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Oral Answers to Questions
(1 month, 4 weeks ago)
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Dr Simon Opher (Stroud) (Lab)
Mr Alex Barros-Curtis (Cardiff West) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
In 12 weeks, this Government have hit the ground running for our 2030 target by ending the onshore wind ban in place for nine years under the Conservative party, consenting to more nationally significant solar projects than in 14 years of the last Government, and overseeing the most successful renewables auction in history compared with the Conservatives’ disastrous auction round that crashed offshore wind. This is a Government in a hurry to meet our mandate from the British people, and we are just getting started.
Dr Opher
I thank the Secretary of State for his really rapid action to reach our 100% sustainable goals by 2030. It has developed a real excitement in this country, and the people I speak to are genuinely behind this action. In Stroud, we are developing a community energy programme of putting solar panels on every school and public building that agrees to it. What steps is he taking to support solar on schools and public buildings, and can he ensure there are no barriers to progress?
Ed Miliband
My hon. Friend is absolutely right about the importance of both rooftop solar and ground-mounted solar. I can tell him that, as part of Great British Energy’s plans, we want to work with local schools, local hospitals and, indeed, local leaders to have a solar panels programme, because this is a way to rapidly decarbonise and to save money off bills.
Mr Barros-Curtis
I thank the Secretary of State for that answer. Cantonian high school in my constituency of Cardiff West will be the first Cardiff school to be operationally net zero in line with Welsh Government standards, while the building work itself will feature a significant reduction in embodied carbon. Fairwater community campus will be a collection of highly energy-efficient buildings that are powered from renewable energy sources, helping Cardiff to deliver on its One Planet strategy, which outlines the city’s ambition to mitigate climate change. Will the Secretary of State join me in celebrating the development, and agree with me that this sort of collaborative vision is required to deliver on our net zero commitments both here and in Wales?
Mr Speaker
Order. Just to help everybody, the hon. Gentleman is meant to go through the Chair, but he was looking at the Secretary of State. As good looking as the Secretary of State is, it is easier if the hon. Gentleman speaks to me, and then I can pick up what he says.
Ed Miliband
Thank you very much, Mr Speaker—and you, too, if I may say so. [Laughter.]
I congratulate my hon. Friend, but particularly the Fairwater community campus on the work it is doing. I think he highlights a very important issue. By helping to decarbonise public buildings, including schools, we help not only to cut our carbon emissions, but, crucially, to save money for those schools that they can then use for frontline services.
Neil O’Brien (Harborough, Oadby and Wigston) (Con)
The previous Secretary of State commissioned the Department to produce a full economic costing for getting to a fully decarbonised renewables-based grid by 2030, as the Secretary of State wants. That is obviously the sort of information that should be placed before the House so that we can have an informed discussion. It may be a good thing to do, but we should obviously know what the cost is. When will the Secretary of State publish that information?
Ed Miliband
Of course, that work is ongoing—in fact, I think the right hon. Lady the shadow Secretary of State has written me a letter about it—and we will be announcing our plans in due course.
Mr Andrew Snowden (Fylde) (Con)
In my constituency, two major offshore wind farms are currently being developed: Morgan and Morecambe. I recently met nearly 100 farmers who will be directly affected by the cabling corridor and the substation plans for the cabling route to connect to Penwortham. I am working with the hon. Member for Blackpool North and Fleetwood (Lorraine Beavers) on a potentially better route through her constituency, which would mean a major economic development revitalising an industrial area that has been looking for a major energy project for some time. We are jointly writing to the Secretary of State, and may I ask if he would commit to working with us on at least assessing that potentially alternative route for the cabling corridor?
Ed Miliband
The hon. Gentleman—and he knows this—will obviously want to stand up for what he sees as the best benefits for his constituency. I will be cautious about what I say, because there are proper procedures for planning decisions, including my quasi-judicial role. I will make this general point to the House, because I think this may well be a recurring theme during questions, but if we want to get off the dangerous exposure to international fossil fuel markets, which we were left with by the last Government, we need to build the grid. Every solar panel we put up, every wind turbine we put up and every piece of grid we build will help to deliver energy security for the British people.
Mark Garnier (Wyre Forest) (Con)
Not only is the Secretary of State a very good looking fellow, but we in this House all know that he is an incredibly hard-working and very open Minister, as indeed are his whole team. So I know that the reason he has not replied to my letter of 11 September is that he and his team will be working their socks off to get a full and open answer to all my questions. He has already made reference to one of my colleagues and said that he will produce “in due course” a full systems cost analysis. May I stress that it is incredibly important that we in this House have that systems cost analysis as soon as possible, so that not only can we analyse his ambitious plans for carbon-neutral targets, but we can also explain to our constituents exactly how much it will cost them in their bills to deliver his target?
Ed Miliband
Let me tell the hon. Gentleman a little about the situation that we inherited from the last Government, because it is very relevant—obviously, he was not a Minister in that last Government. We inherited a situation where there was no plan: no plan for their target of 95% clean power by 2030, no plan for their target of clean power by 2035, and no plan to avoid a repeat of the worst cost of living crisis in generations. This Government are developing a plan and will publish it in due course.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
Chris Vince (Harlow) (Lab/Co-op)
Paul Waugh (Rochdale) (Lab/Co-op)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
This Government believe that we can only ensure climate security for further generations in the UK if we lead globally. That was the message of the Prime Minister at the United Nations General Assembly with our world-leading 2030 clean power plan, no new oil and gas licences, and playing our part in reforming the global financial system. Next month I will be attending the COP29 talks in Azerbaijan to stand up for Britain’s interests.
Johanna Baxter
It is brilliant to see the Secretary of State commit to putting climate diplomacy back at the heart of Cabinet, and I know he will bring a great amount of experience to that role. Sir David Attenborough has repeatedly warned that our planet hangs in the balance, so will my right hon. Friend explain to the House what he will do to ensure that Britain is once again a main player on the world stage in tackling the climate emergency? Will he meet me and representatives from my constituency of Paisley and Renfrewshire South to discuss the work that they are doing on rewilding, in an effort to play their part in tackling the climate emergency?
Ed Miliband
It sounds like my hon. Friend’s constituents are doing important work. She is absolutely right. The last Government used to say that we have only 1% of global emissions, as if that was a sort of excuse for inaction on the world stage. We see it differently. We see that only by leading at home can we provide the platform to lead internationally. This Government have in a few short months put Britian back on the world stage on climate, and we will be working with our best endeavours to ensure that we tackle the situation we have inherited—I am afraid the world is miles off track for keeping global warming to 1.5°.
Chris Vince
Thank you Mr Speaker—I’ve done the training. I welcome the Secretary of State’s warm words about our leadership on international climate issues, which is in stark contrast to the previous Government’s failings. I also publicly welcome his recent visit to Harlow college—less said about the racing game, which he won, the better. Does he agree that it is only thanks to the commitment shown by the new Government to drastically deliver on climate change issues that we can lead on a world stage?
Mr Speaker
Neatly done, although it was a little long. Come on Secretary of State.
Ed Miliband
My hon. Friend did very well, and I agree with him. Part of the problem with the last Government—I do not doubt that there were people making good endeavours—is that when we do something different at home to what we preach internationally, such as say we are going to power past coal by opening a new coalmine, people say, “Well, you are saying one thing and doing another.” Consistency is the absolute foundation for global leadership.
