Fuel Poverty: England

Neil Duncan-Jordan Excerpts

Wednesday 12th February 2025 Westminster Hall

[Neil Duncan-Jordan (Poole) (Lab)]

It is a pleasure to serve under your chairship, Mr Efford. I pay tribute to my hon. Friend the Member for Normanton and Hemsworth (Jon Trickett) for securing this timely and important debate.

According to National Energy Action, one in 10 households in my constituency live in fuel poverty, with the worst affected likely to be low-income households, the unemployed and, of course, pensioners. There is no doubt that fuel poverty is inextricably linked to financial poverty. For example, 1.8 million carers struggle with their fuel bills, and the same people often have to use food banks or to cut back on food in order to pay for their gas and electricity. Many of those carers are themselves older; as we know, it is essential to keep warmer for longer when we get older, as we become less active and more sedentary and our blood circulation becomes poorer.

That is why the decision to means-test the winter fuel allowance was wrong and needs to be reversed. Department for Work and Pensions figures show that 880,000 older people were eligible for pension credit but did not claim it. Since the decision to means-test the winter fuel payment, around 47,000 pensioners have come forward to make a claim, but that leaves over 800,000 older people without a winter fuel payment they previously would have received. Let us be under no illusions: these are among the very poorest pensioners in our society.

There is considerable evidence that when a benefit such as the winter fuel payment is specifically named for a purpose, recipients are more likely to use it for that reason—they put it aside to pay the next bill that comes in. It comes in the winter, because that is when the largest bills arrive; however, for this group of pensioners, the bill came but the winter fuel payment never showed up. Universal payments also reach the people who need them most; it is more efficient to make payments to everyone and then to use the taxation system to redistribute from wealthier pensioners who might not need the payment.

According to the Carers Trust, at least 180,000 unpaid carers over 65 will have been negatively impacted by the decision to means-test the winter fuel allowance. That group is also shut out of much of the other support available from Government. For example, eligibility for carer’s allowance does not qualify people for the warm home discount, which is based on a property’s type, age and floor area, not on someone’s actual bill. Likewise, an underlying entitlement to carer’s allowance does not qualify individuals for cold weather payments.

The drive for a clean energy transition is an opportunity to tackle the problem by lowering bills and insulating our homes, but the energy market, with the role of private companies, is broken. My hon. Friend the Member for Normanton and Hemsworth mentioned the obscene levels of profit being made, and they need to be addressed. As a minimum first step, we need to introduce social tariffs for low-income households to guarantee lower bills for those who need them. We also need to consider making assistance with fuel bills available as a form of social prescribing. Health professionals who consider that it would have a recognisable health benefit could then enable patients to get cheaper fuel. Finally, we need to reverse the cruel decision to means-test the winter fuel allowance. In one go, we reduced support for 10 million pensioners. That needs to end.