Part of the debate – in Westminster Hall am 10:44 am ar 3 Mawrth 2010.
I congratulate Malcolm Bruce on securing an important debate on a important subject, and on his thoughtful, constructive approach to it, which was in stark contrast to that of the previous speaker, who turned it into a party political argument.
In respect of the point made by the right hon. Member for Gordon part-way through his speech-that real people really die in the cold of winter if we do not get this right-eradicating fuel poverty is an important challenge to Government. That is my responsibility in this Government and I take it seriously.
I prepared what I think is a brilliant speech to respond to the debate, but I did so before I heard hon. and right hon. Members speak. It would be a much more constructive use of my time, certainly to begin with, to try to answer the points that were raised, so that is what I intend to do.
The right hon. Gentleman mentioned the trend in fuel poverty. Back in 1996, 6.5 million households were in fuel poverty. By 2003, partly because of benign global prices, partly because of the system of regulation of energy companies and partly because of the first successes of some schemes that I may have time to mention later, that figure decreased to 1.5 million, which is a huge change. Then came four years of incredible high price rises. Gregory Barker mentioned that huge growth in prices in quite a short time. However, no hon. or right hon. Member has said that there was something that the British Government could do about worldwide oil prices and their knock-on effects on energy prices around the world, but clearly that blew us off course in eradicating fuel poverty in this country.
The result of all that is that the 2007 figures-frustratingly, for me, those are the latest official statistics-based on all the information having been collected and assessed, show that 4 million households in the United Kingdom are in fuel poverty. Doubtless, prices continued to rise after 2007 and, although there was a fall-off more recently, which I may mention in a while, the figure is probably higher, not lower, as we speak. I take seriously my responsibility for trying to get that figure down again, rather than have it go up, despite what happens to global prices.
I acknowledge what the right hon. Gentleman said at the outset about certain properties. My hon. Friend Mr. Drew also mentioned what happens when we have taken all the quick wins and insulated all the lofts and cavity walls. That has been done to great effect over the past 12 years-perhaps I will be able to provide some statistics later-and by 2015 we aim to insulate every loft and cavity wall that can be filled, provided that the owners and occupiers of properties permit the work to be done.
When all those easy wins have been achieved, we are left with the harder-to-treat properties, many of which, as the right hon. Gentleman said, have solid walls with no cavity. It is incumbent on us to find the solutions to deliver sufficient energy efficiency measures to those properties to bring them up to a good standard of energy efficiency.
In the past, as the right hon. Gentleman said, the answer has been a fairly cumbersome system, usually external wall cladding, which sometimes, although I should stress not always, leaves quite a visual impression on a property that most people do not like. Developers have been working hard on modern forms of external cladding that are much easier on the eye and, crucially, on clever technologies and innovations in technology for internal-wall cavities that can be created with a modest loss of space inside the property, which is key to consumer acceptance of the technology. I do not know whether the right hon. Gentleman has visited BRE's research centre at Watford, as I have, and seen some of the work that is going on to develop such technologies, but that work is in hand.
The right hon. Gentleman mentioned the Government's strategy that was launched yesterday. When I say "HEM" from now on, that stands for the household energy management strategy. He is right to ask for all the details of that strategy and when it will take effect. The point about the strategy-given sufficient time, I will mention the works that we are doing up to 2012-is that it is our view of what happens from 2012 to 2020 to improve properties, especially those that have so far been regarded as hard to treat.
The right hon. Gentleman asked about local authorities working independently and not being co-ordinated or given the tools to do the job. HEM gives local authorities a central role in co-ordinating our activities to tackle fuel poverty and making properties more energy efficient. He referred to a woman who said that what she really needed was accurate advice from someone. HEM provides the solution of a new cadre of certified and well-trained advisers who can provide independent advice on all the options.
In the meantime, I do not want to diminish in any way the excellent advice given by the Energy Saving Trust, which is funded by my Department and provides a national system of call centres to provide advice. On the internet, through our branded website, actonco2, people have access to accurate and independent advice from the Energy Saving Trust.