Paul Waugh
I welcome the Secretary of State’s commitment to our international obligations, whether that is clean power lines or our own strong domestic climate policies that will help areas such as Rochdale, with billpayers in recent years facing the grim possibility of high bills. This will make a huge difference, and the obvious comparison with the previous Government is there for everyone to see. Will he outline to the House what further steps he is taking on the global stage at both COP29 and COP30 to increase our global reach on climate?
Ed Miliband
I will say one thing in particular to my hon. Friend. The Prime Minister said at the United Nations General Assembly that we will be unveiling our nationally determined contribution—our target for 2035—at COP29. We are doing that because the danger is that the world settles into a low-ambition equilibrium when it comes to tackling these issues. By having a 1.5º aligned target, we hope to set a good benchmark and a good example for the world.
Munira Wilson (Twickenham) (LD)
The Climate Change Committee has said that there should be no more than a 25% increase in airport capacity, compared with 2018 levels, if we are to achieve net zero by 2050, yet current planned and recently approved airport expansions will allow for a 50% to 70% increase in demand. Can the Secretary of State explain why Ministers in the Department for Transport are considering giving a green light to a third runway at Heathrow? How on earth will that allow the country to meet its net zero targets?
Ed Miliband
The beauty of carbon budgets and the system that was introduced when I was last in government—to be fair, it was carried on by the previous Government of the past 14 years—is that they do at least in theory constrain what the Government do. It is very important that we take carbon budgets seriously in our plans. The plans we inherited from the last Government were way off track for meeting our carbon budgets, which is what this Government will do.
Jim Shannon (Strangford) (DUP)
I very much welcome the Secretary of State to his place. Climate change is real; it is not a myth. The quicker that everyone understands that, the better. Can I pose a question to the Secretary of State on rewilding? There are some suggestions among experts that rewilding by planting trees on moor and heather might not be the most constructive way of utilising rewilding. Has he had an opportunity to look at the issue of rewilding on moors and heather, which I understand that many experts think is detrimental?
Ed Miliband
I take the hon. Gentleman seriously on these issues, and I undertake to write to him or to have one of the Ministers write to him. I make the general point that rewilding and nature-based solutions are an essential part of tackling the climate crisis.
Tim Farron (Westmorland and Lonsdale) (LD)
International trade deals are a great way of using our leverage to make sure we advance our agenda on things such as tackling climate change. The previous Government let Britain down massively, conducting trade deals that let us down on farming, on food production and especially on climate change. Will the Secretary of State ensure that this Government use the creation of new trade deals to advance our agenda on tackling climate change?
Ed Miliband
Yes, and that is something I am already discussing with my right hon. Friend the Business Secretary.
Joy Morrissey (Beaconsfield) (Con)
May I congratulate the Secretary of State on his appointment of Rachel Kyte as his climate envoy to support his work with international partners? Before her appointment, did the Secretary of State declare to officials her links with Quadrature Capital, which donated £4 million to the Labour party? Also, did he declare her links to the Green Initiative Foundation, which gave him £99,000? A yes or no answer will suffice.
Ed Miliband
All the proper processes were followed by the Foreign Office, which was in charge of the appointment. I have to say that this is a very sad reflection on the Conservative party. Rachel Kyte is an esteemed person who is recognised for her leadership, and all the Conservatives can do is fling around baseless allegations.
Mr Gideon Amos (Taunton and Wellington) (LD)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
After nine years of the disastrous, bill-raising ban on onshore wind in England, this Government overturned the ban in our first 72 hours in office. We have also set up the onshore wind taskforce to restore the pipeline of projects destroyed by the last Government. In the recent renewables auction, almost 1 GW of onshore wind was secured at prices that make it among the lowest-cost power sources to build and operate.
Mr Amos
When will the Secretary of State bring forward proposals for community benefit for those living alongside wind and solar farms to greater incentivise the permitting of wind and solar farms, including Ham solar farm in my constituency? Will that include a minimum level of compensation for the communities affected?
Ed Miliband
I am sympathetic to what the hon. Gentleman says. We are working on proposals on community benefit. I believe that when communities host clean energy infrastructure, they should automatically get benefit from it. I am also sympathetic to what he said about minimum levels of support. We are discussing that with industry at the moment and will come forward with proposals soon.
David Pinto-Duschinsky (Hendon) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
The energy shocks of recent years have laid bare the exposure of our energy system to the international fossil fuel market. That is why we have started a mission to reach clean power by 2030, to end that reliance and ensure that the British people never again go through the sort of cost of living crisis that they have faced in recent years under the Conservatives.
David Pinto-Duschinsky
People across Hendon have paid the price for the previous Government’s failure over the last 14 years to invest in our energy system. Does the Minister agree that the only way to get us off the rollercoaster of high bills is to invest at pace and scale, as the Government are doing through our clean energy mission?
Michael Shanks
I completely agree. The only way to permanently protect hard-working families and businesses from the high energy bills from which many are still suffering is to get ourselves off our reliance on the volatile fossil fuel markets. That is why we are rolling out at pace and at scale the clean power necessary to do so, which not only gives us energy security but creates good jobs, brings down bills and helps us to tackle the climate crisis.
Lee Anderson (Ashfield) (Reform)
The Secretary of State will be aware that 25% of the UK is situated on top of coalmines, which can provide geothermal energy to heat houses and businesses in places like Ashfield. Will the Minister meet me to discuss how we can make that work in coalfield communities?
Michael Shanks
I very much welcome the hon. Gentleman’s question—which I must say is somewhat of a surprise. I will absolutely meet him to discuss that. We have been clear that any technologies can be part of the solution and, if that can be part of the picture, I will meet him to discuss the options and the technology more generally.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
One of the ways in which we can increase energy security is through community-owned and co-operative energy schemes. They give greater control to local people, who get a say in where profits go, and crucially they build resilience from international energy markets. Will the Minister say a bit more about where community-owned energy will fit into the energy security plan?
Michael Shanks
I thank my hon. Friend for that incredibly important question. Community energy has so many benefits in our energy mix, including giving communities a stake in our energy future. We also know that there are many social and economic benefits that come from that. We are committed to our local power plan, which will deliver investment in community-owned projects. Great British Energy will have a key role to play in supporting communities, capacity building and in that initial funding to help them deliver these projects.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
Could I invite the Minister to meet a cross-party group of MPs from the east of England to discuss how the review conducted by the electricity system operator can contribute to energy security and in particular to look at how undergrounding high voltage direct current cables could be cheaper in the long term than pylons and more efficient for achieving net zero? Will he agree at least to have a meeting with us on that basis?
Michael Shanks
I am always happy to have meetings with any right hon. and hon. Members across the House on a range of issues, so I will take that away. The evidence suggests that undergrounding is five to 10 times more expensive and that actually it can have more of a damaging impact on nature and natural habitats than pylons. The important thing with all of this is that this is nationally important structure, which is necessary for us to get to the targets that we want to get to. I know that the hon. Gentleman takes that seriously, and I will meet him and others, but we have been clear as a Government that we will build this infrastructure if it is necessary.
Luke Myer (Middlesbrough South and East Cleveland) (Lab)
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
The Minister for Industry (Sarah Jones)
The Government have two key missions: to become an energy superpower, and to grow the economy. Great British Energy will help us deliver on both those missions. The Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), will be taking the Great British Energy Bill through Committee today, and I am excited for the job creation potential in our industrial communities. From engineers to welders, and from electricians to project managers, Great British Energy will be powered by people across all the nations and regions of this great country.
