Pensions Bill

I am grateful for that intervention and will come to it at the end of my contribution. What will the Government do for people in fuel poverty? It is such a huge problem; we estimate that 3.5 million to 4 million households are already affected, and the figure could go up to 5 million. Among those affected are single occupancy households and really quite poor pensioners, and I do not forget single mothers, the disabled and the disadvantaged. My question to the Minister is: what do the Government intend doing to make similar provisions? This assumes a satisfactory negotiation of the regulations, which we will come to in relation to this Bill. Can the Minister give a clear indication that all the extra money provided ““voluntarily”” during the last Budget will not be absorbed by this particular group, important though it is? I now give some background. It was interesting that the Minister did not mention my own organisation, Ofgem, the gas and electricity markets authority. In April it held a fuel poverty summit, which I chaired. The important point is not that I chaired it but that there were five Ministers present, including one from Wales, two Secretaries of State and five of the six major energy suppliers. Of even greater significance, the front-line agencies that deal with this issue face to face were present. They had seen the worst of the issue and the breadth of the problems. All sides of the argument were in the room. The purpose of the summit was, not to tell the Government to supply more money, although my authority has been among those saying that, because fuel poverty is of such importance; rather, it was to say, crudely, let us try to get the best bang for the bucks, and to ensure that the money already in the system—both from the Government and others—is best used and targeted, and that the people who need it most are identified. From the summit, a few weeks later, a fuel action plan, involving all parties, was produced to try to tackle this—I will not burden your Lordships with the range of issues raised. I underline with passion—if I may use the word in this House—that it is important that this is dealt with now and in the future. What came very clearly out of the discussions was the need for government help in this area. While I understand the concern of the noble Lord, Lord Skelmersdale over the remaining half, it was vital that for the first time the Government were willing to address the problem of using the resources and information they have properly protected—an important point, again, to which I will come—for dealing with this. I draw noble Lords’ attention to Age Concern’s analysis; it gives a cautious welcome to the measure, precisely because of the DWP data that will help energy suppliers to identify those most in need, rather than the scattergun approach that tends to be taken. I hope all sides supported rapid progress with the measure. I pay tribute to Mr O’Brien for the measure he took and the speed with which he seized the opportunity to use this, if I may say so, slow-moving legislation to open a door that had been bolted as a policy issue and a methodology. What we need, of course, are regulations, hence the Bill. These are of central importance to identify who will be targeted—I understand that it is to be the over-70s on benefits, or perhaps an even older group. The figures are large even on that basis. Moreover, the data security will be protected not only from the Government’s point of view, but also from that of suppliers, because they will use the information to identify their customers in order that the two sides can meet. Thirdly, on how this system would operate in practice, I understand very well the concerns of noble Lords opposite about possible abuses. Indeed, in the past the Government have had one or two problems in this area. I am grateful for the confidence shown in my own organisation when it was suggested that it should be the intermediary between the two—the trusted third party to manage the process. I think I have convinced the Government that we are not the right body because we are not experienced in large data manipulation, but it is important that there should be a trusted intermediary capable of managing large amounts of data. That is not unusual; many organisations have such experience. The other aspect referred to by the noble Lord, Lord McKenzie, in moving the amendment is how suppliers will use this information. Perhaps I may deal with one or two of the points made earlier by other noble Lords. It is thought that everyone will somehow have their privacy invaded without their knowledge. That is not the intention; rather it is that individuals will have an opportunity to pursue the issue. They will be identified for the energy company if they agree to that; they will not be forced into it. The Age Concern data I have referred to emphasises that that should be of prime concern, and I agree. Elderly people need an explanation of what they are letting themselves in for. They need to be able to trust these companies, and in turn the companies need to be well aware that they must maintain the data properly. So it is not a scatter-gun approach that takes in everybody over a certain amount. It concerns only pensioners in receipt of pension credit who wish to benefit from this provision. Furthermore, the data will be handled carefully. However, the detail set out in regulations will be vital. There can be no confidence in a system that does not meet data privacy concerns, and it is essential that both the Government and companies have an agree on data privacy not only on the part of the companies but also by Government is essential and should be of reassurance to earlier contributors to the debate. I turn now to the other 50 per cent of people whom my noble friend was concerned about. To think that only old people face problems is quite wrong; there are dreadful problems if you have to use 10 per cent of your income to pay for heat and other appliances. This is clearly of grave concern; hence, my question to the Minister to encourage clarity on these issues: what next? If a satisfactory arrangement is worked out and a fuel company clearly identifies what it intends to do with the information, we must ensure that those not included in the Bill are still dealt with. The agreement announced recently in the Budget indicated that there would be an extra £225 million from the fuel suppliers over the next three years, an increase from £50 million a year to £150 million a year on social measures. That is to be welcomed, although almost all of it has probably been absorbed by recent price increases, while the anticipated further price rises make the problem even more difficult to deal with, and even more important. Perhaps the Minister could indicate, as I will, that fuel companies are not constrained by the £225 million. It is not a cap but an opportunity to develop still further. Their record is good, in my view, and they have tended to receive less credit than they deserve. Appeals to them to be more targeted in their advice have now also been honoured, and the challenge is also to the energy companies. If we have a problem that is not solved by further, long consideration of this Bill, I think that it will be regretted. I have one final, small point on the proposed new clause. A figure in its subsection (5)(b) refers to costs. Your Lordships may think it so particular that it need not be mentioned. The Secretary of State is, understandably, given the power to recover the costs. In fact, although as a non-lawyer I hesitate to enter this fray, the words could also be construed as implying that suppliers could, in some way, have their costs introduced. I mention that because, while the Government understandably need to finance their activities, the last thing that an elderly or disabled person in fuel poverty would want to read is that the sum of money devoted to social initiatives will drain away into costs. Some clear indication at a later stage, perhaps on Report, that this measure will be as cost-constrained and developed as it can be would be helpful. I support the amendment.