4. Statement by the Minister for Climate Change: Energy Price Cap

Part of the debate – in the Senedd at 3:39 pm on 8 February 2022.

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Photo of Janet Finch-Saunders Janet Finch-Saunders Conservative 3:39, 8 February 2022

Diolch. Thank you, Minister, for your statement today. Frankly, I have to be honest, when I first read it, I thought I'd picked up the wrong document, because it read rather more like a party political broadcast by the Welsh Labour Party. We have devolution, we've had this for 22 years now, and, I'm afraid, to keep pointing the finger of blame on the UK Government for what is a global crisis is not what my constituents in Aberconwy want to hear. Your original target was to completely eradicate fuel poverty in all households by 2018, yet recent estimates show that 155,000 households are living in fuel poverty, 12 per cent of households here in Wales, 20 per cent of households in the private sector living in fuel poverty, and 9 per cent in the social housing sector. If these targets had not been missed, quite simply, the people of Wales would not be facing as severe a crisis as they are today.

I do acknowledge that the Welsh Government has been driving forward some improvements to energy efficiency, but that is now turning into a bit of a nightmare, isn't it, for you as a Government? Arbed has seen residents in a number of villages in Gwynedd experiencing issues with damp and green slime following works to their homes. Bridgend County Borough Council was recently forced to apologise to residents after issues such as the faulty sealing of windows, damp, mould and algae. Your key delivery mechanism, the Warm Homes programme, between 2011 and 2023, is now only expected to reach 79,000 homes. So, will you consider, Minister, being proactive and amend the eligibility criteria for support, so that all 155,000 of those living in fuel poverty can actually see some benefit?

The total cost of decarbonising housing stock based on Welsh School of Architecture estimates is circa £15 billion, of which more than £10 billion is for the social housing stock and for homes in fuel poverty. Capital funding under the residential decarb and quality budget expenditure line is £72 million for 2022-23, increasing to £92 million for both schemes in 2023-24 and 2024-25. On that basis, it could take the Welsh Government over 160 years to invest all the money needed to decarbonise all housing stock. So, tell us, in a meaningful way, how are you going to put the foot on the accelerator?

You claim to want a progressive tax system. However, a 10 per cent windfall tax, which has been proposed, would likely raise much less than is being claimed, and, depending on companies’ behavioural response, may actually reduce tax revenues. So, I do hope, Minister, that you will acknowledge that the current tax rate charged on oil and gas profits is already more than double the rate charged on profits in most other sectors of the economy.

We the Welsh Conservatives will not support any more taxation placed on our hard-working families by your Government. There are limited levers the UK Government does have to deal—[Interruption.] I know you don't like hearing it, but it has to be said. [Interruption.]