§ 11.40 p.m.
§ Sir John Rodgers (Sevenoaks)I count myself exceedingly fortunate to have secured this short debate on insulation of new and old houses. It is only a week ago that the Chancellor of the Exchequer was reminding us that next year we may face a slump on the scale of the 'thirties. He was urging the 1275 country to increase industrial investment and to achieve greater exports, but he added that both these goals had to be coupled with the necessity for an economy drive in the use of fuel.
Today the need for such a drive is highlighted by the results of the recent miners' ballot and the threat that if a Middle East war should erupt again we would be deprived of oil supplies. Finally, there is the hold-up and delay in the production of North Sea oil, even if we were to disregard the mortgaging of this oil now taking place through vast overseas borrowing by the Government.
It is on this aspect of fuel saving that I wish to speak. Few people seem to realise that nearly half of our entire energy consumption goes not into industry or transport but into heating houses and other buildings. In this country there are between 18 million and 19 million dwellings, of which roughly 15 million are houses or bungalows. About 5 million of these have some insulation, while 10 million are uninsulated. Of the insulated dwellings, 4 million have central heating. Of the uninsulated dwellings, 2¼ million have some central heating, while 7¾ million have no central heating at all.
It is estimated that our energy waste in heating alone costs this country £2,000 million a year. It is calculated that the 10 million uninsulated houses are wasting, annually, between 19 million and 20 million tonnes of coal or its equivalent in other fuels. This waste represents 14 per cent. of the total production of the National Coal Board for 1972–73. Most of these 10 million houses were built before 1966.
What about houses built since? Since 1966, when a minimal of 1 in, roof insulation was a statutory requirement, there has been some slight improvement. Even now it is calculated, however, that 5 per cent. of the output of the NCB—about 6 million tonnes of coal—could be saved. If the houses were insulated to a slightly higher level there could be a further saving of 2 per cent. That is 2½ million tonnes that need not be burned. In recent weeks several European countries have reported significant oil savings as a result of measures taken since the 1276 price of oil has risen five times above what it used to cost.
In Europe—I regret to say this—we are at the bottom of the league table in standards of insulation and heat use. We are wasting fuel at a staggering rate, involving millions of pounds each year. Our present statutory standards of insulation are appalling. Under our current building regulations we are still building houses to the worst thermal installation standards tolerated by any Western European country. The only countries in Europe with comparable standards are Greece, Italy, Turkey and Spain, but their normal climatic conditions are infinitely better than ours, as everyone will agree.
Our present housing insulation standard calls for the equivalent roof insulation of only 25 mm, which is roughly 1 in. This will now be increased to 50 mm, or roughly 2 in. Austria, France, Germany, the Netherlands and Switzerland have roof insulation standards of between 42 mm and 66 mm. Belgium, interestingly enough, has between 150 mm and 200 mm, while Sweden and Norway now have the high figure of between 250 mm and 400 mm.
Even so, this statutory 1 in roof insulation dates back only to 1966. Prior to that, all we had was a model byelaw introduced in 1958 by the late Sir Gerald Nabarro. The recent energy crisis has led to a greater discussion of this problem of wasted energy, but any sense of urgency is still lacking. Indeed, the crisis spirit of last winter has given way to dangerous complacency, and the importance of heat conservation seems to have been lost altogether, particularly by Ministers.
Recently the Secretary of State for Energy set up an advisory council under the chairmanship of Sir William Hawthorne. I greatly regret that the Conservative Government, following a debate in another place in February 1973, failed to do this, but perhaps the urgency then was not as apparent as it is today. Although the Government announced their plans for an advisory body eight months ago, it is only now that it is fully manned and starting its work. I do not think it is unfair to assert that this demonstrates a lack of a sense of urgency, and smacks of complacency and dilatoriness on the Government's part.
1277 The new standard of 2 in or 50 mm of roof insulation in new houses, whether private or belonging to local authorities, is totally inadequate today. I urge the Minister to consider at least 3 in or 75 mm, or even in 4 in or 100 mm, on economic and, more importantly, energy conservation grounds under the new powers given to the Secretary of State in making building regulations. I admit that when I tabled a motion a year or so ago I recommended only 3 in, but the need for more was not then so obvious. Today I urge the Minister to consider a minimum of 4 in.
