Pre-payment Meters

Debate between Dawn Butler and Chris Stephens

Tuesday 1st December 2015 Commons Chamber

[Dawn Butler]

I thank my hon. Friend for his intervention. The big six make about £600 million a year in profit, which is an enormous amount, and they can afford to treat the most vulnerable in our society much better than they do.

[Chris Stephens (Glasgow South West) (SNP)]

The hon. Lady is making a number of excellent points and I thank her for raising this important issue. I am aware of constituents who are paying more in standing charges for pre-payment meters than they are for the actual energy consumption. That should be regulated a lot more toughly.

[Dawn Butler]

I agree that the standing charges need to be regulated, as does the whole industry. It can do a lot more, especially given that, as I have said, we are about to enter the longest winter in 50 years.

I urge the Minister to encourage energy companies to follow in the footsteps of ScottishPower, which suspends the debt of its customer during the winter months so that anything they put into the meter goes directly on their usage of fuel. Let me put that into context: my constituent Mr Hamilton would put £5 on his meter and the energy company would take £3, so he had only £2-worth of fuel. If the Minister was able to encourage the energy companies, they could do this straightaway and with very little effort, but it would make a big difference to the people in the country.

As the Minister will know, in 2016, we enter the enduring phase, which will ensure that all meters are smart meters by 2020. Therefore, it is important that we help to inform people who are fuel poor. After all, energy companies will be making £12 million-worth of savings with the implementation of smart meters, so surely we can look after the 2.3 million fuel-poor households in this country. The energy companies are making enough money to be able to look after those who are fuel poor.

I expect the Minister will tell us that energy companies are not allowed to disconnect customers during the winter months, but they still install pre-payment meters, which means that people self-disconnect because they cannot afford to pay. They are, in effect, still being disconnected, they are still getting cold and, unfortunately, some still die.

[Dawn Butler]

Absolutely. The installation of smart meters will make such remote disconnection even easier to carry out. Energy companies have said that they will not do that, but do we trust them enough to believe them? That is why we must safeguard and protect the most vulnerable in our society. It also means that magistrates have to be given clear information. As a magistrate myself, I can tell Members that we normally get lots of warrants to sign off at the beginning of a sitting. Magistrates clearly ask whether the energy company has gone through all the safeguards with regard to vulnerable adults, people with mental health problems or children at the property. On some occasions, I was not always convinced that the energy company did its due diligence when asking for a warrant to enable it to enter a property forcefully to install a pre-payment meter, which will be more expensive for that person who is least able to pay the bill.

I have talked about the high cost of pre-payment meters and the matter of self-disconnection, which happens quite a lot but which is not often mentioned by the energy companies or by this House. Recent research undertaken by E.ON highlighted that seven in 10 people with pre-payment meters had accidentally self-disconnected even when they were not expected to do so. That is a very high number. Over the winter months, we expect that figure to rise.

Pre-payment meters are being installed way too early in the debt plan. Energy companies are supposed to go through a whole plan of what they can do to help their customer to avoid fuel poverty. As we are entering the enduring phase—smart meters will be rolled out by 2020—surely now is the time to slow down and end the installation of pre-payment meters.

[Chris Stephens]

I thank the hon. Lady for giving way; she is being very generous. In my experience the fuel regulator has no teeth and is effectively powerless in stopping energy companies installing pre-payment meters early on. Does she agree that the fuel regulator should be given more powers?

[Dawn Butler]

I agree. Not only should the fuel regulators be given more powers, but a closer eye should be kept on what the energy companies are doing. I also think that the magistrates courts play a huge role in ensuring that the energy companies pass all the necessary tests before installing pre-payment meters. The amount is currently set at something like £150, but £500 is the amount set to stop people switching to another energy company. The £500 figure should be the figure that an energy company has to reach before applying for a warrant to install a pre-payment meter, because it is just too easy to get such a warrant, which means that the customer plummets into more and more debt, as they cannot afford the amount that they have to pay.

Record profits are being made by the big six energy firms year on year. Does the Minister agree that the increases in charges and complaints are simply not good enough? Further action to protect the consumer, as my hon. Friend the Member for Glasgow South West (Chris Stephens) mentioned, is necessary.

