Domestic Premises (Energy Performance) Bill [HL]

Lord Whitty Excerpts

2nd reading & 2nd reading (Hansard): House of Lords & 2nd reading (Hansard)
Friday 7th February 2020 Lords Chamber

[Lord Whitty (Lab)]

My Lords, I am intervening in this debate to support the Bill, at least as far as it goes, to call on the Government to give it their backing and to ask the usual channels to facilitate its rapid movement through the House. Also, like the noble Lord, Lord Deben, I shall put the Bill in its wider context.

It was 2015 when we last had a fresh, clear and comprehensive fuel poverty strategy. There was the start of a consultation last year, but we have yet to have any clarification as to the outcome of it or what the Government will do about it. Clearly, we need that as rapidly as possible.

Fuel poverty arises from the interplay of three broad aspects: inadequate household income; expensive energy bills, sometimes because of seriously inappropriate tariffs; and the inefficiency of the fabric of the building and its energy supply. A fuel poverty strategy needs to operate on all these fronts so that we get higher income into those households—if necessary, supported by the benefits system; lower prices and appropriate tariffs for those most likely to be affected by fuel poverty; and an effective intervention to improve insulation, energy supply and energy efficiency generally within the buildings in which the fuel-poor live.

It is nearly 20 years since I was the Minister with responsibility for this. We had some success on all three fronts. Specifically, we had a comprehensive taxpayer-funded intervention system to improve the fabric of domestic buildings. We still have a similar system in Scotland and Wales, but not in England. We also benefited from falling gas prices at that time, which was fortuitous and not my fault—at least, I do not claim credit for it. It was clear that fuel poverty was falling considerably under the old definition, although it would have fallen also under the new definition. Unfortunately, since about 2005 or 2006, there has hardly been a year when at least one of those three features has not been conspicuously absent.

Some interventions have undoubtedly taken a number of the fuel poor out of that category. I will not argue again about the new definition; it has some advantages as well as disadvantages. But the fact remains that fuel poverty—30 years on from when we first started defining it—is still an intractable problem for millions of households. Instead of appropriate tariffs, we have had the warm home discount and the winter fuel payment. These are very welcome to households because they help to pay the bill, but they do nothing to change the misguided structure of the tariffs or to engender energy efficiency within the household. Most of the social interventions that are now provided—I pick up on the same point as the noble Lord, Lord Deben, in relation to a subsidy for green energy—are paid for by what amounts to a poll tax on all consumers. This is resented, it is unfair and it is not the appropriate way to fund such interventions, because those who are fuel poor themselves in some cases or who are just above the threshold are effectively paying for the system.

Incidentally, this very morning I half-heard on the news at 7 o’clock that the Treasury might be looking at an income tax-based system. I listened carefully but did not hear that item repeated, but there was an item in relation to the Ofgem review of the cap, so it may well have been in that context. I would be delighted if the Minister could assure me that a move towards funding through general taxation was at least being considered by the Treasury and that I did not mishear it.

In 2014, secondary legislation defined the energy efficiency of buildings—or the target for it—by reference to EPC level C. I think that with a bespoke programme we could do slightly better, but I support this Bill in ensuring that the target is at least put into primary legislation. In broader terms, we need to improve the energy efficiency of all domestic premises, because of our climate change obligations and because heating in housing is a significant part of our total carbon use and is largely gas-based. We need to take some early decisions on how to decarbonise the provision of heating in our housing. Are we going for electrification in some form or other? It would be highly disruptive, given the millions of households with radiators, as compared with gas, but nevertheless may be the better solution, particularly if we cannot find a formulation for biogas or hydrogen-based gas that does not itself cause significant carbon emissions. Either way, a decision on that strategic choice is needed very early.

Other aspects of the Bill deal with energy efficiency of all domestic buildings. I would argue that the obligation should not be on just mortgage holders to describe the house; it should be on all those who are selling, including estate agents and, in relation to new build, it should be on builders, developers and indeed the local authorities that give the planning permission. This is so that we can begin to raise the energy efficiency of all premises. That should be part of a clear dimension for reducing carbon. We also need a clearer dimension for fuel poverty itself. Can the Minister say when we will get a new fuel poverty strategy and also when we will get a statement on energy policy more widely? I would be very grateful if he could give me a date for both of those because, at the moment, there are a lot of aspects of energy policy, including fuel poverty, that are floundering without a sense of direction. I support this Bill and hope that it goes through the House as rapidly as possible.