14:30 Alan Brown (Kilmarnock and Loudoun) (SNP)

How renewable energy is paid for is under the remit of the UK Government. As a consequence, nearly a quarter of our electricity bills are now accounted for by energy policy decisions. That again puts more pressure on bill payers and could tip the scales for some, pushing them into fuel poverty, especially those in off-grid homes. The current imbalance in policy costs between electricity and gas bills really needs to be addressed as soon as possible.

Overall, we need more direct UK Government investment and the UK Government need to follow the lead of the Scottish Government. It is not just the likes of myself as an Opposition Member saying that. Energy companies say it; many third sector organisations say it; the Committee on Climate Change, in its 2019 progress report, said it; and so did the Business, Energy and Industrial Strategy Committee in its 2019 report, “Energy efficiency: building towards net zero”.

Another important measure in Scotland is Home Energy Scotland, which is also award-winning. It provides impartial free advice for anybody concerned about paying their energy bills. Yet again, UK and English-based consumer groups think it is a model that the UK Government need to adopt. As we look to decarbonise our heating systems, having an impartial advice service, as we do in Scotland, will be critical when people have to consider key choices such as whether to purchase a new boiler, or when they are considering low carbon energy such as heat pumps.

That brings me to the target of 600,000 heat pump installations per year by 2028. When will the Government bring forward a policy road map for the funding, and why are they not starting with a rolling programme aimed at off-gas-grid properties? That, combined with energy efficiency measures, would be an ideal way to tackle one category of fuel poverty. It is no wonder that the Committee on Climate Change, in its latest progress report, is scathing about the lack of UK Government policies. We really need to see the heat and buildings strategy, although it was disappointing that no energy Bill was listed in the Queen’s Speech.

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14:39 Sally-Ann Hart (Hastings and Rye) (Con)

However, the Government are helping to address that with their fuel poverty strategy. I am pleased to see from the energy White Paper that the warm home discount will be expanded to nearly 3 million homes, which will help households save £150 a year on electricity bills. I am particularly pleased to see that the social housing decarbonisation fund demonstrator has awarded £62 million to social landlords across England and Scotland to test innovative approaches to retrofitting at scale, with more than 2,300 social homes improved to EPC band C already.

I have seen the positive impact that retrofitting renewable energy, helped by grant funding at the time, can have in social housing. As a district councillor for Eastern Rother ward, I highlighted the issue of fuel poverty in Camber and Rye Harbour. Night storage heaters are expensive and do not provide heat when it is needed. Black mould and condensation are health concerns. I was delighted a couple of years ago to be asked to look at some retrofitted social housing in Camber, where solar panels with batteries and air source heat pumps had been put in. The tenants were delighted. There was no black mould and no condensation, and their homes were warm at lower cost.

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15:01 Janet Daby (Labour)

I hope the Government are listening, as this problem can be solved. We need a new fuel strategy—a new fuel strategy that focuses on green energy and a new fuel strategy that equally focuses on the customer’s welfare.

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15:05 Wera Hobhouse (Liberal Democrat)

We must address fuel poverty not only to end this unjustifiable inequality, but because it could be a major step forward in tackling the climate emergency. All too often fuel poverty goes hand in hand with poor housing, especially poor insulation. Energy inefficient homes are not just bad for the environment, but a huge drain on the household bills of low-income families. Behind the reduction in fuel-poor homes in 2018-19 was the increase to an energy efficiency rating to band C or higher, but the Government are relying only on the energy company obligation and the warm home discount. That is simply not enough.

The clearest example of the Government’s failure is the scrapping of the green homes grant only five months after it was introduced. Only 6% of the budget was spent, and only a fraction of the vouchers were given out. Rather than ending the whole scheme as quickly as it was introduced, the Government should have extended the scheme over 10 years, with the clear aim to end fuel poverty and cut greenhouse gas emissions by the middle of the decade. With a long-term commitment, the industry would have been able to scale up to deliver this massive task. Knee-jerk actions and short-termism are not just bad for the environment; they are letting down the 3.2 million households that will continue to live in fuel poverty. I urge the Government to reinstate a new net-zero homes grant, but this time with a long-term commitment to end fuel poverty once and for all.

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15:09 Jim Shannon (DUP)

I chair the all-party parliamentary group for healthy homes and buildings, and one of the things we are interested in is the insulation of homes and making homes more suitable for people. We have done an inquiry on that, and for me this issue is incredibly important. The APPG on fuel poverty and energy efficiency has produced a marvellous briefing with a number of key points that I absolutely agree with. One of the most pertinent is that, within the upcoming heat and building strategy, the UK Government must set out a clear energy efficiency standard for both the private and social rented sectors. The briefing further highlighted that in the Government’s plans to reach net zero, regulating retail energy markets and increasing incomes must work alongside energy efficiency improvements to support all UK nations to end fuel poverty and to achieve a fair and affordable energy transition.

It is said that meeting the net zero targets could result in as much as a 20% increase in energy costs. If the experts are right and that is the case, we could have a problem. It is great to set targets for ourselves, but they must be achievable. I could set myself a target to learn Mandarin Chinese during recess, if I had the time and I was not so busy, but the reality is that learning that beautiful, complex language in that short space of time is highly unlikely. The point I am making is that targets must be achievable, which means that resources must be in place and schemes must be available to all earners and non-earners to update wall insulation, which cuts energy bills and as a bonus is better for the environment. We must commit to resourcing those schemes.

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15:21 Anne-Marie Trevelyan (Mr Nigel Evans)

We must continue to take action to address the fuel poverty that still exists. As we move towards our 2025 milestone and our ambitious 2030 fuel poverty target, we are very aware of the challenges that remain. By focusing on energy efficiency and delivering 1.6 million households out of fuel poverty, and as we move to those low-carbon heating solutions and net zero by 2050, we have the opportunity to ensure that those on low incomes are not left behind. A fair and affordable transition will be key to protecting those who are in fuel poverty.

The social housing decarbonisation fund will deliver energy-efficient homes. Support such as the home upgrade grant, which is due to begin delivery early next year, with a commitment to a £4 billion successor energy company obligation scheme, will continue to help push forward a reduction in the homes that need to be improved.

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