Contribution
It is an honour to serve under your chairmanship, Mr Western. I thank the hon. Member for Leeds Central and Headingley (Alex Sobel) for securing this important debate. As he rightly set out, many of our issues stem from the fact that so much of our housing stock dates to the Georgian and Victorian periods. I draw attention to my entry in the Register of Members’ Financial Interests.
My hon. Friend the Member for Bath (Wera Hobhouse) rightly pointed out that the UK has some of the oldest and coldest homes in Europe, and that the NHS is spending £1.5 billion a year on treating respiratory illnesses. Hopefully, investing in warmer homes would bring down that cost. In Wales alone, over 600,000 households—nearly half of all Welsh homes—are estimated to be in fuel poverty, with more than 100,000 in extreme fuel poverty. The crisis is not just about rising energy bills or cold weather; it is rooted in the very buildings we live in. The UK and Wales especially, as we have heard, have some of the oldest housing stock in Europe. Many of the homes in Wales were built before 1919, long before insulation or energy efficiency were even considered. As a result, a huge number of houses are cold, damp and impossible to heat efficiently. Many still rely on outdated boilers, lack double glazing or have walls that leak heat faster than we can generate it.
The consequences are not just physical discomfort or financial strain; cold homes are making people sick. They are contributing to the incidence of respiratory disease, heart conditions, mental health issues and, tragically, avoidable deaths in winter. This is costing every single one of us. The NHS in England alone spends around £1.5 billion a year treating conditions linked to cold and damp homes. In Wales, the annual cost is estimated to be £67 million. That money could be spent on frontline care, rather than on treating problems that could have been prevented by better housing.
The costs go even further. Fuel poverty means lost workdays and reduced productivity due to illness; children underperforming at school because they are too cold or too sick to learn; increased national energy use and demand from homes that haemorrhage heat; growing household debt from people falling behind on unaffordable energy bills; and less money in the economy as a whole as incomes get swallowed up by ballooning heating bills.
We are stuck in a vicious cycle that affects not just the poorest but all of us through higher public spending and lost economic potential. Unfortunately, Government responses have been far too slow. In Wales, the flagship warm homes programme is woefully inadequate. At the current pace, it could take more than 130 years to insulate every fuel-poor household in Wales—a staggering statistic that shows just how far behind Labour in Wales is on this issue.
It does not have to be this way. The Welsh Liberal Democrats have proposed a bold but realistic solution, providing £1.75 billion over five years to retrofit homes, prioritising those in or near fuel poverty. This plan could create 10,000 jobs, generate £2.2 billion for the economy and, most importantly, transform lives. For rural areas and farmers, there are huge opportunities here too, with insulation using Welsh wool now playing a major part in existing insulation programs.
On a recent visit, I saw at first hand the installation of protective loft insulation in Brecon by Loft Boarding South Wales, a local, family-run, green growth business. It was very clear to me that insulation programmes offer economic benefits not only for consumers, but through the skilled jobs that such programmes provide.
Across the UK, the Liberal Democrats are calling for urgent action, including a 10-year emergency home insulation programme to upgrade Britain’s cold, inefficient housing stock, and the introduction of an energy social tariff—a targeted pricing structure that would lower heating bills for the most vulnerable. We will of course continue to press the Government to reverse their disastrous cuts to the winter fuel allowance—although current briefings to the media from different Ministers make it very difficult for us all to decipher where the Government are at on that issue.
These measures are not just ambitious; they are necessary, and must be in place before the next winter bites. Fuel poverty is a national disgrace, but it is also a national opportunity. By investing in energy-efficient homes, we can cut carbon emissions, reduce health inequalities, lower NHS costs, boost the economy and improve national security all at once.
The best time to introduce an emergency insulation programme was before Putin launched his brutal invasion of Ukraine. The second best time would be now. Let us start thinking of insulation not as a luxury, but as a public good. Let us stop managing the symptoms of cold homes and start curing the cause. In one of the richest nations on earth, no one should have to choose between heating and eating.