Domestic Energy Efficiency

Debate between Guy Opperman and Amber Rudd

Tuesday 21st October 2014 Westminster Hall

[Amber Rudd]

I appreciate that the hon. Gentleman wants me to get straight to the point and address his key questions. I have a few minutes, and I would like an opportunity to set out what the Government are doing.

We recognise that improving domestic energy efficiency helps consumers to control energy bills, thereby reducing fuel poverty. Of course, it also contributes to our challenging carbon reduction target, which is, by 2050, to reduce greenhouse gas emissions to at least 80% below 1990 levels. To drive up domestic energy efficiency, we have put in place a long-term programme that reflects fundamental underlying challenges. Much of the easy energy-efficiency work has been done. Nearly all homes have at least some loft insulation, although many could benefit from a top-up, and most of the easiest cavity walls have been filled. We need to move away from a culture of unsustainable grant dependency to a different, market-based approach. Our long-term aim is for consumers to be motivated to improve their homes and to be ready to meet some of the costs, with real, effective help for the most vulnerable. That is good for all bill payers, as subsidy will go where it can have the most effect; and it is good for our economy, as innovative businesses will enter the market and develop better, cheaper products.

[Guy Opperman]

In private meetings and in meetings with my constituents, I have spoken to the Minister about oil companies having a 500-litre minimum limit for delivering to people who are off-grid. If the Department were to change that minimum delivery to a lower figure, it would have a massive impact on people who are particularly fuel-poor and off-grid. Could she please look at that and get back to me?

[Amber Rudd]

I thank my hon. Friend for that comment. He has raised the matter with me previously, and I will get back to him.

I do not want to try the patience of the hon. Member for Hyndburn, so let us move on to the ECO, which is the particular element of support that he has asked me to address. We have made changes to the ECO, and the vast majority of customers pay for the ECO as part of their energy bills. With bills rising, it was right to review the impact of the policies on household costs and to ensure that the benefit of the ECO is directed where it can make most impact. This much is clear: we have not reduced the element of the ECO aimed at helping low-income and vulnerable households. Approximately two thirds of the ECO that is currently collected goes to the fuel-poor, which, overall, is the same amount as was previously set, despite the reductions. The hon. Gentleman talks about the Government cutting the energy companies some slack, but we have felt obliged to cut taxpayers some slack. At the same time, we have ensured that the people who are most in fuel poverty, the vulnerable, are still being given the assistance that was pledged. Dedicated fuel poverty activity within the ECO stays at the original level of investment of £540 million a year reaching 230,000 households, and we have extended activity on the same scale to 2017.

We are also making the ECO easier and cheaper to deliver, and we have extended the carbon saving community part of the ECO to cover the bottom 25% of areas on the index of multiple deprivation, extending it to more households in low-income areas. That will not only help more hard-pressed families; crucially, for the first time, extending the obligation to the end of 2017 will give industry and other partners maximum certainty. The hon. Gentleman discussed business’s need for certainty. We have delivered that by extending the obligation to 2017.