Energy Efficiency and the Clean Growth Strategy

Debate between Charles Walker and Antoinette Sandbach

Thursday 8th March 2018 Westminster Hall

[Mr Charles Walker (in the Chair)]

I thank colleagues for being here today. There are some terrible weather conditions across the country, which I think will suppress attendance at this debate. Some colleagues had to get back to their constituencies before they got cut off, or the rail links got cut off. I call Antoinette Sandbach to move the motion.

[Antoinette Sandbach (Eddisbury) (Con)]

I beg to move,

That this House has considered energy efficiency and the clean growth strategy.

It is a pleasure to serve under your chairmanship, Mr Walker. I am grateful to the many of my colleagues from both sides of the House who helped me to secure this debate, not least to the hon. Member for Birmingham, Selly Oak (Steve McCabe).

This is an important debate, and I hope that it will spur Members to action, not just today but in the future. This is the first debate of its kind in several years, and it is important to ensure that we keep energy efficiency at the top of the political agenda. This week the energy price cap Bill, the Domestic Gas and Electricity (Tariff Cap) Bill, received its Second Reading. The Bill is a vital step to protect consumers while we reform the market in the short to medium term.

I want to propose a long-term solution for energy efficiency improvements and suggest how to make best use of the time we will have bought with the energy price cap Bill to address energy efficiency. In my remarks, I will outline how far we have come and discuss the challenges we face, before proposing a couple of solutions to return us to a better low-carbon path. I plan to talk generally about the state of energy efficiency, but where I am more specific I shall be addressing domestic energy efficiency. Other Members, I am sure, will focus on other areas, but I shall leave that contribution to them.

It is important to outline how far we have come in building a low-carbon economy and in improving energy efficiency over the long term. That is testament to the commitment of successive Governments, and I am proud to say that we are now a world leader in the green economy. Since 1990 we have cut emissions by 42%, faster than any other G7 nation. We have outperformed the first carbon budget, of 2008 to 2012, by 1%, and we are on course to outperform the second and third carbon budgets by 5% and 4%, respectively.

All that achievement has not come at the cost of economic growth. Emissions dropped by 42%, but the economy grew by 67%. In 2016, 47% of electricity came from low-carbon sources, which was twice the rate of 2010. Household energy consumption has fallen by 17% since 1990, despite a rise in the number of home appliances. More than 430,000 people work in low-carbon businesses and the supply chain. All that work has resulted in bills being roughly £490 lower than they would have been without the energy efficiency improvements made since 2004.

Clearly, significant progress has been made over the past three decades. I applaud Ministers and Members of all parties for their commitment to tackling climate. What is more, we have taken those steps without damaging our economy, the idea of which was originally dismissed by some as simply not possible.

Despite such progress, there is still more to do. Progress on energy efficiency has slowed. Between 2012 and 2015 the annual investment in energy efficiency fell by 53%; and in the same period there was an 80% reduction in improvement measures, with the Committee on Climate Change warning us that that will decline even further by 2020. Fuel poverty remains a stubborn problem that we must continue to address. It is all very well giving assistance with bills, but a long-term solution—insulating houses—is surely the way forward.

As of 2014, 2.3 million households in England were in fuel poverty and 41% of the households in the lowest income decile were fuel poor; 56% of fuel-poor households lived in properties built before 1944. To my mind, those issues make it an urgent requirement of the Government to do a housing survey in England: 60% of fuel-poor households lived in inefficient properties with an E, F or G energy performance certificate rating, and 14% of households in rural areas were in fuel poverty, which is higher than the national average. Those rural households cannot access the efficiencies of dual fuel billing, and that is important, because many are off grid. Many cannot access the warm home scheme measures, which often involve whole streets. The low-hanging fruit has been picked, but the more challenging households, in particular in rural communities, have not been addressed.

The clean growth strategy is a welcome addition to the debate. I support its proposals to combat fuel poverty and to promote energy efficiency, but I hope that the Minister can be more specific about the Government’s plans today than they were six months ago. The Committee on Climate Change assessment of the clean growth strategy found that three actions were expected to deliver, six actions had delivery risks, or were rated amber, and seven proposals were without firm plans, or rated red.

It has never been more important to tackle climate change and to decarbonise the economy. However, the potential rewards have never been so great. A building energy performance programme could save households £270 a year on bills. Over the long term that would save even more than the current proposed cap on energy bills, and it would also make a large contribution to hitting our climate change goals. Bringing every household up to an EPC band C by 2035 would save 25% of the energy used by the UK, which is the equivalent of six nuclear power stations the size of Hinkley Point C. The net economic benefit of such a programme would be between £7.5 billion and £8.7 billion, according to macro- economic analysis by the UK Energy Research Centre, and that figure does not include the wider secondary benefits in growth, jobs or health. With cold homes in England costing the NHS an estimated £1.36 billion, such a programme would have a considerable impact on health budgets, as well as on the wider economy.

