Cost of Energy: Dalmarnock

Part of the debate – in the House of Commons at 4:56 pm on 24 October 2023.

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Photo of Alison Thewliss Alison Thewliss Shadow SNP Spokesperson (Home Affairs) 4:56, 24 October 2023

For those unfamiliar with the Dalmarnock neighbourhood in my Constituency, it is located in the east end of Glasgow, between the River Clyde and Celtic Park. People there are generous, kind and welcoming. It has been an absolute pleasure to represent them, first, as a councillor and now as an MP for the past 16 years. Dalmarnock has seen a lot of change over the years, as heavy industry has declined and the population has moved away to the new towns. In more recent years, it has seen significant regeneration from the Clyde Gateway—I draw Members’ attention to my entry in the Register of Members’ Financial Interests, as the unpaid chair of Clyde Gateway—and it was host to the world as the site of the Commonwealth games village.

I will speak first to the wider picture that people face. Over the past two years, families right across Glasgow and Scotland have struggled with soaring energy prices. While France implemented a price tariff shield on electricity and gas, the UK Government took more limited measures, which have left many people struggling to keep their homes warm and pay their Bills. Inflation related to Brexit and the disastrous mini-Budget also increased the cost of food on our shelves. The energy price cap brought in by the UK Government was welcome, but prices remain significantly higher than they were prior to the war in Ukraine.

Last year’s energy bill support scheme, which, again, we in the Scottish National party welcomed, was supposed to give every household a £400 discount on their energy bills from winter 2022 to March 2023. I recall very well the Prime Minister and the Chancellor of the time not understanding exactly how a prepayment meter worked. That speaks to some of the issues that have happened with the scheme. There were many people whom it did not reach. We feel that the crisis has not gone away. We are calling for a further round of an energy bill support scheme with a £400 rebate this winter, because the crisis has not gone away and people are still struggling.

On some of the issues we faced in administering the scheme through the casework I had in my office, these things ought to be addressed in any future scheme to ensure that everyone gets what they are entitled to. In many cases, people did not even realise they had received the vouchers, because they had been automatically applied to their smart meter and the cost had gone up so dramatically that they did not feel the difference. It was so hard to do the various checks and to go back to people and explain that they just were not entitled to any further support. To make matters worse, it was estimated that more than 13,000 energy bill support scheme vouchers went unclaimed in Glasgow Central, including for residents in Dalmarnock. The vouchers for constituents with prepayment meters were so important because, disproportionately, they are both on lower incomes and charged higher prices for the energy that they consume.

The energy support schemes of the future should be targeted at those who need it most. A flat scheme across the board, regardless of need, is not progressive in any way and does not support those with larger families or people with disabilities who need the heating on for longer periods. I am concerned that so many people did not receive the support to which they were entitled, which raises serious questions about the efficacy of the scheme. That money should have been in the meters of my constituents, not the coffers of the UK Treasury. I would like to ask the Minister how energy firms are being held to account for the vouchers that did not reach their customers, because in many cases they know exactly who those customers are. What review are the UK Government doing of the effectiveness of the scheme that they created and forced on companies at short notice? From speaking to the companies, I know that they found the scheme difficult to administer at times. It is clear that there are complexities in our energy system. Complexity of supply and market failure is resulting in limited choice, and very varied and poorly insulated housing stock, in the UK as a whole and even in individual neighbourhoods such as Dalmarnock.

People in Dalmarnock have been affected more acutely by the cost of living crisis than the general population of Glasgow, or than people more widely in Scotland. Dalmarnock is exactly the sort of community that the UK Government should have in mind when constructing an energy support scheme. As Understanding Glasgow’s Glasgow Indicators Project stated:

“Estimates of male and female life expectancy in Parkhead and Dalmarnock are lower than the Glasgow average. Single parent households make up 61% of all households with dependent children. The rate of claiming unemployment and disability related benefits is higher than the Glasgow average. Levels of deprivation and child poverty are also significantly higher than average. Thirty-two per cent of the population are limited by a disability.”

If the scheme does not work for Dalmarnock, it does not work anywhere.

Dalmarnock also contains a real mix of housing types, from the traditional sandstone tenements we think of when we think of Glasgow, to interwar tenements, four-in-a-block homes, terraces, houses built in the 1980s and the 1990s, the Commonwealth games Athletes’ Village, and brand new flats built to Passivhaus standard. Dalmarnock is also home to a significant population of Showpeople, whose chalets and caravans come in all shapes and sizes. The energy supply is just as varied; it ranges from traditional gas boiler and storage heaters, to a district heating scheme and rooftop solar in the games village, and a communal boiler in the new Riverside Dalmarnock development.

I was aware from my casework of the many challenges my constituents faced with their energy costs, so I went out to conduct a survey in Dalmarnock to get a better picture of what was going on and what additional support might be required. The results were heartbreaking. Where my team and I have been able to assist people, we have done so, yet much more is required on a UK structural level to tackle the issues my constituents face. The survey was conducted in the period after the energy bills support scheme closed. We surveyed over 1,000 people in the Dalmarnock area, and received a response rate of around 10%. Respondents were from right across different housing types, so results showed the breadth of people’s experience with this issue. Replies are still coming in.

We asked about housing type and tenure, energy supplier, the proportion of income people were spending on their bills, and how much that had gone up in the past year. We also asked people about dampness and condensation in their home. Many reported regularly running out of credit on their prepayment meters, and having had prepayment meters forced on them because they were in debt.

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