Child Poverty in Scotland

Debate between Stephen Kerr and Patricia Gibson

Wednesday 30th October 2019 Westminster Hall

[Stephen Kerr (Stirling) (Con)]

Will the hon. Lady give way?

[Patricia Gibson]

Just a minute. The hon. Gentleman was not here at the start of the debate, so I do not know if am allowed to.

People are punished for being poor. Their children are punished as well, and left without the support that they need. That damages the life chances of children and their parents. Benefits must reflect people’s need—it is as simple as that.

We have heard today about the five-week wait for universal credit, which is unacceptable, but I have something very specific that I want the Minister to take away and think about. I have raised it before—to no avail, as far as I can see. When people have a five-week wait for universal credit, they are offered loans—it does not matter what they are called—by the Department for Work and Pensions to help them through that five weeks. We might think that that helps ease the pain of waiting five weeks for a proper assessment and proper universal credit payments to be made, but I say this to the Minister: if anybody seeks to take out a loan in the normal course of events, they go to a bank and ask for a loan. Their creditworthiness and ability to repay is assessed, and that determines whether they will be given the loan. People on universal credit waiting for the five-week payment are not assessed. They are given loans when it is clear that they are not able to repay them. Attempts to repay the loan shove them further into poverty and despair, and that pushes them further away from the world of work. It is simply not on. It is not working. The Government really need to look at the transitional payments, which are actually loans. Those payments should not be loans. People need support during those five weeks.

The Child Poverty Action Group has said that it is time—I am sure the Minister is aware of this—for the UK Government to use their powers, as the Scottish Government have done, in an equally positive way to develop a wider UK child poverty strategy, so that both Governments can work together to make child poverty history across the UK. I cannot understand why anybody would object to that. I am sure the Minister will want to think carefully and reflect on that.

We have the phenomenon of in-work poverty. The Scottish Government support the real living wage, and many employers, with the Scottish Government’s encouragement, have signed up to paying it in Scotland. The Minister will be interested to hear that employers who have decided to pay the real living wage have reported increased productivity and reduced sick leave, so valuing people is important. It gives me no pleasure to say this to the Minister, but the UK Government have sought to deceive with their pretendy living wage. Nothing should be called a living wage unless it is based on the cost of living. The Government’s pretendy living wage is not, so it should not be called that. This pretendy living wage has led directly to the scandal of in-work poverty, which is absolutely appalling.

The cruel and austere policies of the UK Government are deeply damaging and dangerous for children in my constituency, and they must not go unchallenged. I recently participated in a debate in the Chamber on— I cannot believe I am saying this out loud—childhood hunger. The fact that that is even a thing, that it even exists, is embarrassing and shameful. I do not know how the Minister feels, but if I was part of a Government who presided over childhood hunger and had the ability, as a member of the Government, to do something about it, I would not hesitate. I cannot understand the reluctance. The Government really need to get their act together and take real measures to support children, instead of punishing those who need support. Eradicating child poverty needs to be a priority; it is as simple as that. It cannot be an afterthought or an add-on. It needs to be a priority, and it cannot be considered inconvenient. If we cannot invest in our children, and cannot go to bed at night safe in the knowledge that children are not going to bed hungry, we are doing this all wrong.

I want the Minister to tell us today what serious attempts he is prepared to make, as a member of the Government, to address what can only be described as a scandal. I will make a commitment to him today. Any measures that he takes to tackle child poverty in the UK will find support on the Scottish National party benches. Scotland’s children need and deserve better.

Leaving the EU: Implications for Scotland

Debate between Stephen Kerr and Patricia Gibson

Tuesday 3rd July 2018 Westminster Hall

[Patricia Gibson]

That is quite an interesting point. I hope to maintain a respectful dialogue in this debate. I gently remind the hon. Gentleman that the former Tory leader and Prime Minister, John Major, has called the handling of Brexit “bad politics” and a “grand folly” dictated by “ultra Brexiteers”. He has also said:

“Many electors know they were misled”.

How people voted in the EU referendum, therefore, is beside the point. I want to focus on the damage that is being done to Scotland, because a lot of people have watched the unfolding of the Brexit process with horror and alarm.

The UK Government’s own leaked analysis has shown that Scotland’s GDP could face a hit of up to 9%, with analysis from the Fraser of Allander Institute showing that a hard Brexit could cost Scotland up to 80,000 jobs. The final figure could be higher or lower—we have no idea at the moment. The Governor of the Bank of England, Mark Carney, has revealed that Brexit has already cost each household £900.

