Fuel Poverty

Rebecca Long Bailey Excerpts

Tuesday 21st March 2017 Commons Chamber

[Rebecca Long Bailey (Salford and Eccles) (Lab)]

I am delighted to be debating such an important issue with the Minister in this, our first debate together in this Chamber. I welcome the comments he has made thus far.

As Members are aware, this debate is a statutory requirement. As such, it is a prime opportunity to examine the efficacy of the Government’s actions to date in tackling fuel poverty. As the Minister has said, it is an opportunity for Members to share experiences from their own constituencies on this matter.

My local authority has been championing its own fuel poverty strategy. “A Fair Energy Deal for Salford” is one campaign that it is working on with partners such as National Energy Action, energy companies, registered social landlords and landlords in the private rented sector to obtain a pledge to reduce the number of prepayment meters and replace them with standard meters. A shocking 22% of households in Salford have prepayment meters, whereas the national average is 15.1%, as the Minister knows.

In addition, the ability of my local authority to assist vulnerable households has been extended. It launched the “Warm Salford” campaign in 2015, which provides additional grants to give vulnerable households better access to energy company obligation products or to assist those who are vulnerable, but who do not meet the criteria of the national schemes.

We also launched the Warm Salford Referral Network in October 2014, which brings together a partnership of local authorities, the NHS and third-sector partners. It aims to reach those who are most vulnerable to fuel poverty. The good news is that from 2015 to December 2016, more than 310 vulnerable households were referred to it, given advice and referred on for the help they needed to access local, regional and national schemes.

Despite that positive news, 11,333 homes—that is 10.8% of Salford’s households—are still living in fuel poverty. Nationally, despite similar action by other local authorities, more than 4 million families and households are living in fuel poverty in the UK. That is 15 homes in every 100. Members from all parts of the House will no doubt have been contacted by their constituents about fuel poverty. If not, I suggest that they watch the film “I, Daniel Blake”, which shows in painful detail the desperation of one family trying to warm themselves on tea lights in a plant pot because they cannot afford to top up the prepayment meter.

I met one such constituent in Salford—a mother who was living in poorly maintained private sector accommodation, with small children sleeping beside walls covered in black mould. There was not enough money for that mother to pay the bills or even turn the heating on to alleviate the damp conditions. The desperation in that mother’s eyes when she told me she just could not cope any more, as I tried to find help out there, will haunt me forever.

Sadly, that is not a stand-alone case. A cold, poorly insulated home does not just mean that lots of heat is wasted, resulting in a high bill; it means people getting ill, repeated visits to the doctor, a much longer recovery time and, ultimately, greater pressure on the NHS.

[Jonathan Edwards]

If I heard the hon. Lady correctly, she said that 15% of households in the UK live in fuel poverty. In Wales, the figure is considerably worse at well over a third. The Welsh Government have failed to make any inroads into that over the past 20 years or so, despite Wales being an energy-rich nation and a substantial exporter of electricity. Does she agree that for the people of Wales, at least part of the answer should be Welsh communities getting control over their own energy resources?

[Rebecca Long Bailey]

The hon. Gentleman makes a very interesting point. There is scope for communities to regain control of their energy supplies in the longer term. That is certainly something the Government should look at. There are a number of other important points that I would like the Minister to address today, so I will continue with my submission.

The health impacts of fuel poverty are worst for those who are most vulnerable—for example, disabled people who find it difficult to move around and do not get the chance to warm up; young people, who run twice the risk of developing a respiratory condition such as asthma; and adolescents, who face a fivefold increase in the likelihood of mental illness. Evidence also highlights that infants living in cold conditions have a 30% greater risk of admission to hospital or primary care facilities. Older people also face a significantly high risk, as the Marmot review team highlighted, stating that they are almost three times more likely to suffer from coughing, wheezing and respiratory illness.

Sir John Hills, professor of social policy at the London School of Economics, states that there is a body of persuasive evidence that links low temperatures with a number of health impacts, ranging from minor infections to serious medical conditions that can ultimately prove fatal. Sadly, that has proven to be the case, with the NEA finding that an average of over 8,000 people in England and Wales die each winter because they cannot keep their homes warm at a reasonable cost. That estimate includes eight attributable deaths in my constituency of Salford and Eccles—eight deaths.

[James Heappey]

The shadow Secretary of State makes an important and compelling point on the importance of heat to providing a healthy home. Does she agree that one solution is to give more encouragement to heat networks, particularly those that take waste heat from industry or business and use it to heat homes in the immediate vicinity, as I believe happens at MediaCity in Salford in her own constituency?

[Rebecca Long Bailey]

The hon. Gentleman makes another important point. That is certainly something that the Government should be giving due consideration to.

[James Heappey]

They are. They are encouraging it.

[Rebecca Long Bailey]

They need to give greater consideration to it and provide greater investment. I will move on.

Fuel poverty has a greater social impact. Children who live in cold homes see an impact on their ability to achieve, whether because of illness or simply because of a poor quality home environment. The financial and emotional stress it can place on families can damage relationships and lead to long-term stress-related mental health issues.

