Fuel Poverty

Eddie Hughes Excerpts

Tuesday 11th December 2018 Commons Chamber

[Rebecca Long Bailey]

The hon. Gentleman is very learned on the topic of fuel poverty, and I agree with what he said. The Labour party has persistently stated that an energy price cap is a sticking plaster while the wider energy market is reformed, because it is not currently working in the interest of consumers. It forms part of the wider plan of Labour’s energy policy portfolio completely to reform the energy system as we know it.

Network costs represent over one quarter of the cost of a gas and electricity bill, but customers have been getting a bad deal. Citizens Advice estimates that network companies will make £7.5 billion in unjustified profits over an eight-year period. A recent report by the Energy and Climate Intelligence Unit found even more excessive returns captured by distribution network operators than Citizens Advice had predicted, with the six distribution network operator parent companies posting an average profit margin of 30.4%. By bringing energy networks back into public ownership, Labour would reinvest and pass on to customers the money currently paid out in dividends.

[Eddie Hughes (Walsall North) (Con)]

Will the hon. Lady give way?

[Rebecca Long Bailey]

I will make some progress before taking an intervention from the hon. Gentleman.

I turn to energy efficiency. A well-insulated home saves households money, makes homes naturally warmer and more pleasant places to live, and cuts energy use, helping to tackle climate change. At least £1 for every £4 spent heating UK homes is wasted due to poor insulation. Improving the energy efficiency of the UK’s housing stock, which is among the oldest and least efficient in Europe, really should be a no-brainer, so how are we currently faring?

According to the Committee on Climate Change, insulation rates have fallen by 90% since 2012. The energy company obligation—known as ECO—which is funded by a levy on bills, is the only remaining domestic energy efficiency delivery mechanism in England. It has also been cut from £1.2 billion a year when it was first introduced in 2013 to £720 million per annum in its second phase, and has been reduced still further to £640 million—effectively a 50% cut. It is therefore no surprise that the Government are off track to meet their targets.

In their 2015 fuel poverty strategy, the Government set a target of ensuring that fuel-poor homes are upgraded to an energy efficiency rating of EPC band C by 2030. But according to the Institute for Public Policy Research think-tank, the Government will not meet their target for upgrading fuel-poor homes until at least 2091. That is why, as a policy suggestion to the Minister, the Labour party proposed investing £2.3 billion a year to provide financial support for households to insulate their homes, and for local authorities to drive take-up and delivery of insulation schemes, in order to bring 4 million homes up to EPC band C by the end of one parliamentary term.

Labour’s plans included fully covering the cost of insulation for low-income homeowners and all social housing, which will particularly benefit older people living in fuel poverty and pensioners on low income struggling to cover the cost of sky-rocketing energy bills. This would have delivered savings of at least £270 a year to affected households. As well as this investment, Labour was also committed to tightening the regulation of privately rented homes, blocking poorly insulated homes from being rented out.

I have tried to set out just some of the measures that will tackle the causes of fuel poverty: low incomes, high fuel costs and poor energy efficiency. I am not seeking to make party political points, but rather to indicate the level of commitment needed if we are truly to address the problem, because what is the alternative? Are we really willing to accept preventable and shameful winter mortality at current levels? Are we really willing to accept that we live in a country where some people go to bed early to stay warm, leave the curtains drawn and even paper over their windows? Is it acceptable that people, often vulnerable people, have to seek out a library, a café or even an A&E department just to stay warm?

I do not believe that anybody in this House wants to see that, but wanting to end fuel poverty is simply not enough; rather, we must be willing to deploy the resources available to us to bring an end to what remains an avoidable indignity for millions.

--- Later in debate ---

[Eddie Hughes (Walsall North) (Con)]

I cannot thank the hon. Gentleman who has just spoken by mentioning his constituency because that would use up all of my time.

There are two things that I think are important for the people of Willenhall and Bloxwich who may be suffering from fuel poverty. The first is that, even if they have to insulate their lofts themselves, the cost of that for a three-bedroom property is approximately £300, and Which? estimates that the payback would be in two years. That is a saving of £225 per year on their fuel bills, so it is definitely worth the investment. The second is that people do not switch energy provider. To me, it is heartbreaking that 60% of people surveyed a year ago had not switched their energy provider. Doing so would afford them a great opportunity to save money. I would like to say to the people of my constituency, “Please get your loft insulated, and please make sure that you are getting the best deal from your energy provider”.

I would like to talk briefly about my time with the YMCA. When I started working at the YMCA, it had a 72-bed direct access hostel for people who had previously been rough sleepers. It was a revelation to go to that building, which was 60 years old. Originally, it served as a home for men who had come to work in Birmingham and needed somewhere to live. As I have said, it was then used to provide accommodation for former rough sleepers.

The YMCA did not have much cash, so when I got there it still had the original Robin Hood Beeston boiler. The boiler was over 50 years old; it had originally started life as a coal-powered boiler before being converted to run on oil and subsequently on gas. It was probably the most inefficient heating system in the UK, heating a 72-bed hostel, with very poor control—absolutely crazy. I would frequently get there during the summer to find the heating on and the building so hot that the windows were open, because it did not have a sophisticated system.

However, along came Homes England with a grant of £2.6 million. The YMCA was able to raise £700,000 itself and has now introduced a much more efficient heating system. The building has been completely clad to improve the U-values and has had new windows fitted. As a result, the cost of heating the building has dropped dramatically, and when we are talking about people with very low funds contributing through a service charge to heat the building, that is an essential improvement. That is what this Government have done to help.