Fuel Poverty

Nigel Evans Excerpts

Thursday 8th July 2021 Commons Chamber

[Dr Alan Whitehead (Southampton, Test) (Lab)]

I, too, welcome the opportunity to talk about the whole question of fuel poverty. It is very helpful that an annual debate is required in Government time so that we can get to the bottom of the issues. We certainly need to, because as the Minister mentions, 3.2 million households in England, or 13.4%, are still in fuel poverty. I might add that that is under the new metric that the Government have introduced over the past year, along with their document “Sustainable warmth: protecting vulnerable households in England” and the updated fuel poverty strategy. Unlike in a number of other areas, the Government do appear to have a strategy on fuel poverty now, which is a good step forward. It is based on some changes in methodology and hence in the slant of a number of commitments on fuel poverty that the Government have made for the future.

Of course, as the Minister has mentioned, we should not in any way underplay the significance of what has happened over the past year. The pandemic has probably driven a substantial number of additional households into fuel poverty because people have been staying at home, using more energy and paying a lot more in energy bills. That effect is likely to continue for quite a long while, so there are several factors to consider in thinking about where we are now with fuel poverty and where we want to go.

One of the key changes that has been set out this year is a change in the definition of fuel poverty—what it consists of and how it is measured. I was a little surprised when I first heard that Lord Lilley, the former right hon. Member for Hitchin and Harpenden, had come up with a definition of fuel poverty, but that is not actually the low-income, low energy efficiency definition set out in the strategy. What is important about the new definition is that it explicitly includes a metric involving property banding in England. Property bands have not been specified in a definition before, although they have been in the Government’s ambitions for 2030; the Minister mentioned the target to get the properties of as many people in fuel poverty up to band C as possible.



Although that may not seem like an enormous difference, I think it is a really fundamental change inasmuch as it explicitly recognises for the first time that a very substantial element of fuel poverty is not just income, although that is very important, and is not just energy prices, although they too are very important, but is actually the energy efficiency of the properties people are living in and how bad that may be. Indeed, we know that there is a very considerable correlation between income, for example, and the kind of properties that people who have a low income—well below the median rate—are living in.

That correlation is very clear for the bands of properties people are living in. Indeed, we can see from the calculations of what a household bill is likely to consist of that that is a tremendous problem for people who have a low income. For example, an average band C property will have an estimated energy bill of about £600 a year. Go to band D and that figure is £900, but band E is £1,400, which is double or more the band C level. Worse than that, go down to band F and band G, and it gets to treble or more the band C bill. Those people who are in fuel poverty, with a lower income and less able to pay bills, are by and large facing much larger bills in the first place because of the nature of the property they are living in. The strategy essentially puts a much greater emphasis than hitherto on getting those properties into a fit state for people to live in so that their bills are such that fuel poverty is essentially written out by the energy efficiency of the properties the people are living in.

The recognition of that particular metric does, however, lead to very substantial and grave policy implications and commitments for the future, because what the Government are essentially saying is that they are going to get to average band C by 2030 to drive fuel poverty out in the way I have described. The judgment we have to make now is: are the Government in a position right now to actually fulfil that particular ambition in order to carry out the fuel poverty strategy they have set their mind on over the next period? My suggestion right now is that they are clearly not.

The Minister has, in a slightly Panglossian way, set out a number of commitments that will lead to the strategy being achieved by 2030, but they are mostly short-term strategies and mostly strategies that are poorly funded. In one instance, a strategy was mentioned in the poverty strategy itself:

“Invest in energy efficiency of households through the £2 billion Green Homes Grant, including up to £10,000 per low income household to install energy efficient and low-carbon heating measures in their homes”,

but it actually disappeared just a month after it was set down in the fuel poverty strategy as one of the key drivers as far as the energy efficiency of homes are concerned. This is the green homes grant system that, as the Minister has acknowledged, got into terrible difficulties. It was, frankly, a pathetic attempt at investing £2 billion in energy efficiency in homes and needs to be recovered and revised very rapidly.

In that context, it is a shame that this debate comes just before the Government’s heat and buildings strategy is to be published. I understand that it is to be published shortly, but we are still on the wrong side of it. What I am looking for in that strategy is a coherent plan—not just a few bits and pieces here and there—for building an efficiency strategy right through the next decade, so that when we get to 2030, band C is the median for all properties. That will require a large amount of investment, and thinking of new ways to undertake changes in energy efficiency through bodily uprating the energy efficiency of properties throughout the whole country. It will also mean concentrating on those sectors—particularly the private rented sector—where we know that band D, E and F properties are concentrated, and having a coherent strategy to tackle the very low energy efficiency of such properties across the country.

