Energy Costs in Wales

Anna McMorrin Excerpts

Tuesday 11th October 2022 Westminster Hall

[Anna McMorrin (Cardiff North) (Lab)]

I beg to move,

That this House has considered energy costs in Wales.

On our first day back in Parliament this term, this debate on energy costs in Wales is hugely timely. We are facing a national emergency. People are scared, cold, and paying the ultimate price for the energy crisis. I am therefore grateful that the Minister is in his place to listen to us discuss the very real issues that people are facing across the country, but it would be remiss of me to start without calling out the recent incompetent actions from the UK Government. In just a few short weeks, this Tory Government have plummeted millions of people into hardship and misery—the choice between heating and eating, going to bed cold and hungry or giving their child their last tin of food. The shockingly mishandled emergency Budget was inexcusable. It has seen the pound plummet, energy costs spiral, mortgages pulled, interest rates shoot up—and for what? Unfunded tax cuts for the richest 1% in society and bigger bankers’ bonuses.

[Alun Cairns (Vale of Glamorgan) (Con)]

I congratulate the hon. Lady on securing this important debate. In addition to that tirade of comments, will she recognise that the energy price guarantee is the most generous across all the major developed nations in Europe?

[Anna McMorrin]

I thank the right hon. Member for his intervention, but providing that is the very least that could be done in the face of all this incompetence, quite frankly.

The result of this reckless decision will be felt by households across the country for years to come. It is always the most vulnerable who pay the highest price for the political choices made by this UK Government. In Wales, people are worried sick. Thankfully, our Welsh Labour Government have shielded so many from the very worst, but the crippling energy crisis is hard to undo when action from Westminster is worsening by the day. The human cost of such decisions cannot be overstated. At the launch of the Institute of Health Equity’s fuel poverty report last month, Professor Sinha said there is “no doubt” that children will die this winter. Damaged organs and respiratory illnesses are just some of the many long-term health impacts that people will face, and the trauma of going to bed cold and hungry will stay with someone for life.

I was speaking to the National Society for the Prevention of Cruelty to Children just this morning, and it told me how heartbreaking it is to receive calls through its helpline from children who really do not know what to do or how to help their parents, as they witness them struggle to make ends meet, often while living in cold, damp and mouldy conditions. I, too, receive heartbreaking calls from struggling parents just trying to do their best, and from distraught constituents torn between losing their home and losing their business. A pub in the heart of Cardiff North told me that it literally cannot afford to keep the lights on and is moving to using candlelight after receiving a £24,000 energy bill. My constituent Rebecca, a talented jeweller and silversmith, runs a small business on top of doing three other jobs. She faces a sixfold increase in her electricity bill. Her partner, Gareth, who contacted me worried sick, said, “What are we working for if not a better future?”

Well, that better future is being carved out by our Welsh Labour Government, with £51 million of targeted support for those who need it most. Measures include doubling the winter fuel support payment, cost of living support payments, £4 million for fuel vouchers, a heat fund to support those on prepayment meters, and the roll-out of universal free school meals. That is the difference that a Labour Government make. The Welsh Labour Government understand the human cost of this crisis. Perhaps the Prime Minister should pick up the phone to our First Minister for the first time after all.

[Jonathan Edwards (Carmarthen East and Dinefwr) (Ind)]

I am extremely grateful to the hon. Lady for securing the debate and for the very important points that she is making. It is right that we debate this issue. One of the big issues that we face is that the UK is not particularly self-sufficient when it comes to electricity generation; we are the second largest net importer of electricity in Europe. Meanwhile, Wales produces double the electricity that it consumes. We are a superpower, in European terms; no other country is close to the generation and consumption levels of Wales. The question that occurs to me is: how can we use that strength to safeguard our own people in Wales from the fuel poverty that they face?

[Anna McMorrin]

The hon. Member makes exactly the right point. We want to hear from the Minister as to why that challenge is not being addressed. This week is also Hospice Care Week, and the families supported by Tŷ Hafan and Tŷ Gobaith—the two children’s hospices in Wales—really are the ones on the frontline in this energy crisis. Tŷ Hafan is facing a sixfold increase in energy costs at a time when it is also facing rising demand for its services. It could never have foreseen what was to come, and it is the families who rely on its support that suffer. The Welsh Government have provided support to the hospice with the funding uplift. However, the Chancellor is yet even to respond to its letter. The Business Secretary’s response was to assure hospices that they would be prioritised for additional support. Will the Minister confirm whether that is the case? The evidence clearly suggests the opposite.

Let me explain to the Minister the human cost of continued inaction. My constituent Emma has a son called Jack, who has cerebral palsy. Emma does not have the option of not using energy. She relies on it for Jack’s lifesaving equipment. Emma sadly lost her son Tom, Jack’s twin, to the deadly disease. It is families such as Emma’s who face nearly £600 more a month in bills. The support that Tŷ Hafan provides to families is invaluable. Will the Minister tell those families whether they will get an emergency assistance payment, and when that specialist support will be given to the hospices on which they so heavily rely?

