Mr Angus MacDonald

Mr Angus MacDonald

Liberal Democrat — Inverness, Skye and West Ross-shire

Speaking in the House of Commons on 6 November 2024

Debate

Fuel Poverty

Contribution

That is also Liberal Democrat policy, so I am pleased to support that. Interestingly—I know you will find this interesting, Sir Roger—France, Italy, Ireland and others have an equalisation of standing charges. Ofgem’s reluctance to reform standing charges has been raised many times in Westminster Hall and in the main Chamber, so we need to get proper answers. Town gas is by far the most affordable way of heating a house, but 60% of houses in the highlands do not have access to it. As my right hon. Friend the Member for Orkney and Shetland says, kerosene, bottled gas, electricity, wood and coal are very much more expensive, but people in the highlands have no option but to use them. It is easy for us to have a go at the policy of stopping the winter fuel allowance. I do not understand why the figure was set at £13,000, rather than at the average household income of £34,000. That would have been a huge relief to many of the people who have been most affected, and it would probably have been much more popular for the Government. In the highlands, incomes are much lower than in the rest of Scotland and Britain as a whole, and we have a much older population. The cost of living is between 15% and 30% higher than in the rest of Scotland, according to the Scottish Affairs Committee in 2021. We have a substantial depopulation problem and the highest cost of living in the UK, to which fuel is a major contributor. I know the Energy Minister has heard this from me before, but community benefits from renewables are potentially the biggest saving grace from this. My No. 1 call is for fuel vouchers to be given to affected locals, and of course in the highlands we have lots of renewables. That would make a very big difference. The second thing the Minister could do is to get Ofgem to review standing charges. I estimate that if they were equalised, there would be a £75 a year saving at no cost to the Treasury. Thirdly, we should concentrate the winter fuel allowance on the most deserving people, who tend to be the older, the poorer and the more remote.

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