[Stephen Kerr (Stirling) (Con)]

The hon. Lady makes an excellent point: we do not really know at the moment. That is true of all forecasts in any context. We do not really know. What we need to do, however, is pull together our Governments, countries and peoples, to make a success of what will inevitably happen, given the passing of the European Union (Withdrawal) Act 2018. We are leaving the European Union, therefore we need to work together. No one knows what will happen, but we are responsible for making our own future. We are the masters of our own fate.

[Patricia Gibson]

The hon. Gentleman is correct. We know that until everything is agreed, nothing is agreed. In that context it is hard to make final predictions. I say to him, however, that we have experts whose minds are more academic on this issue than his or mine, and their opinions matter. Independent forecasters, the UK Government’s own analysis, the Fraser of Allander Institute, Her Majesty’s Revenue and Customs, the Economic and Social Research Institute and the National Farmers Union have all expressed real concern about what Brexit means for Scotland. I direct the hon. Gentleman to those sources, not to what I am saying.

--- Later in debate ---

[Patricia Gibson]

I will simply respond to my hon. and learned Friend by saying that that is why the Lib Dems are increasingly irrelevant in UK and Scottish politics.

[Stephen Kerr]

Will the hon. Lady give way?

[Patricia Gibson]

I will make some progress. We in the SNP believe that the Government should negotiate to stay in the single market and the customs union, not least to protect the exchange of citizens’ rights between the EU and the UK.

Another area of huge concern is the importance of the single market and the customs union to protecting our social, trade and investment partnerships with EU businesses and Governments. The Scottish Government’s impact analysis has shown that a failure to remain in the single market and the customs union, or to secure a free trade agreement, would see Scotland’s GDP around £12.7 billion lower by 2030 than it would be under continued EU membership. That would mean a loss equivalent to £2,300 per person in Scotland. In addition, the impact analysis shows that a so-called Canada-type deal with the EU would still leave Scotland’s GDP £9 billion lower by 2030, or £1,610 per head.

Scotland’s food and drink exports have reached £6 billion—the highest level ever—with the EU being the largest market. However, the Economic and Social Research Institute reported that a hard Brexit would result in up to a 90% fall in exports to the EU from Scotland. Those are important voices from industry, and everybody who cares about Scotland’s economic prospects should listen to them. A hard Brexit would leave the UK isolated on the world stage and expose the country to a regulatory race to the bottom, compromising our trading relationships and consumer standards.

The right hon. Member for Witham (Priti Patel) has said that Brexit was an opportunity for widespread deregulation. The Foreign Secretary has said, “Scrap social Europe”. Daniel Hannan, a Tory MEP, said that all contracts between employers and employees should be “free contracts” with no statutory protection. There is no question but that Brexit will see a bonfire of British workers’ rights, given that those words come from the governing party. I do not claim to speak for the people of England, and nor should I, but we in Scotland are alarmed by those comments, which go against the values and beliefs that the people of Scotland hold dear.

The Secretary of State for International Trade is on the record as being “relaxed” about the diminution of food standards post Brexit, although the Secretary of State for Environment, Food and Rural Affairs has said he is opposed to it. The Prime Minister simply responded that the questions were “hypothetical”. Food standards that are currently banned across the EU may become permissible in the UK post Brexit, which precipitates concerns about the proverbial race to the bottom. More relaxed standards have implications for animal welfare and raise potential environmental and public health concerns. Will Scotland really have to endure such standards post Brexit? Is that what was meant by taking back control?

The UK will seek to pursue new trade deals, particularly with the US. Since we already know that procurement and public contracts are important objectives for the US in negotiating a trade deal, as demonstrated by the Transatlantic Trade and Investment Partnership negotiations, Scotland’s public services are at risk of being bargained off in new agreements. For the people of Scotland, that is simply unacceptable. Hon. Members across the House will know that, because they, too, will have received countless emails from constituents about it. If any hon. Member in the Chamber has not received any emails about the issue, they should feel free to intervene now.

