Fuel Poverty

Philip Boswell Excerpts

Tuesday 24th November 2015 Westminster Hall

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

On behalf of all the speakers, I thank you, Mr Hamilton, for your excellent chairmanship.

I thank my hon. Friend the Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) for securing this debate on such a critical issue. I also thank other hon. Members for their excellent contributions. My hon. Friend the Member for Kilmarnock and Loudoun (Alan Brown) reminded us about the long-term high strike price of nuclear for Hinkley Point—twice the current price of electricity—and its impact on those in and on the cusp of fuel poverty. My hon. Friend the Member for West Aberdeenshire and Kincardine (Stuart Blair Donaldson) highlighted particular issues for rural communities.

The hon. Member for Strangford (Jim Shannon), who is no longer in his place, talked about finding fuel poverty solutions. I completely agree with his call for less talk and more action on this critical issue, especially in relation to competition. I thank the hon. Member for Central Suffolk and North Ipswich (Dr Poulter), particularly for his reminder of our humanitarian obligations to address the issue. He urged us not to get bogged down in the associated definitions and technicalities. He focused on England and the green deal, which is an excellent initiative. He reminded us that high rural charges apply in England as well as in Scotland, Northern Ireland and Wales.

I thank my hon. Friend the Member for Ross, Skye and Lochaber (Ian Blackford) for his excellent contribution. He reminded us of the importance of this debate and commended the attendance of all, especially the high number of SNP Members who are here. Shockingly, there is no community in his constituency where fewer than 50% of people are affected by fuel poverty. I pause to let that point strike home. He also made key points about the smaller supplier choice in the remotest areas of Britain, on the blatant discrimination that exists and on the stark choice between eating and heat.

As I have stated in other debates, recent stats show that about 40% of households in Scotland are considered to be living in fuel poverty. I am sure all Members agree that that is unacceptable. The statistics for the highlands are shocking, and I thank my hon. Friend for bringing them to my attention. The statistics for Lochaber in particular are dreadful. We have also seen the impact of fuel poverty across the rest of the UK. That is nothing to be proud of, and in this decade of austerity, it will only get worse.

Fuel poverty means more than simply not being able to keep the heating on. Adolescents living in cold homes are five times more likely to have multiple mental health problems than adolescents living in warm homes. In addition, children living in cold homes are more than twice as likely to have respiratory problems as those living in warm homes. Critically, fuel poverty has a negative impact on the educational attainment and emotional wellbeing of children. It means that household income, which could otherwise be used to purchase healthy, nutritious food, goes on energy bills. The combination of mental and physical health problems, poor diet, emotional turmoil and diminished educational attainment caused by fuel poverty is a recipe for condemning people to the dreadful cycle of poverty. In essence, they are poor and paying for it. Some 40% of households in Scotland face the consequences of fuel poverty every winter, and winters are particularly harsh in Scotland.

Fuel poverty is the result of a combination of low household income, fuel costs and the poor energy efficiency of homes. Several of my colleagues and other Members have mentioned that. The contributing factors can be addressed in a number of practical ways, and that in turn will help to prevent fuel poverty. Low household income can be tackled through a number of measures. A living wage for everyone in work, not those just over the age of 25, would allow young individuals and families to afford the rising costs of fuel. Unfortunately, the cuts to working tax credit and child tax credit recently announced by the Conservative Government—so many households rely upon those credits to be able to pay for basic necessities—will only further punish lower-income households and put even more at risk of fuel poverty. We must provide a fair deal for hard-working individuals and families and not force them to bear the cost of letting large corporations and the financial sector skip taxes. Notably, the tariffs for pay-as-you-go phones, which are used most by those in fuel poverty, are some of the highest on the market. We need to address that, because the market certainly is not and has no intention of doing so.

The energy market is dominated by the big six, and the days of standing by while they address their needs over those of consumers and make massive profits while so many suffer from fuel poverty must be brought to an end. As the hon. Member for Strangford said, it is about less talk and more action. The Competition and Markets Authority recently found that energy consumers were collectively being overcharged by £1.2 billion a year. Following that finding, I asked the Secretary of State for Energy and Climate Change what steps would be taken to amend policy in response to the overpayment. The Government’s response was that no action would be taken until December 2015, well into winter and months after the finding was published. Meanwhile, ScottishPower quadrupled its profits last year—

[Fabian Hamilton (in the Chair)]

Order. I am sorry to interrupt the hon. Gentleman, but we have only 15 minutes left for two more contributions.

[Philip Boswell]

I thank you for the reminder, Mr Hamilton. I will bring my remarks swiftly to a close.

Finally, there is huge scope for the Government to assist in making homes more energy-efficient, but we have yet to see that come to fruition. The green deal has already been stopped, and the reduction in the budget of the Department of Energy and Climate Change means that programmes such as the green deal home improvement fund, solar power subsidies and feed-in tariffs will be cut.

I welcome all the contributions made in today’s debate. The need to tackle fuel poverty robustly is self-evident and compelling to everyone in the Chamber. I am delighted to hear Members from all parts of the House agreeing with that. There are real people behind the fuel poverty statistics, and that must not be forgotten. They have to make the difficult decision between buying food and heating their homes, and in a modern, developed society, the fact that 40% of Scots face that dilemma every winter is a disgrace. Swift, meaningful action must be taken.