The National Economic Development Office issued in June this year a report on the "Increased Cost of Energy". It called for higher standards of insulation in the form of 75 mm of roof insulation, proper insulation of cavity walls, plus double glazing and weather stripping. Britain, I believe, is the only country in Europe which allows naked cavity walls, which can lose 35 per cent. of the heat put into a house. Surely new building regulations should put a stop to this wasteful practice.
If, as I hope, the Secretary of State improves roof and wall standards, it is also important to make double glazing in new houses mandatory, as all the heat loss, other than by necessary ventilation, will then be concentrated on the glazing area.
I now turn to the question of the 10 million existing houses to which I referred earlier where the rapid growth of central heating installations bring with it a constant increase in loss of precious and costly fuel from inadequate insulation. The fuel industry, both nationalised and private, has adopted a responsible attitude in promoting the need for adequate insulation. The Government have made a start by specifying roof insulation as a requisite when applying for an intermediate improvement grant. But what plans does the Department have for encouraging the many millions of occupiers who do not need a bathroom, kitchen or inside lavatory? I should like to hear from the Under-Secretary what encouragement, if any, his Department will give to householders to improve the insulation of their houses.
In his Budget speech the Chancellor of the Exchequer went some way in en- 1278 couraging business to embark on better fuel saving in industrial buildings. He announced that he would raise the initial allowance for expenditure on insulation of these buildings from the present 40 per cent. to 100 per cent. That is at least a step in the right direction.
But in the domestic field the opposite is the case. There may be a case, on other grounds, for relaxing credit restrictions on all heating appliances, including extravagant electric fires, but no inducements have been given to encourage householders to improve the insulation of their houses, whether it be roof insulation, cavity wall filling, double glazing or draught excluders. The answer given by the Government—and I got it again from the Minister only yesterday—is that over a period the householder will recoup his expenditure in fuel savings. Bearing in mind that 25 per cent. of energy is for domestic use, surely it must be in the interests of the country and of the individual if the Government take some positive steps to encourage this.
I hope that the Under-Secretary of State will not take this as an offensive remark, but I believe that alongside him tonight should have been his Minister. I hope that he will go to his Minister and right up to the Secretary of State for the Environment and urge him to have talks with the Chancellor of the Exchequer on how best this inducement to improve insulation efficiency in houses can be provided. It would be greatly in the interest of the country to ensure maximum fuel saving.
I should like some form of grant, but in the present economic and financial situation I should be content if the Minister said that he would urge the Chancellor of the Exchequer when he brings in his next Budget—they seem to occur at three-monthly intervals—to allow a tax rebate on money spent on home insulation.
By common consent, improvement in insulation standards and practice is an area in which energy waste can be cut most quickly and practically for the benefit of the individual and, more important, of the nation. I hope, therefore, that the Minister, urged on by his advisory committee, will make rapid progress in encouraging householders to improve the insulation of their houses.
1279 I stress again that some form of Government inducement is necessary.
§ 11.51 p.m.
§ Mr. T. H. H. Skeet (Bedford)My hon. Friend the Member for Sevenoaks (Sir J. Rodgers) has raised an extremely important subject. I only regret that the Secretary of State for Energy is not here to listen to his arguments.
Unfortunately, the advisory group was set up rather belatedly. We must bear in mind that the crisis started in September 1973 and is still with us. Approximately one year has passed, and very few recommendations have been made to the public.
I endorse what my hon. Friend said about roof insulation. It is estimated that the use of only 1 inch instead of 2 inches of mineral fibre on the roofs of new houses will lead to the loss of £124 million during the 1960s and 1970s in wasted heat.
Taking the totality of houses in the private and public sectors in the United Kingdom, the insulating standards are very much below those which are mandatory in Sweden and Denmark. We have a long way to go and, because our tradition has been not to maintain good standards, it will take us a long time to catch up. Unless we provide a system of inducements—which should be fiscal—and broad publicity removed from the Department, unless buildings are redesigned and district heating is introduced, the country will be in great difficulty.