A growing number of people in Scotland are bewildered. In Scotland, we had a referendum on EU membership, which there was no evidence that Scotland wanted. We in Scotland voted to remain in the EU by a convincing majority, but we are now being removed against our will from a family of nations of which we wish to remain part. To add insult to injury, Scotland’s voice in the UK negotiations has been summarily ignored. We all witnessed the farce on 12 June. Despite the implications of Scotland being dragged out of the EU, we were allocated a mere 19 minutes. Not one Scottish MP from any party was permitted to speak and there was no protected time for the debate. We witnessed an unprecedented ripping up of the devolution settlement, with Scotland’s voice silenced.

--- Later in debate ---

[Patricia Gibson]

I am dealing with this intervention—one at a time! The hon. Member for Berwickshire, Roxburgh and Selkirk (John Lamont) will find that the Prime Minister’s Cabinet has also expanded as she tries to hold together an unholy coalition of Brexiteers and people with a bit of sense, of whom there are increasingly few in the Cabinet.

[Stephen Kerr]

I have a simple question for the hon. Lady: if there has been a power grab, why did Nicola Sturgeon expand her Cabinet? Is it not factually correct that it was because there are new powers now and there are new powers coming?

[Patricia Gibson]

It is that kind of attitude that has seen my party’s membership soar by 10,000 people in a short period of time. The hon. Gentleman says “if there has been a power grab”, which suggests there has not been one—[Interruption.] If you make an intervention, you have to let me answer. That is how the game works. It appears that this is a game for some people, but it is about your country of Scotland and the people you represent. If you let me speak, we might get somewhere.

To dismiss the fact that there has been a power grab shows a breath-taking contempt for devolution and the Scottish Parliament. Under the Scotland Act—

--- Later in debate ---

[Stephen Kerr]

You’re in charge.

[Patricia Gibson]

It doesn’t stop people shouting.

--- Later in debate ---

[Stephen Kerr (Stirling) (Con)]

There is a Scottish comedic character, made famous by Rikki Fulton, by the name of the Reverend I.M. Jolly. He is famed because he is miserable. He can never bring himself to be upbeat, positive or optimistic. I am afraid that that caricature is one that the SNP seems to have voluntarily adopted. It is being so cheerful that keeps it going. It fits the SNP’s narrative to spread doom and gloom and to talk down our country’s future. As a Scottish Conservative, I insist that our best days lie ahead of us as part of the United Kingdom, the world’s most successful political and economic union.

The SNP wants to create an air of constitutional crisis, but Scotland is not buying any of that talk, and people are sick and tired of the SNP’s obsession with a second independence referendum. Keith Brown MSP, who was sacked last week by Nicola Sturgeon as Cabinet Secretary for the Economy, was only recently elected deputy leader of the SNP. He now claims to be focusing all his energy on building up readiness for a campaign for a second independence referendum as early as next April. Yet at the weekend Andrew Wilson, the former MSP who produced the so-called growth commission report, the SNP’s blueprint for independence that promised only a generation of misery, said that he was interested only in the softest possible form of independence—presumably in name only. He recognised that people in Scotland were not interested in another independence referendum.

[Patricia Gibson]

The hon. Gentleman is once again trying to make this out to be some kind of SNP plot. What are his views on the fact that the SNP, the Labour party, the Greens and the Liberal Democrats in the Scottish Parliament also withheld consent for Brexit? Are they involved in the SNP plot?

[Stephen Kerr]

I can only imagine that Scottish Labour and the Scottish Liberal Democrats regret deeply ever getting into any kind of alliance with the Scottish National party, but it is not for me to speak for them.

What is important to Scotland and Scottish business? Liz Cameron, the chief executive of the Scottish Chambers of Commerce, has said:

“The ability to trade freely between the constituent parts of the UK without additional compliance measures is absolutely vital to a large proportion of businesses, and we need to see both Governments co-operating and making decisions together, enabling the private sector to create jobs and grow the economy.”

To underline the importance of the UK single market to Scotland, it cannot be said too often that Scotland exports four times as much to the rest of the United Kingdom as it does to the EU. That is £46 billion going to the UK, and only £12 billion going to the EU. No one on the Government Benches is saying that trade with the rest of the European Union is not important—it is vital—but just because we are leaving the European Union does not mean that we are going to cease trading in any scenario. Other countries that are outside full EU membership, the single market and the customs union trade successfully with countries that are members.

