Energy Prices

Debate between Karl Turner and Charles Hendry

Wednesday 19th October 2011 Commons Chamber

[Karl Turner (Kingston upon Hull East) (Lab)]

I am pleased to have managed to catch your eye, Mr Deputy Speaker, to be called to speak in this important debate. In the UK, 6.4 million homes are in fuel poverty and that number continues to rise. That is the number of households spending 10% or more of their income on their energy bills.

There are two key factors: energy prices and household incomes. Fuel prices continue to rise at astronomical rates and Government policies have left families in this country seriously squeezed. At the same time, the six most dominant energy firms, which, as I understand it, control 99% of the market, have seen their profits increase to £125 per person. That is absolutely scandalous. The figure has increased from £15 to £125 since June, so no wonder our constituents are seriously concerned about those companies taking them for a ride. My own father—who is a constituent of mine—calls it daylight robbery. Given what my hon. Friend the Member for Glasgow North West (John Robertson) has said, I think that is worse than daylight robbery. It goes beyond robbery with violence and is tantamount, to me, to corporate manslaughter. It is estimated that 2,700 people will die this year as a result of the increase in fuel prices. That is an absolute disgrace.

It is important to recognise that, in the last quarter alone, such profits equate to billions of pounds. It shocks me to hear the Secretary of State defend the energy companies, saying that they are not the Salvation Army. Is it not time that we looked at this carefully? People are deciding between eating and turning the central heating on, so it is perhaps time for a little philanthropy from those companies.

The Government’s rhetoric is not good enough. We are most certainly not “all in this together”. It is not enough for the Prime Minister to arrange a publicity stunt with the energy bosses and then tell my constituents to shop around, switch energy supplier, insulate their loft spaces and save. It is dreadfully patronising to those people who have already attempted that but have found navigating the system extremely complicated. Indeed, the Minister of State, Department of Energy and Climate Change, the hon. Member for Wealden (Charles Hendry) experienced that when he attempted to change suppliers.

The Government could call for an investigation into allegations of mis-selling, but they have not done so. Consumers who have been ripped off by companies should be properly compensated. In my view, that is the type of thing that the Secretary of State should have said when he addressed the House from the Dispatch Box. The Government should tell energy companies to use their soaring profits to help families and businesses with crippling energy bills.

We need a mandatory social tariff. Energy suppliers should be forced to charge less to their most vulnerable customers, and I am confused as to why the Prime Minister did not ask for that in his energy summit. The Government need to stand up to the powerful vested interests in the energy industry, and to provide help, rather than patronising people. They are out of touch. Cutting support for the most vulnerable is absolutely appalling, which brings me on to the winter fuel allowance.

The Prime Minister’s decision to cut the winter fuel allowance will affect thousands of pensioners, including many hundreds in my constituency—[Interruption.] The Minister says something from a sedentary position that I cannot quite make out, but I wish he would listen and allow me to make the points that I want to make, because if he did so, he would learn something about real people in my constituency, who are suffering quite severely.

[The Minister of State, Department of Energy and Climate Change (Charles Hendry)]

I am grateful to the hon. Gentleman for giving way. The reality is that the allowance was introduced by the previous Government on a temporary basis. For the year after the election, no money whatever was allocated to it. The allowance was a temporary measure, and this Government have continued the policy of the Labour Government. We have not cut it; that is what the previous Government planned to do.

[Karl Turner]

That is absolute nonsense. This Government are running the country, and winter fuel payments have been cut by £50 for over-60s and by £100 for over-80s.