I am extremely obliged to my hon. Friend for raising this subject.
§ 11.53 p.m.
§ The Under-Secretary of State for the Environment (Mr. Gerald Kaufman)The hon. Member for Sevenoaks (Sir J. Rodgers) is known to have long taken a serious and constructive interest in the subject he raised tonight. So, indeed, has the hon. Member for Bedford (Mr. Skeet) whom I am pleased, even in his rather lonely state, to welcome to his position on the Opposition Front Bench. I regret, therefore, that both hon. Gentlemen have adopted a somewhat contentious tone.
The Conservative Government, as the hon. Member for Sevenoaks admitted, did 1280 nothing whatever about energy conservation. It therefore seems a little hurtful of the hon. Gentleman to reprimand my right hon. Friend the Secretary of State for Energy, who has set up the Energy Conservation Council. To have within eight months an Energy Conservation Council which has met several times is better than having no energy council after three years.
In addition, my right hon. Friend, as was made clear by my right hon. Friend the Chancellor of the Exchequer last week, is due shortly to make a statement on the Government's proposals for energy conservation. That is something which we did not receive during the three years and eight months in which the Conservative Party, which both hon. Gentlemen support, somewhat slackly held the reins of power.
I am sorry to think that both hon. Gentlemen are being rather hilarious in saying that the energy crisis has only just occurred. The hon. Member for Bedford has sat on the Government and the Opposition benches for years and issued authoritative warnings about the energy problems that would assail us. I have heard him on many occasions. The crisis did not arise just on 4th March 1974.
As both hon. Members have pointed out, insulation of housing is an important subject and is likely to remain so in view of the current energy situation. There are at present about 18 million homes in Engand and Wales, and it is estimated that they use the equivalent of 32 million tons of coal a year for space heating. By the end of the century there may well be about 25 million homes in existence.
At current levels of insulation and at present standards of heating, these homes will use the equivalent of about 46 million tons of coal a year. These figures take no account of the current trend towards higher heating standards. Since the average age of the population is increasing, and since older people need higher temperatures for comfortable living conditions, this trend is likely to continue to increase demands on energy.
There is no doubt that by increasing the thermal insulation standards of our housing we can make a significant contribution to the reduction of this increased demand on our energy resources. But, of course, the hon. Gentleman will accept 1281 that although, in the short term, thermal insulation of existing houses may produce the most immediate results, it is only one of a number of measures which offer scope for energy conservation in buildings. Moreover, we need to consider buildings in general, and not only domestic buildings, important as these are.
In the case of new or recently-built houses, especially those with efficient central heating systems, the extra cost of making significant improvements to the insulation can be small compared to the total cost of the building. For example, light-weight building blocks have better thermal insulation properties than more traditional materials used for the inner leaf of cavity walls, and the wall when built will cost no more than one built with brick or clinker blocks. In appropriate situations, cavity-filling foam or fibre insulation material can be used. In very exposed areas added protection is required. Cavity filling may cost between £50 and £110 for a typical family house.
But if energy costs continue to rise, the gain to many householders who install improved insulation will be considerable. If the public at large can be shown the financial benefits which can accrue from improved thermal insulation, we shall have taken a big step towards winning the battle. Some hon. Members may have seen our television publicity on this subject and our free pamphlets emphasising the cheaper, often "do it yourself", forms of insulation control. My Department has recently issued a very vivid one. The fuel supply industries have also been helpfully active in this field and we are grateful to them.
Although the economics of the situation are probably on our side, at least in the case of new and modern housing, there is a need to be able to exercise some measure of control in an area which is so important to the conservation of national supplies of energy. This may be especially necessary in commercial and industrial buildings, where energy costs are often still a very low proportion of total running costs.
The hon. Member for Sevenoaks will know that until very recently our statutory powers to make building regulations were limited to matters of public health and safety. As part of a general updating of building control legislation, there 1282 are powers in Part III of the Health and Safety at Work, etc., Act to make regulations specifically directed towards fuel conservation. We shall be able to deal with all types of building, not only dwellings, and my right hon. Friend the Secretary of State for Scotland has taken similar powers for Scotland.
