Energy Bill Debate

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Chris Williamson

Main Page: Chris Williamson (Independent - Derby North)

Energy Bill

Chris Williamson Excerpts
Wednesday 4th December 2013

(11 years ago)

Commons Chamber
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Caroline Lucas Portrait Caroline Lucas
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I have much greater confidence in the wisdom of my constituents than sadly the hon. Gentleman appears to have in his. The bottom line is that people want information. They are being encouraged to switch between energy suppliers, but to do that they need well-presented information—I accept that it must be accessibly presented. I have no doubt that our constituents could perfectly well understand information on corporation tax paid and fuel mix, by which I mean the amount from fossil fuels and renewables.

Many other people want to speak, so I will end my comments there. I simply say to the Minister that the existing fuel mix disclosure obligation is not enough. We need more information, including trajectories, and it should cover more than one year and be properly comparable between different energy companies.

Chris Williamson Portrait Chris Williamson (Derby North) (Lab)
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I rise to speak in support of amendments 87 (a), (b), (c), (d), (e) and (f). I thank my hon. Friend the Member for Stalybridge and Hyde (Jonathan Reynolds), the shadow Minister, for his kind remarks and for his support, in principle at least, for the sentiments expressed in my amendments.

I am pleased that the Minister said that the Government were committed to tackling fuel poverty, but actions speak louder than words, and if the Government are serious about it, they need to do a lot better than they have done so far and a lot better than the measures in the Bill. The 29% increase in excess winter deaths in this country is a scandal. As the hon. Member for Brighton, Pavilion (Caroline Lucas) said, this is not the coldest climate or one of the poorest nations on the planet, yet people are dying because their homes are too cold. That cannot be acceptable. That is why we need to place on the Government a clear and unambiguous obligation to eradicate fuel poverty.

I am not the only one critical of the Government’s record. Their own fuel poverty advisory group issued a press release recently stating that the Government were failing the vulnerable as winter deaths were rising, and the chair of the group said:

“No one should be dying because they cannot afford to heat their home.”

He went on to say:

“Urgent action is needed now to prevent a repeat of this morally unforgiveable level of excess winter deaths.”

He is absolutely right that there is a moral imperative, and the Government seem to be failing dismally.

Indeed, not only are the Government failing, but in my view their response has been pretty shameful. They have changed the definition of fuel poverty, which at a stroke has taken a couple of million people out of that category. That reminds me a little of the 1980s, when the previous Conservative Government used to fiddle with the unemployment statistics in order to reduce the numbers. The Government have cut the funding to tackle fuel poverty and capitulated to the big six energy companies. There will be no energy price freeze under this Government, just £50 back, so energy bills will go up for everybody across the country—just not by as much as they might have otherwise. It is a bit like stealing someone’s shoes, giving them back the laces and then telling them to rejoice. On top of that, this Government have scrapped the Warm Front scheme, cut the winter fuel payment and mangled the energy company obligation.

Passing the Bill as it stands, without a clear and unambiguous commitment to eradicate fuel poverty, is a bit like passing a death sentence on thousands of people who are living in cold homes across our country. That is why I tabled the amendments that are before us: it is essential that we set meaningful targets for 2020 and 2030. I know it is a lot of money—bringing the housing stock up to energy performance certificate band B by 2030 for all low-income households is estimated to cost £47 billion—but the money, or a large proportion of it, is there. For example, something over £1 billion in the energy company obligation could be used for that purpose. Simply refocusing that ECO money would remove 70% of the fuel-poor from fuel poverty by 2020; I therefore think that should be done.

In addition, there are huge health benefits to tackling fuel poverty in bringing all low-income households up to EPC band B by 2030. The chief medical officer made it clear in her report that

“Every £1 spent keeping homes warm can save the NHS 42 pence in health costs.”

That has been estimated to be another £1 billion or so. It would be very sensible to reduce the costs on the national health and to allow that money to be refocused on paying for the required investment in tackling fuel poverty. If we can reduce the demand for energy, that could also reduce the cost of upgrading our energy infrastructure. We know already that £100 billion is being talked about to subsidise new nuclear energy in this country. We would not have to spend quite as much if we could manage down the demand for energy. There is also around £4 billion in carbon taxes that could be focused on tackling fuel poverty.

The other benefit that would flow from my proposal is that at least 130,000 jobs would be generated. Not only would that address a massive social need, given that there are more than 1 million unemployed young people in our country, but it would be a big boost to our economy. We also have our legal obligations, as set out in the Climate Change Act 2008. If we are serious about delivering on those obligations, it seems pretty clear that we need to do something about managing demand in our country and not simply look at creating additional capacity. If we are to reach that decarbonisation target, we must do more to reduce the demand for energy in the first place.

The Association for the Conservation of Energy estimates that investment in tackling cold homes would reduce household fuel bills by some £530 at today’s prices, but I am afraid that tackling fuel poverty and cold homes will not be achieved by the feeble efforts made by the Government so far.