We need to forge a new, deep and special relationship that is founded upon the principles of free and fair trade. That will inevitably include an arrangement on customs. Only in the minds of the obsessive and negative SNP is the answer to leaving the EU to break up a Union that is four times more valuable to Scotland. As my hon. Friend the Member for Gordon (Colin Clark) said, just last week we saw that UK exports to India have grown by 31% year on year. That is just a sample of what we can achieve once we leave the EU in March 2019 and have the chance to strike our own trade deals. He also mentioned the Scotch Whisky Association and the opportunity there. In India, Scotch imports account for just 1% of total whisky consumption. There are massive opportunities.

Brexit is seen by too many as only being a challenge. We see it as an opportunity too. Leaving the EU will give more powers to Holyrood and Westminster, yet we have seen little imagination and creativity at Holyrood on how the powers will be used. Indeed, the Scottish nationalists would rather see those powers kept in Brussels. As was said earlier, why on earth would Nicola Sturgeon reshape her Cabinet and add Ministers if it was not to handle increased powers? Leaving the European Union needs to be treated as an opportunity.

In closing, I will quickly mention one thing. If there is one area of professional activity that can change the productivity landscape and enhance our prospects as a nation exporting to the world, it is sales productivity. We need to uplift our commercial proficiency and effectiveness in professional sales and be a nation that values its salespeople. I feel strongly about that. A few weeks ago I had the privilege of welcoming the Secretary of State for International Trade and his ministerial team to Stirling, alongside the Secretary of State for Scotland and other Government officials, for the first meeting of the UK Board of Trade in Scotland for hundreds of years. A reception was held that evening in the great hall of Stirling castle. The room was abuzz with anticipation and excitement for the export opportunities that lie ahead for businesses in my constituency and throughout Scotland as we leave the European Union.

In Stirling we have some fantastic businesses that are ready to take up the challenge and the new opportunities, including Fallen Brewing, which I will be visiting later this week. This brewery in the town of Kippen has been exporting across the UK, and like so many other local businesses, it needs only the slightest encouragement to push into the significant overseas markets for British beers. A great national effort is required to sell our products and services around the world. To summarise, I believe that Scotland’s professional sales talent and capability will be key to a prosperous post-Brexit global Britain.

Office for Product Safety and Standards

Debate between Stephen Kerr and Patricia Gibson

Wednesday 9th May 2018 Westminster Hall

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

I am pleased to take part in a debate with so much consensus, which does not happen often. I thank the hon. Member for Swansea East (Carolyn Harris) who has done a power of work on the issue and continues to champion the cause, as we all recognise. I thank the consumer organisation Which? for providing an excellent briefing, as has Electrical Safety First.

The Office for Product Safety and Standards is welcome, of course, as we have heard from a number of Members. As the hon. Member for Poplar and Limehouse (Jim Fitzpatrick) pointed out, it is important as a way of strengthening our product safety regime and making sure that customers are aware of and, importantly, can have confidence in the availability of an effective system, should products need repair or replacement. However, caution is required about the impact. In its report the Business, Energy and Industrial Strategy Committee regretted the Government’s limited response, and the lack of urgency about acting on recommendations to address product safety issues. It found that reductions in funding for local trading standards and national trading bodies were having the negative effect that might be expected on the adequacy of the existing product safety system.

That finding, combined with the fragmentation of the current system, makes it difficult for consumers to have confidence in the consistent enforcement of the required standards across the UK. We have heard today of responses from the manufacturer Whirlpool to a defect in its tumble dryers, which clearly show the limitations of the existing system. Indeed, as a direct result of its slow response, 1 million homes still contain potentially dangerous appliances, as set out by the hon. Members for Leeds West (Rachel Reeves), for Merthyr Tydfil and Rhymney (Gerald Jones) and for Hammersmith (Andy Slaughter), who explained the dangers that have dogged consumers who have those machines and has, of course, been a champion in the area in question.

There is no doubt that progress in improving the safety of electrical goods has been too slow. I suspect that the Minister would probably agree with that, in his quieter moments. That is despite a widely supported set of recommendations, made in Lynn Faulds Wood’s independent review, published two years ago. That review, which had a national product safety agency as its central recommendation, concluded that that was needed as part of a long-overdue overhaul of the entire system. All hon. Members welcome the new Office for Product Safety and Standards, but as we have heard, it must have sufficient scope and resources to deal with issues of product safety across the UK.

