Fuel Poverty

Taiwo Owatemi Excerpts

Thursday 8th July 2021 Commons Chamber

[Taiwo Owatemi (Coventry North West) (Lab)]

I am grateful to speak in such a vital debate.

As many Members have stated, the scale of fuel poverty in the United Kingdom is staggeringly and unacceptably high. In England, more than one in 10 households is forced to spend more than they can afford on energy, and in my own city of Coventry that figure almost doubles. Those numbers should be a source of shame for the Government and we have heard time and again about the devastating impact of fuel poverty on family finances, health and mental health. The pandemic has certainly exacerbated the impact of fuel poverty.

The covid-19 issue has slashed incomes for many and increased home energy usage. Unsurprisingly, this has led to increased debt owed to big utility companies. With many people still not working full time or at all and the furlough scheme on the verge of disappearing entirely, more than 2.5 million people will be forced to begin paying back the fuel debt incurred throughout the pandemic, which many simply cannot afford.

Last March the Government launched a policy encouraging energy companies to reassess the energy debt owed by those who were fuel-poor and suffering because of the pandemic. This policy has since lapsed and I urge the Government to take immediate action to revive and strengthen it, because without support many families in Coventry will find themselves struggling to repay debt and bills that they cannot afford.

There are other concrete steps that the Government can and must take to alleviate fuel poverty. Sustained investment in making homes more energy-efficient must be a priority in the upcoming spending review: investment is vital to reducing fuel poverty. In fact, the Conservative party’s manifesto at the last election promised £2.5 billion for a home upgrade grant scheme for homes that are not fuel-efficient, significantly lowering the cost of heating them. The Prime Minister repeated that pledge in his 10-point plan for a green industrial revolution, but warm words will not warm homes. We need investment right now.

If the Government do not upgrade homes immediately, we will see those in fuel poverty suffer increased health complications and further financial strife. From speaking to energy experts this week, I learned that single parents and their children are most negatively impacted by fuel poverty. It is single parents and their children who will continue to suffer the effects of fuel poverty in the highest numbers if the Government do not follow through on their lofty promises.

As we work to make Britain’s homes more efficient, we must also ensure that all new policies are fair. That is why the Government must revise the new green gas levy, which presently means that energy users, whether they are a single mother or a big company, will pay the same amount towards subsidising biogas. Surely that is a very regressive tax: it means that the poorest will pay a much higher proportion of their income than very wealthy and big companies. The Government must fix the green tax levy so that it does not punish the poor unfairly. They must not leave the most vulnerable literally out in the cold. I really hope that the Minister will consider some of the points made today.