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Fuel Poverty

Volume 573: debated on Thursday 16 January 2014

The coalition is committed to tackling fuel poverty. In 10 months, the green deal and energy company obligation have transformed more than 336,000 homes, of which about 250,000 are low income and vulnerable households, helping to cut people’s bills and keep them warm. In addition, this winter more than 2 million households, including more than 1 million of the poorest pensioners, will receive the warm home discount, worth up to £135.

Since this Government came to power, the big six energy companies have made an unprecedented profit of up to £3.5 billion, while household gas and electricity bills have almost doubled. When are the Government going to catch up with the Labour party and the general public, take these greedy vultures into hand and freeze bills, rather than give what is effectively a taxpayer’s subsidy to the energy companies to give us a miserly £1 a week off our bills?

It is a great shame that the hon. Gentleman did not have that view when Labour was in government. Let us not forget that Labour created the big six. There were 14 major energy companies when Labour took office and those were driven into the big six. The big six are Labour’s creation. We are on the side of competition, technological change and the consumer; under this Government, we are putting the consumer first.

Will my right hon. Friend look at taking some specific measures to tackle fuel poverty for those who are off the gas grid? Will he encourage the use of syndicates, which can buy oil and LPG more cheaply? Will he look again at whether this vital sector should be regulated by Ofgem, and will he explore whether some of the revenues from future shale gas development could be used directly to extend the gas grid?

I take my hon. Friend’s points extremely seriously, not least because he did a great deal for this group of people when he was an energy Minister. Speaking as someone who is off the gas grid, I am delighted to say that I recently joined my local community’s syndicate for buying heating oil, and it has delivered a very good price. I encourage others to do the same. The good point that my hon. Friend raises is under review. We are looking at more effective data matching to identify those in fuel poverty in rural areas who are often much harder to find than those in similar circumstances in urban areas. We are absolutely on it; I can assure my hon. Friend of that.

There was anger and deep disappointment in my constituency this week when British Gas announced that, as a direct result of the Minister’s changes to the ECO, it is pulling out of the scheme that was due to deliver external wall insulation to up to 4,700 concrete houses in Clifton by March 2015. Will the right hon. Gentleman agree to meet me and local partners urgently to discuss whether there is a possible future for this scheme?

I will certainly meet the hon. Lady, and I shall be happy to look at the matter in more detail. It is primarily a matter for British Gas, which has an obligation to deliver, at scale, measures to help the fuel poor, but we are determined to ensure that those measures are enforced.

The ECO is now in good health, and we have extended it to 2017. Unlike the programmes introduced by the last Government, which were very stop-go and hand-to-mouth—for instance, the carbon emissions reduction target was initially scheduled to apply to one year but was then extended for another year and then another—the ECO will provide investor certainty until 2017, which is good news for the fuel poor.

Identifying those who live in fuel-poor households is of paramount importance, and Members of Parliament, the Church and credit unions have a role to play in that. We in Northumberland invented oil-buying clubs in this country, and we now have 13 of them, covering almost all the off-grid provision. We have produced a leaflet of which we are particularly proud, which explains how people can reduce energy bills, and we are sending it to individual households.

I commend my hon. Friend for his excellent work on an issue that is so important to his constituents. I should love to see a copy of that leaflet. We are keen to find out more about the ideas that my hon. Friend is pioneering with his community, and to learn from good practice and spread it throughout the country. Perhaps we shall have an opportunity to do that when we launch our community energy strategy.