Fuel Poverty

Fabian Hamilton Excerpts

Tuesday 24th November 2015 Westminster Hall

[Fabian Hamilton (in the Chair)]

Before we start the debate, I have a brief announcement. A digital debate has taken place ahead of today’s debate on fuel poverty. Mr Speaker has granted a derogation to allow the use of electronic devices in the Public Gallery for the duration of the debate—although there do not seem to be many people in the Public Gallery. Devices should be silent and photos must not be taken.

--- Later in debate ---

[Several hon. Members rose—]

[Fabian Hamilton (in the Chair)]

Order. Before I call the next speaker, let me repeat an announcement that I made before those in the Public Gallery arrived; it is directed towards them. A digital debate has taken place ahead of this debate, and Mr Speaker has granted a derogation to allow the use of electronic devices in the Public Gallery for the duration of this debate. Devices should be silent, and photos must not be taken.

--- Later in debate ---

[Ian Blackford]

My hon. Friend makes a good point. I must contrast the Government’s performance and behaviour with that of the Scottish Government on house building and home insulation over the past few years. It really is about time that the Government in Westminster stepped up to the plate. In light of the upcoming climate change talks, we have a responsibility to cut our energy consumption as far as possible, and we can do that if we invest more in insulation.

Research by Turn2us graphically shows the kind of challenges that those in fuel poverty face. The research found that one in two low-income households struggle to afford their energy costs, despite being in work. Those are people who will be disadvantaged by the cuts to tax credits that my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey mentioned. Turn2us states:

“Amongst the hardest hit are people with disabilities, with over two in three (67%) reporting their struggles, and families, with almost two-thirds of working parents (65%) unable to meet these costs. Worryingly, of those households who are struggling with energy costs, nearly half (48%) have done so for more than a year”—

this is a long-term, not a short-term, problem. Turn2us continues:

“The knock-on effect is severe, with a third (33%) forced to skip meals and over a fifth (21%) experiencing stress and other mental health problems.”

Is it a price that we as a civilised society are prepared to pay, that people in this country have to make the choice between food and fuel? There is something wrong with our country if that is the case.

Some of the comments made by people who participated in the Turn2us survey are stark. They include, “The bills are killing me, sometimes I have to contemplate paying all the rent or heating my home”; “There are many pensioners like myself who don’t qualify for any help but still have to decide whether to eat or heat”; “We have stress, debt, arguments and a low mood at home”; “Starve or freeze? Either way you get ill and can’t work, eat or pay any bills”; “No lights, only candles, only hoover once a week, only use washing machine once a week, no heating, meals that cook quickly.” Those are the consequences of the high levels of fuel poverty we suffer from in this country.

The Scottish Government have used their powers to intervene to mitigate some of the effects of rising energy costs, but it has been the failure of Westminster, and of the regulator, to properly protect consumers that has led to marked deterioration in the level of fuel poverty. The Scottish Government are committed to tackling fuel poverty head on and ensuring that everyone in Scotland lives in a home that is warm and affordable to heat. However, those measures are undermined by austerity made in Westminster and delivered by a Conservative Government who are having such a huge impact on low and medium-income earners. That goes to the heart of the issue. There is evidence that families have to make the choice between heating and feeding.

There is not just a moral and ethical impact of that but a cost to society, with increased health costs as a consequence of the mental health issues that arise. Also, children are being sent to school in less than ideal circumstances because of family pressures, and our young people are not flourishing to the extent they should, which increases the burden to close the attainment gap. That is the social cost of fuel poverty, and the Government in Westminster have to accept responsibility for it. The proposed cuts to tax credits and other welfare cuts have caused concern that low-income, hard-working households’ finances could be harder hit. The Government must change tack in the autumn statement tomorrow.

[Fabian Hamilton (in the Chair)]

I am afraid that we have no time for other contributions from Back Benchers. May I ask the Scottish National party spokesperson and the Opposition spokesperson to keep their remarks to about five minutes, so that the Minister can have the remaining 10 minutes?

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

On behalf of all the speakers, I thank you, Mr Hamilton, for your excellent chairmanship.

I thank my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) for securing this debate on such a critical issue. I also thank other hon. Members for their excellent contributions. My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) reminded us about the long-term high strike price of nuclear for Hinkley Point—twice the current price of electricity—and its impact on those in and on the cusp of fuel poverty. My hon. Friend the Member for West Aberdeenshire and Kincardine (Stuart Blair Donaldson) highlighted particular issues for rural communities.

The hon. Member for Strangford (Jim Shannon), who is no longer in his place, talked about finding fuel poverty solutions. I completely agree with his call for less talk and more action on this critical issue, especially in relation to competition. I thank the hon. Member for Central Suffolk and North Ipswich (Dr Poulter), particularly for his reminder of our humanitarian obligations to address the issue. He urged us not to get bogged down in the associated definitions and technicalities. He focused on England and the green deal, which is an excellent initiative. He reminded us that high rural charges apply in England as well as in Scotland, Northern Ireland and Wales.

