Warm Home Discount Scheme (Northern Ireland)

Lord Dodds of Duncairn Excerpts

Monday 2nd March 2015 Commons Chamber

[Ms Ritchie]

I may be able to explain that later in my speech, but suffice it to say that Northern Ireland is the only region to which the scheme does not extend and in which there are particular market conditions. Our climatic conditions are probably similar to those in Scotland, and we have similar levels of fuel poverty, but the war home discount scheme extends to Scotland and not to Northern Ireland.

I understand from Age Sector Platform that the scheme could be administered centrally by the United Kingdom, and that the costing could be executed by the utility companies. In fact, one of the utility companies that operate in Britain, SSE, also operates in Northern Ireland, through its agent Airtricity. I imagine that if the Minister approached the Northern Ireland Executive and, in particular, the Department of Enterprise, Trade and Investment, as well as the utility regulator and the other utility companies, a resolution might be found.

In Northern Ireland, the problem of cold and damp is exacerbated by the fact that people have no access to the warm home discount scheme. The scheme was introduced in April 2011 by regulations made under section 9 of the Energy Act 2010. It provides a £140 rebate on household energy bills for eligible groups, namely pensioners receiving guarantee credit, who are known as the core group, and other low-income households, who are known as the broader group. Some further payments were made on the basis of other criteria.

More than 2 million low-income and vulnerable households in England, Scotland and Wales have been helped each year, and total payments were expected to reach £1.1 billion by March 2015. The Department for Work and Pensions estimates that approximately four out of every five households claim this entitlement. While it is obviously desirable to maximise the figure and promote better awareness of the scheme here, it is worth repeating yet again that no one in Northern Ireland has access to it. The hon. Member for North Down (Lady Hermon) made that point a few moments ago.

The scheme is administered by Ofgem. The Department for Work and Pensions has a monitoring role, and the administration costs are carried by the UK Government. Could the arrangement not simply be transferred to Northern Ireland, with the administration being carried out centrally here in Britain? It is financed by levying around £11 per annum on consumers, and Age Sector Platform has estimated that Northern Ireland could be covered by the scheme with the addition of just £1 per customer per year. This scheme was designed specifically, in the words of the Department of Energy and Climate Change,

“to reduce fuel poverty in the UK”,

with no mention of excluding Northern Ireland, and indeed has been set up with a mechanism to ensure that no supplier is left footing a disproportionate burden owing to the uneven spread of fuel poverty across the UK. Surely the north of Ireland should not be excluded from this.

While the Minister in response to written questions has maintained that fuel poverty is a fully devolved matter, in DECC’S own fuel poverty statistics guide it is described only as a partially devolved matter and it is acknowledged that devolved Administrations do not have the capacity to

“affect certain aspects of fuel poverty policies”,

such as incomes and market conditions. Fellow Members representing Northern Ireland constituencies who are present tonight will recall that we met Age Sector Platform in this building on 4 November and it referred to that specific point. We were under the illusion—including me, a former Minister for Social Development—that it was a totally devolved matter, but that document from DECC clearly shows that it is only partially devolved and therefore the UK Government centrally do have a responsibility in this matter. It is on that point that I and other Members representing Northern Ireland constituencies are seeking answers.

[Mr Nigel Dodds (Belfast North) (DUP)]

I congratulate the hon. Lady on securing this important debate. I agree entirely with what she is saying and she is right to highlight these matters to the United Kingdom Government. I ask that she and the House be assured that there is consensus among all the parties in Northern Ireland and the Members here on this issue, and we will continue to work together both here and at home with our Executive colleagues to try to bring about an answer and a solution for the people affected by fuel poverty in Northern Ireland.

[Ms Ritchie]

I thank the right hon. Gentleman for that helpful intervention. He is absolutely right: there is cross-party consensus on this issue in Northern Ireland and we want to continue working during this debate, and particularly after it, to ensure that a solution can be found that mitigates the impact of fuel poverty on some of the most hard-to-reach households in both urban and rural communities.

There is consensus on this issue across the parties in Northern Ireland. That point was reiterated at the meeting with Age Sector Platform on 4 November in this House. It intends to hold a cross-party Parliament meeting for older people shortly, and before the election; I have just got word of that today.

Age Sector Platform has also submitted a strong response to November’s consultation, advocating our inclusion in the scheme. It has also suggested that as Power NI, one of the utility companies in Northern Ireland, meets the threshold for mandatory involvement in the scheme in the UK, with 250,000 domestic customers, it should be included, along with Airtricity, which is a subsidiary of SSE, which is already involved in Britain. I would be most grateful for an updated assessment of this situation from the Minister.

I am aware that the Minister of State’s response to written questions on this issue has been that fuel poverty is a devolved matter, and obviously I am aware that Ireland has a separate energy market with different providers. However, as I have said, there has been an acknowledgment and awareness from the Department that we face the same problems with fuel poverty, but do not have the same toolset to deal with them. Surely there is a role for the UK Government in providing, or at least enabling or facilitating, the scheme in Northern Ireland.

The Minister’s answers on this question have so far been fairly blunt, but will she commit this evening to taking a more positive and perhaps more nuanced view of the issue? Will she work with the Northern Ireland Executive whenever possible to explore the options to extend the scheme, or a comparable variant of it, to Northern Ireland? I am calling on her to do the right thing and to work with the Executive at Stormont to protect the elderly and disabled members of our population and some of the most vulnerable families in hard-to-reach communities.

We are also looking for an extension beyond April 2015 of the landlords’ energy-saving allowance, which would help to further mitigate fuel poverty in the private rented sector. I am calling on the Minister to do the right thing this evening. If the warm home discount scheme is extended, pensioners and other elderly people in Northern Ireland will be spared freezing in their homes next winter.