PARLIAMENTARY DEBATE
Energy Bills: Self-disconnection - 25 January 2023 (Commons/Commons Chamber)
Debate Detail
The Government understand that this is a difficult time for many families. That is why we have put in place unprecedented cost of living support. It is easy to take that for granted, but it is extensive. It includes the £400 discount under the energy bills support scheme, which has been appearing on electricity bills since the October bills arrived this winter, as well as the energy price guarantee, which does not need any form of application process and directly subsidises energy bills for the typical family this winter to the tune of an additional £900, with equivalent support in Northern Ireland. The Government are also committed to supporting those households without a relationship to a domestic energy supplier with a £400 discount under the energy bills support scheme alternative funding, with eligible households able to apply from 27 February.
It is critical that this support reaches consumers, which is why the Government have also urged suppliers to take action on increasing the number of vouchers being redeemed under the Government’s energy bills support scheme and why we have published a list of supplier redemption rates. We want to encourage suppliers to compare themselves with their rivals and look to do as well as the best, showing which ones are meeting their responsibilities and which need to do more.
There are also established industry rules and processes to reduce the risk of self-disconnection. Suppliers are required to have conversations with customers in arrears to set up a suitable debt repayment plan, taking account of their ability to pay. It is vital that these rules are followed. The Secretary of State wrote to Ofgem to ensure that it takes a robust approach to compliance. In response, Ofgem is reviewing supplier practice, and a key area of its review is the suppliers’ approach to self-disconnection.
But this is continuing work. This afternoon I will be meeting energy suppliers, Ofgem, Energy UK and Citizens Advice to ensure that they hear from the Government, the hon. Gentleman and all hon. Members that there is a strong urge in this House to do everything we can to protect everyone this winter, and most of all, the most vulnerable.
In an energy-rich country, fuel poverty is an obscenity. Given this heartless cruelty in a cold winter, will the Minister, first, end the forced installation of prepayment meters forthwith? Secondly, will he immediately abolish the perverse higher standing charges and tariffs for prepayment meters? Thirdly, will he as a matter of urgency bring in a social tariff for the poorest and most vulnerable?
As I have said, we are committed to having the right regime in place. In 2009, there were issues around the additional costs of prepayment meters. Ofgem had responsibility for supervising that at that time, as it does now, and it looked into the issues and brought in a regime to ensure that any costs and charges were commensurate with the actual costs of delivery. To a certain extent that has all been superseded by the energy price cap brought in by this Government, which limits the amount that anyone can charge for their energy.
What are the Government doing about all this? Polite letters are not enough. Will the Minister now enforce measures to ensure that the energy companies stop issuing warrants and switching smart meters to prepay mode while prices remain high and the energy crisis continues? What are the Government actively doing to seek out and help those who have self-disconnected and are now energy destitute?
The Government have said, and will no doubt say again today, that help is on its way in the form of Government support for energy bills, yet precisely the customers most likely to self-disconnect are getting much less help than they should. As the Minister has said, 30% of the vouchers available to customers on prepayment meters remain unclaimed, for a variety of reasons. And the alternative help scheme devised for those who indirectly pay their bill, whether they live in park homes, communal buildings or district heating schemes, has simply not arrived. It was expected in December and then January, but we now hear it will not be active until the end of February—five months after account customers started to get assistance.
What are the Government doing to ensure that vouchers get through and are claimed by prepay customers, and that barriers to claiming are overcome? Why is the alternative help scheme so consistently delayed? Do the Government just not care about help for those living in park homes and other tenures, or are they incompetent in organising that help in a timely way?
The EBSS alternative funding sounds simple, but it is not. It is a novel scheme with ambitious timescales. It is a complex cohort with a range of different energy arrangements, including off grid, direct to commercial and via intermediaries. [Interruption.] The hon. Member for Newcastle upon Tyne Central (Chi Onwurah) chunters from the Front Bench, but she should recognise the complexity of this challenge.
When we were looking at February delivery for the portal, I challenged it. A few days ago, I met the four pilot local authorities, which are across the devolved nations of Great Britain, to talk about the situation. We must make sure that we sort out all those complexities because, if we do not get it right first time, the pilot authorities say it would delay payments to consumers. My priority is to get funding to people as quickly as possible.
Where people are not already receiving the main EBSS, we have to look after public money by making sure their bank accounts are verified and legitimate, and that they live at the address. Those records are held across Government, local authorities and banks, so a complex case-management system is required. Local authorities need to be able to access the system securely, which requires multi-factor authentication, and some local authorities do not have the ability to implement that quickly. Robust fraud checks are necessary in an application-based system, to which there is no alternative for this group. Each iteration of the application process needs to be tested.