The chairman of the Conservative party, the right hon. Member for Rossendale and Darwen (Jake Berry), said that people should just get better jobs. Emma is Jack’s full-time carer, living off just £850 a month in universal credit, topped up with a carer’s allowance. How would she manage? Will the Minister tell Emma whether the Government intend to uprate benefits in line with current inflation rates, so that she and her family can live and not just barely survive?

The UK Government’s attitude towards hospices in Wales reflects their attitude towards Wales in general—our organisations and people alike. It is an attitude of disdain and neglect. The fact that the Government are planning for energy blackouts says it all. In short, it means that people will die. What action will the UK Government take to ensure that families of seriously ill children, who rely on that lifesaving equipment at home, have access to a secure and constant supply of energy—or will the Government have blood on their hands?

Support for energy bills only goes so far. Too many homes are poorly insulated and their bills will rise at a far higher rate. Since 2011, the Welsh Labour Government’s warm homes programme has invested more than £400 million in more than 67,000 homes to improve home energy efficiency across Wales. Under Labour’s warm homes plan, we aim to insulate 19 million homes in a decade across the whole of the UK.

In a display of utter incompetency, this Prime Minister has defied her own official advice and blocked plans for a public information campaign asking people to save energy over the winter. Apparently, she is ideologically opposed to that. Will the Minister confirm whether he is too? Is he ideologically opposed to urging people to keep an eye on usage, saving households £8.4 billion and avoiding blackouts?

Insulation measures are not just about cost. Old, poorly insulated homes are more likely to be cold, mouldy or damp, which can cause significant long-term physical and mental health problems. It is astounding that councils are now forced to open warm hubs. Just yesterday, our Labour-run Cardiff Council launched its warm welcome space; anyone who is struggling to heat their home can go to the local hub or library, to be greeted with a warm welcome and a free hot drink—but that is shocking.

We must remember that this crisis is caused by a dependency on oil and gas. It will not be solved by increasing dependency. Gas costs nine times more than renewables. This Tory Government are intent on locking us into a fossil fuel era, with high bills and an ever worsening climate crisis. The Prime Minister refuses to understand that the climate crisis and energy crisis go hand in hand. The Government cannot tackle one without tackling the other. I know well that the Minister agrees, and I would like to hear him say so today.

Rising seas and extreme weather events are costing lives. Our younger generations are being robbed of their future. Climate change presents an opportunity to change the way we live. Labour is committed to a great British energy company that will deliver clean power by 2030, saving UK households £93 billion over the rest of the decade. What was the UK Government’s answer? To lift the ban on fracking—yet another broken manifesto pledge to deliver the most ambitious environmental programme of any country on earth.

Rest assured, the ban on fracking in Wales is still firmly in place, and the Welsh Government will do everything in their power to pick up the pieces where the Tory Government have fallen woefully short, whether that is for businesses at the heart of our community that risk closing their doors for good due to spiralling, unaffordable energy prices; for people like my constituent, who tragically told me that his elderly mother felt she would be better off dead than forced to pay such astronomical energy prices; or for those who are cutting back on their essential groceries or relying on food banks just to get by.

[Jessica Morden (Newport East) (Lab)]

In an earlier comment, my hon. Friend mentioned prepayment meters. For those who use prepayment meters, £3.50 of every £10 that they top up goes on charges, and South Wales has one of highest rates in the UK. Does she agree that we really need to address that issue?

[Anna McMorrin]

Absolutely. It is an area we need to focus on, and I hope the Minister will have an answer to that issue today.

The examples I have given show the real human cost of the energy crisis. I hope that this Conservative Government for once bear that in mind, instead of fighting one another like cats and dogs. The people paying the true cost of the energy crisis in Wales must not be forgotten or sidelined.

[Alun Cairns (Vale of Glamorgan) (Con)]

It is a pleasure to serve under your chairmanship, Mr Betts. I congratulate the hon. Member for Cardiff North (Anna McMorrin) on securing this important debate. I look forward to the contributions of all Members, because this is a serious issue that needs addressing in a serious way. In the spirit in which I congratulated the hon. Lady on securing the debate, I am bit disappointed by the party political tone that it has taken. These are genuine, serious issues that need addressing. Constituents are looking to politicians to find the best response to a genuine energy supply crisis and its sources, which we will come to in a moment. I am disappointed that the debate has been so party political so far, but I will try to move it on in a way that might be helpful to constituents who listen.

[Anna McMorrin]

I think the right hon. Gentleman failed to hear what I actually said. I was clarifying what the different Governments provide and setting out the human cost of what is happening because of the political choices made by the UK Government and this Prime Minister. I sincerely hope he can understand that.

