Cold and Damp Homes

David Chadwick Excerpts

Thursday 8th May 2025 Westminster Hall

[David Chadwick (Brecon, Radnor and Cwm Tawe) (LD)]

It is an honour to serve under your chairmanship, Mr Western. I thank the hon. Member for Leeds Central and Headingley (Alex Sobel) for securing this important debate. As he rightly set out, many of our issues stem from the fact that so much of our housing stock dates to the Georgian and Victorian periods. I draw attention to my entry in the Register of Members’ Financial Interests.

My hon. Friend the Member for Bath (Wera Hobhouse) rightly pointed out that the UK has some of the oldest and coldest homes in Europe, and that the NHS is spending £1.5 billion a year on treating respiratory illnesses. Hopefully, investing in warmer homes would bring down that cost. In Wales alone, over 600,000 households—nearly half of all Welsh homes—are estimated to be in fuel poverty, with more than 100,000 in extreme fuel poverty. The crisis is not just about rising energy bills or cold weather; it is rooted in the very buildings we live in. The UK and Wales especially, as we have heard, have some of the oldest housing stock in Europe. Many of the homes in Wales were built before 1919, long before insulation or energy efficiency were even considered. As a result, a huge number of houses are cold, damp and impossible to heat efficiently. Many still rely on outdated boilers, lack double glazing or have walls that leak heat faster than we can generate it.

The consequences are not just physical discomfort or financial strain; cold homes are making people sick. They are contributing to the incidence of respiratory disease, heart conditions, mental health issues and, tragically, avoidable deaths in winter. This is costing every single one of us. The NHS in England alone spends around £1.5 billion a year treating conditions linked to cold and damp homes. In Wales, the annual cost is estimated to be £67 million. That money could be spent on frontline care, rather than on treating problems that could have been prevented by better housing.

The costs go even further. Fuel poverty means lost workdays and reduced productivity due to illness; children underperforming at school because they are too cold or too sick to learn; increased national energy use and demand from homes that haemorrhage heat; growing household debt from people falling behind on unaffordable energy bills; and less money in the economy as a whole as incomes get swallowed up by ballooning heating bills.

We are stuck in a vicious cycle that affects not just the poorest but all of us through higher public spending and lost economic potential. Unfortunately, Government responses have been far too slow. In Wales, the flagship warm homes programme is woefully inadequate. At the current pace, it could take more than 130 years to insulate every fuel-poor household in Wales—a staggering statistic that shows just how far behind Labour in Wales is on this issue.

It does not have to be this way. The Welsh Liberal Democrats have proposed a bold but realistic solution, providing £1.75 billion over five years to retrofit homes, prioritising those in or near fuel poverty. This plan could create 10,000 jobs, generate £2.2 billion for the economy and, most importantly, transform lives. For rural areas and farmers, there are huge opportunities here too, with insulation using Welsh wool now playing a major part in existing insulation programs.

On a recent visit, I saw at first hand the installation of protective loft insulation in Brecon by Loft Boarding South Wales, a local, family-run, green growth business. It was very clear to me that insulation programmes offer economic benefits not only for consumers, but through the skilled jobs that such programmes provide.

Across the UK, the Liberal Democrats are calling for urgent action, including a 10-year emergency home insulation programme to upgrade Britain’s cold, inefficient housing stock, and the introduction of an energy social tariff—a targeted pricing structure that would lower heating bills for the most vulnerable. We will of course continue to press the Government to reverse their disastrous cuts to the winter fuel allowance—although current briefings to the media from different Ministers make it very difficult for us all to decipher where the Government are at on that issue.

These measures are not just ambitious; they are necessary, and must be in place before the next winter bites. Fuel poverty is a national disgrace, but it is also a national opportunity. By investing in energy-efficient homes, we can cut carbon emissions, reduce health inequalities, lower NHS costs, boost the economy and improve national security all at once.

The best time to introduce an emergency insulation programme was before Putin launched his brutal invasion of Ukraine. The second best time would be now. Let us start thinking of insulation not as a luxury, but as a public good. Let us stop managing the symptoms of cold homes and start curing the cause. In one of the richest nations on earth, no one should have to choose between heating and eating.

--- Later in debate ---

[Matthew Pennycook]

My hon. Friend is absolutely right: the situation for lots of families in temporary accommodation is acute, and we are aware that there are real decency problems in that respect. The Renters’ Rights Bill provides for the extension of the decent homes standard to temporary accommodation, but we are obviously giving very serious consideration to how we improve standards for those in temporary accommodation and how we very rapidly move people out and into, in almost all cases, a decent, safe, secure and affordable social rented home. I am grateful to the shadow Minister for recognising that we have not done enough on that in the past, so we need to do more in the future.

