English House Condition Survey Adjournment Debate - Government Response

The Parliamentary Under-Secretary of State for the Environment (Mr. James Clappison): I welcome this opportunity to debate the important subject of home energy efficiency. It will probably be no surprise to the hon. Member for Birmingham, Selly Oak (Dr. Jones) to learn that I do not agree with the conclusions that she has drawn from our report. I do not believe that any objective interpretation of that report supports her conclusions. Nevertheless, I welcome the opportunity to debate its important findings.

In the words of the hon. Lady, this is a very hefty report. It is the most comprehensive and detailed review of the energy efficiency of the housing stock yet published, and it represents a very careful analysis by the Building Research Establishment of a formidable body of survey data. As the hon. Lady said, we published the report in November last year. I assure her that there was no delay in releasing the information, and results were published as they became available. Early findings were published in the main report of the English house condition survey 1993 and further results were published in 1995 in the Department of the Environment's guide on energy efficiency in council housing.

The hon. Lady selected some figures from the report and placed her own interpretation on them. I do not deny that some households have faced difficulties, especially during the extremely cold weather that we have experienced in the past few weeks, but her selective use of the report's evidence fails to do justice to the subject and does not put the figures into proper perspective.

The starting point for the debate should be the fact that this country's housing stock is relatively old. That brings some advantages: many people value the style, space and arrangement of older houses, but they were constructed when fuel was cheap and when the technology of energy conservation was not well developed. The price we pay is a housing stock that is energy inefficient but which can be--and, crucially, is being--improved. Although the houses are technically inefficient, the survey shows clearly that the great majority of households--some 87 per cent.--are satisfied with their heating. Although we know that elderly householders face particular difficulties, the survey shows that more than 90 per cent. of householders over 60 years of age are satisfied with their heating.

I am especially encouraged by the fact that the figures have improved continuously. A similar survey carried out in 1986 found that only 80 per cent. of householders were satisfied with their heating. That is some measure of the improvements that have been made since then. Successive reports of the English house condition survey have shown that great strides have been made in home heating standards in recent years. In 1971, only one in three homes had central heating. By 1991, the proportion of homes with central heating had risen to more than four in five and ownership of homes with central heating continues to grow.

Moreover, in 1971, nearly one in four households still heated their homes with coal fires. By 1991, that proportion had dropped to fewer than one in 15. Nearly 80 per cent. of households now enjoy the convenience and increased efficiency of gas-fired heating. Similarly, the standard of insulation has improved dramatically in the past 20 years. The number of homes with insulated lofts has more than doubled from 42 per cent. to 90 per cent. The percentage with insulated cavity walls has increased tenfold in the same period and the proportion of homes with double-glazed windows has increased sevenfold.

Most households have derived the benefits of those improvements in increased comfort and, as a result of those improvements and the increasing use of domestic appliances, energy consumption has remained at broadly the same level. Without those improvements in insulation and in the efficiency of heating and other appliances, it is estimated that fuel consumption could have risen by 50 per cent. The switch from coal to gas has produced a significant reduction in carbon dioxide emissions and made a contribution to the substantial progress that we have achieved in meeting our climate change commitments under the climate change convention.

Our homes are generally much warmer than they were 20 years ago. That has direct benefits in comfort and health. Although housing conditions are not the sole cause of excess winter deaths, the fact remains that the number of such deaths has halved since the early 1970s. It is not unreasonable to assume that that is in part a reflection of improvements in the way in which homes are heated. Nevertheless, we recognise that while homes remain energy inefficient, some households will continue to face particular difficulties. That is why cold weather payments are made available to those who are most vulnerable in periods of cold weather. So far this winter, more than 5 million payments have been made, totalling £43 million.

We fully accept, as the report shows, that there remains a good deal to be done. The Government are pledged further to improve energy efficiency as part of our commitment to sustainable developments and to containing United Kingdom carbon dioxide emissions, taking into account resource and economic considerations.

The domestic sector is responsible for nearly 30 per cent. of carbon dioxide emissions. We have taken many initiatives to improve the energy efficiency of domestic dwellings. With the aim of increasing the energy efficiency of new housing and reducing carbon dioxide emissions, the Government amended part L of the building regulations dealing with the conservation of fuel and power in 1990, and again in 1994. The 1994 amendment extended the provision for energy conservation to the conversion of existing buildings. New homes are now highly energy efficient.

As the energy report shows, however, there are many vulnerable households living in older property that find it difficult to heat their homes adequately. The largest single programme in the Government's energy efficiency programme is targeted on those households. The home energy efficiency scheme provides grants for basic home insulation and advice for householders who receive an income-related benefit, a disability allowance or who are aged 60 or over. The budget is about £73 million in 1996-97, equivalent to about 400,000 grants.

Dr. Lynne Jones: Will the Minister explain why the Government did not honour their commitment to spend £100 million for three years after 1994-95?

Mr. Clappison: As the hon. Lady may know, that is linked to changes in the application of value added tax on domestic fuel. We have maintained our commitment to a substantial programme to help the households that I have described with home energy efficiency. The hon. Lady will be pleased to know that we have recently announced a 3 per cent. increase in the budget for 1997-98, to take spending up to £75 million.