Luke Myer
I welcome the Minister’s response and last week’s fantastic announcement about track 1 carbon capture investment in Teesside. Teesside has extraordinary potential for green jobs, whether in sustainable aviation fuel with Alfanar or in carbon capture, hydrogen and so much else. Does the Minister agree that only with Labour’s plan for clean power by 2030, Great British Energy and our national wealth fund can we create well-paid long-term jobs in the industries of the future?
Sarah Jones
I agree with my hon. Friend, and I thank him for his support. I doubt anybody would disagree with him on the benefits of our announcements on carbon capture and storage, which will create 4,000 jobs in the short term, with carbon capture more broadly creating up to 50,000 jobs over the next decade or so. [Interruption.] The Opposition Front Benchers chuckle, but I wonder whether, instead of dismissing that number of jobs, they might welcome them alongside Government Members. Alongside carbon capture, Great British Energy, our national wealth fund and our British jobs bonus, we are putting in place the levers to encourage growth across our country, and the Climate Change Committee estimates that up to 725,000 net new jobs could be created in low-carbon sectors by 2030.
Mrs Brackenridge
Does the Minister agree that GB Energy is a fantastic opportunity for Wolverhampton North East to capitalise on the opportunities for research and start-ups on our forthcoming green innovation corridor and to put Wolverhampton North East back where we belong: at the heart of industrial growth and British industry?
Sarah Jones
I agree with my hon. Friend: it is a fantastic opportunity. Publicly owned Great British Energy will partner with industry to help us to deliver our mission of clean power by 2030. I have been reading about the green innovation corridor, and I am interested to see what it will deliver. Working in partnership with the private sector, we can rebuild jobs across the west midlands and far beyond.
Mr Peter Bedford (Mid Leicestershire) (Con)
Does the Minister agree with the head of the GMB union that the Government’s plans to ban new licences for oil and gas will result in exporting jobs and importing virtue?
Sarah Jones
I agree with the GMB in its warm congratulations for our announcements yesterday to deliver carbon capture and storage across the country. We are of course working closely with our trade union colleagues. It is interesting: in opposition, the Conservatives suddenly quote the unions, when they refused to even meet them in government. We work very closely with the GMB and all our trade unions to ensure that we have a just energy transition and that we are creating the jobs and skills of the future by becoming a clean energy superpower.
Debbie Abrahams (Oldham East and Saddleworth) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that people are worried about their energy bills going into the winter and that, for a growing number of people, energy is simply unaffordable. We are absolutely determined to take this affordability issue and tackle it head on. There are many different ideas about what a social tariff could look like, and it means different things to different people. We are clear that we will tackle the affordability question and look at the full range of options available to us. But our priority—my priority—this winter is to ensure that families struggling with bills have support through our warm home discount scheme, and to work with energy suppliers to provide support.
Debbie Abrahams
I am grateful to my hon. Friend for her response. I absolutely recognise that energy prices over the last few years have escalated, putting particular pressure on households with low incomes and also those with high energy needs, such as disabled people and pensioners. I agree that the warm home discount scheme is valuable, but it is limited and I am concerned for people with high energy needs but on low incomes, who might fall foul of the system as it stands.
Miatta Fahnbulleh
We have been working flat out with energy suppliers to ensure that they are providing additional support to families who will struggle with bills this winter. In August, I met all the suppliers, and there was a shared commitment to do everything we can to support vulnerable households. We have been working with them, the industry body, Ofgem and Citizens Advice to ensure that there is a proper package of support in place this winter so that we can support families who we know are struggling with their bills.
Sir Desmond Swayne (New Forest West) (Con)
Would it not have been better to put that proper package of support in place before the Government withdrew the winter fuel allowance from so many pensioners?
Miatta Fahnbulleh
We are having to clean up the mess that the Opposition left us. Yes, we have means-tested the winter fuel payment, but we have also been clear that we will do everything we can do to support vulnerable households. That is why we have extended the take-up of pension credit and the household support fund, and we are working flat out with energy suppliers to provide additional support to all vulnerable households this winter.
Rachael Maskell (York Central) (Lab/Co-op)
I thank the Minister for her work. Warm home prescriptions can target that support towards elderly people and those with underlying health conditions, saving our NHS as well as keeping people warm over the winter. The pilot has shown real benefit. Will she meet me to discuss that and other options to keep old people warm this winter?
Miatta Fahnbulleh
We want to work with anyone who will help us reach vulnerable households. I am very happy to meet my hon. Friend to look at the full range of options available.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Ofgem’s review of standing charges options paper closed for submissions on 20 September. Can the Minister offer any hope for bill payers in Scotland that they will stop being penalised with the highest standing charges on these islands? When will we see lower charges?
Miatta Fahnbulleh
We as a Government are committed to getting down standing charges. Ofgem has consulted and will report back in due course.
Joe Morris (Hexham) (Lab)
Laura Kyrke-Smith (Aylesbury) (Lab)
Dr Rupa Huq (Ealing Central and Acton) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We are running to deliver our warm homes plan, which will upgrade homes across the country to make them warmer and cheaper to run. We will set out the full plan in the spring, but at the heart of it will be an offer of grants and low-interest loans to support families to invest in insulation, low-carbon heating and home improvements. Critically, alongside that, we are committing to boosting minimum energy efficiency standards for private rented homes and social housing, to tackle fuel poverty.
Joe Morris
I thank the Minister for her answer and for her commitment to the warm homes plan. I congratulate her on the announcement over the conference recess to end the scandal of cold, draughty homes in the rental sector, which particularly affects people in my constituency in towns such as Haltwhistle, Throckley, Newburn, Hexham and elsewhere. Does she agree that often the very poorest in our communities are forced to live in those cold and draughty properties, and it is important that we cut bills and give those families energy security?
Miatta Fahnbulleh
I agree. One in four households in the private rented sector is in fuel poverty. We need to bear down on bills. Our commitment to improve and boost minimum energy efficiency standards will lift 1 million renters out of fuel poverty. We are determined to do this alongside our bigger package to deliver clean power by 2030, which will drive down bills for everyone.
Laura Kyrke-Smith
People across my constituency are worried about how they will afford to heat their homes this winter. I was shocked to hear the former Energy Minister, now shadow Minister, admit that his Government should have gone “further and faster” on insulating homes, which will certainly help. Does the Minister agree that this is an admission of failure by the previous Conservative Government, who have left working people to pay the price? Can she reassure my constituents that this Government will do better?
Miatta Fahnbulleh
I completely agree. The legacy left to us by the last Government was woeful. Ordinary people—families across the country—have paid the price of that legacy. We are clear that we will do and must do better. Our warm homes plan will kickstart the upgrades that we need across the country so that we can deliver warmer homes that are cleaner to heat.
Dr Huq
Millions of cold, draughty homes need updating UK-wide, so it is great to hear that there will be a proper plan, rather than the itty-bitty approach of spraying bits of money here and there. In the plan, will the Minister look at the fact that there is no national retrofit advice service in the UK? Can the Government rectify that? They could take a leaf out of Sadiq Khan’s book, because his service in London has helped 24,000 households.