The right hon. Gentleman asked about watching out for cowboys, whether installers or those who offer products, and it was suggested that there should be a reliable system of certification. In the HEM strategy, we discuss how we intend to provide a reliable system of certification. I hope that he can see how the strategy in each area will be valuable, although I acknowledge that, as he said, it will come into effect in coming years and is not in effect today.
The right hon. Gentleman made an important sally on the significant issue of properties that are off the mains gas grid, most but not all of which are in rural locations. I shall start with his request for statistics. He said that 1 million properties in Scotland are off the gas grid. If so, my figures are not sufficiently accurate, so I must be careful. According to my statistics, in 2007 in Scotland, 278,000 properties were off the mains gas grid, which is 12 per cent. of the total. In the same year in England, 2.6 million were off the grid, representing 13 per cent. of the whole. In Wales, 230,000 were off the grid, which is 19 per cent. of the total.
The picture in Northern Ireland is very different. There is effectively no mains gas grid, and 621,000 properties are off the grid, which is 88 per cent. of the total. I hope that those statistics are helpful in showing the scale.
The right hon. Gentleman asked what we are doing to help people who are off the mains gas grid to keep the cost of keeping their homes adequately warm at a reasonable level. I mentioned the drive by the regulator, Ofgem, to incentivise the energy companies to extend the mains grid to 20,000 more households that are in fuel poverty during the current five-year price control round. That is one measure.
Under schemes such as CERT-the carbon emissions reduction target, which is the obligation on energy companies to deliver energy efficiency measures-there is no reason why properties off the mains gas grid should not be helped, but I take to heart the point made by the right hon. Gentleman that the Government should direct energy companies to do more work in such areas, because, as my hon. Friend the Member for Stroud said, they too, driven by volume targets for reducing carbon dioxide emissions, have taken the easy wins, which are often in concentrated areas such as urban areas. Perhaps they have not given the necessary attention to that in the past. Under HEM, as we continue the obligation on energy companies, we intend to take more power to give directions on the sort of work that we want done.
As an example of how we are already flexing our muscles, we recently consulted on extending CERT from 2011 to the end of 2012. In the consultation, we asked for people's views on directing the energy companies to do more of their work as energy efficiency measures-no more free light bulbs posted to people's homes-and to aim more of its work at a super-priority group, which we intend to define as those most in danger of being in fuel poverty, to have more work done to their properties under CERT. That is an example of the more activist approach that the right hon. Gentleman urges on me.
Very recently, in September, we launched CESP, the community energy saving programme, which is the next step on from CERT and our publicly funded programme, Warm Front. Under CESP, we ask energy companies, local authorities and community groups to form local partnerships and go house by house, street by street, to improve the energy efficiency of every property, whether hard to treat or not. CESP has been a good forerunner of what we expect the landscape across all those schemes to look like post-2012.
Two of the first schemes announced by British Gas were in Glasgow and Dundee in Scotland, but they are urbanised areas. My ambition, as a Minister with a keen interest in rural communities, is to see some CESPs formed in rural areas. There is no reason why they should not be, if energy companies and local authorities form partnerships in such parts of the country.
I urge right hon. and hon. Members who have taken part in the debate to go back to their local authorities and to use their contacts with energy companies to ask why there is no CESP in their area. That is another example of what we can do for such areas.
The feed-in tariffs that will start in April are an incentive for people in rural areas to consider microgeneration as a source of energy, and now as a source of income also. In 2011, there will be a renewable heat incentive, which will be hugely significant, especially in rural areas and for people off the mains gas grid to take their energy from renewable sources of heat, and to receive a reward from the Government for doing so. That is a strong message to people, as is that about microgeneration.
The right hon. Gentleman asked what efforts are being made to promote microgeneration. This Government had the first ever microgeneration strategy in 2006. We are renewing and refreshing it to deliver an up-to-date microgeneration strategy. There is a certification scheme for the goods and services under microgeneration, and grants are available for people under the low-carbon buildings programme to fit some forms of microgeneration to their properties. There are already encouragements for microgeneration.