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Backbench Business
15 December 2022
Lead MP
Anne McLaughlin
Debate Type
General Debate
Tags
Energy
Other Contributors: 17
At a Glance
Anne McLaughlin raised concerns about backbench business in the House of Commons. A government minister responded. Other MPs also contributed.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
Opened the debate
The House recognises that prepayment metre customers are not afforded the same rights when in energy debt as those who pay in arrears; understands that a £10 debt leads to automatic disconnection for prepayment customers; acknowledges time and support provided to arrears-paying customers before disconnection; expresses concern over self-disconnection impacting vulnerable individuals during winter; urges the Government to outlaw self-disconnection to ensure basic energy provision for the poorest.
Kevin Hollinrake
Con
Thirsk and Malton
Indicated assent.
Rachael Maskell
Lab Co-op
York Central
Congratulates the hon. Lady on securing today’s debate; raises concern over higher energy costs for prepayment metre users, often in deprivation; questions the fairness of current price setting practices ('rocket and feathers principle'); highlights lack of scrutiny in court decisions leading to disconnection; emphasises health risks for those using home medical devices.
Catherine West
Lab
Hornsey and Friern Barnet
Congratulates the hon. Lady on her speech; questions why some people pay up to £4,300 just on gas when prices have dropped; emphasises disparity between direct debit payments and prepayment metre costs.
Patrick Grady
SNP
Glasgow North
Patrick Grady congratulates his colleague for securing the debate and acknowledges the potential benefits of prepayment metres but criticises their current high costs compared to direct debit payments. He highlights Citizens Advice's calculation that households moved to a prepayment metre this year will spend £49.6 million more than they would with direct debits. Grady also mentions Marie Curie’s report on dying in poverty and the case of Mel and Tom, who are struggling due to high energy bills and cold climate. He emphasises the need for support from winter fuel payments and warm home discount schemes for terminally ill patients regardless of age.
Kenny MacAskill
SNP
Nairn, Aberdeenshire & Moray
Condemns the term 'self-disconnection' as a euphemism for energy poverty caused by the cost of living crisis and rising energy prices. Criticises prepayment metres for their high standing charges and tariffs, which disproportionately affect vulnerable individuals. Highlights that 500,000 people in Scotland use prepayment metres due to financial hardship, advocating for an end to higher tariffs and a social tariff system.
Catherine West
Lab
Hornsey and Friern Barnet
The hon. Member for Hornsey and Friern Barnet emphasised the social inequity caused by high energy prices, particularly affecting those on prepayment metres in sub-zero temperatures. She highlighted poor customer service from energy companies, with constituents experiencing delays in receiving energy rebate vouchers despite soaring bills. Catherine West also noted that even MPs are struggling to afford their energy costs, illustrating the widespread impact of this issue. She expressed concern about inherited debt problems and proposed a need for more regulation and proactive measures by the regulator to address these challenges. Additionally, she questioned how standing charges and unit cost prices can be clarified and made affordable for those in vulnerable housing.
Alan Brown
SNP
Glasgow Central
Committed to securing action on the higher standing charges for prepayment metre users. Disagrees with forced switching to prepayment metres, particularly during a cost of living crisis. Emphasised the health and housing implications, including increased likelihood of damp homes which exacerbate health issues. Cited Utilita research indicating that 14% of households (630,000) were not choosing these tariffs voluntarily. Advocated for a ban on switching to prepayment mode without active consent. Raised concerns about missed out Government support packages affecting those on prepayment metres and proposed tiered tariffs as an alternative.
Alan Whitehead
Lab
Southampton, Test
I congratulate the hon. Member for Glasgow North East on securing this debate and emphasising her optimism regarding potential government action. Hon. Members have highlighted that about 15% of UK households are on smart metres for electricity and 14% are on prepaid metres for gas, figures which may well have risen since last calculated. Approximately half a million warrants to place people on prepaid metres have been successfully passed through the courts since the beginning of the covid pandemic in 2021, indicating an urgent need for action. The situation reflects a two-tier arrangement where those with accounts can manage large amounts of debt while those on prepaid metres face disconnection once their credit limit is exceeded. I suggest that most people are on prepaid metres due to necessity rather than choice. There needs to be a moratorium on further warrants to put people on prepaid metres at least for the duration of the energy crisis, and longer-term actions should address disparities in pricing and standing charges between prepayment metre users and other customers.
Anne McLaughlin
SNP
Glasgow North East
I thank my hon. Friend for his kind words and his support regarding the need for urgent action on prepaid metres. I agree that positive thinking can lead to positive results, but it is crucial that the Government recognises the current dire situation faced by people with prepayment metres.
Catherine West
Lab
Hornsey and Friern Barnet
My hon. Friend agrees that this is an example of 'rip-off Britain', highlighting the need for urgent action to address the unfair treatment faced by those using prepayment metres.
Kevin Hollinrake
Con
Thirsk and Malton
The hon. Member for Thirsk and Malton highlighted the importance of prepayment metres in helping vulnerable customers manage their energy costs, acknowledging both the benefits and challenges associated with these metres. He emphasised that modern smart metres are easier to use and help prevent debt accumulation. The Government provides robust protections for those facing financial difficulties, including forbearance mechanisms and legal requirements for suppliers to offer fair deals. The hon. Member also stressed the need to review current provisions continually, aiming to improve support for vulnerable households.
Catherine West
Lab
Hornsey and Friern Barnet
The hon. Member for Hornsey and Friern Barnet intervened to highlight a specific issue faced by student households spending excessively high amounts on utilities, suggesting that the problem extends beyond debt management.
The hon. Member intervened to argue that energy companies are more likely to work out payment plans rather than immediately resorting to legal action when dealing with customers who cannot pay their bills.
Stephen Kinnock
Lab
Aberafan Maesteg
The hon. Member for Aberafan Maesteg raised concerns about constituents not receiving prepayment vouchers from energy suppliers and the potential loss of financial support if these vouchers expire, urging the Government to ensure better communication between suppliers and customers.
The hon. Member intervened to question the Minister on why the Department for Business, Energy and Industrial Strategy is considering revisiting social tariffs despite acknowledging their success, suggesting a contradiction in the argument presented by the Government.
Richard Graham
Con
Gloucester
The hon. Member asked what can be done on social tariffs to support vulnerable customers further.
Anne McLaughlin
Lab
Glasgow East
Ms McLaughlin thanked her team for their involvement in the campaign and expressed concerns about the inconsistency of approach to energy debt management. She highlighted that prepayment metre customers are automatically disconnected when they exceed £10 of debt, whereas those who pay in arrears receive time and support before disconnection. She called for a moratorium on disconnections over Christmas and urged for better treatment of prepayment metre users.
Government Response
The Minister responded by acknowledging the importance of providing targeted support for those in need and emphasised that the Government is committed to reviewing existing provisions continually. He also highlighted measures such as the energy price guarantee, bills support scheme, and the warm home discount scheme.
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Assessment & feedback
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About House of Commons Debates
House of Commons debates take place in the main chamber of the House of Commons. These debates cover a wide range of topics including government policy, legislation, and current affairs. MPs from all parties can participate, question ministers, and hold the government accountable for its decisions.