Miatta Fahnbulleh
I agree with my hon. Friend. There is a critical role for national advice to ensure that people can access support and know the range of interventions available to them. We will be looking at that as we look at our warm homes plan. We are very clear that it will be a comprehensive plan that will deliver the upgrades we need to see across the country.
Mr Richard Holden (Basildon and Billericay) (Con)
One of my low-income pensioner constituents had a solar panel installed on their home through a Government scheme. However, they are now facing an issue with birds nesting in it, which is causing a huge amount of problems because the scheme does not come with protection. Will the Minister agree to meet me about this constituency issue, because it is really affecting one of my older constituents who, sadly, has also just lost her winter fuel payment?
Miatta Fahnbulleh
Yes, I will agree to meet to discuss the range of things we can do.
Ellie Chowns (North Herefordshire) (Green)
I very much hope the Secretary of State and his Ministers agree that if we are serious about energy security and net zero, we must be serious about energy efficiency. What steps are they taking, in addition to working on insulating existing homes, to ensure that the promised 1.5 million new homes are built to net zero standards, have solar panels on the roof, and are fully insulated so that every new home is a warm home?
Miatta Fahnbulleh
We have an ambitious plan to build more homes. We want those homes to be fit for the future. We will put out information in due course on the standards we want across those homes, but we have an opportunity to do insulation, energy efficiency and homes that are fit for the future, at the same time as building the homes we need.
Wera Hobhouse (Bath) (LD)
Local authorities play an important role as trusted sources of knowledge and expertise, and guide householders, for example, to trusted installers, but they need the resources to do that. Will the Department devolve some resources to local authorities to fulfil that important role?
Miatta Fahnbulleh
We see local and regional government playing an absolutely fundamental role to reach homes that we need to upgrade, but also to help us deliver the scale of ambition we want. Local and regional government will be a key part of our warm homes plan.
Pippa Heylings (South Cambridgeshire) (LD)
Keeping vulnerable people warm and lowering their energy bills is, I am sure, something we can all agree on across the House. Insulating homes is a key part of that puzzle. We welcome the news that we will see the warm homes plan in spring. However, does the Minister agree that ahead of this winter we need an emergency home insulation plan, particularly for the vulnerable, along with allocated funding? Does she have any idea of the amount and allocation of funding in this Parliament that there will be for insulating homes?
Miatta Fahnbulleh
We are really clear that as we develop our plans we absolutely need to get on with the job of upgrading homes. We have announced our warm homes local grant and our warm homes social housing fund, which are targeted at low-income families, because we know there is a job of work to do. We are committed to an additional £6.6 billion to invest in our warm homes plan over the course of this Parliament.
Carla Denyer (Bristol Central) (Green)
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
We are committed to accelerating the just transition for workers in Britain to boost our energy security and ensure good, long-term jobs, especially in North sea communities. We will work with them and other industrial regions to develop a plan, ensuring those workers are the people who decarbonise our country.
Carla Denyer
I thank the Minister for her response. Unfortunately, the unjust transitions we are seeing in Grangemouth and Port Talbot are a damning indictment of the lack of a proactive approach to a just transition over the last few years. Tomorrow at the Treasury, over 50 major unions and climate groups will be calling for a new approach to the energy transition where, instead of just de-risking private profit, there is a governmental ringfenced funding package for North sea oil and gas workers, including help with skills and job creation. Will the Secretary of State or Ministers please meet the Chancellor of the Exchequer to ensure that those ringfenced funds are secure, so that we can stop betting on the industry to do the right thing?
Sarah Jones
Last week was the historic week when 142 years of coal-fired electricity generation came to an end, and this week we have announced the new era of carbon capture and storage. We will work in a different way from the last Government, adopting a proactive approach to ensure that the transition works for people and that we create new jobs as well. At Grangemouth we provided a package of support for workers, and at Port Talbot we managed to negotiate a better deal than the last Government. We will use all the levers that we have—Great British Energy, the national wealth fund, the British jobs bonus and the office of green energy jobs that we have set up—to ensure that we get the transition right.
Charlotte Nichols (Warrington North) (Lab)
The Secretary of State and the Minister will know that civil nuclear has a higher employment multiplier than any other form of zero or low-carbon energy generation. As part of the transition from high-carbon sectors, what specific measures are the Government taking to retrain workers and transfer skills into the nuclear energy industry, thus ensuring that they benefit from job creation in this growing sector in my constituency and throughout the country?
Sarah Jones
Obviously the last Government did nothing about nuclear in 14 years, apart from coming up with a plan. We will ensure that nuclear is an important part of our country’s future, and we will be working to provide the right skills and jobs in the right places to deliver that.
Tessa Munt (Wells and Mendip Hills) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
We are halving the development time for new transmission infrastructure through reforms of planning, supply chains and other areas, delivering the grid capacity that is needed to achieve clean power by 2030 and meet a doubling of electricity demand by 2050.
Tessa Munt
Communities are doing their very best, and lots of people are trying to help each community to power itself. My own village has its community solar project, which was fully funded by local residents. There are non-profit organisations which have dealt with local schemes by putting solar panels on schools with an element of community ownership, and there are individuals who try but are faced with extortionate costs for connection to the grid. The grid was really designed for big old power stations rather than smaller power creators trying to plonk power into the system. What can the Minister do to encourage National Grid to pivot, and help communities and individuals to create their energy nearer to their homes?
Michael Shanks
The hon. Lady is right to draw attention to the importance of community energy projects throughout the country. We want to see many more of them, but we have inherited a grid that needs significant upgrading, and we are now working apace to ensure that that happens. Part of the work that I have been doing with National Grid and others involves trying to identify the next steps that are needed to shorten the connections queue, and also to make it more affordable for smaller community projects to connect. There is an important role for partnership as well, with some of the bigger renewables projects giving part of their connections queues to smaller ones, and that is already happening in some parts of the country. There is no doubt that there is much more to do, but we are, as I have said, working apace to try to move this forward after 14 years of inaction.
Pippa Heylings (South Cambridgeshire) (LD)
As we have heard from my hon. Friend the Member for Wells and Mendip Hills (Tessa Munt), the lack of national grid capacity is holding back the UK’s push towards renewable energy. There are numerous examples of projects that have been delayed because they are waiting to be connected to the national grid, or because connection is too expensive. In my constituency, we cannot even connect the solar panels and batteries for the ambitious plan to decarbonise and electrify the refuse fleet for South Cambridgeshire district council. The projects that have been delayed include the building of new homes, which is crucial at present. Can the Minister explain to us how we are to reach this stage on the scale and at the pace that is needed?
Michael Shanks
The hon. Lady is right to highlight those issues. The connections queue, in particular, is a huge challenge, with more than 700 GW waiting to join it. The last Government did some work to establish how the queue could be prioritised, and we will now implement that, but we need to go further. It is clear that by 2030 we will need to build four times as much new transmission network as has been built since 1990. This is a project to rewire the entire country, to improve the current connections availability, and to work with everyone, including the new national energy systems operator, on the road map towards 2030.
Abtisam Mohamed (Sheffield Central) (Lab)
Michael Shanks
The latest contracts for difference round secured a record 131 renewable electricity projects across Great Britain. This will deliver a total capacity of 9.6 GW, enough to power the equivalent of 11 million homes. The Energy Secretary will continue to work with industry to explore how the contracts for difference scheme, and other energy policies, can be expanded even further.