I thank my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) for his excellent contribution. He reminded us of the importance of this debate and commended the attendance of all, especially the high number of SNP Members who are here. Shockingly, there is no community in his constituency where fewer than 50% of people are affected by fuel poverty. I pause to let that point strike home. He also made key points about the smaller supplier choice in the remotest areas of Britain, on the blatant discrimination that exists and on the stark choice between eating and heat.

As I have stated in other debates, recent stats show that about 40% of households in Scotland are considered to be living in fuel poverty. I am sure all Members agree that that is unacceptable. The statistics for the highlands are shocking, and I thank my hon. Friend for bringing them to my attention. The statistics for Lochaber in particular are dreadful. We have also seen the impact of fuel poverty across the rest of the UK. That is nothing to be proud of, and in this decade of austerity, it will only get worse.

Fuel poverty means more than simply not being able to keep the heating on. Adolescents living in cold homes are five times more likely to have multiple mental health problems than adolescents living in warm homes. In addition, children living in cold homes are more than twice as likely to have respiratory problems as those living in warm homes. Critically, fuel poverty has a negative impact on the educational attainment and emotional wellbeing of children. It means that household income, which could otherwise be used to purchase healthy, nutritious food, goes on energy bills. The combination of mental and physical health problems, poor diet, emotional turmoil and diminished educational attainment caused by fuel poverty is a recipe for condemning people to the dreadful cycle of poverty. In essence, they are poor and paying for it. Some 40% of households in Scotland face the consequences of fuel poverty every winter, and winters are particularly harsh in Scotland.

Fuel poverty is the result of a combination of low household income, fuel costs and the poor energy efficiency of homes. Several of my colleagues and other Members have mentioned that. The contributing factors can be addressed in a number of practical ways, and that in turn will help to prevent fuel poverty. Low household income can be tackled through a number of measures. A living wage for everyone in work, not those just over the age of 25, would allow young individuals and families to afford the rising costs of fuel. Unfortunately, the cuts to working tax credit and child tax credit recently announced by the Conservative Government—so many households rely upon those credits to be able to pay for basic necessities—will only further punish lower-income households and put even more at risk of fuel poverty. We must provide a fair deal for hard-working individuals and families and not force them to bear the cost of letting large corporations and the financial sector skip taxes. Notably, the tariffs for pay-as-you-go phones, which are used most by those in fuel poverty, are some of the highest on the market. We need to address that, because the market certainly is not and has no intention of doing so.

The energy market is dominated by the big six, and the days of standing by while they address their needs over those of consumers and make massive profits while so many suffer from fuel poverty must be brought to an end. As the hon. Member for Strangford said, it is about less talk and more action. The Competition and Markets Authority recently found that energy consumers were collectively being overcharged by £1.2 billion a year. Following that finding, I asked the Secretary of State for Energy and Climate Change what steps would be taken to amend policy in response to the overpayment. The Government’s response was that no action would be taken until December 2015, well into winter and months after the finding was published. Meanwhile, ScottishPower quadrupled its profits last year—

[Fabian Hamilton (in the Chair)]

Order. I am sorry to interrupt the hon. Gentleman, but we have only 15 minutes left for two more contributions.

[Philip Boswell]

I thank you for the reminder, Mr Hamilton. I will bring my remarks swiftly to a close.

Finally, there is huge scope for the Government to assist in making homes more energy-efficient, but we have yet to see that come to fruition. The green deal has already been stopped, and the reduction in the budget of the Department of Energy and Climate Change means that programmes such as the green deal home improvement fund, solar power subsidies and feed-in tariffs will be cut.

I welcome all the contributions made in today’s debate. The need to tackle fuel poverty robustly is self-evident and compelling to everyone in the Chamber. I am delighted to hear Members from all parts of the House agreeing with that. There are real people behind the fuel poverty statistics, and that must not be forgotten. They have to make the difficult decision between buying food and heating their homes, and in a modern, developed society, the fact that 40% of Scots face that dilemma every winter is a disgrace. Swift, meaningful action must be taken.

[Clive Lewis (Norwich South) (Lab)]

It is a pleasure to make my debut appearance as a Front Bencher in a Westminster Hall debate under your enlightened chairmanship, Mr Hamilton. I congratulate the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) on securing this important debate. I am sure this will be the first of many such debates with the Minister, and I look forward to the many more to come.

Today’s discussion has been detailed, impassioned and generally of an excellent standard. Going through some of the points made by Members, someone—I cannot remember who—mentioned that fuel poverty is like a thief in the night, which is dramatic, but spot on. Another Member mentioned that fuel poverty is a bigger killer than all road traffic accidents and drug abuse combined, which is a startling fact. The hon. Member for Central Suffolk and North Ipswich (Dr Poulter) talked about the human component, which is something I want to come on to in my brief speech. The hon. Member for Strangford (Jim Shannon), who is no longer in his place, spoke of how his constituents are struggling in Northern Ireland. The hon. Member for Ross, Skye and Lochaber (Ian Blackford) made some good points. He spoke about how 73% of households in some communities are experiencing some form of fuel poverty. He also touched on some things that I will not have a chance to talk about in my speech, such as the impact that energy companies across the UK are having on fuel poverty and how we begin to tackle that. I will press on, because time is brief.

