HC Deb 29 April 1980 vol 983 cc1126-9
3. Mr. Winnick

asked the Secretary of of State for the Social Services if he will make a statement on the implementation of his proposals for help with fuel costs to those on low incomes, but not in receipt of supplementary benefit or family income supplement.

The Under-Secretary of State for Health and Social Security (Mrs. Lynda Chalker)

The package of measures announced by my right hon. Friend on 27 March directs substantial weekly help to the most vulnerable groups, that is, to those on the lowest incomes who are likely to incur large fuel bills. In current economic circumstances, the Government cannot contemplate going further than that.

Mr. Winnick

Is the hon. Lady aware that there is much disappointment among those on low incomes, because they will not receive any assistance towards paying their fuel bills? Does not she agree that the explanation for this is that they are not receiving supplementary benefits or FIS? Do the Government intend—at a time of never-ending increases in the prices of gas, electricity and other fuels—to give no assistance to those who are not in receipt of supplementary benefit or FIS?

Mrs. Chalker

As the hon. Gentleman knows, the increased package of over £200 million for the year 1980–81 is based on supplementary benefit and FIS. Some people may be better off on supplementary benefit than on their current housing allowance. There is an automatic award of supplementary benefit heating additions for those aged 70, and others. I understand the problem and anxiety, but in the present circumstances that is all that the Government can do.

Mr. Bowden

Will my hon. Friend discuss with her colleagues as a matter of urgency the possibility of including those who are in receipt of rent and rate rebates and who will not get the advantage of these increased fuel allowances? Will my hon. Friend accept that it is not a fair proposal as there is little to choose in many cases between those on rent and rate rebates and those on supplementary benefit?

Mrs. Chalker

There are about 3 million beneficiaries of housing allowance, including those on rent and rate rebates. To extend even £1 a week additional help to all 3 million would cost over £150 million. I understand what my hon. Friend is saying. However, advice in local offices will be readily available to those who have formerly been on housing benefits but might be better off on supplementary benefit. We shall do all that we can to see that help is available to those in greatest need.

Mr. Arthur Lewis

Is the Minister aware that many of these older and poorer people are having to turn to paraffin for heating and, in some instances, lighting? Is it possible for all local authorities to have a supply of paraffin, available at wholesale rates? This would not cost the Government anything. Local authorities would then be able to supply these people, who are having great difficulties in buying even paraffin, and it would be a terrific saving for them.

Mrs. Chalker

The hon. Gentleman will find that those who are in the greatest need are receiving substantial help of £50 per year towards their heating. The question of supplying paraffin at wholesale prices is not for me, but I believe that it would have serious attendant risks.

Mr. Nicholas Winterton

If my hon. Friend can do nothing about the problem of those receiving increased fuel allowances, will she at least assure us that the matter will be looked at in the coming financial year?

Is she aware that I attended the annual general meeting of the British Association of Retired Persons this morning, which is a thoroughly responsible and constructive organisation representing the elderly? Will my hon. Friend accept that that organisation feels strongly about this matter? Can my hon. Friend assure us that the Government will consider at an early date extending the allowance to those on rent and rate rebates?

Mrs. Chalker

I give my hon. Friend that assurance. As he will know, in the review of the supplementary benefits system the second aspect is the question of housing allowances. We shall further consider the real needs of these people in looking at those housing allowances. The Government are not unaware of the pressures or requirements to get the most help to those in greatest need.

Mr. Freeson

Will the hon. Lady confirm that the future housing allowance system will cover fuel costs? When will the results be announced of that further review? Will she also confirm that the Government intend to have a national scheme to deal with fuel poverty? Is the hon. Lady aware that the extra money could be obtained from the additional revenues that the Government have imposed on the gas industry?

Mrs. Chalker

In our review of housing benefits under the review of the supplementary benefits scheme we shall consider the type and amount of housing, as that affects the fuel needs of the elderly. The review is primarily of housing benefits, but fuel needs must come into it. I cannot give an exact date when the review will be complete, but I hope that it will be by the end of the year. We are spending over £200 million on the coming year's fuel help scheme, and we intend to see that it gets to those in the greatest need.