4. Statement by the Minister for Environment, Energy and Rural Affairs: Fuel Poverty Plan

Part of the debate – in the Senedd at 3:34 pm on 2 March 2021.

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Photo of Lesley Griffiths Lesley Griffiths Labour 3:34, 2 March 2021

Thank you, Mark Isherwood, for that list of questions. In relation to the interim targets, I am of course aware of the call for interim targets, but I have to say, most proposals within today's plan were welcomed by our stakeholders. I think to set interim targets now, over a shorter time frame, would prove to be a really futile exercise, until we can better understand the impact of the pandemic. You referred to the impact that the pandemic has had on people living in fuel poverty; it has obviously increased, unfortunately, the number of people living in fuel poverty. I absolutely recognise that a number of stakeholders have said that the plan should include those interim targets in order to meet our statutory obligation.

A number of suggested interim targets were put forward during the consultation, such as eradicating severe fuel poverty by 2028, for instance. There was another one that suggested by 2030. We've considered all of these interim targets. Without revised fuel poverty estimates and updated projections to determine what can be achieved by 2035, interim targets set in the current climate that we are in, I think, would be speculative and potentially unrealistic, whereas the targets that we have set, I think, are absolutely realistic. So, what I've asked my officials to do is to work with the stakeholders—you'll be aware of our new fuel poverty advisory group—to develop those interim targets. They can then be considered in the light of the new fuel poverty estimates that we're preparing. The interim targets when they are developed will then be added to the plan.

You referred to health issues, and obviously we've had our health conditions pilot, which you'll be aware of, and that was expanded in July 2019. We've had over 8,600 referrals received by Nest, and more than 1,000 homes have benefited from the scheme. As part of the extended pilot, the eligibility criteria for support was also expanded to include people living on a lower income not in receipt of a means-tested benefit, at risk of avoidable ill health caused or exacerbated by living in a cold home, or living in a home with an EPC rating of D or worse.

You referred to the UK Government's green homes voucher scheme, and we absolutely agree that investment in home energy efficiency is important—the key to support the economic recovery as we emerge from the coronavirus pandemic, along with all the other reasons for it. What we don't agree with the UK Government on is that the best way to do it is by way of a voucher scheme similar to the one that they've brought forward. There are issues regarding the quality of workmanship that can be attained within a very tight delivery timescale. That could potentially store up trouble for householders in the future. You'll be aware that the green homes voucher scheme was launched last summer, by the Chancellor, as part of measures he introduced. But because of delays in processing applications and the capacity of the supply chain to deliver, the scheme has now been extended to March 2022.

If you look at it very carefully, the scheme is not as generous as first reported. Householders, unless they're on means-tested benefits, are required to pay a third of the cost of any home energy efficiency measure installed under the scheme. Windows and doors, which have attracted so much media attention, are secondary measures only, and the value of the contribution is limited to the value invested in primary measures such as insulation, for instance, or low-carbon heating systems. So, again, a householder receiving a £1,000 two-thirds contribution towards an air source heat pump, for instance, would receive a maximum of £1,000 towards new windows. So, it is a scheme that applies to England only, but I would urge you to look closer at it, because, as I say, it's not as generous as it was first reported.

In relation to the private rented sector, I heard your and others' calls for ring fencing of funding. You are quite right when you say that a lot—I think it's about 40 per cent—of private rented stock in Wales is over 100 years old. So, we know that households in the private rented sector are more likely to be fuel poor. Obviously, tenants are eligible to apply for energy efficiency advice through the Nest scheme, and approximately a quarter of the households currently are benefiting from the Nest scheme.