The scheme is popular and well regarded, and has already helped more than 2 million households--10 per cent. of the stock--since it was set up in its present form in 1991. That represents 2 million low-income and disabled households which have been able significantly to increase their comfort levels and keep themselves warm. The environmental benefits of the scheme are, rightly, secondary to its social benefits. Even so, they are not negligible, as the measures are long lasting and will, over time, contribute significantly to reduced carbon dioxide emissions.

My hon. Friend the Minister with responsibility for energy efficiency recently announced significant changes to the home energy efficiency scheme to make it even better. From later this year we shall be introducing new measures, such as cavity wall insulation and heating control upgrades, in addition to the basic measures of loft insulation, draught proofing and pipe and tank lagging.

Home energy efficiency schemes will continue to provide a high-quality programme of improvements to the housing stock. In recent years, the scheme has been supported by other programmes of improvements, especially those promoted by the Energy Saving Trust in partnership with the electricity regulator and the regional electricity companies under the general title of standards of performance. We have recently announced further Government support for the Energy Saving Trust. About £71.5 million will be available to the trust from 1996 to the year 2000 to promote the efficient use of energy, an increase of £21.5 million on previous public expenditure plans for the years 1996 to 1999.

The Government have fully recognised the role that local authorities can play. Under the Home Energy Conservation Act 1995, which came into force in England in April 1996, local authorities are required to prepare and publish reports on the energy efficiency of all the residential accommodation in their areas. The reports must identify practical and cost-effective measures that will significantly improve the energy efficiency of those dwellings.

The Government have played a full part in ensuring that the aims represented by the Act can be achieved. We have issued guidance, prepared with the full co-operation of local authority associations and other bodies with an interest in energy efficiency, which has stipulated that a "significant improvement" will not be less than 30 per cent. Detailed assistance with the preparation of the report has been provided, including free software to help authorities to assess the housing stock in their areas.

As a further part of the framework supporting implementation of the Act, revised guidance to local authorities on developing and implementing effective energy efficiency strategies for all housing in their areas is in preparation. This will update and supersede the well received guidance that the Department first issued in 1993 on energy efficiency in council housing.

The result of the Home Energy Conservation Act will be a 10 to 15-year programme to bring about a comprehensive improvement to the housing stock. For the first time, statutory authorities have been given a duty to take energy efficiency seriously, and we have made it clear that we expect to see results.

The Act extends local authorities' sphere of influence into the private sector. It recognises the unique position of local authorities to bring a strategic oversight to energy issues. The great majority of homes are in private ownership, and that means that the responsibility for taking necessary action must rest with owner-occupiers and landlords. Local authorities, however, are well placed to encourage that action through information, advice, education and publicity, and the Act lays great emphasis on that. It also provides an opportunity for partnerships with a wide range of other agencies.

In addition to the activities to which I have referred, through the Home Energy Conservation Act, energy efficiency has also been achieved through the new estates renewal challenge fund competition. A total of £174 million was allocated in June 1996 under the first round of the scheme to 11 authorities to facilitate transfers of poor quality local authority housing to registered social landlords. Estates renewal challenge fund money is going towards essential improvements to the stock, which are necessary in many instances to bring homes up to modern standards and to make a transfer viable.

A number of round 1 schemes include measures such as new double glazing, roof insulation and insulation through the cladding of tower blocks. These and other such improvements will greatly improve the energy efficiency of the homes concerned. That will in turn improve the living standards of tenants, save them money in meeting heating bills and assist in making the estates attractive investments for the private sector. These are part of the wide range of activities that we are undertaking. There is also the work that we are doing through private sector renewals and the home improvements agencies, all of which is bearing fruit.

I hope that I have set out the positive measures that we are taking to improve existing stock. As I said at the outset, the starting point for the debate is the fact that much of our housing is relatively elderly.

I listened carefully to the hon. Lady's arguments. By implication--I noted this in passing--there was a strong and pronounced plea from the hon. Lady for additional public spending, including public spending on house building. She referred to the targets that have been set by the shadow Chancellor, but she knows that the activities that are to be funded through moneys raised through the windfall tax do not extend to house building.

Dr. Jones: Will the Minister give way?

Mr. Clappison: I shall not give way again.

The hon. Lady should know that we are meeting our target on social housing. It seems that she is making a plea for considerable increases in public spending in that area, as well as a diversion of expenditure from defence. It is not clear whether she wants a diversion of public expenditure or additional expenditure. The hon. Lady is nodding, which leads me to think that she is in favour of additional public expenditure. These are matters of interest. She made the charge that we have not spent sufficiently on social housing. She will know that we have set a target of 60,000 social housing properties below market rent, and we are achieving that without the additional spending and building that she seems to favour, which was a very pronounced feature of her speech. I hope that that fact will not be lost.

We have already achieved a great deal through a range of programmes and public spending and are bringing about a pattern of improvement that is--

Dr. Jones: On a point of order, Mr. Deputy Speaker.

Mr. Deputy Speaker (Mr. Michael Morris): I hope that it is a matter for the Chair.

Dr. Jones: The Minister is attempting to prevent me from making a contribution and from responding--

Mr. Deputy Speaker: Order. The hon. Lady knows that that has absolutely nothing to do with the Chair.

Mr. Clappison: I have given way to the hon. Lady once already.

I conclude by saying that we have done a great deal, and the objective interpretation of the report is one of improvements--

Mr. Deputy Speaker: Order. We must now move to the next debate.