[Stephen Kerr]

Despite what I am about to say, I do not wish to introduce a tone of discord, but I was distressed last week when, in the Scottish Parliament, our First Minister, Nicola Sturgeon, answered a question from Miles Briggs MSP regarding genuine concerns about the safety of babies being permitted to sleep in baby boxes. The response he received did not indicate to me that the First Minister shares any kind of genuine feeling for the fact that people are sincerely concerned about product safety and baby boxes.

[Patricia Gibson]

That question is a bit leftfield, but I am happy to take it head on.

[Stephen Kerr]

It is about product safety.

[Patricia Gibson]

If the hon. Gentleman googles the Scottish Cot Death Trust, he will find that it has no concerns about baby boxes. However, if cardboard is set alight it does catch fire—there is a revelation for the hon. Gentleman—and the trick is not to light matches around cardboard. That is probably the safest thing for a baby.

As I was saying, the Office for Product Safety and Standards must be given sufficient scope and resources to deal with issues of product safety. It must be independent and have real teeth to protect consumers and prevent dangerous products from doing them harm. The Minister will be interested to hear that the consumer organisation Which? has expressed concern and disappointment that the full overhaul and fundamental reform needed to stop unsafe goods from reaching or remaining in our homes does not appear to be on the table. Disappointingly, it seems that the new office has not engaged with consumer organisations such as Which?, which I am sure the Minister would agree has some standing and calibre. I wonder why that is, and how consumers would view that lack of engagement. What does it mean when an organisation of such status cannot get the new office to engage with it? Perhaps that is something the Minister could unblock.

It seems a missed opportunity that the Office for Product Safety and Standards will apparently not address the systematic weaknesses in the existing enforcement framework, as set out by Which?, and it seems that there is no action plan for the new office—Which? has expended considerable effort in trying to elicit such a plan, but without success. This matter is fairly straight- forward because we all know about the ongoing failures in the product safety system, and recent product safety issues have brought into even greater focus questions about the adequacy of the current regulatory and enforcement system in the UK. There are concerns about a lack of effective co-ordination and direction in the new office, and if local authorities have no regulatory enforcement staffing resource, that might be a big problem. We know how under pressure trading standards officers are locally, and their role is extremely important for safety in our communities.

The OPSS must also consider product recall as part of its strategy—as the hon. Members for Makerfield (Yvonne Fovargue) and for Hampstead and Kilburn (Tulip Siddiq) pointed out, product recall has an average success rate of only 20%, and potentially, millions of unsafe products remain in unsuspecting homes. It must also consider online retail, as that must be held to the legal standards that apply to other forms of retail shopping and product safety—that point was also raised by the hon. Members for Makerfield and for Merthyr Tydfil and Rhymney.

Counterfeit goods are a huge problem, and we need a way forward to counter that issue. As the hon. Member for Hampstead and Kilburn pointed out, data collection and sharing for product safety is fragmented and incomplete, and we need a true picture of the scale of the problem of unsafe goods. An injury database could be used to help collect intelligence and quickly identify dangerous products, and that would be a positive step forward.

We have the opportunity to address current weaknesses in the system and make sure that it is fit for purpose in the potentially more diverse trading environment that the UK will be part of in years to come—that point was set out by the hon. Member for Kingston upon Hull West and Hessle (Emma Hardy). We have the opportunity to introduce a new national independent regime for product safety to ensure effective enforcement, market surveillance, and appropriate standards for goods. As the hon. Member for Strangford (Jim Shannon) reminded us, getting product safety wrong will, and indeed has, cost lives.

The post-Brexit world raises challenges, and we cannot have a situation where the UK diverges significantly from the rest of the EU, as that could only be to the detriment of consumers—I hope the Minister will reassure us on that point. We all agree that the new office is welcome, but we are concerned to ensure that it has the power, resource and strategic direction to help it achieve what we all want, which is a safe environment for our consumers who buy products in good faith and have a right to expect that they are safe.

Smart Meters Bill (Sixth sitting)

Debate between Stephen Kerr and Patricia Gibson

Committee Debate: 6th sitting: House of Commons
Tuesday 28th November 2017 Public Bill Committees

[Patricia Gibson]

I shall be brief. I agree with everything that the hon. Member for Birmingham, Selly Oak said—I fear that this is turning into a bit of a mutual admiration society. I will say no more, except that, alongside the public awareness for which the new clause calls, we would expect public confidence and transparency. The Minister has talked a great deal today about transparency. What I would like, but suspect I will not get, is an assurance from the Minister on public awareness and the confidence we would expect to come with it. Customers have raised the issue with me, and I know that it has also been raised in other arenas. They fear that when their energy usage is known in such detail, it will be used, at some point in the future, as a lever to smooth out demand by having different price bands.