I hope that in the heat and buildings strategy the Government have not given way to the pressure I know there has been in respect of ensuring that landlords in the private rented sector have a greater responsibility for bringing their properties up to a decent level of energy efficiency. Many of those who are in fuel poverty live in the private rented sector, sometimes in appalling conditions yet faced with enormous bills that they simply cannot afford, as part of their income, normally to discharge.

There is now a great onus on the Government to come forward with an energy efficiency strategy that meets the commitments made in the fuel poverty strategy from February onwards and to give a convincing account of how that strategy is to be met. Of course, I think all Members would agree that that is not the whole issue as far as fuel poverty is concerned; the question of income and what one does about that as far as benefits and assistance are concerned remains very important. That is also important in terms of the effect of the new strategy on people who are objectively in fuel poverty but happen to live in properties that are band C or above.

Several hundred thousand people have been knocked off, as it were, the fuel poverty concern radar by the LILEE—low income low energy efficiency—definition that came in this year. Those people’s circumstances have not objectively changed—they are in exactly the same position as they were—but the new definition has moved them out of a particular category. I hope that that particular section of the population will not be forgotten as a result of the new strategy. They would clearly need to be approached in different ways in terms of vulnerability measures, some of which the Minister outlined. We should not think that because we have changed the definition, we have somehow solved fuel poverty for that group of people.

We need to continue with a three-pronged approach to our fuel poverty targets: yes, we need energy efficiency; yes, we need to consider incomes and to make sure that people have the income to pay the bills in the first place; and, of course, we need to consider energy prices themselves. We have not yet had through the results of the energy price cap considerations for this year—I think that they, too, will come out shortly—but I hope that when they come out they will be relatively good news for those people who face increasing bills, year on year, as they struggle to try to meet their warmth and home energy commitments on low incomes and in the badly insulated homes that we all hope will be, by 2030, very much a thing of the past.

[Mr Deputy Speaker (Mr Nigel Evans)]

This is a time-limited debate, but we will try not to put a time limit on individual contributions, so I ask for restraint, please.

--- Later in debate ---

[Sally-Ann Hart (Hastings and Rye) (Con)]

This is an incredibly important debate—it is of huge importance for residents across Hastings and Rye—and I welcome the Minister’s introductory comments on fuel poverty. It is hard to comprehend that, in our country today, some households still have to choose between heating and eating. The House of Commons report published at the end of June estimates that some 3.2 million households across England are in fuel poverty, with around 600,000 individuals having fallen into fuel poverty during the coronavirus pandemic.

I have seen for myself the pain and anguish that fuel poverty can cause for a household. Representing Hastings and Rye is a fantastic honour, as I genuinely believe it to be one of the greatest places in the UK to live and work. However, we have to face up to some of the harsh realities and the difficulties that we have. The tortuous decision of a parent who has to choose between putting the heating on in the winter and providing a hot meal for their child at the end of the day is a reality for far too many residents in my constituency. Over 10% of households in Hastings are in fuel poverty, a figure that shocks and saddens me.

However, the Government are helping to address that with their fuel poverty strategy. I am pleased to see from the energy White Paper that the warm home discount will be expanded to nearly 3 million homes, which will help households save £150 a year on electricity bills. I am particularly pleased to see that the social housing decarbonisation fund demonstrator has awarded £62 million to social landlords across England and Scotland to test innovative approaches to retrofitting at scale, with more than 2,300 social homes improved to EPC band C already.

I have seen the positive impact that retrofitting renewable energy, helped by grant funding at the time, can have in social housing. As a district councillor for Eastern Rother ward, I highlighted the issue of fuel poverty in Camber and Rye Harbour. Night storage heaters are expensive and do not provide heat when it is needed. Black mould and condensation are health concerns. I was delighted a couple of years ago to be asked to look at some retrofitted social housing in Camber, where solar panels with batteries and air source heat pumps had been put in. The tenants were delighted. There was no black mould and no condensation, and their homes were warm at lower cost.

However, we now need a new scheme to replace the old green homes grant, to help households make their properties more energy efficient, insulating them in the winter months and reducing their bills. Better-insulated homes will not only provide a financial benefit to those living in them, but help the Government and the country to meet our ambitious environmental targets.

We must do that in a way that does not burden households with huge costs to replace old boilers, install insulation and get their properties to an EPC rating of C or above. That is why I believe that a grant system to help households—especially those who are really struggling, such as the 10% of households in my constituency in fuel poverty—to improve the energy efficiency of their homes is one of the best ways forward. I would welcome any update that the Minister can provide on support for households already in fuel poverty who will need to improve their properties to meet the Government’s ambitious target that every home should have an EPC rating of C or above by 2030.