Does the Minister agree that, when DECC’s own fuel poverty records show that 22% of pre-payment meter users are in fuel poverty, something needs to be done and quickly, especially with winter fast approaching, if we are not already in it? We could well witness a rise in self-disconnections and fuel poverty-related deaths if we do not do something in the next few weeks.

I am sure that the Minister and I are on the same page on this issue. To help her with her response, I would like to summarise some of my requests. It would really help the estimated 11 million people on pre-payment meters if energy companies brought the cost of pre-payment meters into line with those on the cheapest direct debit. It would also add £2.5 billion into the economy. I would also like to see greater protection for vulnerable adults and children when pre-payment meters are installed. That would mean giving clear instructions to the magistrates court. I would like to see no pre-payment meters fitted during the winter months. As previously said, that leads to self-disconnections. So in effect the energy companies are still disconnecting vulnerable people during the winter months. There should be a suspension of debt during the longest winter in 50 years—this year, 2015 leading into 2016. All the above is completely doable, and a letter from the Minister could make it happen.

Lastly, we are all aware that food banks have become a godsend to many in our country and some people would be having a pretty lousy Christmas if it were not for food banks. I wish that they did not have to use them, but that is the situation. I thank the Trussell Trust and E.ON, which have teamed up to provide credit for struggling families who use pre-payment meters. I know that, in my constituency of Brent Central, we will be grateful for their services. I hope that the Minister and I will agree that this country can do more to help those who are fuel poor.

Trade Union Bill

Debate between Dawn Butler and Chris Stephens

Tuesday 10th November 2015 Commons Chamber

[Chris Stephens]

The problem with that analysis is that it is based on ignorance. The simple fact is that if a ballot has a low turnout, a trade union has to make a calculation. The hon. Member for Blaydon (Mr Anderson), who is a former Unison president, can confirm that trade unions have, on occasion, not proceeded to industrial action if they do not have support for it. The biggest gamble that a trade union takes when it decides to take industrial action is how many people participate. If people do not participate, the industrial action falls and dies.

[Dawn Butler (Brent Central) (Lab)]

The contribution from the hon. Member for Hertsmere (Oliver Dowden) highlights the lack of understanding of the role of trade unions and of people who are working just to pay their bills. That lack of understanding shows why this Bill is so wrong.

Trade Union Bill

Debate between Dawn Butler and Chris Stephens

Monday 14th September 2015 Commons Chamber

[Chris Stephens]

Yes, I do. The Bill is designed to continue austerity—that is exactly what it is about. It is about trying to curb the largest organisation in the UK that is campaigning against austerity.

These issues of gender equality are very important, because recent trends have shown that what is on the increase is pregnant workers being dismissed and women workers coming back from maternity leave being made redundant. That is a recent phenomenon and this Parliament will need to address it. The Government have not taken any of those issues into account. As we heard earlier, 270 Conservative Members would not have been elected if those thresholds had been in place.

There is also the issue of the deadlines on ballot times. I was interested to hear the Secretary of State say that industrial action would not be curbed, but in actual fact it could be. Let us say that a large employer issued a 45-day redundancy notice. If the trade unions have to give 14 days’ notice of a ballot and 14 days’ notice to take industrial action, it will be very difficult for them to organise themselves within that timeframe, and it could well make industrial action impossible.

We oppose the changes on political funds. This is about not just party politics and attacking the Labour party, but the general campaigning that the trade unions fund as well. I am talking here about equal pay; stronger maternity leave; 50:50 gender representation; and giving money to organisations such as HOPE not hate and other anti-racist organisations, community groups, and international aid organisations such as Justice for Colombia and Medical Aid for Palestine.

[Dawn Butler]

On that point, the Bakers Union is campaigning for fair rights for fast food workers, and is trying to increase hourly pay in America from $7 to $15 and in the UK to £10. Does the hon. Gentleman think that this measure is trying to restrict that kind of activity?

[Chris Stephens]

That is exactly what it is designed to do. This attack is to weaken the rights of trade union members. When it comes to political funds, it should be up to the trade union members to decide. If members have issues about who trade unions are funding, it is up to them to organise themselves and to take up the matter with their trade unions—just as I always do. When my union funds a campaign that I might not necessarily support, I am told, quite rightly, that it should be up to us to organise.