Peak times such as 4 o’clock to 7 o’clock are a real worry for families who are already struggling with energy bills—indeed, with all their bills. We have talked about nudging, and people are concerned that this might be used as a way of nudging their behaviour and when they use their energy, and about what they should do during peak times to avoid using energy as much as they possibly can—that is not entirely possible for everybody. The fear is that this measure may be used to raise charges.

[Stephen Kerr]

I wonder whether that is entirely a bad thing, given that there will potentially be quite rich savings for people who are prepared to change their behaviour and their use of appliances—especially energy-heavy ones—during peak times.

[Patricia Gibson]

It may not be a bad thing for certain people who are in a position to do that, but when kids come in from school and they need to have their dinner—people cannot really work around that and say “You need to wait until 8 o’clock to get your dinner because energy is cheaper then.” There are people for whom that might yield great benefits, but some are trapped in that peak period and cannot work around it. That is a real concern for a lot of consumers, as I am sure the Minister will understand.

Smart Meters Bill (Fifth sitting)

Debate between Stephen Kerr and Patricia Gibson

Committee Debate: 5th sitting: House of Commons
Tuesday 28th November 2017 Public Bill Committees

[Patricia Gibson]

I want to speak to this amendment in relation to parliamentary scrutiny. In my party, we would welcome any enhancement of parliamentary scrutiny, but I need to draw the Minister’s attention to a number of concerns, and I am worried about time.

I am speaking about the need for enhanced scrutiny because I do not believe that the amendments allow for sufficient scrutiny, for reasons I will go on to discuss. Energy UK and Ofcom both state that aggressive selling is wrong. I am sure we would all concur with that, but that is little comfort until aggressive selling is properly addressed. That is going on and that is why more and enhanced scrutiny is so important.

It is my understanding that Ofgem has the power to fine energy companies up to 10% of their annual turnover if they fail to meet their licence conditions.

[Stephen Kerr]

I am a little confused about the hon. Lady’s line of approach because I cannot see the relevance of what she is saying. It no doubt has lots of merit—I do not dispute that—but I cannot see its relevance to the amendment.

[Patricia Gibson]

I draw attention to these points because the amendment is about enhanced parliamentary scrutiny. I am simply pointing out the need for further enhancement of such scrutiny, and I wonder what the Minister thinks about that—he is looking at me bewildered.

Smart Meters Bill (First sitting)

Debate between Stephen Kerr and Patricia Gibson

Committee Debate: 1st Sitting: House of Commons
Tuesday 21st November 2017 Public Bill Committees

[Stephen Kerr]

No, it does.

Bill Bullen: As I said, there is interoperability between SMETS 1 meters. In fact, there are only two or three types of meter out there, so actually the same headings are operating all of those meters. The interoperability problems of SMETS 1 is an issue that has been massively overplayed. Frankly, it is also giving some suppliers an easy excuse not to support a SMETS 1 product, saying that interoperability is difficult. It is not difficult. At the end of the day, you are talking about very few electronic messages that you need to exchange with a smart meter system, and it is not difficult. It really is not.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Q Like probably most people in this room, I can see that there are benefits to smart meters, but I wonder whether I could put to you a number of concerns that have been raised specifically with me about the roll-out. Perhaps they might explain the difficulty in penetrating the market as quickly and deeply as we would like at this stage, and indeed by 2020.

Would you like to comment on concerns, raised by trading standards, that not enough of the energy companies are making it clear to consumers that they can refuse a smart meter if they wish? There are real concerns that some energy companies may be guilty of breaching the Consumer Protection from Unfair Trading Regulations 2008.

What do you think about the idea that consumers are being sold the meters—by “sold” I am talking about the idea—as free, when we all know that in fact they are not free? The other thing is that, as far as I am aware, some of the models rely quite heavily on a wi-fi signal, which may or may not be available to all consumers. I may have got that wrong, because I am not terribly technically minded.

One of my concerns is what we do with the information when we have it. If we imagine a future where everybody has a smart meter, will that be used to charge a higher rate for electricity usage during peak times, when families cannot avoid using it? Will the need to use electricity at specific times be used to increase the price in the market?

