Fuel Poverty

Debate between Graham Stringer and Lord Harrington of Watford

Tuesday 11th December 2018 Commons Chamber

[Graham Stringer (Blackley and Broughton) (Lab)]

The Minister is talking about taking immediate action. It is some time now since the Dieter Helm review came out with a number of recommendations to sort out the chaos of the subsidies going into the alternative energy business, which would take the cost pressure off the most vulnerable households. The Minister does not look as though he has read it. Its approach would take the pressure off the most vulnerable households, so why do the Government not respond and implement those recommendations?

[Richard Harrington]

I will make one small change to what the hon. Gentleman said, in that I have read that report and I have met Dieter Helm. I will happily send the hon. Gentleman a copy of the recent energy speech that my right hon. Friend the Secretary of State made. If the hon. Gentleman does not have a copy, I will send it to him with my compliments—I might even get the Secretary of State to sign it for him for Christmas.

We extended the warm home discount to 2021, so that it can continue to provide more than 2 million low-income and vulnerable households with a £140 rebate off their energy bill each winter. In addition, the winter fuel payments provide all pension households—people of pension age in the households—with additional financial support worth up to £300. Cold weather payments also provide relief to the elderly, the vulnerable and those who need extra support with their fuel bills during spells of cold weather. Last year, that alone provided an estimated £98 million in cold weather payments to keep people warm in vulnerable households.

[Richard Harrington]

If it is acceptable to my hon. Friend, I will write to him on that subject, because I need to speak to the Treasury about its analysis, which is what his question is about.

We are providing all consumers, including the fuel poor, with more control over their bills. The smart meter programme will mean millions of customers will be in control of their energy use, helping them to save money. A new safeguard tariff coming into effect on 1 January will protect 11 million consumers from high bills. On average, households will save £76 a year, with some saving a lot more. Significantly, as a result of these measures, the average fuel poverty gap has decreased from £379 in 2011 to £326 in 2016. Over that five-year period, the total fuel poverty gap has decreased by £88 million in real terms. Although it is important to recognise that progress is being made, we acknowledge that we still have a long way to go. The clean growth strategy included an ambitious set of policies for homes, the extension of energy-efficiency support through to 2028 and at least £640 million per year. We will be reviewing what the best form of support this will be in 2022, and I would welcome the views on this topic of hon. Members here today.

We will update the fuel poverty strategy for England in 2019, and we look forward to receiving good ideas on how we can make further progress. The new strategy will align our work on fuel poverty with our clean growth strategy and industrial strategy. We had always planned for the fuel poverty strategy to be a living, evolving document, because changing technology and innovation will mean that what worked in the past will not necessarily be the best plan for the future.

[Graham Stringer]

Will the Minister explain to the House why, as smart meters are rolled out in the north of England, we are not getting the most up-to-date and best smart meters, which people in Watford are getting? Why is the north being discriminated against?

[Richard Harrington]

I thank the hon. Gentleman for saying that my constituents in Watford are doing well out of smart meters, and they are, but the pace of the expansion is under continual review with the suppliers. The Secretary of State’s powers were extended in the recent Smart Meters Act 2018 and will be used to encourage take-up of smart meters, which is gathering momentum. I accept the hon. Gentleman’s point, though, because it is patchy in different parts of the country.

The main point is that for the first time we have an opportunity to ensure that our fuel poverty strategy is joined up with our holistic plan to improve energy efficiency throughout Britain. The new strategy will focus on better ways of identifying those in fuel poverty and targeting our assistance to them directly. It will help us to identify the most cost-effective means of achieving our target in 2020, 2025 and 2030.

Let me bring the focus back to our main goal, which is to improve the lives of those in fuel poverty. No one deserves to live in a cold home. We have the opportunity next year to set out a refreshed fuel poverty strategy that will lay out an updated plan for meeting the 2030 target. I would welcome hon. Members’ views based on their experience of fuel poverty, so that we can work together to set out a new, ambitious plan. This issue transcends party lines and affects us all. I look forward to hearing hon. Members’ questions and contributions on this topic.