Having obtained these powers, we are considering how best to use them. Thermal insulation is not the only way of helping to reduce the amount of energy used in heating dwellings and in buildings generally. We shall, for example, need to encourage the design of heating systems tailored for the purpose, and the provision of effective ventilation systems. Both improved design of buildings so as to reduce exposed areas and improved technology have their part to play in ensuring that energy is not used wastefully.
Meanwhile, we have, under our existing powers, taken steps to improve the thermal insulation of new houses. The proposals, broadly speaking, double the thermal insulation requirements for dwellings. For instance, a 50mm—2in.— thickness of insulating quilt or equivalent insulating material will usually be required in a conventional roof structure, compared with the present 25 mm.—1 in. These proposals have been circulated in accordance with the statutory consultation procedure with outside bodies. They have aroused much interest and general support.
I know that the hon. Member for Sevenoaks would like to go further.
§ Sir J. RodgersIt is a step in the right direction, but it is not enough.
§ Mr. KaufmanThe hon. Gentleman, who has some expert knowledge of the matter, as has the hon. Member for Bedford, knows that considerable technical questions are involved in going as far or as fast as he would like. There are questions of the accumulation of moisture. I see that the hon. Member for Bedford, who is expert in these matters, is nodding in agreement.
In addition to the support that we have received for the proposals that we are considering, we have also aroused opposition. That is inevitable.
As I know from the many letters which my colleagues and I have received, the 1283 House is well aware of the concern that has been expressed by two groups of the building materials industry which, for constituency reasons, is of great importance to the hon. Member for Bedford. I refer to the Brick Development Association and to many makers of lightweight aggregate concrete blocks. At the risk of over-simplifying their case, I think I can briefly describe it as a belief that our proposed standard for external walls will put them at a serious disadvantage compared with producers of other materials. They argue that if we introduced a considerably higher standard at once, instead of later, all could compete on an equal footing. We are still carefully considering these representations, and an annoucement may be expected soon.
Meanwhile, it is right that I should state some of the arguments on the other side. This does not mean that the decision will necessarily go to the other side. We are inclined to believe that many of the concrete block makers can in fact adapt their blocks, and we know of at least one considerable producer who has already done so. We should have to consult the industry afresh about any higher standards, which would cause considerable delay in introducing any improvements.
We are pretty sure that the industry can produce enough materials and has the necessary skills and techniques to meet our present proposals. But we are much less sure about its ability to meet any higher standard. Most important, it appears likely that, even at present fuel prices, the introduction of a very much higher standard of insulation would increase the cost of housing by more than would be justified by the resultant fuel savings. We realise that the matter is extremely important for the firms concerned, and we hope to reach a decision very soon.
Building regulations can affect only new dwellings or extensions or alterations to existing dwellings. Existing housing stock represents a more difficult problem, since not only are our older houses more difficult to insulate; they are often inadequately heated by modern standards. If improved heating systems are introduced into these dwellings on a 1284 large scale they might lead to an increase in fuel consumption, since the increased efficiency of the modern equipment could be more than outweighed by the higher temperatures achieved and the greater amount of space heated. It is therefore all the more important that improvements in heating older housing should be accompanied by improvements in thermal insulation and heating control.
As for house renovation grants, as was made clear in the Written Answer yesterday, under the provisions of the Housing Act 1974, applicants for either improvement grants or intermediate grants will normally be required to provide certain standards of thermal insulation in the improved dwelling before grant is payable. The relevant provisions come into operation on 2nd December. The precise standard will be specified in a circular which my right hon. Friend will shortly be issuing to local authorities, but I can inform the House that the standards will be those applicable to roof spaces under the Building Regulations in force at the time of grant approval. In other words, if the grant is made when the present regulations are in force, the present standard of 25 millimetres of insulation will apply. But if, when the grant is given, we have amended the building regulations on the lines of our circulated proposals, and the standard has been increased to 50 millimetres, that standard of insulation will have to be provided.
