Warm Home Discount: Fuel Poverty

I am proud that this Labour Government are extending the warm home discount to an extra 2.7 million households, taking the total to nearly 6 million. This will make a vital difference to so many families this winter, including an approximate additional 350,000 households in the south-east.

Buckinghamshire council has received more than £3 million in Government funding through the warm homes local grant to help residents with heating and energy efficiency this winter through things like upgrading insulation or installing smart heating controls. Will the Minister join me in encouraging eligible households in Aylesbury and the villages to apply, and can he say what impact he thinks this will have on reducing fuel poverty?

I know that my hon. Friend will be doing all she can to encourage her constituents to sign up for these schemes and to ensure that as many households as possible take advantage of schemes like the warm homes local grant so that their houses are retrofitted and made fit for the future. We want people living in warm and dry homes, especially as we come through the winter. My hon. Friend might be interested to know that more than 3,200 households in her constituency have benefited from the warm home discount, and we expect even more to benefit this year with the expansion.

The Government’s extension of the warm home discount to 6 million households to combat fuel poverty was a welcome move. However, the current discount rate of £150 has stalled for a decade, not rising in proportion to energy prices. The average energy debt per person seen by Citizens Advice County Durham is in the region of £500, but advisers have seen several at £2,000-plus recently. Does the Minister agree with me and my colleagues at Citizens Advice County Durham that to truly provide transformational support as well as reduced debt levels in the energy sector, the Government should top up the scheme and reform the warm home discount so that it provides more tailored support?

Like my hon. Friend, I am concerned about levels of energy debt, which I also see in my own constituency. Ofgem is continuing work on the debt strategy, which includes a number of measures, and we are looking at the potential introduction of a debt relief scheme. On the warm home discount, we need to balance the needs of those at risk of fuel poverty with the consideration that the warm home discount has an impact on bills; we need to ensure that we balance that out with current consumers. There is currently a consultation running on the scheme for 2026 to 2031, which closes next Thursday; I encourage my hon. Friend and her local organisations, such as Citizens Advice County Durham, to respond to that consultation.

The previous Conservative Government’s failure to invest in renewable energy and insulate our homes led directly to the energy crisis. We know that cold homes drive excessive winter deaths, increase costs to the NHS and deepen social inequality. As we all experience a drop in temperature this week, I think in particular of vulnerable households. Will the Minister urgently bring forward a social energy tariff to reduce energy bills?

The hon. Lady makes a pertinent point about the previous Government’s handling of some of the schemes. We are picking up the pieces and making sure that a similar situation does not and will not ever happen again. That is what we are absolutely focused on as we take this forward over the winter.

Many thousands of my residents live in park homes, in places such as Regency Heights and Stoborough Green, and have no ability to choose their energy supplier and limited access to a lot of schemes. What is the Minister’s Department doing to make sure that they have access to the warm homes initiatives? Further, as their properties are often considered chattels, they cannot access some of the other programmes.

The hon. Lady makes a good point. As we look towards the future of the schemes, we are looking at how they can be applied to a range of different types of properties. I know that there have been particular issues with park homes, and I think she may have corresponded with me on that. I am more than happy to meet her to discuss how we take this forward and maybe remedy some of those issues in future schemes.

I call the shadow Secretary of State.

Does the Minister accept that 22 million households are seeing their bills go up to pay for this policy, which is a handout for 6 million households? Is that not like the Government’s promise to cut bills by £300 when actually, bills have gone up by £200 instead? Does he acknowledge that the best way to help families who are struggling with their bills is to cut electricity bills for everyone? Our cheap power plan would do exactly that and cut electricity bills by 20% in time for winter. Why will the Government not consider it?

It is astonishing that the shadow Secretary of State should come to the House and call vital support for people over the winter a “handout”. It is support for one in six people in this country, and thousands, or millions, of our constituents will take advantage of that support this winter. It is right that we should look to target support at those most in need. I am proud that this is a Government that will provide support, with £150 off bills for 6 million people this winter.

But it is not the Government that are providing support; other households are doing so through their bills. The Minister should be honest about that. Even the chief executive of Ofgem has said that axing the carbon tax would bring down electricity prices. Our cheap power plan would cut people’s electricity bills by 20% now—for everyone, not just for few. If he really cared about families struggling with their bills, he would look at it.

I will not resile from the support that we are offering vulnerable households this winter. It is £150. On what the right hon. Lady says, how is any benefit provided in this country? It is provided by all of us pooling our resources to provide support to the most vulnerable. I am proud of that record. When it comes to her proposal over a carbon tax, let us look at the coalition that she has amassed against her: businesses, church leaders and others who have said that this is not a workable proposal and that it would cause more uncertainty for British businesses.

I call the Liberal Democrat spokesperson.

Will the Minister commit to an emergency home insulation programme beginning this winter for people on the lowest incomes so we can drive down their bills now and, more importantly, for good? Will he also acknowledge, given our recent conversation, the realities of rural fuel poverty? In Westmorland, like in many other rural communities, 25% of houses were built before 1900, making them so much harder to insulate and more expensive to heat. Will the warm home discount be tailored to cut bills in rural communities too?

I was pleased to meet the hon. Gentleman yesterday to discuss some of the issues in his constituency. As we look at future schemes, we will look at how they can apply to different types of housing across the country. As for this winter, the support that we have put in place is the warm home discount, which is on offer to 6 million people across the country—that is one in six households—and comes to £150 off bills. That is the support we are offering this winter. If he has other suggestions about how the warm home discount should operate, as I said to my hon. Friend the Member for City of Durham (Mary Kelly Foy) earlier, a consultation is running that closes next Thursday and I encourage him and organisations in his constituency to respond to that.