[Alun Cairns]

I will respond to some of the points that have been made, but we need to recognise that the absolute cause of the challenge is the war in Ukraine and Putin’s aggression. Anyone who seeks to weaponise the increase in energy prices for political ends is undermining the war effort and Ukraine’s right to defend its nation. It is a serious issue, but that does not mean that we do not need to react.

The Government are reacting. We need to recognise some of the things they are doing and congratulate them, but there will be other areas where we want to press for further support. That is an intelligent way to pursue a debate, rather than saying that everything politicians in Cardiff Bay are doing is right and everything those in Whitehall are doing is wrong. That is simply not credible and it is not the case. I am disappointed that the war in Ukraine is being weaponised in this way.

Just weeks ago, we saw the explosions at Nord Stream 1 and Nord Stream 2, which were clearly attacks, although we have no certainty about the reasons for them or their source. They have had an impact on supplies across Europe, but thankfully supplies to the UK do not come from Nord Stream 1 and Nord Stream 2, and are therefore much more secure. I underline my interest as chairman of the all-party parliamentary group for energy security. It would be helpful for us all to recognise that energy is traded at a multi-national, if not a global, level. That is part of the complexity of the situation, rather than the simplicity that has been described.

Constituents want to know exactly what support they will get. Everyone will get a grant of £400 in addition to a council tax rebate of £150 for properties in bands A to D. There are also additional payments, including a cost of living payment of £650 for benefit claimants, a one-off payment of £300 for pensioners for heating, and a disability cost of living payment of £150. Those payments will alleviate the situation and make sure that some people are able to keep the fires burning. They may have formed the impression that they could end up in an extremely unfortunate situation, but they may well be able to avoid that, depending on their individual circumstances.

The energy price guarantee announced a couple of weeks ago is an extremely welcome measure, and it would be helpful for the Opposition to recognise that. I press the hon. Member for Cardiff North to acknowledge that it is the most generous package that has been offered across Europe. I am happy to be corrected if the hon. Lady wishes to intervene, but independent sources say it is the most generous package in Europe, which means that people in similar circumstances in Europe will find themselves worse off. I am not saying that is a good thing; it is not a good thing. More needs to be done to support everyone—not only across Europe, but well beyond—because the conflict in Ukraine has created a global challenge.

The energy consumption of an average property will cost £2,500. There is a lot of misunderstanding about that. People will pay depending on their energy consumption and that figure is an average cost, which is provided as a guide. It is a significant increase, but lower than it would otherwise have been without the energy price guarantee, and the additional payments will support people and allow them to cope with those increases.

I find it difficult to believe that everything the Welsh Government are doing is right and everything Whitehall is doing is wrong. On the one hand, the hon. Member for Cardiff North claimed that people were living in cold, damp and uninsulated homes—and many are and we need to recognise that—but then seemed to champion the insulating programme and schemes that the Welsh Government have been pursuing. It cannot be one or the other; we must recognise that it is a complex situation and that people are finding themselves in difficult circumstances.

I find it difficult that the wider public debate makes such an issue of a public information campaign. This debate could serve as a public information campaign in itself if it were conducted in a reasonable and intelligent way. We need to recognise that this issue is rightly dominating the news and people should be able to interpret that large increases in energy prices will mean consumption needs to be managed to prevent cost of living challenges. In addition, information is being made available by the Energy Saving Trust, Ofgem and so many other agencies and charitable organisations. I would much prefer that the money that would have been spent on a public information campaign is spent on supporting people to reduce their bills, rather than on duplicating and repeating what we could do and what is available freely on the internet.

I ask the Minister for guidance on two points. I have already highlighted the domestic levels of support that are available, and they are significant, but we need further clarity on park homes. It is not clear how they will be able to benefit, because of how their meters work compared with others. I recognise that this is the first day that Parliament is sitting and therefore it has not been easy to communicate all the messages that need to be communicated, but there are a number of park homes in my constituency and across the whole of the UK—Wales possibly has a disproportionate number of park homes—so further clarity would be helpful. Reassuring messages have been given, but it is helpful to have the mechanics of how it should work.

--- Later in debate ---

[Anna McMorrin]

Where to start? I do admire the fantasy being played out by the Government in trying to explain away the Chancellor’s horrific mini-Budget, while the IMF has today doubled down on its criticism of it in an unprecedented way. However, today’s debate was about energy costs in Wales. I set out in my speech, and we heard from Members present, how those costs have impacted constituents, people, businesses and organisations up and down Wales and, indeed, the whole country.

We need action from this Government, and we need it now. They have been in power for 12 years—12 years doing little bit by little bit. We need proper reform of the energy market, proper investment in renewables, and a proper plan and strategy for an energy efficiency scheme. That starts with the Prime Minister not ignoring official advice from the Climate Change Committee and not ruling out solar generation on farmland. The Government’s actions are pitiful, and they are not the way that we will see solutions across the country.

Motion lapsed (Standing Order No. 10(6)).