Through the Renters’ Rights Bill, we will extend the requirements of Awaab’s law to private landlords. Beyond Awaab’s law, we are legislating to introduce electrical safety standards in social housing to bring them in line with requirements in the private rented sector. We are working with the housing ombudsman to ensure that tenants can seek redress when things go wrong, and we are committed to ensuring that social landlords have the right skills and qualifications to deliver housing services for their tenants.

As the Chair of the Housing, Communities and Local Government Committee, my hon. Friend the Member for Vauxhall and Camberwell Green, said, we are making tenancies in the private rented sector more secure by finally abolishing section 21 no-fault evictions. That will mean that tenants can have the confidence to complain to their landlords about poor conditions and use their right to take their landlord to court if necessary without fear of eviction.

It is all very well increasing the quality of social housing, but many people struggle to afford to heat their homes. That is not just a health hazard but a direct cause of damp and mould. An energy-efficient home is a warm and dry home, which is why we are already consulting on raising minimum energy efficiency standards in the private rented sector, and have committed to do the same in the social rented sector in the coming months. We have committed an initial £3.4 billion to the warm homes plan funding over the next three years, including £1.8 billion to support fuel poverty schemes. That will reduce annual bills considerably for tenants.

We also recognise the contribution that more energy-efficient buildings will make to meeting our target of net zero emissions by 2050. Future standards, which will be introduced later this year, will set out how new homes and buildings can move away from reliance on volatile fossil fuels, and ensure they are fit for a net zero future. I look forward to updating the House on what those future standards entail in due course.

We know that most landlords, private and social, want to provide high-quality accommodation and work to fix damp and cold conditions as soon as they can, but we also know that our reforms will come at a cost to some. That is why our new warm homes local grant will help the private rented sector, and the warm homes social housing fund will support social housing providers and tenants.

[David Chadwick]

Does the Minister see a greater role for Welsh wool in insulating our homes? He may not be aware that many Welsh farmers actually lose money from shearing their sheep. Wool is a natural product that can be used to insulate homes. It is organic, and it would bring more money into the rural economy, unlike synthetic products.

[Matthew Pennycook]

It has been acknowledged that I have some knowledge of housing, but the hon. Gentleman tempts me into an area about which I do not have particular knowledge, not least because the warm homes plan is the responsibility not of my Department but of the Department for Energy Security and Net Zero. I am sure that Department will have heard all the comments that have been made about the warm homes plan, and I will ensure that the relevant Ministers reflect on them.

There is currently a zero rate of VAT until March 2027 on energy-saving measures such as insulation and low-carbon heating, making it cheaper for landlords to invest in their properties and reduce their energy usage. Other support is available to landlords to improve their properties. An eligibility tool is available on gov.uk to help people find the support available to them via the home upgrade grant and the Great British insulation scheme.

Of course, it is not just rented homes where we need to take action. We are also considering options to ensure a fair, proportionate and affordable approach to improving the energy performance of owner-occupied homes. The warm homes plan will help people find ways to save money on energy bills and will transform our ageing building stock into comfortable, low-carbon homes that are fit for the future. We will upgrade up to 5 million homes across the country by accelerating the installation of efficient new technologies such as heat pumps, solar batteries and insulation.

Before I conclude, I should mention how our efforts to improve standards and quality in homes of all tenures fit in with a wider housing strategy. In many cases, cold and damp homes are a symptom of the wider housing crisis that we inherited. That acute and entrenched crisis will not be solved by raising quality and standards; we need new supply. That is why the Government’s plan for change includes a hugely ambitious milestone of building 1.5 million safe and decent homes in England in this Parliament. We know that is a stretching target, but it is deliverable, in our view, and it is essential.

We have already announced changes to planning policy to support the delivery of affordable homes. We have also provided two immediate one-year cash injections totalling £800 million to the affordable homes programme to deliver an extra 7,800 homes. On 25 March, we injected a further £2 billion into the affordable homes programme from 2026-27 to build up to 18,000 new homes by the end of this Parliament. That funding is a down payment on future long-term investment and will act as a bridge to the future grant programme to be announced in the spending review. In that programme, we want to put particular focus on delivering homes for social rent. These are new homes, built to high standards, that will be warm and dry.