Oral Answers to Questions

Marion Fellows Excerpts

Thursday 7th January 2016 Commons Chamber

The Secretary of State was asked—

[Marion Fellows (Motherwell and Wishaw) (SNP)]

2. What steps she is taking to reduce the level of fuel poverty.

[The Secretary of State for Energy and Climate Change (Amber Rudd)]

A reformed domestic supplier obligation—ECO, or energy company obligation—from April 2017, which will run for five years, will upgrade the energy efficiency of more than 200,000 homes per year, tackling the root cause of fuel poverty. Our extension of the warm home discount to 2020-21 at current levels of £320 million per annum will also help vulnerable households with their energy bills. We intend to focus our efforts through ECO and the warm home discount more effectively on the fuel poor, and will be consulting on our future approach this spring.

[Marion Fellows]

I thank the Minister for her answer. Fuel poverty is a sign of inequality. New research by the national charity Turn2us has found that one in two low-income households are struggling to afford their energy costs, despite being in work. Many of these households rely on in-work social assistance. Has she or her Cabinet colleagues made an assessment of the effect of welfare reform on low-income households judged to be in fuel poverty?

[Amber Rudd]

I thank the hon. Lady for her question. My Department works closely with the Department for Work and Pensions to ensure that the support we give goes to the most vulnerable. Energy costs are always at the centre of our minds in this Government, in order to make sure we put as little pressure as possible on hard-pushed households, and that will remain so.

--- Later in debate ---

[Amber Rudd]

My hon. Friend is absolutely right. Nuclear is an incredibly important part of our energy future and I am very proud that we have signed the first new nuclear deal in over 20 years. We believe small modular reactors will have an important part to play. I am delighted to say we are using part of our substantial innovation funding to make sure we bring them on as early as possible, but that will not be at the expense of existing plans for nuclear reactors. We will be aiming for a mix of larger nuclear and smaller nuclear.

[Marion Fellows (Motherwell and Wishaw) (SNP)]

T6. Earlier this week, the SNP Scottish Government agreed a support package to retain staff at Dalzell and Clydebridge steel plants. The package will include measures to address energy use and costs. Energy costs are a substantial expense facing business. What consideration has been given by the Secretary of State or her Cabinet colleagues to bringing forward a coherent strategy to address the high energy costs facing business across the UK?

[Amber Rudd]

We are well aware of the importance of keeping energy costs down to support businesses and households. My right hon. Friend the Prime Minister announced recently that energy-intensives would be given a specific support package. That has recently got state aid clearance and will be put in place as soon as possible.