Warm Home Discount
Debate between Miatta Fahnbulleh and Andrew Bowie(1 month ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I thank the Minister for advance sight of her statement. Today, the Government have announced an expansion of the warm home discount, with a change to the criteria that will see more low-income households receive a £150 payment to heat their homes, but for many this payment will be immediately eaten up by the increase in the energy price cap. We must be clear that the best protection for vulnerable households is to prioritise cheap energy. The announcement today is, frankly, a sticking-plaster approach to rising energy bills.
This Government fail to grasp the core issue: energy costs in this country are far too high for businesses, industry and, of course, bill payers. When the energy price cap rose in 2022, the now Secretary of State called it a “national emergency”. He called for an urgent freeze on energy bills and cited a lack of leadership. Now that he is in government, the only thing he is able to freeze is vulnerable pensioners by taking away their winter fuel allowance with no notice. Does the Minister think that shows leadership? I know that my constituents, and presumably hers too, will be concerned about their bills rising, concerned about inflation creeping back up—hitting 3% in January, despite the hard work done last year to bring it under control—and angry that Labour’s promise to cut bills by £300 is being broken.
The worst part of all of this is that this Government, led by ideological zealotry from the Secretary of State, are doubling down. Their obsession with going further and faster than any country in the world to meet their own self-imposed 2030 target is going to increase people’s bills even further. The renewables industry has warned that their rush to build record renewables in the next five years will push up prices and “consumers will lose out”. The Government’s rush to build twice as much grid in the next five years as was built in the last decade will increase the network costs on people’s bills. The Office for Budget Responsibility has said that the environmental levies will increase to £14 billion in 2030, largely driven by the hidden cost of renewables, all of which will end up on people’s energy bills.
The Labour party was not honest about its promise during the election to cut bills by £300, it was not honest about its plan to take the winter fuel payment away from millions of pensioners living in poverty, and now it is not being honest with the British people about what its plans will do to our energy bills. If we have learned anything over the past few years, it is that the cost of energy is absolutely critical to any modern economy. We cannot go on following ideology over evidence and putting political targets ahead of what will cut the cost of energy in this country. However, this Government are in denial, which is why they scrapped the full system cost analysis commissioned when the Conservatives were in office.
Will the Minister say when proposals for a debt relief scheme will be published? Will she confirm by how much she expects levies to increase over the next five years? Will she commission a full system cost analysis of what the 2030 target will do to people’s energy bills? Will she confirm by how much bills will rise before we see the £300 off, which we were all promised?
Miatta Fahnbulleh
The hon. Gentleman is right that energy prices are too high—on that, we agree. We also agree that that is worrying for families and businesses across the country. However, I would point out that 80% of this rise has been driven by wholesale prices. I would also gently remind him that the reason we are in this position—the reason we are so exposed to global fossil fuel prices over which we have no control—is because the Conservatives spent 14 years in government squandering the opportunity to accelerate the transition to clean power and reduce our dependence on global fossil fuel prices, leaving families across the country exposed.
The status quo is not tenable. We are at a point where energy prices are at an historic high, and we got here under his Government. That is a status quo that we are not willing to contend with. That is the reason—not because of ideology, but because we see the obvious: as long as we are dependent on global fossil fuel prices, we will be on this rollercoaster. That is what is driving the push to clean power. While the Conservatives have no alternatives, we have a clear alternative: we run to clean power; and while we do that, we support the most vulnerable households in the short term.
To answer the shadow Minister’s question, Ofgem is in the process of consulting on the debt support scheme as we speak, and we will support it to put that in place. We know that the debt burden has increased by £3.8 billion, and more than 1.8 million households in need of help will be supported by that scheme. We are absolutely committed to cutting bills—everything we are doing as a Government is driven by that desire and clear commitment. We will do that both through short-term measures and, critically, by running at clean power by 2030.
We have a plan to deal with energy bills. The Opposition have a plan to slow down and do nothing, and it will be the British public who pay the price.
ECO4 and Insulation Schemes
Debate between Miatta Fahnbulleh and Andrew Bowie(2 months, 1 week ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I thank the Minister for advance sight of her statement, and for taking the time to meet me this morning prior to making the statement.
The ECO scheme and the Great British insulation scheme were set up because we know that improving the energy efficiency of homes is one of the best ways to cut energy bills and keep people warm. This is especially the case for those who are in fuel poverty. When we took office in 2010, just 14% of homes in this country had an energy performance rating of A to C; today, that figure is around 50%, and for social housing, we went from 24% in 2010 to 70% today. That is a record that we are proud of—a record of reducing bills for households and keeping families warm. Almost half of the measures installed under GBIS have been in low-income households.
