Cold and Damp Homes

Debate between Matt Western and Wera Hobhouse

Thursday 8th May 2025 Westminster Hall

[Wera Hobhouse (Bath) (LD)]

It is a pleasure to see you in the Chair, Mr Western. I congratulate the hon. Member for Leeds Central and Headingley (Alex Sobel) on bringing this important subject to Westminster Hall. The state of our private rental properties is an appalling open secret. One in four private renters live in fuel poverty; 1.6 million children are living in privately rented homes that are damp or mouldy. That is a shocking situation.

As we know, the UK has some of the oldest and coldest houses in Europe. More than half of tenants had issues with damp or mould last year. In my constituency of Bath, 31% had problems with hot water or heating, and 21% of privately rented homes do not meet the decent homes standard. These numbers are simply not acceptable. We need tougher inspections and much higher standards.

As the hon. Member for Leeds Central and Headingley has pointed out, serious health risks can arise from mouldy and damp conditions. It was not long ago that a toddler in Rochdale died from prolonged exposure to black mould, yet MPs still hear every winter from constituents who are dealing with terrible cases of damp and mould. A constituent in Bath recently wrote to me that their walls are black with mould. Now, after months of relentless coughing, they have been referred for asthma testing. Another constituent described fungi growing up from the floor. Damp and decay have already damaged their belongings, and now they fear that the place they call home is no longer fit to live in.

Such cases are prevalent across the country. One in four of the complaints that Citizens Advice receives is about disrepair, damp, mould or excessive cold. Is it any wonder that the NHS spends £1.5 billion every year treating respiratory illnesses? There have been small-scale trials in which heating vouchers were given to at-risk households as a preventive measure, helping to avoid illness and reduce pressure on health services. Why not roll it out nationally?

It is not just privately rented properties with unaccountable landlords that have these issues. Many of the cases that I hear about come from tenants in social housing. My largest social housing association, Curo, has made it clear that housing providers face soaring costs. Repairs, decarbonisation, regeneration and new home delivery must all be funded from increasingly stretched social rents. Social rents are set by the Government using a “consumer prices index plus 1%” formula, but successive Governments have capped, cut and changed this model. In 2003, for example, there was a 7% rent cap, despite the CPI reaching 11% that year; meanwhile, the average operating cost per household unit rose by 11%.

The Government have ambitious house building targets, but that mismatch leaves providers struggling to maintain existing homes, let alone build new ones. Because funding is overstretched, increasing numbers of social tenants are not getting the repairs and upgrades that their properties need to prevent damp and mould in the first place. I ask the Government to look at this closely. A fundamental review of the rent and capital subsidy regime will make sure that providers can provide homes that are well maintained and managed, while also meeting their requirements to improve, regenerate and build new social housing.

At the heart of this regeneration must be a programme of home insulation, which is something that Liberal Democrats have been asking about for a long time. Well-insulated homes stay warmer, so insulation is key to reducing energy bills. Much of the housing stock in Bath is Georgian and grade II-listed. These homes are in dire need of insulation, but listed buildings are more expensive to insulate because of the specific regulatory requirements. For many of my constituents, the cost of insulating their homes is just too high.

The Government have announced the warm homes local grant, aimed at improving the efficiency of low-income, low energy-performance homes. However, in the recent funding award, Bath and North East Somerset council will receive a fraction of the amount that it requested: just 26% of what was felt to be needed to carry out the work following consultation with the warm homes team. The existing consortium was awarded approximately £11 million over two years under the home upgrade grant phase 2. The programme has improved 80 homes in Bath, helping fuel-poor residents to save money on energy bills and benefit from a more comfortable and climate-friendly home, but it has been cut under the warm homes grant. The council is now receiving a reduced budget of just £4.5 million a year over three years.

Thousands of homes in Bath are eligible for the warm homes grant, but a very small fraction will receive it. The programme is likely to be oversubscribed; I understand that there is a waiting list from the previous scheme that will account for the first year of upgrades. The ability to carry out funded work on homes helps to alleviate fuel poverty, improve health and reduce carbon emissions. Reducing the budget will have knock-on effects on all those areas.

The other national awards reflect a similarly bleak picture. Once again, we had a winter in which our constituents suffered in cold and damp homes. I am not aware of any public acknowledgment from the Government that funding for home energy upgrades has been cut. I ask the Minister whether that represents a rowing back on the targets in the warm homes plan, or whether it is a reallocation of resources in the warm homes plan. The Liberal Democrats propose a 10-year insulation programme, starting with free insulation for the most vulnerable homes. If we want to reduce household energy bills, insulating homes is the place to start, so I hope that the Government will sincerely consider that.