Let me end on a positive note. Although the recent pandemic has pushed up the number of households in fuel poverty, I am hopeful that the creativity of this Government and their determination to support and help those most in need will prove to be effective in finding a way to build on the support that is already in place and offer a way out of fuel poverty for thousands of households in my constituency and millions across our country.

[Mr Deputy Speaker (Mr Nigel Evans)]

Thank you very much for a very concise speech of five minutes. If everybody follows suit, we will get everybody in.

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Good afternoon, Mr Deputy Speaker. I shall try to be brief. A subject like this is one where I always prick up my ears, because the village of Altnaharra, in the centre of the Kyle of Sutherland in the north of my constituency, is always the coldest place each winter in the whole of the UK. I want to do two things: I want to share some statistics that have been provided to me; and I want to namecheck the Highland Council, which takes fuel poverty extremely seriously and has done good work.

The Highland Council’s own report identifies huge areas of the highlands in fuel poverty. Nearly all the county of Sutherland has a fuel poverty level of 70% of households. The Kyle of Sutherland Development Trust carried out research recently which showed that one in four children in Sutherland live below the poverty line. All this, as we know, has been exacerbated by the pandemic.

Fuel poverty, boy oh boy, has been an issue for very many years. It is made worse by the electricity distribution charges that are levied by area. As a result, the highlands is disproportionately affected with the highest distribution charges levied anywhere in the UK. That is, ironically, in spite of the fact that we produce huge amounts of energy from green power—wind and hydro—which we actually export to the central belt of Scotland, sending it down south. The result is that the cost of each unit of electricity in the highlands is significantly higher than in London or in the central belt of Scotland.

In September last year, the Highland Council wrote to the UK Government asking them to bring in a national distribution charge for electricity to prevent that unfair practice. The reply said that they would not, but that a £60 million fund would be made available to mitigate the impact of higher distribution costs. My good friend Councillor Richard Gale, the councillor for East Sutherland, does not think there has been a reply or any further comment from the Government. May I therefore very politely ask my friend the Minister if she could possibly look at that and see what happened to the £60 million fund? If it could be forthcoming it would be fantastically helpful.

I completely support the argument put forward for the reduction in VAT on installation materials. That would be a tremendous step in the right direction. Let us hope that consideration will be given to it. Finally, the population of my constituency, and certainly the county of Sutherland, is an ageing population, so we can imagine how that is made still worse when we pile that on top of the fuel poverty issue. Thank you, Mr Deputy Speaker for your time and patience. That is my short speech concluded.

[Mr Deputy Speaker (Mr Nigel Evans)]

Very concise. Thank you very much.

[Sir David Amess (Southend West) (Con)]

Some 20 years ago, I introduced my private Member’s Bill to eliminate fuel poverty. It received Royal Assent in 2000 and was called the Warm Homes and Energy Conservation Act. It was inspired by a Polish gentleman living in a high rise block of flats who died of fuel poverty. As my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) said, no one should die of fuel poverty. I am delighted that fuel poverty in England fell by 3.9 million households between 1996 and 2004, and decreased by 34% between 2010 and 2019, but I say to my right hon. Friend the Minister that the fact we are having this debate today means we still have not eliminated fuel poverty.

My 2000 Act placed on the Government a duty to produce a strategy to ensure an end to fuel poverty

“as far as is reasonably practicable”

in 15 years. However, in a subsequent court case the judgment was that the words of the Act meant there could only be an “effort” to achieve the targets, instead of guaranteeing that they would be reached. In addition, the courts ruled that the words “as far as is reasonably practicable” meant that the Government could deprioritise fuel poverty if, for instance, resources were tight. In short, therefore, the courts ruled that there was no duty to end fuel poverty, only to try to do so. As a result, fuel poverty was not ended by 2016.

Fuel poverty needs to be eliminated, as the whole House agrees, as quickly as possible to maintain our population’s health and to prevent any avoidable deaths that can happen as a result of a cold home. I am pleased, however, that my Act has been updated and that the current duty to bring fuel-poor homes up to at least Energy Performance Certificate Band C by 2030 is set in regulations. However, the words

“as far as is reasonably practicable”

are used time and again, so I hope my right hon. Friend the Minister can confirm today that the only exceptions to ending fuel poverty will be made due to the physical characteristics of the property or the occupiers’ refusal to have works carried out.

I introduced—listen to me, as if I am a separate Government—a Back-Bench Bill called the Domestic Properties (Minimum Energy Performance) Bill in the last Session

“to ensure that domestic properties have a minimum energy performance rating of C”

and

“to give the Secretary of State powers to require persons to take action in pursuance of that duty”.

