Commons Sense

House of Commons · Westminster Hall

Energy Company Obligation Schemes — [Ian Paisleyin the Chair]

27 June 2023 · 8 other contributors · 10,831 words

Opened by Ben Lake PC Ceredigion Preseli

Responding minister: Amanda Solloway

Energy

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

Read the full transcript on Parliament.uk

At a glance

Ben Lake raised concerns about energy company obligation schemes — [ian paisleyin the chair] in Westminster Hall. A government minister responded.

Key points

  • Households across Wales and the UK face significant financial burdens due to high energy bills, with 45% of Welsh households in fuel poverty as of April 2022.
  • The current ECO4 scheme has only reached around 10% of targeted households, according to the lead MP's concerns.
  • The lead MP asks for a revision of ECO4's cost assumptions, an increase in funding, and more flexible eligibility criteria.

Key requests to Government

The lead MP asks for a revision of ECO4's cost assumptions to reflect current market conditions, an increase in funding and flexibility in eligibility criteria. He also suggests expanding the range of technologies considered under future iterations of the scheme and improving oversight and accountability measures.

How the debate unfolded

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

Opened the debate

Ben Lake PC Ceredigion Preseli

Households across Wales and the UK are facing significant financial burdens due to high energy bills, with statistics showing that as of April 2022, 45% of Welsh households were in fuel poverty. The situation is expected to persist into next year. In Wales, particularly in constituencies like Ceredigion and Gwynedd, many homes are old and inefficient, making them less capable of adapting to rising energy costs. Retrofitting these properties could significantly reduce energy bills and improve health outcomes, but the current ECO4 scheme has not been rolling out effectively, with only around 10% of targeted households receiving support so far.

Other contributors (8)
  • Alison Thewliss SNP Glasgow Central

    Suggests that more needs to be done to ensure households with older, harder-to-convert properties can access the scheme due to its difficulty.

  • Daniel Poulter

    Compliments the debate's relevance, especially regarding rural homes reliant on oil-fired heating that struggle to meet qualifying criteria for ECO schemes and seeks advice on improving scheme flexibility.

  • Jim Shannon DUP Strangford

    Jim Shannon praised the hon. Member for Ceredigion's efforts in raising awareness about energy efficiency schemes and highlighted the challenges faced by his constituents due to high energy costs. He supported the Great British insulation scheme proposed by Ofgem, emphasising its importance in helping low-income households improve their homes' energy efficiency.

  • Kerry McCarthy Lab Bristol East

    Retrofitting existing homes is crucial to reducing energy bills and emissions, but the Government's failure to maintain standards for new builds exacerbates the challenge. Kerry McCarthy emphasised the need for stability in the industry due to previous scheme inconsistencies, which affected consumer confidence and workforce engagement. She cited statistics showing a 92% drop in insulation rates following budget cuts in 2013, highlighting current challenges such as funding discrepancies, cost inflation, and bureaucratic delays. Insulation costs are significantly higher than government estimates; for instance, loft insulation is 430% more expensive than expected.

  • Liz Saville-Roberts PC Dwyfor Meirionnydd

    Agrees that the debate is primarily about funding and suggests an emergency windfall tax given Shell's £5 billion profit distribution. Highlights issues such as second homes pricing out younger residents in Gwynedd, with non-dependant children increasing by 6.8% between 2011 and 2021. Raises concerns over solar panels on agricultural land without animal damage guarantees. Saville-Roberts stressed the need for protections in schemes supporting vulnerable individuals, ensuring proper handling of issues when work standards are not met.

  • Steven Bonnar SNP Na h-Eilean An Iar

    Bonnar highlighted the need for decisive action on the cost of living crisis and energy efficiency support, criticising tax cuts for bankers while citizens struggle. He mentioned that 7 million households have gone without essentials due to rising costs. Bonnar also praised Scotland's progress in energy efficiency, noting £1.8 billion investment towards heat and energy efficiency, supporting over 150,000 households. He argued for collaboration between UK and Scottish Governments to achieve full energy potential.

  • Tim Farron Lib Dem Westmorland and Lonsdale

    Tim Farron praised the initiative by highlighting the importance of energy efficiency in reducing greenhouse gas emissions. He pointed out that fuel poverty has increased drastically, with many families now struggling to afford heating costs. In Cumbria, there is a large proportion of solid-wall properties and homes in conservation areas which face specific challenges under ECO4 due to limited funding and material availability. Additionally, private rented sector tenants suffer the most from fuel poverty and landlords lack engagement with ECO4 measures. He also highlighted issues related to window insulation and training for retrofitting work.

  • Wera Hobhouse Lib Dem Bath

    Highlights the cost of living crisis and climate emergency. States that ECO4 installations are not meeting targets with only 15,000 homes treated by March 2023 out of a target of 450,000. Criticizes outdated inflation assumptions in scheme costs leading to significant price increases for insulation measures.

Government Response

Amanda Solloway

Acknowledged the success of the ECO scheme, noting that it has delivered 3.6 million measures in over 2.4 million properties across Britain since its inception in 2013, saving low-income and vulnerable households £19 billion on their bills. Emphasised the importance of encouraging consumers to claim all benefits, and highlighted the ECO Flex provision which allows up to 50% of the overall obligation to be met by treating homes referred by a local authority or devolved Administration. Mentioned that Ceredigion has benefited disproportionately from ECO4 with over 1% of all measures installed under the scheme in the constituency. Announced plans for a new eco energy efficiency scheme, the Great British insulation scheme (GBIS), to boost support for those on low incomes and vulnerable households, extending help to a wider pool of households challenged by high energy bills.

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