The state of our rental housing, both private and social, is simply not good enough. It is one of the many failures of the previous Conservative Government, so the new Government must now step up and deal with the problem. The stories from my constituents in Bath are echoed across the country: damp walls, black mould and cold, unliveable homes. We know the solution—higher standards, proper funding for repairs and investment in insulation—but we continue to see piecemeal action and shrinking budgets. I urge the Government to act fast so all our constituents can live in safe, warm and secure housing.

[Matt Western (in the Chair)]

I call the Chair of the Housing, Communities and Local Government Committee.

Cost of Energy

Debate between Matt Western and Wera Hobhouse

Tuesday 11th February 2025 Westminster Hall

[Wera Hobhouse]

The hon. Member predicts my next point: it is important to emphasise the Government’s responsibility to look after the most vulnerable in our society and protect them during any efforts to rebalance gas and electricity prices. However, I cannot comment on the council tax bill to which he refers; that is, of course, a local matter.

It is imperative that any policy changes prioritise the needs of those vulnerable households, ensuring that they are not left behind as we look to electrify the UK’s heating system. A more focused way to adjust policy funding could be to collect revenue from levy-funded programmes through a single levy control system. Such a system would have two straightforward rates—one for electricity and one for gas—set by Ministers at an appropriate level. These rates would be based on the cost per kilowatt-hour, so more energy-efficient technologies would have lower taxable amounts, making them comparatively more affordable.

Unlike other rebalancing methods, this approach would allow the Government to directly manage the impact on households. As electricity is always more efficient than fossil fuels, its price would go down, encouraging more people to switch. Policy reform is an essential step towards addressing the unacceptable price disparity that currently exists in the UK between gas and electricity. I hope the Minister has listened very carefully to the proposal that I have just put forward.

The impact of Brexit on our energy system has been somewhat brushed under the carpet. The turbulence of covid and the shockwaves from Russia’s invasion of Ukraine have dominated the conversation and masked the quieter, but significant, effects of our departure from the EU’s energy framework. One of the most pressing issues is passive divergence: not following new EU regulations simply because we are no longer a part of the system.

That is not always a deliberate choice, but it is already creating challenges, particularly in electricity trading. The UK was once part of an integrated, efficient energy market with the EU, where electricity flowed freely, reducing costs and improving security. Now, without alignment, we risk inefficiencies, higher prices and reduced energy security. We need strategic decision making. Not all divergence is bad, but it must be a conscious, informed choice, based on clear evidence, not ideology.

When it comes to energy, the benefits of co-operation with the EU are overwhelming. Shared markets bring stability, common rules ensure fair trade and joint planning strengthens resilience against global energy shocks. The EU and the UK share the same fundamental energy challenges in securing affordable, clean and reliable power for the future. Our interests remain aligned and so should our approach. We must ensure that divergence, where it happens, is a decision and not an accident.

In addition, we need to focus on policies for community energy. We Liberal Democrats have long championed the idea of community energy. Community energy currently accounts for less than 0.5% of total UK electricity generation capacity. However, according to the Parliamentary Environmental Audit Committee, with the right Government support, the sector could grow 12 to 20 times by 2030, powering 2.2 million homes and saving 2.5 million tonnes of CO₂ emissions every year.

I welcome the Government’s inclusion of the local power plan in the Great British Energy Bill, which marks a welcome step forward for the community energy sector. The plan intends to deliver an ambitious target of 8 gW of renewable energy projects by 2030, in partnership with local authorities and communities across the country. To achieve that target, significant scale-up of local and community-owned energy will be required and we will need a support programme in place for community energy organisations in England, drawing on successful models from Scotland and Wales.

Bath and West Community Energy, a community benefit society, has reduced carbon emissions by an average of 3,300 tonnes per year with its around 31 renewable energy projects. Let us make sure every community across the country has something like Bath and West Community Energy in its patch. As we have repeated many times, community energy reduces bills, creates local jobs and accelerates the transition to a low-carbon future.

Home insulation is another key area to reduce energy costs, particularly in my Bath constituency, where much of the housing stock is old and in dire need of insulation. Insulation remains one of the most effective ways to reduce energy demand, lower bills and cut emissions, but the Government have significantly delayed the implementation of their warm homes grants. The scheme was not implemented this winter and will only operate from next winter. The Government must tackle the efficiencies of these schemes head-on, ensuring that residents receive retrofit measures that provide value for money and stand the test of time. The Select Committee on Energy Security and Net Zero will look into those issues tomorrow, and I hope people will listen very carefully.

To accelerate and de-risk delivery of the warm homes plan, the UK Government should create a national expert advice service for England so that households have the confidence to receive tailored advice to upgrade their homes. Doing so would deliver consistent outcomes across the country and end the postcode lottery in advice services.

I hope the Government consider the points outlined today. We need long-term solutions that will make clean energy affordable for all, meet our net zero targets and lift the pressures on families of rising energy costs.

[Matt Western (in the Chair)]

I remind Members that they should bob if they wish to be called in the debate.