Solid wall insulation is a small proportion of the overall work that the ECO scheme and the Great British insulation scheme undertook. The vast majority of installations under those schemes have been cavity wall and loft insulation, alongside installations of smart thermostats and boiler upgrades under the ECO scheme. However, it is deeply concerning that examples of substandard solid wall insulation have been identified in some of the installations under those schemes. We of course support the action that the Minister has announced today, and Ofgem being given responsibility for overseeing the repairs and remediation, and it is right to conduct additional on-site audits to inform action moving forward. I thank TrustMark for the work it has done to identify examples of poor-quality solid wall insulation, and we also welcome the fact that there will be a review of the quality of solid wall insulation under other schemes. It is absolutely right for installers to fund the repair work, and to ensure that the situation is remedied for affected households as soon as possible. Nobody should have to live in a house with damp or mould as a result of poor-quality insulation.
Could the Minister, in addition to taking the action that she outlined in her statement, please answer the following questions? First, have the audits undertaken so far identified what proportion of the solid wall insulations are affected by poor-quality work? Can she confirm that all 39 companies that have been suspended still exist, and set out the mechanism by which they will be required to remedy their work? What action is being taken to make sure that remedial work is of the required standard, to ensure that consumers are protected from yet more poor-quality work? What action is the Minister taking to make sure that everyone who had solid wall insulation installed under the schemes is informed promptly and in full, and that nobody will be missed? Will she publish a full list of the 39 companies suspended from the scheme for carrying out poor-quality work, and has the Department considered taking legal action against them?
Members in all parts of the House want to ensure that families have a warm and comfortable home that is efficient and cheap to run. The Minister has our assurance that we will work cross-party to ensure remediation for those affected.
Miatta Fahnbulleh
I thank the hon. Member for his response. I am glad that there is consensus across the House that energy efficiency measures and home upgrades are key to delivering warmer homes and lower bills, and I hope all Members are supportive of the action the Government are taking.
In answer to the hon. Member’s questions, we are still conducting audits to get a full picture. From sampling that has been done—I stress that the sampling was geared towards the installers that we thought were most risky—it seems that a significant proportion of that sample has major issues, which is why we are taking this action. On the 39 installers that have been suspended, we are working through certification bodies and TrustMark to require them to go into households and remediate the work. In the cases that we have audited, that is happening. The vast majority of installers want to do the right thing and want to do a good job, and where issues have been flagged, they are repairing the work. Where we think there are problems, we have mechanisms in place for making sure that the installers deliver on their obligations, and the guarantee system acts as a backstop.
A crucial question is how we ensure both that where remediation work is being done, it is being done to the right standard, and that future solid wall insulations are done to a better standard. We are putting in place additional spot checks across the piece to make sure that where work has been remediated, it has been done to the required standard, and critically, all solid wall insulations will be given more monitoring and checks. Suppliers have committed to that, so that when people are having this work done, they can be confident that it is being done to a much better standard than we have seen.
On keeping everyone informed, we will be writing through Ofgem to all households that have had solid wall insulation installed. We will be doing quality checks on all 65,000 solid wall insulations. I should stress that we hope the vast majority of those will be okay and that any issues will be minor, but we want to do a quality check across the piece. Our priority is getting in, making sure we are doing a proper inspection of the property, and getting key issues remediated as quickly as possible. Through all of that, our priority is the consumer, whose experience has to be as hassle-free, stress-free and cost-free as possible. This should never have happened in the first place, and we are determined to get this right and fix it on those consumers’ behalf.
Draft Clean Heat Market Mechanism Regulations 2024
Debate between Miatta Fahnbulleh and Andrew Bowie(2 months, 2 weeks ago)
General CommitteesRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Miatta Fahnbulleh
I thank my hon. Friend the Member for Worcester. We absolutely will approach it in that way. We know that we cannot do this on our own, and that we must work in collaboration with industry—that is what has got us to this point.
My hon. Friend is completely right to point out the flip-flopping from the Conservatives. Let me quote what the hon. Member for West Aberdeenshire and Kincardine said about the clean heat market mechanism when he was in government:
“The Government back the dynamism of industry to meet the needs of British consumers, which is why we are taking a market-based approach that puts industry at the heart of leading a transformation of the UK heating market, while keeping consumers in the driving seat with choice. Through the planned low-carbon heat scheme—the clean heat market mechanism—we will provide the UK’s world-leading heating appliance industry with a policy framework that provides the confidence and incentive to invest in low-carbon appliances. That will make heat pumps a more attractive and simpler choice for growing numbers of British households.”––[Official Report, Energy Public Bill Committee, 6 June 2023; c. 145.]
That was when the hon. Member was enlightened.