The Government are urgently considering ways in which energy savings can be achieved. The possibility of introducing special incentives for the purpose of thermal insulation in existing houses would, of course, have to be looked at. The importance of insulation, both in terms of greater comfort and possible fuel savings, cannot be denied, but it is important not to overlook the fact that the cost of basic roof insulation in a house is relatively inexpensive and could be recovered fairly quickly through reduced expenditure on fuel.
In general, and without prejudice to the considerations I mentioned a moment ago, the Government do not believe that the house renovation grant system is an appropriate way of providing whatever help may be found to be necessary. To do so would be to divert those resources needed to deal with bad housing conditions and would not fit the legislative 1285 framework recently enacted in the Housing Act 1974.
The fact that a house will henceforth have to be adequately insulated in its roof-space before a grant can be paid will ensure that considerable numbers of older dwellings will be dealt with in precisely the manner that the hon. Gentleman has been advocating.
As I have said, the Government are also looking at the possibility of introducing specific incentives for this purpose, but the arguments, as I am sure the hon. Gentleman will agree, do not point overwhelmingly in one direction, because of the fact that owners—the hon. Member for Bedford has concurred with this as I have been speaking—can expect to recoup their costs by way of savings on fuel.
What is clear, however, is that the house renovations grant system is not the right vehicle on which one should seek to load this particular burden. Its objectives are not concerned with energy conservation. For example, grants cannot be made to houses built since October 1961 or to owner-occupied houses above a certain rateable value—often precisely the houses which are centrally-heated and where the biggest fuel savings might be made. I can inform the hon. Gentleman that the circular which will be issued next week will prohibit the payment of house renovation grants to any owners other than to the elderly or disabled who might not be able to meet the initial cost of insulation without hardship.
We have in hand an urgent study of fuel conservation in all buildings, not merely housing. The object is to identify the types of building and the technical means likely to produce most savings and the practicable feasibility of achieving them. This involves assessing the likely national pattern of energy supply over a considerable period, since buildings obviously tend to last a long time. It also involves considering both short- and long-term action. The possibilities include not only thermal insulation in its various forms but other courses which might be of equal or even greater benefit. I cannot forecast the extent to which housing will be identified as deserving priority over other building types or whether thermal insulation will appear more urgent than, say, improving ventilation or heating and lighting systems.
1286 The Department also has in hand a number of longer-term research projects in which the Building Research Establishment and the Housing Development Directorate are naturally playing leading parts. We are, for example, collaborating with local authorities and universities in the construction of buildings with exceptionally high standards of thermal insulation.
The purpose is to assess the reactions of occupiers and, in particular, to identify the resulting fuel savings as against increases in heating standards and other comforts. We shall be incorporating controlled ventilation in some of the houses to see how much fuel it saves and whether occupiers like it. At the same time, we shall be trying to identify any technical problems which might arise—condensation, for instance—and we are looking into the potential cost saving from the smaller heating systems that can be installed in highly insulated houses.
We are also, in association with other Departments, looking into the possibilities of district heating from various energy sources, including the waste heating from electricity generation and refuse incineration. Among longer-term projects we are hoping to sponsor research into the use of solar heat in domestic housing and in the development of what is rather quaintly known as an autonomous house where waste heat and other products may be recycled to provide heating and other services.
It is difficult, of course, to present a complete picture. I have not, for example, touched on the possible environmental problems which might arise from the design of buildings with the minimum of exposed external surfaces. But I hope it is clear from what I have said that the problem of fuel conservation in buildings is very complex and its solution cannot be limited either to dwellings only or to thermal insulation only.
I assure the hon. Gentleman that we emphatically agree on the considerable scope that exists for saving energy by improving the thermal insulation of dwellings. For existing dwellings this must be achieved chiefly by the voluntary efforts of home owners, stimulated by the undoubted financial benefits which can often be secured. We shall do our best to publicise this. For new or newly 1287 altered or extended housing, this would be furthered by the improvement in the Building Regulations on thermal insulation, already proposed under our existing powers, and by further improvements, possibly to other parts of the Building 1288 Regulations, under our new powers. We shall take action just as soon as we have decided what is the best thing to do.
§ Question put and agreed to.
§ Adjourned accordingly at nine minutes past Twelve o'clock.