Abtisam Mohamed
I commend the Secretary of State for his excellent work since he took office in accelerating clean electricity generation in the UK, and I commend the fantastic team he has with him. The Minister is right to say that there is a clean energy imperative if we are to tackle the climate crisis, boost our energy security and reduce our bills. What steps has the Minister taken to ensure that this Government encourage and take advantage of the significant opportunity around community energy, and will he meet me and representatives from my constituency of Sheffield Central to discuss how we can boost the growth of community energy?
Michael Shanks
I thank my hon. Friend for her question. She is absolutely right to say that, in order for us to meet our 2030 ambitions, we will need a whole range of different options. Community energy is a critical part of that, helping to deliver energy security and lower bills. Crucially, it also gives communities a stake in the energy future. That is why one of Great British Energy’s five objectives is to support the delivery of a local power plan, which puts local communities, combined authorities, local authorities and others in the driving seat in restructuring our energy economy. I am happy to meet my hon. Friend and others to discuss this issue further.
Greg Smith (Mid Buckinghamshire) (Con)
Contrary to what one of the Ministers said earlier, the last Government brought about one of the largest revivals in nuclear energy in 70 years in order to provide clean electricity generation, yet we hear precious little from the new Government on their plans for nuclear; we hear only their plans for inefficient technology that will destroy the countryside. Why are they so anti-nuclear, and when are they going to get on with delivering nuclear energy?
Michael Shanks
I will give credit to the Conservative Government on one thing: they were very good at making grand announcements. On delivery, however, they were much poorer. Looking at a whole range of things—carbon capture being a very good example—they had lots of warm words but no delivery whatsoever. On nuclear, they had lots of warm words but no delivery whatsoever. In 14 years, how many nuclear power stations were built under the Conservative party? None. We will get on with doing the work.
Melanie Onn (Great Grimsby and Cleethorpes) (Lab)
If we want to see an increase in clean energy generation, we need more announcements such as the one we saw last week on the development of carbon capture, usage and storage. Although that is incredibly welcome and a sign of determined action from the new Government, there is still more to be done. Perhaps the Minister can give an indication of when he anticipates he will be able to announce progress on track 1 extension, and share some information on track 2, because that would secure thousands of jobs in the Humber region.
Michael Shanks
My hon. Friend is absolutely right to say that in the three and a bit months that we have been in government we have moved at pace to deliver the largest renewables auction in history and to make last week’s announcement on carbon capture. We are working through the next stages of the process at pace, and we will have further announcements in the weeks ahead.
Graham Stuart (Beverley and Holderness) (Con)
Does the Minister agree that it would be better to have the right electricity system in 2032 or 2035 than to have the wrong one because of an artificial target, which may be undeliverable by 2030?
Michael Shanks
I could be wrong, but I think the right hon. Gentleman previously said that his own Government’s plans on onshore wind in England were not the right approach to take. I agree with him, which is why we lifted the onshore wind ban. The reality is that whereas the previous Government used to talk the talk on climate action, we are the ones now delivering—and delivering an energy system fit for the future.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
One way to increase clean electricity generation in the United Kingdom would be to invest at pace in new nuclear. We left government with a clear plan to get to 24 GW of nuclear power by 2050. Does that target remain?
Michael Shanks
This is the whole point about the Conservative Government, and it is why we have inherited such an economic mess: they made a series of announcements, with absolutely no funding to back them up. As you would expect, Mr Speaker, I pay close attention to the Conservative party conferences, and the hon. Gentleman made a very astute point, which I am happy to repeat for the benefit of Hansard and the House: “After 14 years of Conservative Government, we are now in a position where it’s more difficult to build critical infrastructure than it was when we came into power”. I could not have put it better myself.
Andrew Bowie
Our record on nuclear speaks for itself. We launched the small modular down-selection process and Great British Nuclear, and invested £200 million in new advanced nuclear fuels. We consulted on a new route to market for advanced modular reactors and new technologies, and granted a development consent order for Sizewell C. There is concern that there is a go-slow in the Government right now, so when can we expect a final investment decision on Sizewell C? Will it still be this year?
Michael Shanks
I was not aware when my right hon. Friend the Secretary of State changed the titles of the ministerial portfolios that we had moved away from having a Minister for consultation, but it seems that all the hon. Gentleman was doing in his time in office was launching consultations. We are going to get on with delivering and we are moving at pace on the whole of the electricity system, including on nuclear, and delivering on the things that he failed to do.
Tracy Gilbert (Edinburgh North and Leith) (Lab)
The Secretary of State for Energy Security and Net Zero (Ed Miliband)
As well as our measures on onshore wind, solar and renewables, this Government have begun legislating for Great British Energy and setting out our plan for proper standards for private and social renters to take 1 million families out of fuel poverty, and on Friday we announced deals to kick-start Britain’s carbon capture industry. All of this will deliver our mission to make Britain a clean energy superpower. It is right for bills, right for energy security, right for jobs and right for climate leadership.
Tracy Gilbert
I welcome the actions outlined by my right hon. Friend, particularly the recent announcement that GB Energy will be headquartered in Aberdeen, with satellite offices in Edinburgh and Glasgow. Can he outline the role that he expects the satellite offices to take? Given the investment already under way in the port of Leith for a number of renewable companies, as well as the prospects for the supply chain and manufacturing, will he consider Leith as the location for the Edinburgh site?
Ed Miliband
My hon. Friend is absolutely right to draw attention to our announcement on Aberdeen as the headquarters of Great British Energy and the important role that it will play, and also to the importance of the satellite offices. I know from my visit to her constituency of the huge potential of her area on these issues, and we want to drive jobs throughout the supply chain through Great British Energy.
Claire Coutinho (East Surrey) (Con)
The Secretary of State promised in the general election to cut everyone’s bills by £300 by 2030—a pledge he will not repeat now that he is in office. In fact, one of his first acts has been to snatch the same amount away from millions of pensioners in poverty. The right hon. Gentleman likes to preach, to politicise and, dare I say it, to patronise, but I have one simple question for him. To the millions of pensioners who are worried about their heating bills this Christmas, will he apologise?
Ed Miliband
The people who should be apologising are the last Government, who left this country in a total mess—a £22 billion black hole. I have to say to the right hon. Lady that she does have a brass neck. She said of the right hon. Member for North West Essex (Mrs Badenoch), whom she is backing in the leadership contest, that she “tells the truth”, and what did the right hon. Member for North West Essex say? She said:
“I have people in my constituency telling me that they don’t need the winter fuel payments…Why do we not have a…mechanism for means-testing?”
That is her position.
Claire Coutinho
There we have it: no apology; no recognition that it is the right hon. Gentleman’s Government’s decisions that are going to leave pensioners in the cold this winter. He has to acknowledge this: from the trade unions to the CBI, from blue Labour to Blairites and from the left to the right of his party, people are sounding the alarm that his ideological approach will see jobs lost and bills go through the roof. Even his old pal Ed Balls does not think that GB Energy is going to deliver the green transition, and I read this morning that the Prime Minister’s brand-new chief of staff is a sceptic of the Secretary of State’s approach. The Secretary of State is increasingly isolated in his party, so when will he do the decent thing and set out the full systems cost of his approach, so that the British public can see what he is going to do to their bills?