I ask my right hon. Friend the Minister to agree to a meeting with her officials to discuss energy performance of buildings. I am working with the industry and experts on a revised version of the Bill. I know that no Government enjoys private Members’ Bills in reality; they always like to promote them themselves—I am not bothered about who takes the glory. I believe that it would certainly be beneficial in reducing fuel poverty if she and officials worked with me on the new Bill. Among other things, it would reduce the impact on the environment and make fuel more accessible to all in privately rented properties, social housing, new homes and owner-occupier properties.

There are brilliant charities throughout the country, especially in Southend, that help people who are struggling financially. Age Concern in Southend offers a range of support for older people. One of the concerning trends that it is starting to see is the number of older people requiring services that indicate they are housebound. This means that they use more fuel for heating and cooking while they are on a fixed income. There may be a fuel poverty crisis coming our way. This has, of course, been intensified by the coronavirus pandemic. The types of inquiries that Age Concern is receiving are for its befriending services, social activities and help at home. The Government need to invest in preventive measures that would get older people out of the house and active again. This will keep people healthier and help to alleviate the need for fuel use. This is where the Haven community hub in Westcliff comes in, which encourages people to leave their homes, where it is safe to do so with the current restrictions, and socialise.

In conclusion, it is promising that colleagues are debating this topic today and there have been improvements in reducing the rate of fuel poverty in the last 21 years, but really, I say to my right hon. Friend, we need to do more. The coronavirus pandemic has further pushed developments back and I hope that the Government perform their statutory duties by bringing fuel-poor households up to EPC band C by 2030. The wording of these regulations should not limit the extent to which fuel poverty can be reduced, as my Act suggested 21 years ago. People still need heating and electricity during the coronavirus pandemic and these problems will never go away unless concrete legislative action is actually taken.

[Mr Deputy Speaker]

Thank you for another concise contribution.

--- Later in debate ---

[Anne-Marie Trevelyan]

I thank all those who have spoken this afternoon. It has been a really powerful and important debate. I particularly thank my right hon. Friend the Member for Wokingham (John Redwood). It might be rare to see him and the hon. Member for Kilmarnock and Loudoun (Alan Brown) standing up together to lobby the Treasury on reducing or removing VAT on insulation and other green products, but who am I to stop such a bonding of those least likely to want to campaign together? It is a fascinating issue, and we should all watch closely and hope that this will be a new match to take on some of the green challenges that we all want to see fixed.

I thank the hon. Member for Kilmarnock and Loudoun for raising the issues that the all-party parliamentary group for terminal illness raised. I will make sure that I read that report and look at it in more detail. As I said, Scotland obviously has its own devolved controls over fuel poverty issues, but I recognise, as someone who lives in Northumberland, that the challenges of weather do cause differences, and we have to be conscious of that as we work towards finding those solutions.

I thank my hon. Friend the Member for Hastings and Rye (Sally-Ann Hart) for being such a great and persuasive advocate for her constituency. She understands clearly and in depth that there are areas in her constituency that need more support. I hope that she will work closely with her local authority on the schemes it can deliver to help insulate homes and make sure that she drives it to greater success.

It is always a pleasure to hear from my hon. Friend the Member for Southend West (Sir David Amess), although we did not hear any calls for city status. His total commitment on this issue is heartening at every level. He has campaigned on it and has driven a change in many Government policies over the years. I hope that he supports the renewed drive and, indeed, supports bringing in the band C requirement as part of our fuel poverty strategy. That will not only drive the short-term ways we can help support families in fuel poverty, but will make sure we will change forever the landscape of our property mapping across the country. Properties in bands D, E and F will be brought up to scratch to ensure that we do that.

We must continue to take action to address the fuel poverty that still exists. As we move towards our 2025 milestone and our ambitious 2030 fuel poverty target, we are very aware of the challenges that remain. By focusing on energy efficiency and delivering 1.6 million households out of fuel poverty, and as we move to those low-carbon heating solutions and net zero by 2050, we have the opportunity to ensure that those on low incomes are not left behind. A fair and affordable transition will be key to protecting those who are in fuel poverty.

The social housing decarbonisation fund will deliver energy-efficient homes. Support such as the home upgrade grant, which is due to begin delivery early next year, with a commitment to a £4 billion successor energy company obligation scheme, will continue to help push forward a reduction in the homes that need to be improved.

For anyone whose questions I have not answered, I will make sure that we do so in writing. I thank everyone for their important and thoughtful contributions today.

Question put and agreed to.

Resolved,

That this House has considered fuel poverty.

[Mr Deputy Speaker (Mr Nigel Evans)]

We will suspend briefly for the sanitisation of both Dispatch Boxes, then we will resume with the next debate.