The economic and social case for increased energy efficiency measures seems unarguable. We must focus on how to deliver them. Throughout recent history, we have seen that the fight against climate change is most effective when Government and private industry work together. The Government can lead the charge, but we need to harness the innovation and energy of the private sector to truly succeed. That is why I want to suggest one way in which the private sector can step up. It is one way for the Government to make a change that can expedite energy efficiency improvements. Mortgage providers should give people more incentives to purchase energy efficient homes.

In essence, if people make savings on their energy bills they will have more money to service a larger mortgage, and that should be taken into consideration when banks make their lending decisions. We know that in 2014, 51% of fuel-poor households were owner-occupiers, with only 33% in the private rented sector. Were the EPC rating of a house to be included in a lender’s affordability calculation, people could borrow up to £4,000 more in many cases. Under such a system, an EPC A rating would allow people to borrow £11,500 more than an EPC G-rated house. I recommend to hon. Members who are interested in this proposal a report by the Lenders group, which said that energy bills were a sizeable part of borrowers’ essential expenditure, and were therefore a component of the affordability calculation that warranted being made more sophisticated.

--- Later in debate ---

[Antoinette Sandbach]

Given the new Thornton campus in Cheshire, which is specialising in geothermal, may I suggest that on the way to Southampton from Scotland my hon. Friend call in to see some of the leading research that is being done at the University of Chester on the opportunities for geothermal and how we can roll that out much further across the country?

[Mr Charles Walker (in the Chair)]

Mr Graham is now going to make some progress.

Driven Grouse Shooting

Debate between Charles Walker and Antoinette Sandbach

Monday 31st October 2016 Westminster Hall

[Antoinette Sandbach]

I would be grateful if the hon. Lady provided me with a peer-reviewed study showing those numbers.

There has been no grouse shooting and no grouse moor management in the Berwyn range, where the number changes have been happening, since the late 1990s. Between upland breeding surveys, red grouse numbers declined by 54% and the occupied range—in other words, where the birds were—fell by 38%. Grouse count data collected on four moors since 1995 show that grouse numbers have remained at low levels on three of the moors. The study is important because it covers an RSPB-managed reserve. Grouse numbers declined, and so did hen harrier numbers.

Contrast that with what happened in relation to the plastic carrier bag charge in Wales, where landowners and the RSPB worked together to protect the black grouse, which was a huge success. There was a big increase in black grouse numbers on one keepered moor; on the three other RSPB moors, black grouse numbers did not increase. On the keepered moor on the Wynnstay Hall estate at Ruabon, the number of black grouse, one of our rarest grouse, increased. That shows what partnership can do, but it also shows that, when the land is not being managed by keepers, or is not where driven shooting happens, there is a decline in biodiversity. The RSPB reserve saw minor increases in black grouse.

This House has a responsibility to judge on proper evidence, not some scientific allegations made by third parties. [Interruption.] I am quoting the scientific facts from peer-reviewed research. I find it difficult that very few RSPB reserves release their data. They do not allow peer-reviewing of their bird numbers. One need only drive down the Llangollen valley to see the bracken on the hills of the RSPB reserves.

[Mr Charles Walker]

I point out to my hon. Friend that the Avian Population Estimates Panel states that 100 years ago there were no hen harriers in mainland UK, whereas today there are around 645 breeding pairs across the country. In 1963, there were 360 pairs of peregrines in the UK; today there are 1,500. There were 160 breeding pairs of red kites 20 years ago; there are now 1,600. Birds of prey are doing well in the United Kingdom.

[Antoinette Sandbach]

I am grateful to my hon. Friend for quoting those data. I would have referred to them myself. Furthermore, Natural England’s report “A Future for the Hen Harrier in England?” identified six causes of hen harrier nest failure: wildfire, predation, lack of food, poor weather, infertility and illegal killing. Clearly, there is an issue with illegal killing; I do not say by whom. It is interesting that the figures released by DEFRA show that, of 12 hen harrier nesting attempts in England last year, six were successful, of which four were on or immediately adjacent to moorland managed for grouse shooting.

What is happening in the RSPB reserves? What is happening on the more than 300,000 acres of managed land? Why is it not working? The evidence that I have cited shows that the call for a ban on driven grouse shooting is not rooted in science or evidence, and I do not support it.