Ed Miliband
Oh dear, oh dear. The truth is that after three months of this Government, people have breathed a sigh of relief that there is finally a Government with a plan for the country. [Interruption.] I think the right hon. Lady should listen to what her own ministerial team has been saying about her. The former networks Minister has said that their infrastructure approach is hopeless. The former Energy Minister says that the onshore wind ban was “always mad”, and Lord Callanan said that the right hon. Lady had kicked the solar consents “into the long grass”. If I were her, I would be hoping for just one thing from the next Tory leader: a shadow Cabinet reshuffle.
Danny Beales (Uxbridge and South Ruislip) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
My hon. Friend is absolutely right to say that that issue is holding back projects across the country, which is why we have tackled it from day one. We are attempting to release network capacity, which can then be reallocated to accelerate the connection of viable projects. There is a lot of work to do, and we are building on what the previous Government did to prioritise the queue and to build the necessary infrastructure that should have been built over the past 14 years.
Sir John Whittingdale (Maldon) (Con)
Ed Miliband
I agree with the right hon. Gentleman. Nuclear is an essential part of the energy mix. We are mainly going to have a renewable system, but nuclear is an essential accompaniment. I fully support all the projects he mentions.
Alistair Strathern (Hitchin) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
Whether it is our ending of the onshore wind ban, the CCUS funding we announced last week, our plans for Great British Energy or our warm homes plan, we are hitting the ground running to deliver our clean power mission. The Conservatives spent 14 years dithering and delaying, leaving ordinary people to pay the price, but we will get on with the job of delivering energy security so that we can secure financial security for families, good jobs and climate action.
Claire Young (Thornbury and Yate) (LD)
Ed Miliband
The hon. Lady raises a question about the problems of grid connection that is familiar to many Members. We are building on work done by Nick Winser, the former electricity networks commissioner, and we want to go further to tackle the problem of grid connections once and for all.
Tom Rutland (East Worthing and Shoreham) (Lab)
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
My hon. Friend asks an important question. Of course, we and the Opposition have fundamentally different views. We believe in an industrial strategy that will help to deliver our supply chains. We believe in Great British Energy, and we believe in a sovereign wealth fund, which so many other countries have and the previous Government failed to deliver. We will make sure we have resilient supply chains that create jobs, deliver energy security and maximise the economic benefits of the transition.
Charlie Dewhirst (Bridlington and The Wolds) (Con)
Ed Miliband
The hon. Gentleman raises a very important issue that I am afraid was not solved by the last Government. We are working at pace with National Grid, and I am sure the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), will be happy to talk to him further about the work we are doing.
Anna Dixon (Shipley) (Lab)
Michael Shanks
Batteries will play an important part in the short-duration storage required for the energy system we are building for the future. It is a question of balance. Communities will be engaged in the consultation process, and I will be convening a roundtable with providers of battery technology and other short-duration storage in the next few months to learn both from projects that have worked well and from projects on which we could do better in future. I will happily share any information from that with my hon. Friend.
Zöe Franklin (Guildford) (LD)
Ed Miliband
The hon. Lady raises the important issue that, as a country, we are massively underpowered on community energy. As part of the GB Energy local power plan we will be trying to change that, learning from countries such as Germany and Denmark, which do much better than us. We will certainly look at the issues she raises.
Euan Stainbank (Falkirk) (Lab)
The clean power by 2030 mission shows the clear intention of this Government to get on with the just transition. Energy workers in Falkirk, Grangemouth and across the central belt are rightly concerned about jobs. Between 2013 and 2023, under the previous Government, jobs in the UK oil and gas sector halved. Unfortunately, some of the Opposition parties have opposed the stream of funding for clean infrastructure and jobs of the future that will come from an increase in the energy profits levy on the record profits of oil and gas giants. Does the Secretary of State agree that it is time Opposition parties started putting their own plans forward on how they would get on with the just transition and deliver clean energy jobs at a critical time for workers and the climate?
Ed Miliband
My hon. Friend raises the important issue that what will define the future for North sea workers is whether there is a plan for future jobs in offshore wind, carbon capture and hydrogen. There was no plan from the previous Government; this Government are absolutely determined to ensure a just transition for those workers, using the power of Government and a proper industrial policy to make it happen.
Dr Luke Evans (Hinckley and Bosworth) (Con)
On petrol prices, for the past 11 years the Government froze fuel duty; they cut it in 2002 and then froze it again. The Government instructed the Competition and Markets Authority to carry out a review, and we came up with the pumpwatch scheme. A consultation was undertaken in January, but when I wrote to the Government in September to ask about its results, they said they were looking at it and would consider it in due course. Is the scheme a priority for the Government? If not, in what other ways will they ensure petrol prices are kept low at the pump? Are they going to freeze fuel duty?
Ed Miliband
I will not comment on the Budget, obviously. We are very sympathetic to pumpwatch—it is important that there is a fair deal for consumers at the pump.
Steve Race (Exeter) (Lab)
Exeter city council has worked hard to install solar panels on council homes to ensure that social tenants can benefit from lower bills and participate in the green transition. Can the Minister set out what more we can do to ensure that all tenants benefit from new green technologies?
Ed Miliband
My hon. Friend raises such an important issue. Across the House, we can have different views on ground-mounted solar, but we need to do more on rooftops and to ensure that tenants, for example council tenants, benefit from such technologies. That is a huge priority for us and we are working on it with colleagues in the Ministry of Housing, Communities and Local Government.
Mr Gregory Campbell (East Londonderry) (DUP)
What discussions has the Secretary of State had with the Scottish Government regarding the major planning application for an offshore wind farm between Scotland and Northern Ireland, which may well have significant implications for the Giant’s Causeway world heritage site?
Ed Miliband
The hon. Gentleman will understand that I have to be careful in what I say about planning issues, but he should rest assured that I have frequent conversations with my counterpart in the Scottish Government and, no doubt, that is one issue we will be discussing.
Matt Western (Warwick and Leamington) (Lab)
Warwick and Leamington must be one of the sunniest places in the United Kingdom given the flurry of applications we have had for solar farms. There is a “loss of amenity” caused by one application, but if that community were prepared to welcome onshore wind turbines, of which we have none in Warwickshire, rather than a solar farm, would the Secretary of State or the Minister agree to support that? Will they meet me to discuss the issue?
Ed Miliband
Every planning application and development consent order is assessed on its merits. Importantly, the Secretary of State for Environment, Food and Rural Affairs, my right hon. Friend the Member for Streatham and Croydon North (Steve Reed), is polishing a land use framework, which has long been needed in this country. It will set out the balance between food security, the use of renewable energy, the restoration of nature and the role of farming. I hope that will help with some of the issues that hon. Members are facing.
Priti Patel (Witham) (Con)
The Secretary of State and the Under-Secretary of State, the hon. Member for Rutherglen (Michael Shanks), have spoken passionately about the need to upgrade the national grid, but do they recognise the concerns of people across the east of England, including in the Witham constituency, about what that means for their local communities? The Under-Secretary has said that he will meet Members of Parliament, but I ask him very politely whether he and representatives and Ministers from the Department will also meet members of the communities that are affected by this matter.