Brian Binley Portrait Mr Brian Binley (Northampton South) (Con)
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The hon. Gentleman is making a compelling case, and I appreciate the compassion with which he is making it. It is a good case to make. Does he agree, however, that the last Government did not act very wisely, or indeed very compassionately, in this regard? Fuel poverty increased each year when they were in office. While I accept the hon. Gentleman’s arguments, I should like to hear him accept that the last Government did not do too well either.

Chris Williamson Portrait Chris Williamson
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I think that the hon. Gentleman is getting his facts a little mangled. Fuel poverty diminished in many of the years during which Labour was in power between 1997 and 2010. [Interruption.] I am afraid that that is a fact. It is clear that the Labour Government’s investment in tackling fuel poverty through, for instance, the Warm Front scheme and the decent homes agenda had a huge impact. Yes, we could have done more, and perhaps we should have done more, but we did a damn sight more than the current Administration propose to do. Perhaps the hon. Gentleman will accept that fact, at least.

Brian Binley Portrait Mr Binley
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I accept that I must apologise to the House for giving misleading figures. Fuel poverty increased every year from 2004 onwards, and those were the years when we were spending money like crazy. Does the hon. Gentleman accept that?

Chris Williamson Portrait Chris Williamson
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No, I do not.

Chris Williamson Portrait Chris Williamson
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No. I will not take any more interventions, because I know that others want to speak in this important debate.

Chris Williamson Portrait Chris Williamson
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No. Others wish to speak.

This issue will not go away; it will run and run. The fact that people are dying in our country because they cannot afford to heat their homes properly is a stain on our national character. People should not be faced with the invidious choice between putting food on their tables and heating their homes adequately. We must do better than that, and, as one of the richest nations on the planet, we can do better than that.

I am grateful for the supportive comments of my hon. Friend the Member for Stalybridge and Hyde. I hope that Labour Front Benchers will look carefully at the amendments, and that, when we form the Government following the next general election, our programme will include meaningful targets which can have a real impact, enabling us to end the absolute scandal of people dying in our country because they are living in cold homes.

Mike Weir Portrait Mr Weir
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I had not intended to say much, but the concerted attack on the Scottish Government by both Front Benches encouraged me to rise to oppose Lords amendment 54.

The purpose of the amendment, as the Minister briefly told us, is to close the renewables obligation throughout Great Britain. That is important, because until now the Scottish Government have been able to operate it distinctly from the renewables obligation in England and Wales, and have indeed used it in some different ways.

The closure of the renewables obligation and, in particular, the time scale were debated at some length in Committee, and I do not intend to repeat all that was said at that stage. However, the Minister said that the Scottish Government had full knowledge of the date when the Government intended to close the renewables obligation. I am sure that that is true, but the Government did not have the power to force the closure in Scotland, because it was a power that lay with the Scottish Government. Now the Government have introduced an amendment in the other place—in an unelected Chamber—to change the law and remove a power from the Scottish Parliament.

Successive Scottish Governments have used their devolved powers to advance renewables generation across Scotland, and the removal of that discretion has caused concern, particularly as there has been no prior consultation with the Scottish Government about its removal or about the introduction of this provision, especially at a time when the Scottish Government are conducting a live consultation on the closure of the renewables obligation. The Scottish Government have also used the renewables obligation to provide greater support for hydro schemes and higher renewables obligation certificate bands for floating offshore wind turbines.

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Michael Fallon Portrait Michael Fallon
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We have made our intention absolutely clear that the renewables obligation was going to be closed by March 2017. That has been made clear to the Scottish Government by officials and Ministers in correspondence over many months now. It is only right that the renewables obligation should be closed evenly for England, Wales and Scotland. I do not accept the hon. Gentleman’s point.

The hon. Member for Derby North (Chris Williamson) suggested that some of those involved in the fuel poverty area were not supportive of our change. He quoted Derek Lickorish, the chairman of the fuel poverty advisory group, but let me now quote him. David Lickorish said:

“I very much welcome the announcement in Parliament today by the Secretary of State that will place an enduring requirement for this, and successive governments, to tackle fuel poverty beyond the current legislation.”

The hon. Gentleman also quoted the Association for the Conservation of Energy. Let me tell him what Mr Warren said:

“It has been our long-held view that fuel poverty-proofing our inefficient housing stock is the only permanent solution to the scourge of fuel poverty. We therefore welcome as a step in the right direction the Government’s stated intention to adopt a new target to improve the energy efficiency of the homes of the fuel poor.”

I just want to make it clear that those voluntary organisations that are the most concerned in this area welcome the change that we are making.

Chris Williamson Portrait Chris Williamson
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I think the Minister will find that the organisations to which he is referring took the view that something was better than nothing, because nothing was previously on offer. It is stretching the point to suggest that these organisations are endorsing the Government’s approach, because that is far from the truth.

Michael Fallon Portrait Michael Fallon
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The problem the hon. Gentleman has is that fuel poverty went up. It went up in the boom years when the economy was booming and public expenditure was increasing year after year. That has been the particular problem with his definition.