Commons Sense

House of Commons · Westminster Hall

Fuel Poverty and Energy Price Caps

19 November 2020 · 4 other contributors · 9,513 words

Opened by Martyn Day SNP Linlithgow and East Falkirk

Responding minister: Kwasi Kwarteng

Summarised by AI from the official record, so it can contain mistakes.

At a glance

Martyn Day raised concerns about fuel poverty and energy price caps in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about the impact of Westminster policies on fuel poverty in devolved nations and the failure to meet statutory requirements for annual debates on fuel poverty.
  • The Scottish Government aims to reduce fuel poverty by 2040 but faces challenges due to inefficient building stock and ineffective energy price caps.
  • The MP calls for urgent measures like a coronavirus energy grant and steps to prevent customers from being trapped in unaffordable tie-in tariffs.

Key requests to Government

The MP urges the UK Government to heed calls for urgent measures, such as introducing a coronavirus energy grant to support households struggling with bills. He asks that steps be taken to prevent customers from being trapped in unaffordable tie-in tariffs due to heating system types or meters.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Martyn Day SNP Linlithgow and East Falkirk

The MP is concerned about the impact of Westminster policies on fuel poverty in devolved nations. He highlights that despite statutory requirements to debate fuel poverty annually, it was not met last year. The Scottish Government has set targets to reduce fuel poverty by 2040 but progress is hindered by old and inefficient building stock. Energy price caps are also an issue as they do not adequately protect consumers from high tariffs and market failures.

Other contributors (4)
  • Alan Brown SNP Clydebank and Milport

    Mr. Brown welcomed the Ayrshire growth deal proposal for a national energy research demonstrator project at Cumnock to tackle fuel poverty. He highlighted the cost of off-grid heating in Scotland, estimating that 10,000 people die prematurely each year due to fuel poverty and advocating for better regulatory frameworks for off-grid pricing. Alan Brown raised concerns about constituents being unable to obtain free quotes from approved suppliers for energy efficiency measures, questioning whether the Government will address this issue.

  • Allan Dorans SNP Ayr, Carrick and Cumnock

    Mr. Dorans highlighted significant variations in fuel poverty rates across the UK, noting that Scotland has a higher rate than England at 25% versus around 11%. He emphasized the injustice faced by communities historically reliant on coal and currently hosting wind farms while still experiencing high levels of fuel poverty. He cited data indicating extreme fuel poverty in East Ayrshire (32%) compared to South Ayrshire (22%). Mr. Dorans also discussed health impacts, referencing studies showing a link between cold temperatures and increased risk of respiratory problems and infections. He praised the Scottish Government's initiatives such as the child payment scheme, community care grants, and winter heating assistance for disabled children.

  • Matthew Pennycook Lab Greenwich and Woolwich

    Fuel poverty affects millions across the UK, with around one in ten households in England and Wales facing it. Matthew Pennycook called for clarity on ongoing schemes like the Warm Home Discount scheme and Energy Companies Obligation beyond 2022. He highlighted that homes in fuel poverty are mostly in the private and social rented sectors, which need better insulation and energy efficiency improvements.

  • Siobhain McDonagh Lab Mitcham and Morden

    I will suspend the sitting until 3 pm.

Government Response

Kwasi Kwarteng

The minister acknowledged the importance of fuel poverty and highlighted several measures such as the warm home discount, energy company obligation (ECO), and green homes grant. The ECO scheme has installed nearly 2.8 million energy efficiency measures since 2013, benefiting over 2.1 million homes annually with £640 million in funding. The Government introduced a price cap on default energy tariffs in 2019 protecting around 11 million consumers and an additional prepayment meter price cap from 2021 for 4 million households. They have also extended support measures during the pandemic, including reaching agreements with energy suppliers early in March to assist those impacted by coronavirus. The Government has spent unprecedented amounts to protect jobs and incomes through schemes like the job retention scheme and universal credit uplift.

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