Thursday Volume 506 25 February 2010 No. 45 HOUSE OF COMMONS OFFICIAL REPORT PARLIAMENTARY DEBATES (HANSARD) Thursday 25 February 2010 £5·00 © Parliamentary Copyright House of Commons 2010 This publication may be reproduced under the terms of the Parliamentary Click-Use Licence, available online through the Office of Public Sector Information website at www.opsi.gov.uk/click-use/ Enquiries to the Office of Public Sector Information, Kew, Richmond, Surrey TW9 4DU; e-mail: [email protected] 427 25 FEBRUARY 2010 428 Dr. Alan Whitehead (Southampton, Test) (Lab): Does House of Commons my hon. Friend accept that a large element of fuel poverty relates to the energy efficiency of the homes in Thursday 25 February 2010 which fuel-poor people live? Does he also accept that efforts to ensure that those homes are made properly energy efficient are a vital part of our attack on fuel The House met at half-past Ten o’clock poverty? What is his assessment of the likely impact of community energy response teams, community energy saving programmes, and other schemes, such as the PRAYERS Great British Refurb, on improving the energy efficiency of homes? [MR.SPEAKER in the Chair] Mr. Kidney: I agree that the most sustainable way of BUSINESS BEFORE QUESTIONS helping people to stay out of fuel poverty is to ensure that their homes are energy efficient. That is why we have concentrated so much on the energy companies’ LONDON LOCAL AUTHORITIES BILL [LORDS] obligation, under which more than 6 million homes (BY ORDER) have been insulated. Another 2 million have been insulated Second Reading opposed and deferred until Thursday under Warm Front. The community energy saving 4 March (Standing Order No. 20). programmes scheme is also important in guiding us towards choosing the best policy for sustainable energy programmes, which we intend to reveal shortly in our Oral Answers to Questions latest strategy. Mr. Amess: As the promoter of the Bill that became ENERGY AND CLIMATE CHANGE the Warm Homes and Energy Conservation Act 2000, I am naturally disappointed that the targets that were set will not be reached this year. The Department is undertaking The Secretary of State was asked— a review, so will the Minister tell the House when the results will be announced? What instructions will be Fuel Poverty given to officials to ensure that the strategy is put back on track? 1. Mr. Douglas Carswell (Harwich) (Con): What recent estimate he has made of the level of fuel poverty in the UK. [318540] Mr. Kidney: I pay tribute to the hon. Gentleman, who has a long and distinguished record of campaigning on 5. Mr. David Amess (Southend, West) (Con): What these issues in the House and outside it. He is right to recent estimate he has made of the level of fuel poverty say that we are undertaking a review of our present in the UK. [318544] policies to see whether they can be made more effective, or whether we need new ones. I am giving evidence to 6. Mr. John Baron (Billericay) (Con): What recent the Select Committee in March, and I hope to be able to estimate he has made of the level of fuel poverty in the talk about the emerging findings of the review at that UK. [318545] time. The Parliamentary Under-Secretary of State for Energy and Climate Change (Mr. David Kidney): The estimated Mr. Baron: In order to fight fuel poverty, Ofgem is number of households in fuel poverty in the UK was now going to force energy supply companies to print on around 4 million in 2007, the latest year for which customers’ bills details of how their tariff compares figures are available. with the company’s standard direct debit tariff. Why will that information be given out only on an annual Mr. Carswell: Three and a quarter million of those statement? That will discriminate against active switchers 4 million households in fuel poverty are designated as who might not get such a statement because they have being vulnerable households. How are the Government not been with a company for 12 months. going to meet their 2010 target for eradicating fuel poverty in such households, if that is still possible? Mr. Kidney: Again, I think that praise is called for. Mr. Kidney: We have to recognise the additional The hon. Gentleman knows that I wrote to him to challenge that has been set by rising energy prices over praise his campaigning on the issue of supplying the past few years, but we still intend to work as hard as information to customers, and I am happy to take this possible for those vulnerable households, giving help opportunity publicly to do so again. The annual reports through the obligation on suppliers to insulate homes start this year, so it is perhaps a little early for us to say and through Warm