Ed Miliband
I know from the questions that I have received from the Opposition that the right hon. Lady has been a tireless advocate on these issues. I do understand the concerns of local communities about clean energy infrastructure, which is why I am so keen on the idea of community benefit. It is important that communities receive benefit for hosting that infrastructure. We must have a discussion about this matter in the House and across the country. If we are to end our exposure to international fossil fuels and the kind of the cost of living crisis that we have seen over the past few years, which has devastated communities across Britain, this infrastructure does need to be built.
Mike Amesbury (Runcorn and Helsby) (Lab)
Last week’s announcement on carbon capture and hydrogen in my constituency demonstrates that we now have a Government of substance, not of hollow slogans. What discussions have the Secretary of State and Ministers had with the trade unions to ensure that we build those facilities with unionised labour?
Sarah Jones
I thank my hon. Friend for his question. After 14 years of failure and inaction, we now have a Government who believe in working with our trade unions, who have the backing of our trade unions, and who want to work to create good jobs in the industries of the future. Our announcement on carbon capture, which was groundbreaking and world beating, will deliver just that.
Tom Gordon (Harrogate and Knaresborough) (LD)
The Institution of Civil Engineers has called for a spatial energy plan to utilise new and emerging technologies to facilitate future net zero infrastructure planning. Will the Government look to bring forward a spatial energy plan and meet me to discuss that?
Ed Miliband
Yes, we will be bringing forward a spatial energy plan. That is one of the responsibilities of the National Energy System Operator. The hon. Gentleman makes an important point: we need a plan for the system. We can have a plan for the 2030 system done by the NESO and, indeed, a wider strategic spatial energy plan, which will be crucial for the country.
Oliver Ryan (Burnley) (Lab/Co-op)
The warm homes plan is excellent and much needed in towns such as mine, but on warm homes grants for insulation, during recess I met a large number of constituents who had been victims of failed insulation and cowboy workmanship under such Government schemes. Some are living in horrific conditions with useless warranties. Is the Minister aware of their plight? Will she ensure that regulation is strong enough, and will she meet me and victims to make sure that this never happens again?
Miatta Fahnbulleh
I thank my hon. Friend for his question. We are aware of those cases of bad insulation and we are clear that we need to get a firmer grip on them. To persuade everyone that we should be insulating and upgrading all of our homes, we need the highest standard possible. I agree to meet him to discuss this matter further.
Clive Jones (Wokingham) (LD)
In my constituency, a new solar farm at Barkham is being delivered that will provide clean energy for more than 4,000 homes and provide a funding boost for Wokingham borough council. It will be connected in 2026, but there were concerns that connection to the grid could be delayed by 11 years. What steps will the Minister take to reduce similar delays, and does he think that the Government can meet their net zero targets if the new renewable energy infrastructure cannot be quickly connected to the grid?
Michael Shanks
I thank the hon. Gentleman for his question. A similar point has been raised by many hon. Members across the House. This issue affects areas right across the country. We are doing what we can at the moment to prioritise the connections queue, so that the most important projects, or those most able to be delivered, can move forward. There is much more that we can do on that, but, fundamentally, we need to build much more network infrastructure in the first place so that we can speed up and reduce the cost of these connections for schemes such as the one he mentions.
Point of Order
(1 month, 4 weeks ago)
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Mr Andrew Mitchell (Sutton Coldfield) (Con)
On a point of order, Mr Speaker. I am concerned that the Government have not always been consistent with the explanations that they have given of their policy in relation to arms exports to Israel. In particular, some of the explanations that Ministers have given in this House are inconsistent with accounts that have been given elsewhere, including in the other place. My noble friend Lord Howard is also pursuing this matter in the other place. This is a critical foreign policy matter involving a close ally. Mr Speaker, have you had any indication that the Foreign Secretary intends to come to the House to make a statement on this matter and to clear up any misunderstanding that might have arisen as a result of discrepancies between what we have been told and what Ministers have said elsewhere?
Mr Speaker
I am grateful to the right hon. Member for giving notice of that point of order. As he well knows, the Chair is not responsible for the accuracy of ministerial remarks, either in this House or elsewhere; but I am sure that those on the Treasury Bench will have noted his comments, and I am sure they have been taken on board. I do not think we have heard the end of this yet, so I am sure, as I know the right hon. Member well, that the Opposition will not give up at this stage.
Opposition Day
VAT: Independent Schools
(1 month, 4 weeks ago)
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16:15 - The House having divided: - Ayes: 190 / Noes: 363 - Question accordingly negatived.
Damian Hinds (East Hampshire) (Con)
I beg to move,
That this House regrets that the Government has decided to impose VAT on independent school fees; believes that educational provision should not be taxed; regrets that the Government is rushing to implement this change part-way through an academic year; calls on the Government to exempt from the VAT charge fees paid in respect of children of military and diplomatic families, all children who have an Education, Health and Care Plan, or who are in the process of applying for one, all children on SEN support, Centres for Advanced Training and schools in the Music and Dance Scheme, all children at schools whose fees are lower than the average per capita funding for a state school place, and children at religious schools of denominations for whom there is no faith school provision in the state sector; further calls on the Government to postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average over 95% full; also calls on the Government to postpone imposition of the VAT charge for fees paid in respect of children who have started a public examination course, to September 2025 for pupils currently in Year 11 or Year 13, and to September 2026 for pupils currently in Year 10 or Year 12; and calls on the Government to publish a full impact assessment of the effects of this policy on independent schools and the state sector ahead of the Budget.
There are 85 days to go until the introduction of Labour’s education tax, and we are still in the dark. Many questions remain for parents, for children and for schools—when I say “schools”, that is both independent schools and state schools—and also for the local authorities that are responsible for special educational needs provision and generally for ensuring that everyone can get a place at school.
This is a huge change, which is being made in a headlong rush. There are big worries about children with special educational needs or a disability, about military families, about the talented musicians and dancers of tomorrow, about small religious faiths and about the widest impact of all—that on state schools, because this means disruption, bigger classes, budget overstretch, and ultimately, parents being less likely to get their preferred choice of school. Even those who do not necessarily object to this in principle are saying it cannot be pushed through this fast, from the Chartered Institute of Taxation to the NASUWT.
It is a long-standing principle that you do not put tax on learning—a principle all but universally observed around the world. On the Conservative Benches we believe in that principle and we believe in the sanctity of parental choice. The vast majority of children, of course, go to state-funded schools, and we defend the right of parents to choose those schools and defend the diversity of those schools. A small number of parents choose home schooling; we defend that right too. And yes, some choose the independent sector.
Parents are the first educators of their children. The state sets an expectation of a suitable education for all children, and beyond that, parents should make the choice of what is best for their child. Parents might decide to opt out of state education for any one, or many, of several reasons—quite often simply because they have found the school that they believe is right for their child, and where their child is most happy.
Graham Stuart
During the election, in the Monks Walk pub, I met a constituent who has stayed in his small home and has one car for the family, because they decided their bullied daughter needed to go to another school. They have sacrificed, with the support of wider family, so that that child with special educational needs can go to a private school. It is children and families like that who will be the victims of this spiteful policy. Does my right hon. Friend agree?
Damian Hinds
My right hon. Friend is right to identify that many parents make great personal financial sacrifices to do what they believe is best for their children. Some parents whose children go to independent school are rich, and some are definitely not. I include in that latter bracket most of the parents sending their children, for example, to small religious schools in Hackney, Salford or Birmingham. Very many more are in the middle, including many professionals working in our public services.
