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Fuel Poverty and Energy Price Caps
19 November 2020
Lead MP
Martyn Day
Linlithgow and East Falkirk
SNP
Responding Minister
Kwasi Kwarteng
Tags
ScotlandEnergyBusiness & TradeBenefits & Welfare
Word Count: 9513
Other Contributors: 4
At a Glance
Martyn Day raised concerns about fuel poverty and energy price caps in Westminster Hall. A government minister responded.
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:
Lead Contributor
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.
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.
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.
Mitcham and Morden
I will suspend the sitting until 3 pm.
Government Response
Kwasi Kwarteng
Government Response
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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Assessment & feedback
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.