Energy Update

Debate between Greg Hands and Anne McLaughlin

Monday 5th September 2022 Commons Chamber

[Greg Hands]

I have already said that this is a matter of very active consideration by the Government and that it is right at the top of the new Prime Minister’s in tray. I remind the hon. Gentleman of the amount of support the Government have given businesses during the pandemic and over other matters recently. We have an incredibly strong record of supporting businesses, which is one reason we have such an excellent record on creating jobs and making sure that, by working with businesses, we have a robust employment sector in this country.

[Anne McLaughlin (Glasgow North East) (SNP)]

Mr Deputy Speaker, if you, I, the Minister or anyone on these Benches were to stop paying our energy bills, we could be cut off or disconnected from gas and electricity, but it would take a long time because the company would have to go through a number of different procedures and we have rights. Not so those people on prepayment meters. In the statement, the Minister has talked repeatedly about those most in need of support. If people are on prepayment meters, it is almost always because they are on a low income and need more support. They already pay more than the rest of us, but all they can do is get into £10 of debt. The minute they go over that £10 emergency credit, they are disconnected. Is that fair? If he does not think it is fair, will he join my campaign to outlaw so-called self-disconnection? If not, are we to believe that he thinks we deserve better rights than our constituents who are really struggling financially at the moment?

[Greg Hands]

The hon. Lady is right to raise the matter of prepayment meters and prepayment customers. She is, of course, right to raise the issue of the most vulnerable, which is exactly where the Government’s overall package is targeted. The £37 billion goes hugely to disadvantaged people and households.

Ofgem has taken a number of actions on prepayment meters in recent times. It warned suppliers in June 2018 that prepayment meters should be installed only as a last resort for debt collection. It banned forcible installation for vulnerable customers in 2017. In December 2020, it introduced new licensing conditions, including an ability-to-pay principle and the obligation on suppliers to identify self-disconnection and self-rationing by prepayment meter customers proactively. A number of measures have been taken by Ofgem. Of course it will keep these things under review, and I am sure the Government will look at them as well. If there are more actions the hon. Lady thinks should be taken, I am happy to hear from her.