Front, through which we directly that it is not a good enough scheme. Every energy bill fund home insulation. We are also giving help through will contain information about consumption and costs people’s incomes by means of measures such as the to customers, and I am working with Consumer Focus, winter fuel and cold weather payments, and through the the watchdog and champion of all consumers, on improving control of prices, including the present voluntary agreement, the quality of such information so that we will be able which we are seeking to turn into a mandatory social to give better information to members of the public price support scheme through the Energy Bill. every day of the year. 429 Oral Answers25 FEBRUARY 2010 Oral Answers 430 Dr. Gavin Strang (Edinburgh, East) (Lab): Does my Mr. Kidney: No. The investigation by the Competition hon. Friend agree that there are three components of Commission of the domestic oil companies took five fuel poverty: dwelling energy efficiency, fuel prices, and years from complaint until remedies. In fact, Ofgem household income? Should not Opposition Members conducted a probe, completed its conclusions and issued recognise that, although things are harder because of the new licence conditions, which are now all in force, in fuel prices, a lot more people would be living in fuel less than two years. I completely reject the hon. Gentleman’s poverty if it were not for the increases in child benefit, suggestion. the working tax credit and the winter fuel allowance? Jim Sheridan (Paisley and Renfrewshire, North) (Lab): Mr. Kidney: My right hon. Friend is right about those My hon. Friend will be aware of the profit results three issues, and this Government have been determined, announced by British Gas today. Does he agree that even during the worst global recession of my lifetime, to now is the time for energy companies such as British maintain spending on measures such as the winter fuel Gas to cut their prices to consumers? payment and child tax credits. Such payments have helped vulnerable consumers to pay their bills. Mr. Kidney: I completely agree with my hon. Friend. We have just come through one of the most severe Natascha Engel (North-East Derbyshire) (Lab): Given winters for decades, with customers struggling to pay that, when we talk about fuel poverty, we are actually their high energy bills. Any help that energy companies talking about poverty itself, what specific measures are can give to those customers at this difficult time is being targeted at people who live in council houses? welcome. As we can see from energy companies’ profit results, they can afford that help, so others should Mr. Kidney: My hon. Friend is right to say that follow the lead that British Gas gave earlier this month general poverty is an important issue for the Government and cut their prices now. to address, which is why we have worked so hard to eradicate pensioner poverty. Now we are even legislating Gas Storage to eradicate child poverty in this country. We pay attention to helping council house tenants, through the payment 2. Mr. Andrew Mackay (Bracknell) (Con): How much of their rent and council tax through the benefits that additional gas storage capacity he expects to become we offer them. available in the UK by 2012. [318541] Simon Hughes (North Southwark and Bermondsey) The Secretary of State for Energy and Climate Change (LD): It is nearly 13 years since the beginning of this (Edward Miliband): National Grid’s recent “Ten Year Labour Government, and is it not a sign of the priority Statement 2009” expects just over 0.5 billion cubic that they have given to dealing with the massive fuel metres of additional gas storage capacity to be bills that customers regularly receive—we still have no commissioned by 2011-12, or an addition of more than strategy to make every home a warm home—that within 10 per cent. to capacity, including Aldbrough, which three months of the end of this Parliament there is still will be the second largest facility in the country. In no coherent Labour policy on the issue? addition, 20 other projects are planned for completion beyond that date, including the Gateway project, which Mr. Kidney: Now come on. We have arranged, through will provide 1.5 billion cubic metres of extra capacity by the energy supply companies’ obligation, for insulation 2014. That storage capacity is on top of the increase in to more than 6 million homes. Through Warm Front, import capacity in recent years, representing 125 per we have directly funded insulation for an additional cent. of annual demand. 2 million homes. We have a policy that every home with a cavity wall or loft that is uninsulated will be insulated Mr.