permission to retrofit their listed homes. Its work is inspiring and supports our national goals to reduce energy and achieve net zero. I invite the Minister to visit Shipley and Saltaire and see at first hand the great work that it is undertaking—it is a national exemplar of heritage retrofit for homes.

Given the clear evidence of harm caused by poor-quality housing, it is concerning that under the previous Government, we saw measures under the energy efficiency obligation plummet from around 80,000 per month in early 2014 to less than 20,000 from mid-2016 to 2020. The Conservatives significantly reduced the rate of energy efficiency installations. Meanwhile, energy bills rocketed. Between 2020 and 2024, UK-based energy companies made a profit of £420 billion. I am proud that Labour not only proposed imposing a windfall tax on oil and gas companies in opposition, but increased it when in Government in 2024. We should adopt the polluter pays principle and ensure that we continue to tax excess profits. I greatly welcome the Government’s warm homes plan, a £13.2 billion commitment designed to improve home energy efficiency, tackle fuel poverty and reduce carbon emissions.

[Shockat Adam (Leicester South) (Ind)]

I thank the hon. Member for raising the issue of warm homes. Does she agree with my constituents who have formed the WarmHomesLeics Coalition that insulation is one of the most proficient and efficient forms of climate action that we can take locally?

[Anna Dixon]

I absolutely agree that home insulation is essential in tackling not only rising energy bills but climate change. I hope the Minister will confirm the Government’s ambition to upgrade 5 million homes by the end of the current Parliament; it is a fantastic goal that will reduce energy bills.

We are also expanding the warm homes discount. I was pleased to see that 2.7 million families across the country will get £150 off their energy bills this winter, doubling the number of people able to access vital support. Around 900,000 families with children, and a total of 1.8 million households in fuel poverty, will receive extra support thanks to this Government, in addition to the winter fuel allowance being reinstated for those with incomes up to £35,000. Upgrading our homes not only puts money in people’s pockets but helps us tackle what is perhaps the biggest challenge of our age: climate change. According to the Northern Health Science Alliance, if all homes had an EPC standard of C or higher, emissions could be reduced by an estimated 97 million tonnes of CO2.

It is deeply concerning to see the political consensus around climate change fracture, and both the Tories and Reform jumping on board with Trump and climate sceptics, against all scientific evidence and sense. I welcome this Government taking climate action seriously. Labour’s clean power mission is right for both people and planet. It is the long-term solution to tackling energy insecurity.

It is vital, however, that the public can trust any support they receive to install energy efficient measures in their home. Recently, I have been contacted by two constituents who had cavity wall insulation fitted under the Government ECO4 scheme. The work was faulty and caused serious damage to the properties. My constituents then hired the solicitors firm SSB Law, which had gone door to door to look for business in particular areas of the country where problems with faulty cavity wall insulation were discovered. This law firm operated on a no win, no fee basis and took the construction firms’ insurers to court on behalf of the individuals.

The firm went ahead with the cases, often without the likelihood of winning, and did not have the appropriate litigation insurance for when it lost. This meant that, when the cases were lost, the construction companies’ insurers counter-sued for their legal costs, which led to the collapse of SSB Law, whose insurers would not pay out. In response, the construction companies’ insurers directly sued the people who engaged SSB Law. Not only were my constituents let down by shoddy workmanship done under these eco-schemes; they were then chased for large sums of money by disreputable law firms and insurers.

I am a member of the Public Accounts Committee; we held a hearing on the last Government’s ECO4 scheme that was frankly jaw-dropping. Some 98% of external wall insulation done under that scheme was faulty, and oversight outsourced to the private sector meant that companies got away with shoddy work and left people, including my constituents, in damp and mouldy homes. It is utterly shocking.

At the hearing, we pushed Government officials from the Department for Energy Security and Net Zero and Ofgem, the regulator, on how they would fix the problems and ensure that faulty work was put right, without its costing my constituents. Can the Minister please confirm what the Government are doing to address the issue of faulty insulation installations? How will they restore faith in schemes designed to insulate homes, as well as other energy-saving measures? It is vital that the Government rectify the mistakes of the disastrous ECO4 scheme and, more broadly, restore trust in Government-backed insulation schemes.