In preparing for today’s debate and listening to the detail of Members’ contributions, I have been struck by just how easy it is to get sucked into the statistics and detail of fuel poverty. Other Members have touched on that. The detail is an essential component of understanding not only the scale of the problem, and ultimately the sheer depth of Government failure on the issue, but critically the resources required to turn the problem around. Before we get into the stats, however, I remind the Chamber that behind every percentile, every missed target figure and every set of depressingly high numbers, there is a fellow human being. Perhaps they are one of the 25,000 people expected to die this winter as a result of living in a cold home. Perhaps they are one of the over-65s, an age group from which one person is expected to die every seven minutes this winter because of fuel poverty. Perhaps they are someone who is disabled and unable to get out of the house, reduced to living in one or perhaps two rooms for the duration of the winter because of the fear of racking up excessively high heating bills. Perhaps they are one of the 1.5 million children across the UK living in fuel poverty. Maybe they are one of David Cameron’s strivers, working as hard as they can but still struggling to heat their home. We know that more than half of the 2 million households living in fuel poverty have someone in work. This is the reality behind the statistics, and they are the people who this winter will pay a heavy price for the Government’s failure to tackle the issue in any meaningful way.

Let us look at these statistics that are a badge of shame for any Government who claim to look out for the interests of all our citizens, poor or affluent. We know that up to a third of excess winter mortality, the figures for which come out tomorrow, are the result of people living in fuel poverty. Last year’s rates saw excess winter mortality at 31,000 in England and Wales, up 29% from the previous year. We should absorb that figure—up 29%. Figures for Scotland are up by 4.1% to 19,908. In Northern Ireland the raw numbers were low, but the increase was large: a rise of 12.7%. That equates to 559 people who are no longer here with us because of fuel poverty.

Yet after five years of being in government, can the Minister tell us, hand on heart, that tomorrow’s figures will go down and not up, and that their fuel poverty strategy is at last beginning to make progress? I look forward to hearing the Minister’s response when she addresses the debate shortly. However, I am afraid that, whatever is said, the statistics and the facts will speak for themselves.

In the Department of Energy and Climate Change annual statistics report, the number of households in fuel poverty in England was estimated in 2013 at 2.35 million, or—in other words—one in 10 homes where there was a choice between heating or eating. And it is not set to improve any time soon. In fact, by DECC’s own measure, the next set of figures is expected to show an increase in fuel-poor households. Nowhere is this better demonstrated than in the abject failure to get to grips with the plight of those in private sector rented accommodation. Compared with other housing sectors, the private rented sector has the highest proportion, at 9.1%, of the most energy inefficient homes—those in bands F and G.

We know the Government’s stated goal in tackling this was that as many private rented homes as is “reasonably practicable” will be rated band C for energy efficiency by 2030. But between 2010 and 2013, this was achieved for only 70,000 fuel-poor households, leaving 95% still to be improved. It does not take a genius to work out that, at that rate of progress, the Department will miss its target by some 100 years.

[Fabian Hamilton (in the Chair)]

Order. I am sorry to interrupt the hon. Gentleman, but we need the Minister to have enough time to respond to all the points that have been made, so I would be grateful if he could curtail his remarks.

[Clive Lewis]

I will. You have just destroyed my punchline, but it is fine, Mr Hamilton.

The Department will miss its target by some 100 years, which is not quite in the territory of Buck Rogers, who I believe woke up in the 23rd century, but, alas, not that far off either—sometime in the 22nd century.

So why such dramatic Government failure? Why the lack of vision and ambition in tacking this critical issue? Why are 6 million low-income families still living in badly insulated homes? Why has funding for energy efficiency for the fuel poor been cut in real terms by 20% and the installation of energy efficiency measures dropped by 65%? Perhaps some of those answers can be found in the debris and wreckage of the Government’s sorry excuse for a fuel poverty strategy: one that has shifted, chopped, changed and staggered on like a weary foot soldier in Napoleon’s winter retreat from Moscow.

First, there was the Warm Front—or, as it later became known, hot air—a Government-funded scheme that ended in 2013. Then came the green deal, hailed as “transformational”, but which was scrapped with nothing to replace it. The zero-carbon homes plan, introduced by the previous Labour Government in 2006, was scrapped with nothing to replace it. The warm home discount, providing automatic electricity bill support to low-income households, is due to expire next year with no sign of renewal. The energy company obligation or ECO—a Government scheme to encourage and obligate larger suppliers to deliver energy efficiency measures—will finish next year with nothing to replace it.

Here is the irony: not content with scrapping any semblance of a coherent fuel poverty policy, the Government have also lowered the bar and reduced the ambition of their schemes. Dithering, inconsistency, U-turns and failure are the trademarks of this Government. I look forward to hearing the Minister tackle this issue.