(1 day, 18 hours ago)
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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.
(1 week, 2 days ago)
Commons Chamber
Anna Dixon (Shipley) (Lab)
I thank the Minister for his comments. Last week on the Public Accounts Committee, we heard about the shocking scandal of faulty cavity wall insulation under the energy company obligation 4 scheme, for which the last Government outsourced oversight to TrustMark. I have heard from constituents across Shipley who potentially face bills of tens of thousands of pounds to put right shoddy work. They are living in damp and mouldy homes. How is the Minister ensuring that those homes are remediated without cost to homeowners, and how will trust be restored in these schemes for the future?
Martin McCluskey
When I came to this brief, I too was shocked at the extent of the failures of the external wall insulation scheme under ECO4. We have set out the actions that we are taking to ensure that properties are remediated at no cost to the householder. Looking to the future system, the three principles that I believe we should follow are that work should be done right the first time; the system should be simple and easy to navigate from the consumer’s point of view; and when things go wrong—I do not want them to, but when they do—there needs to be swift remediation through the system to ensure that it delivers for consumers.