Agenda item

Gareth Baynham-Hughes, Deputy Director, Fuel Poverty, at Department of Energy and Climate Change (DECC) and Steve Crabb, Head of Vulnerable Customers at British Gas gave evidence.

In the presentation and the discussion which followed, the following points were made:

·         The Warm Homes and Energy Conservation Act 2000 required reasonably practicable steps to be taken to eradicate fuel poverty by 2016. Although fuel poverty initially reduced, in 2010 it was back to a similar level as in 2000. Professor John Hills conducted a review of fuel poverty and the 10% definition of fuel poverty (where households were required to spend 10% or more of their total household income to maintain an adequate level of warmth) was found to be unhelpful. A new indicator measured by households having low incomes and high energy costs was devised.

·         Following the review, the government changed the target to eradicate fuel poverty by 2016. It set minimum energy efficiency standards and dates for these standards to be met.

·         There were now fewer pensioners in fuel poverty and more working age people in fuel poverty than previously.

·         As energy inefficiency contributed to fuel poverty, energy bills fell in line with improvements.

·         Cutting the Cost of Keeping Warm – A Fuel Poverty Strategy For England put in place the following set of principles: 1) To support the fuel poor with cost effective policies; 2) To prioritise the most severely fuel poor; 3) To reflect vulnerability in policy decisions. It set out a number of challenges, broad policies to reduce fuel poverty and a series of commitments and outcomes. There would be regular reviews on the fuel poverty strategy and the Fuel Poverty Advisory Group would scrutinise progress. Annual statistics would be published.

·         Vulnerable Customers was a new team at British Gas. It worked to improve the company’s involvement with vulnerable customers.

·         Staff had to be alert to customers in vulnerable situations.

·         British Gas required by mandate to help reduce fuel poverty e.g. warm home discounts, however it had discretion about how to dispense funds. This year British Gas reached its mandated spend two weeks before the end of the specified time. Although it was not required to make payments past the agreed amount, it continued to do so.

·         British Gas undertook energy efficiency measures such as insulating cavity walls and loft space and applicants did not have to be British Gas customers. It also had a specialist debt team which referred people to Step Change Debt Charity, this year British Gas gave £75m to the British Gas Energy Trust and it conducted benefit health checks – on average those helped were entitled to £500 in unclaimed benefits. It worked with partners including GPs and councils which would engage e.g. Islington Council. Approximately 50% of councils would not engage and share data.

·         British Gas conducted free gas safety checks, offered a text phone service, large print bills and flagged customers with disabilities and long term conditions. Customer services agents had significant training and this included a four hour training programme on vulnerability which encouraged them to do active listening, to ask follow up questions and refer customers in vulnerable situations to a specialist team.

·         A member raised concern was raised that the costs of the Warm Homes Discount were passed back to customers and a large number of higher rate tax payers receiving Winter Fuel Payments.

·         If the government shared data, this would be helpful in talking fuel poverty. DECC was encouraging the government to do this.

·         Existing government policies and funding would end in 2016/17. The next government would set out policies and funding after the General Election.

·         The Secretary of State had provided £3m for a Boilers on Prescription pilot scheme which aimed to reduce the health impacts of fuel poverty.

·         There was good collaboration between the Department of Health and the Department of Work and Pensions and DECC.

·         The government had laid regulations in parliament to introduce minimum energy efficiency standards in the private rented sector. These were likely to become law in the near future.

·         Energy Companies Obligation (ECO) had been designed before the Fuel Poverty Strategy. A few years ago it delivered a £30m fuel poverty scheme. Lessons learnt would be used in future schemes.

·         British Gas aimed to help people live in their homes comfortably and secure energy for the future. It innovated through technology.

·         Local authorities could work with energy suppliers and care commissioners.

·         People who switched energy suppliers were not necessarily the most vulnerable people.

·         Sometimes care leavers were left without support and were put on pre-payment meters. In Islington, Hyde Housing provided lessons on how to live independently.

·         In response to a question from a member of the public, Gareth Baynham-Hughes explained that in 2012, there were 2.28m households in England who were defined as fuel poor under the low income, high energy cost definition and the fuel poverty gap was £443. This definition did not include people who could not afford to heat their homes and the figures were modelled i.e. reflected the amount they should spend rather than the actual amount they did spend.

·         The Fuel Poverty Strategy just applied to England. Scotland and Wales had not adopted it.

RESOLVED:

That the evidence be noted.