New Clause 19

Part of Climate Change Bill [Lords] – in a Public Bill Committee at 10:30 pm on 8 July 2008.

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Photo of Gregory Barker Gregory Barker Shadow Spokesperson (Environment, Food and Rural Affairs) 10:30, 8 July 2008

The new clause is interesting. At a time of an unprecedented rise in household energy costs, we must examine all options available to us to help bring down the cost of heating and the electricity bills for hard-working families, particularly those who live in fuel poverty.

It is, I am afraid, an indictment of the Government that 2.9 million people are still living in fuel poverty in this country. Bill payers already contribute £500 million a year to the alleviation of fuel poverty, through the carbon emissions reduction target. However, it is worth putting on record how inefficient much of that £500 million spent is. I thank the Local Government Association for the sterling research that it has carried out in this area and published in its report, “Switched Off, Switched On”.

Three central flaws were found with how the CERT process is run. First, as there are numerous suppliers serving the same areas, there is a lack of systematic area focus, which often means that vulnerable people in homes in need of insulation are left out because of the haphazard nature of the programme. Also, as suppliers are working towards meeting specific targets, once those targets are met the insulation programmes sometimes instantly stop, leaving a job half done.

Secondly, part of the £500 million CERT fund is spent on advertising the schemes and targeting houses that are eligible for upgrades. That results in a duplication of effort and wasting money, which would be far better spent providing insulation for the homes in most need.

Thirdly, a lack of accountability means that, while the insulating contractors are spending public money, they are only accountable to Ofgem, not to the householder in whose home the work is being done. For those reasons, I am happy to support new clause 19, which would require energy suppliers to work more closely with councils in targeting areas where fuel poverty is most severe.