I realise I am throwing a list at you, and I apologise for that. The idea that you pay for what you use is attractive to consumers, but the fact is that when a smart meter is installed on your property, as I know from my own experience, your direct debit bill stays exactly the same, because they spread it over the year. Yes, you are paying for what you use, but when you reduce your usage, your monthly or quarterly bill does not necessarily go down. What are your thoughts on that, given that it is sold comprehensively as, “You only pay for what you use”? You do, but not necessarily at the time when you use it. You will also know that there are concerns about the security of the data. I know that I have given you a long list, but I would be very interested to hear your thoughts.

Audrey Gallacher: I will run through it as quickly as possible. The questions you have raised are all legitimate ones, which are discussed on an ongoing basis through the programme. There is a lot of scrutiny and oversight of the programme, and everybody is working hard to get it right, so your questions are the right ones.

Loads of stuff has been done on security. This will not be happening over the internet, and GCHQ has been all over it. There are really strict security protocols; you will probably have experts in later today who will know more about it than I do, but if there is anything that we should be worried about in the programme, it is not security. A lot has been done there, for obvious reasons. It is a critical national infrastructure, not to mention the impact on individual consumers in their own home if something goes wrong. I would take some comfort that we have that.

The question of deemed appointments is a tricky one. This is an opt-in programme. The Government’s manifesto commitment is that customers should be offered a smart meter, but suppliers have an obligation to install them by 2020, so it is already quite a complex policy environment. Companies have to go out there and sell the benefits of smart meters and encourage consumers to take them. We are working hard to do that. We have also had some feedback from Ofgem, the regulator, that companies should be taking a much more assertive approach, because we have heard reports that they are really struggling to get people to take a day off work to stay in the house and get the smart meter installed.

We need to sell the benefits and we also have to try to encourage people. Clearly, there is a line there that should not be crossed, because it is not currently a mandatory programme. At some point in the future, we might want to think about the policy framework to ensure that we get as many meters out there as possible, and not just for the individual consumer benefits they would bring—a whole business case around the programme is predicated on as many people as possible having meters. We need to be really careful on communications: sell the benefits and encourage people to get meters, but do not cross that line. That is really important.

Thirdly, you currently pay for metering equipment. It is free at the point of installation, so there should be no charge. Let us be quite clear that nobody will be charged up front, but, like everything else in the energy system, there is an associated cost, whether it is the pipes and wires getting the gas and electricity to users or the metering equipment, right down to the customer service. The key is to make sure that it is done as efficiently as possible. It is a competitive market and it is really important that costs are kept down.

I have a lot of sympathy with the point about direct debits and budgets, but we know from research that people like to spread the cost of their energy over the year. They do not want to see big spikes on their bills—high bills in the winter when they are using loads and nothing in the summer when the gas central heating is off. Smart meters should allow customers to move to an option where they can pay monthly as they go, but for a lot of people direct debit is a budgeting tool and has been very popular.

As for the future, Bill spoke about what he is doing for prepayment meter customers. Some analysis suggests that when everybody has smart meters, up to 50% will not be paying by direct debit, but on a pay-as-you-go basis, as with mobile phones. You will probably see the market and how people engage with their energy supply and pay for it radically changing as we roll this out. That will be good, if there are innovations and benefits. Obviously, we need to make sure that people are adequately protected and know what they are doing from a trading standards perspective.

Finally, on data, a lot of protocols are in place to make sure that we are quite clear that it is customers’ data coming out of the meters. People can opt out of more granular data collection. If you do not want information to be taken daily, you can opt out of that. Right now, it is taken monthly. If the supplier wants to take data from the smart meter every half hour, the customer has to provide consent. A lot of rules have been put in place to ensure that data use and privacy are at the forefront of the programme.

Bill Bullen: A couple of points are relevant to us. First, on customers accepting meters, until the prepay price cap came in we were typically saving customers something like £100 compared with the big six, if they switched to a prepay meter. Whether that counts as being free or not, I do not know, but they were clearly making significant financial savings from switching to smart prepay. That is one of the reasons customers do it, in addition to the other benefits.

Clearly, we are a competitive company. Customers could always refuse to take our product; if they want to stick with a dumb meter, they are entitled to. Something like 80% of the prepay market still has not switched to smart, but 20% has, so more and more are doing so.

Audrey has already answered the point about direct debits. People are going to switch more to pay-as-you-go and be totally in control of the balance. We think that is going to be much more important going forward. Basically, people can take total control over their budget.