I am concerned that, although some work has been done in this area, the fact remains that the number of homes in fuel poverty has slowly been creeping up. The fuel poverty gap, which is a measure of the difference between a household’s energy bill and what it can afford to pay, increased from £235 in 2003 to £371 in 2014. At the same time, we have seen stagnating wages, or a lost decade in earnings as the Bank of England has termed it. What is more worrying is that after the recent Budget, the Institute for Fiscal Studies stated that, on the Government’s current economic trajectory, average wages in 2022 will be worse in real terms than before the financial crash. The Minister will appreciate that as inflation pushes up, the differential between price increases and wage growth will continue to close. Even if energy prices are capped, which I know is an option being considered by the Government, the amount that families have to spend on bills will still get smaller and smaller.

It is not enough, therefore, simply to tackle fuel poverty as a stand-alone issue. The Government must tackle the causes of fuel poverty. Without investing in the tools that businesses need to drive up wages and productivity, wages will continue to stagnate in the long term. Sadly, in the Budget we did not see the investment required from the Government that would in any way go towards bringing us in line with other industrial countries. It is therefore no shock that Britain is the only large developed country where wages fell even as economic growth returned after the crash. I digress slightly, Madam Deputy Speaker.

[Caroline Lucas]

I will gently move the hon. Lady back to energy efficiency. She is making a very compelling public health case for the need to tackle energy efficiency and fuel poverty. Does she share my frustration that the national infrastructure assessment is a golden opportunity with respect to putting energy efficiency front and centre in the Government’s low carbon green strategy and industrial strategy? They should do that, because it could help to sort out not only the health crisis, but the climate crisis.

[Rebecca Long Bailey]

I completely agree with the hon. Lady. I share her frustrations and I will come on to that point shortly.

Looking at the efficacy of the Government’s fuel poverty initiatives thus far, they made a manifesto commitment to install one low-cost insulation measure in 1 million homes over the five years of the parliamentary term. That is welcome, but I suggest the Government need to be far more ambitious. Labour, for example, delivered 2.5 million insulation measures installed in homes in just one single year.

Turning to the funding through the warm home discount, whereby money is given as relief to bill payers, this is commendable and it should certainly continue, but it is physically insulating homes themselves that will provide the long-term solution. On the energy company obligation, the main mechanism by which the Government take action on fuel poverty, it has a clear pathway only to next year. There is currently no clear indication of what will happen to the obligation after 2018 and the Government’s consultation on its future has not been forthcoming. I would be grateful if the Minister provided in this debate an update on progress on that area.

The Minister will be absolutely distraught to hear that the UK ranked 14 out of 16 western European countries for fuel poverty, and ranked bottom for the proportion of people who cannot afford to adequately heat their home. I think he would probably agree that this is not a brilliant record for the country with the fifth-largest economy in the world. A helpful comparison to draw is Sweden, where incomes are similar to the UK’s but winters are much colder and gas is more expensive. One might think that Sweden would have a significant fuel poverty problem that far outstripped that of the UK, which by comparison has mild winters, but levels of fuel poverty in Sweden are approximately half those found in the UK. The major difference is that Swedish homes are properly insulated. A typical Swedish wall is three times more energy efficient. A commitment to that kind of innovation, along with providing the necessary funding, will truly tackle fuel poverty.

The Labour party is keen to make that commitment as part of its industrial strategy to end social injustice and to build a world-leading UK-based renewables and energy efficiency sector with UK-based supply chains. Labour agrees with the NEA, and the hon. Member for Brighton, Pavilion (Caroline Lucas), which states that the National Infrastructure Commission and the UK Government must act on the strong case for domestic energy efficiency to be regarded as a hugely important infrastructure priority. The Minister might wish to outline the Government’s position on that and whether he agrees with Labour.

Economic analysis by the well-regarded Frontier Economics suggests that the net present value of investing in insulating homes could be as valuable as the HS2 project. Cambridge Econometrics found that for each pound spent on insulating homes £1.12 is generated for the Treasury and £3 for the economy in GDP, and 42 pence is saved by the NHS. It is clear that investing in insulation has a positive effect not just for those in fuel poverty or for climate change, but for the wider economy. Unfortunately, however, the fact is that if we compare major insulation measures being installed today to 10 years ago under the previous Labour Government, there has been a huge 88% fall. Put another way, the long-term solution to fuel poverty gets 12% of the support that it originally received.

The fuel poor, by definition, are not in a place to insulate their own homes. It is therefore incumbent on the Government to step in. It is also important for the Government to recognise the wider benefits a real fuel efficiency infrastructure plan would have for all income groups, industry and the wider economy. A little more support from the Government, both to those affected by fuel poverty and to industries waiting to blossom in the renewables sector, could unleash untold economic and social benefits.

To conclude, the Government’s intentions, and those of Ministers, might be good, but there is still a mountain of work to be done. The Labour party is open to working across the House to end fuel poverty for all our constituents. I do hope the Minster has listened to my concerns and will respond accordingly.