Alan Whitehead

Labour Party | Southampton Test

WHITEHEAD CALLS FOR TARGETED HELP AGAINST RISING FUEL BILLS

Dr Alan Whitehead, Member of Parliament for Southampton Test, has called on the government to do more to help people out of fuel poverty in a House of Commons debate – through targeted benefits and energy efficiency measures.

Dr Whitehead was speaking in a Westminster Hall Adjournment debate on Tuesday (8th January), only days after Npower, the UK's fourth-largest energy provider, announced increases for electricity customers of 12.7%, and 17.2% for gas customers.

Dr Whitehead congratulated the government for the progress in reducing the number of people in fuel poverty (defined as a person who spends 10 per cent. of their household income on fuel) from 6.5 million in 1996 to 2 million by 2004. However he warned that previous price rises have already added another 1.6 million people in England to the 2004 figures, even before the impact of Npower’s decision is felt.

Dr Whitehead further warned:

“The current estimate is that about 40,000 more people will fall into fuel poverty for each 1 per cent. increase in the price of fuel. Heroic though our efforts have been, we will, in many instances, almost inevitably be fighting a losing battle if we attempt to combat fuel poverty largely by giving those in fuel poverty additional resources to pay the bills that the energy companies put through their letter boxes; this is a sort of caucus race, in which everyone goes round and round, and some get small prizes, but there are no winners in the end.”

He went on to call for the Government to provide more targeted help:

“It is important that benefits and winter fuel payments rise in line with additional fuel costs, but it is almost impossible for the Government to align increases in benefits and other arrangements in that way, given the variability of proposed fuel increases. Therefore, as hon. Members have suggested, other methods will be necessary in the next phase of the battle on fuel poverty to ensure that we take people out of fuel poverty and meet the ambitious targets that have been set. That raises the issue of what happens with winter fuel payments, as well as the central question of how we can give people the wherewithal to fight fuel poverty by making their houses energy efficient, which will make their bills lower and ensure that their houses are proofed against future price increases.”

Speaking after the debate Dr Whitehead added:

“I was pleased to get the opportunity to raise the issue of fuel poverty at such a topical time. I have no doubt that Npower’s price increases will be matched by the other major energy suppliers, making it harder for the most vulnerable in society to heat their homes. While I applaud the work of the government since 1997 to tackle this issue, I believe that further, more targeted help is needed. Energy efficiency is a crucial part of this – better insulated homes mean lower bills.”