I am confident that we will have the portal up by or on Monday 27 February. We will work with local authorities, upon which we rely, and I thank the four pilot authorities and other local authorities. We need to make sure that their staff are trained, that the complexities are dealt with and that they have a robust system, so that they can swiftly process applications and make sure families get the money they so direly need. I fully accept the point about the need for speed.
As might be expected, I pushed back in every way possible to see if we could open the portal in January, but we could not do so without risking the confidence and support of those local authorities. We will make sure that we have it in place and that we deliver it in the right way.
For months, my hon. Friend has rightly made sure that my focus has remained on this issue by reminding me of her constituents and their need for this help.
These people are more likely to have disabilities or suffer ill health. They are more likely to die prematurely and to have mental health issues due to the struggles of daily life. I do not know what their life is like, and I know for a fact that the Government cannot claim to understand what their life is like. We now need a proper social tariff and a further energy bill support package as a priority.
Much more needs to be done to ensure the vouchers are redeemed, rather than the Government just asking the companies to publish data and urging them to do more. The Government need to put in place a temporary ban on the forced installation of prepayment meters. Is it not a disgrace that energy-rich Scotland’s Union dividend is people who are unable to turn on their gas when Scotland is a net exporter of gas?
The hon. Gentleman says we need to do more than just urging suppliers to do more and to publish data. There is an application. People have to take up their vouchers, and they have to use them. I am all ears to any contribution he would like to make on how to build that up, because the whole of society—families, community groups, MPs and political parties—has to get the message out to people about these vouchers. I am confident that they are being sent out by the suppliers, so we have to encourage people to cash them in at a time when they need them most. There is always a danger that the people who need it most—we do not have the data—may be the ones least likely to use it. [Interruption.]
The hon. Member for Kilmarnock and Loudoun (Alan Brown) can make cheap points and shout at me from a sedentary position, or he can engage seriously and properly by trying to do everything possible to get a system that makes sure people get the help they deserve. That is what I want. If he thinks there are any practical steps that we should be delivering immediately, he should say so.
We have said that we will look at a social tariff and at how vulnerable people are looked after, but we have to look at it in a considered manner. I am proud of the support that the Government have put in place, and I believe it stands up internationally. We are determined to support people, particularly the most vulnerable, so that they do not suffer at a time of extreme energy stress.
The payment will go through local authorities. Much as I would love to give a define date, it depends when people apply. We will be encouraging people to apply from 27 February—if that is when the scheme launches—and then local authorities will be carrying out their verification. We will triage that first, to minimise the imposition on local authorities, but they will have to go through a process to get the payment out. That means I cannot give a definitive date, much as I would like to, and much as the hon. Member for Cardiff South and Penarth (Stephen Doughty) is right to suggest that it would benefit people to know when they will get the support to which they are entitled. I hope he understands that, administratively, if I gave a date there would be a risk that I would be back before the House again to explain why, in some cases, it was not delivered. We will do it as quickly as we can but, having talked to the pilot local authorities, they feel that we are taking the most robust approach with the best chance of getting the payment out as quickly as possible.
Just this morning, a number of businesses back home in Newtownards town, which the Minister visited last week, have informed me that they are seeking small business support. They say that they have turned their lights off, that they are supplying thermals for staff to keep warm, and that they cannot afford the current prices. Some have informed me that they face bankruptcy. Would the Minister consider a small business relief fund that could be applied to businesses throughout the United Kingdom of Great Britain and Northern Ireland?
Of course, in Northern Ireland—more than in the rest of the UK—many companies use alternative fuels, and we are, again, working on ensuring that we put support in place as soon as we can. But because of the nature of that, there is no central database, and we have to manage public funds. It sounds simple—if I were in opposition, I would probably shout at the Government to get it done, because it sounds so easy—but it turns out that it is complex. We are working as hard as we can to put those schemes in place a place even though energy is devolved and we should not have any responsibility at all—we have stepped up because we have had to, and we will continue to do so in this particular area. I very much hope to see the institutions restored in Northern Ireland and the Northern Irish people served by the people they elect.
Bills Presented
National Parks (Camping) Bill
Presentation and First Reading (Standing Order No. 57)
Richard Foord presented a Bill to provide for a right to camp in National Parks; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 24 March, and to be printed (Bill 235).
General Election (Public Support) Bill
Presentation and First Reading (Standing Order No. 57)
Richard Burgon presented a Bill to provide for a mechanism for an early general election to be held in certain circumstances, where the public has demonstrated support for such an election; and for connected purposes.
Bill read the First time; to be read a Second time on Friday 17 March, and to be printed (Bill 237).
Contains Parliamentary information licensed under the Open Parliament Licence v3.0.