Cavity Wall Insulation

Jonathan Reynolds Excerpts

Tuesday 3rd February 2015 Westminster Hall

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

It is a pleasure to serve under your chairmanship, Mr Sanders. I begin by praising my right hon. Friend the Member for Southampton, Itchen (Mr Denham) for securing the debate and for the work that he has done to remedy the cases of badly installed cavity wall insulation in his constituency. As the hon. Member for Meon Valley (George Hollingbery) has said, cavity wall insulation, when it is correctly installed in an appropriate property, can offer substantial benefits to home owners. However, as we have also heard, badly or wrongly installed cavity wall insulation can cause serious problems. It is incredibly worrying to hear the examples of complaints and customer ordeals that right hon. and hon. Members have presented. I praise their constituents for their tenacity in attempting to resolve the problems.

I want to make it clear that I do not believe that anyone in the Chamber seeks to deride the insulation industry. Many good people are part of that industry, as I know from personal experience of meeting numerous installers in my constituency and in my Front-Bench brief, and from working closely with them on our energy efficiency plans. However, it is vital that within that industry, consumers are protected. They should always be at the forefront of any work that takes place, especially in connection with any policy promoted by the Government.

The consequences of badly installed cavity wall insulation are significant. Not only will a home owner suffer financially and personally trying to put it right, but, just as importantly, they will not receive the benefits that they should. The Minister and I regularly debate the fact that we have some of the worst levels of fuel poverty and the least efficient housing stock in Europe. Although we disagree on the best way to tackle that problem, I am sure we agree that it is unacceptable when work that is done to improve the quality of our housing stock leads to the sorts of problems that have been mentioned today. The consumer should always be the focus of any energy efficiency work, because consumer behaviour is often as important as putting in energy efficiency measures. Unfortunately, I do not think that that has been a strong enough element of the Government’s approach to energy policy, or indeed of Governments’ approach to energy policy for some time. It is vital, therefore, to ensure that there is adequate protection for consumers and that any issues are dealt with in an efficient and satisfactory manner.

It was concerning to hear the criticism by my right hon. Friend the Member for Southampton, Itchen of the Mark Group, which I have visited. It is a major installer in the UK, and usually it is a useful resource in policy in this area. I will certainly discuss with it its response to complaints such as those that he raised. The issues that have been raised today concern me greatly. Data protection laws permitting, I, and, I am sure, the Minister, would like to know more details and consider how the problems can be rectified. I press her to look into that.

Having listened to my right hon. Friend’s speech, it seems to me that there is a clear need to be better able to identify where liability resides for work that has been done, including under the energy companies obligation. There also needs to be swifter redress when complaints are made. It is my understanding that all work carried out under ECO and its predecessor schemes, the carbon emissions reduction target and the community energy saving programme, is recorded centrally. In addition, the bureaucracy for ECO is substantial—I have attacked the Government about the scale of that bureaucracy on several occasions—so I would be incredulous if it were not possible to identify the funding body for each installation relatively easily. Perhaps the Minister will clarify the situation.

Right hon. and hon. Members have raised concerns about the independence and operation of CIGA. That is a particular worry, and I will look into it further. My right hon. Friend the Member for Southampton, Itchen briefly raised the question of subcontracting, which has concerned me for some time, especially within ECO. There is no limit on the number of times energy efficiency work under ECO can be subcontracted. My right hon. Friend talked about home owners not knowing who was carrying out the work or even being surprised to find out that it was funded by an energy company. During my work in the area, many people in the industry have raised the level of subcontracting with me as a concern. I would be grateful if the Minister could touch on that subject in her reply. Is she happy with the current level of subcontracting, or would she consider placing limits on the level of subcontracting that is allowed? That happens with schemes in other Departments, such as welfare-to-work contracts.

I recognise that there are good operators out there, doing good, honest work, who genuinely care about improving the energy efficiency of people’s homes. I know that that is true, because I have met them. Cases such as those that have been highlighted today are, thankfully, relatively small in number. That is why it is so frustrating that when such cases occur, satisfactory redress is not offered. It would be an absolute travesty if people who need better-insulated homes put off having that work done. That is why the problem of badly or wrongly installed work must be dealt with swiftly and firmly. The evidence provided in the debate suggests that that is not happening at the moment. Despite the relative rarity of cases of badly installed insulation, the examples have become numerous enough to warrant today’s debate and the previous debate secured by the hon. Member for Arfon (Hywel Williams). Home owners clearly need a better response than the one that has been offered to constituents in the cases outlined today. Specifically, on a point raised by my right hon. Friend the Member for Southampton, Itchen, it cannot be right for companies to charge for remedial work for badly installed cavity wall insulation in homes where it should not have been installed or recommended in the first place.

I praise my right hon. Friend once again for securing this debate and allowing us the opportunity to discuss these issues. I hope that the Minister will address directly the concerns raised, and I am interested to hear her reply. She and I have different priorities and approaches when it comes to policy in this matter, but we both recognise the centrality of improving the UK’s housing stock through better home insulation. The issues raised in this debate are a clear threat to public confidence in that, and it is in everyone’s interests that we seek to rectify them.

--- Later in debate ---

[Amber Rudd]

That is a very good question, which I will put to CIGA. My right hon. Friend is absolutely right. I will require more content from CIGA than the answers that it has given us so far. CIGA has already said that it will provide us with a list of responses to particular questions raised with it, some of which have been raised in this debate, and I will be happy to share those once they are received.

If a consumer has concerns that cavity wall insulation has been installed incorrectly, they should initially contact the installer who carried out the original work to see whether the issues can be rectified. If that does not resolve the issue, they should contact the guarantee provider. If they cannot locate their guarantee, they can try to contact the guarantee provider directly, which may have a record of their guarantee.

For measures installed under the CERT, CESP and ECO schemes, if there is no effective guarantee in place, the customer can contact the energy supplier that funded the measure originally. If the energy supplier cannot be found via Ofgem, consumers may wish to obtain further guidance from their local trading standards office or seek professional legal advice.

If there is a dispute about a green deal installation and an agreement cannot be reached between the consumer and the green deal provider, the consumer can contact the green deal ombudsman, who will investigate complaints and determine redress. Depending on the type of complaint, the ombudsman will, following their investigation, refer cases to the Secretary of State to determine redress or impose sanctions.

The green deal registration and oversight body has a technical monitoring strategy in place to ensure the full compliance of all green deal participants. Furthermore, Ofgem mandates technical monitoring of installation standards under ECO and the predecessor CERT and CESP schemes, and it requires ECO installers to contract for independent inspections of 5% of all measures installed, including cavity wall insulation, to ensure that they meet the required standards. The hon. Member for Arfon (Hywel Williams) said that 5% is inadequate and insufficient. I will consider his comments and speak to Ofgem about whether it is sufficient and come back to him on that issue.

[Jonathan Reynolds]

Can the Minister confirm that Ofgem, given the paperwork that it demands for each installation under ECO, keeps a database of which energy companies have funded that work, on a postcode basis?

[Amber Rudd]

I will have to come back to the hon. Gentleman on that question.