To conclude, poor-quality housing is a huge problem for my constituents in the villages and towns across the Shipley constituency, and for people up and down the country. It leads to higher energy bills, higher personal debt and higher levels of destitution. It also leads to increased health problems and increased excess deaths. Home insulation is a critical tool to mitigate those issues, and I am incredibly proud of the work that the Labour Government have begun to do, from the warm homes plan to establishing Great British Energy. In the run-up to last year’s general election, colleagues and I pledged that voting for a Labour Government would lead to a reduction in household energy bills. I am confident that, with the Chancellor’s announcement today in the Budget, we are going to deliver that; I would like to hear from the Minister about how ensuring that our homes are properly insulated is perhaps the best way to deliver that pledge.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I thank all hon. Members for their contributions today, and I thank particularly my hon. Friend the Member for Shipley (Anna Dixon), not only for securing the debate, but for all her work on the Public Accounts Committee in scrutinising the ECO4 scandal. Over the last few months, she has fought extremely hard for her constituents who have suffered from substandard insulation through Government schemes.

When I came to this brief, about 10 weeks ago, I was presented with the outcome of the National Audit Office report. I was shocked by the extent of the failures under the previous Government, by the system that we inherited and by the many personal stories of people impacted by damp, mould and other issues.

Homes hold a special place in people’s hearts. They are places that we pour time and money into. We make memories in them. They are sanctuaries, shelters, places of care and settings for our lives. People will not put their homes at risk unless they can be absolutely sure that things will not go wrong—or that, if they do, they will be put right. That is why we are making consumer protection reform such a central part of the upcoming warm homes plan.

Just a few months into this new Government, widespread cases of poor-quality insulation were identified under the ECO4 and Great British insulation schemes. The Government, including both me and my predecessor, have spoken extensively about our actions on this. To give hon. Members reassurance, those include enhanced checks and oversight of contractors and TrustMark; new restrictions on installers operating through the multiple certification bodies we have; updated standards for retrofit co-ordinators and designers; and an offer of a comprehensive on-site audit to every household with external wall insulation installed under those two schemes, at no cost to the consumer. I see hon. Members present who I know are advocated for constituents facing particular problems with ECO4; they will all be receiving notices of audits, or maybe they have already. I encourage hon. Members to make sure that their constituents take up that offer of an audit, because that is the gateway to remediation.

[Anna Dixon]

I thank the Minister for the reassurance that householders affected by faulty work will be getting an audit and that there will be remedies. Can he confirm when those letters will be going out, if they have not already, and whether they will be from Ofgem?

[Martin McCluskey]

The letters will be sent, I think, from today. Many of those households will already have received knocks on the door or possibly direct contact from scheme providers. We are clear that the system needs to remediate this in the first instance. The issue was caused by the system, and there are guarantees available through the schemes to ensure that they are remediated. If any Member is dealing with constituents whose audits are not getting done properly or who are having difficulty with the guarantee providers, I ask them please to come directly to me, because we need to know exactly what is happening as this action takes place.

Despite all the actions we are taking on ECO4, we still need to think about the future system. That is why we have committed to reforming the system and to accelerating that process. I can confirm that we are looking at the entire landscape of consumer protection, from how installers work in homes to where people turn for rapid action and enforcement if things go wrong. The Government are planning to consult on the specific proposals early in the new year, and are already working with industry and consumer protection experts to develop and stress-test plans, including through the retrofit system reform advisory panel, which was set up under my predecessor and began work in July.

As this is one of the most urgent challenges that the Government face in our mission to improve the lives of working people, my right hon. and learned Friend the Prime Minister gave me the clearest of instructions on my first day in the job: to reduce bills by making millions more homes warm, safe and fit for the 21st century. We face a number of challenges, as my hon. Friend the Member for Shipley alluded to. More than 80% of UK homes rely on gas for heating—among the highest percentages in the world, meaning that we are particularly exposed to crises or energy shocks, as we saw after the Russian invasion of Ukraine. Moreover, we have some of the oldest housing stock in Europe; more than a third of houses were built before the second world war, most with uninsulated walls, meaning that yet more money and fossil fuels are needed to heat them.

My hon. Friend mentioned a project in Saltaire, and I will be more than happy to visit. I have had good and constructive conversations with Members across the House regarding heritage retrofit. That is something we have to address in the new plan.