Jim Shannon
The shadow Minister has rightly underlined the issue for those who send their children to faith schools or independent schools. Many constituents in Strangford have told me that they have saved and persevered, have not been on holidays, have not bought a second car, or have even continued to use their old car longer than they should, so that those moneys can go into their children’s education. Does he, like me, find it impossible to understand how it can be that it is the Labour party—the party of conscience, I would say—that has let us down on this issue and is going to penalise people who are hard-pressed to find education for their children?
Damian Hinds
The hon. Gentleman is right about the financial sacrifices some make. Let us be clear: it is possible to tax wealthier people or people with a higher income more, but the Government should be honest about it. The way to do so is through the income tax system, not through a choice that people make to have their child in an independent school. The hon. Gentleman did not mention this, but I might add that because the situation in Northern Ireland is different from that in England—by the way, the situation in Scotland is different, too—the Government need to think carefully about how the policy is applied throughout the whole United Kingdom, because VAT is a reserved matter, and about what it means for the hon. Gentleman’s constituents and others across these islands.
Mike Amesbury (Runcorn and Helsby) (Lab)
My late mother and dad used to run a pub, and they paid their taxes. It was a private business that made a profit. Why should these businesses not pay their taxes? Why should they not pay what is owed?
Damian Hinds
This is a completely different situation. Independent schools do pay tax.
Damian Hinds
No, independent schools do pay tax on supplies. No tax is charged on education, whether in an independent school or in other settings, and that is a very long-standing principle.
Let me clear up one very important definitional point, which I ask colleagues to reflect on. There is no tax break involved. It would be a tax break if a person who had a child at an independent school and was not taking a place at a state school were charged less tax as a result. That does not happen in the United Kingdom. Everybody contributes to state sector education, whether or not they take up a place.
The principle of no tax on learning is a fast one, and once we loosen it, we do not know where we will go. Where might the Treasury look next? Private nurseries, perhaps? Music lessons? Private tutoring? What is the philosophical difference between independent school education and private tutoring?
Alicia Kearns (Rutland and Stamford) (Con)
Let me make a point to demonstrate how rushed and ill thought through this policy is. My understanding is that if a child in a nursery has turned five but the other children in the class have not, all the parents in that nursery year will have to pay VAT on their child’s nursery fees. That is how badly this has been thought through.
Damian Hinds
My hon. Friend is right. That comes from the rushed nature of the legislation. The sloppy drafting means that children who are not of school age get dragged into this tax if they happen to be in the same room as children who are, and there are concerns about what might follow in other borderline cases.
The Government claim that the policy is about revenue, not politics, but having read the Secretary of State’s twitterings, I think hon. Members could be forgiven for mistaking the motivation. It is entirely spurious, for multiple reasons, to link this tax to 6,500 teachers, mental health support or anything else. The money will go into general Exchequer receipts, and anyway, 6,500 teachers is not that many in the scheme of things, given the 468,000 there are now. That is a compound growth rate of 0.3% over five years—and, by the way, a lot fewer teachers than we recruited in the last five years. Mental health support teams are already being rolled out, and they cover primary schools as well as secondary schools. It is not clear what the difference is in the new Government’s policy on mental health support, other than that it will not include primary schools.
To the extent that the VAT revenue could be hypothecated, it looks a lot more like that revenue would reduce cuts to education resourcing, rather than increasing it. If the policy is about revenue, not politics, the Government could easily commit to one simple thing today. They are confident, they tell us, that the policy will raise a large sum of money and not create large costs. Will they commit to measuring and reporting back on that, and if it turns out, against expectations, that they were wrong, will they reverse it?
Dame Harriett Baldwin (West Worcestershire) (Con)
I thank my right hon. Friend, who is giving an excellent introduction to the debate. Is it his understanding that our military personnel, and those serving in our diplomatic service, will also be hit by this tax?
Damian Hinds
My hon. Friend is absolutely right. As things stand, those who get the continuity of education allowance would be hit, in part, by the tax.
Dr Andrew Murrison (South West Wiltshire) (Con)
In the calculus that my right hon. Friend rightly asks the Government to publish, can we include the foreign receipts that the independent sector generates? The roll of a school in my constituency includes a very large number of children from overseas whose parents pay directly into the UK economy. That school is now under threat. The loss of that revenue will be substantial, and the local impact huge. May we have that factored in, given that, so far, we have not seen any figures on the loss of money and reputation that the closure of many such schools will entail?
Damian Hinds
My right hon. Friend is correct: substantial export earnings come from the sector, and from a globally mobile set of families. But I would go further; in addition to the direct export earnings effect, there is also an indirect effect. For companies deciding where to site their European headquarters, English education is a big factor. That is partly because of our brilliant state schools, which have improved so much over the past 14 years, but the availability of independent schools is also a factor.
Kit Malthouse (North West Hampshire) (Con)
The shadow Secretary of State makes a strong point about the sanctity of zero-rating VAT for education. I am concerned that children’s clothes, which are currently exempt from VAT, may be the next target. Notwithstanding the impact that the change to VAT will have on individual families, does he agree that private and prep schools—my constituency has five—are enormous employers of people involved in building maintenance, such as electricians and plumbers, and that the impact on the wider economy could well be profound?
Mr Speaker
Order. I remind Members to look towards the Chair when they are speaking, or what they say will not be picked up by the mics; I then struggle to hear them. I know that the Minister was struggling as well. If Members keep the chatter down, it will help us both.
Damian Hinds
My right hon. Friend is of course correct about the economic contribution that schools make locally and the large numbers of people they employ. That point was also made by NASUWT, which is worried about teachers being inadvertently pushed out of the profession if redundancies are made mid-way through the school year.
Mims Davies (East Grinstead and Uckfield) (Con)
My youngsters have had a mix of excellent learning, including in nursery and in state education, as have youngsters in many families. I have a personal and constituency interest in wanting all education settings to thrive, so I agree with my right hon. Friend. The economic and employment impact of this new tax will be devastating for bus drivers and maintenance teams. It will impact on so many livelihoods and communities. The people picking up the unknown impact will be in the state sector. The policy will just deliver more of the unknown.
Damian Hinds
I will take one more intervention before making progress, so as not to try your patience too much, Mr Speaker.
Mr Speaker
It is not that my patience is being tested, but I do worry when shadow Secretaries of States cover a subject at length. I understand, but we need to get on, because lots of Back Benchers are desperate to get in. In fact, we have a very eager Opposition Whip coming in now.
Paul Holmes
You will find out, Mr Speaker, that I will not test your patience. I want to take my right hon. Friend back to the point he made about the Education Secretary’s tweet, which I thought was disgraceful. [Hon. Members: “Where is she?”] The divisive language behind that tweet was a disgrace, given the many independent schools that work hard and play by the rules. Does my right hon. Friend agree that the embossed notepaper that the Secretary of State focused on is sent to many children who are being sponsored through bursaries or scholarships, and whose parents work hard to give their children the best education? The Education Secretary should apologise for that disgraceful tweet.
Damian Hinds
I am grateful to my hon. Friend, who, as ever, makes important points. I too am disappointed that the Education Secretary is not with us for this important debate. I will make progress, Mr Speaker, because I do not want to go on longer than I should.
To be clear, we want to talk first and foremost not about revenue, but about education, schools and children—all children. [Interruption.] No, I have been talking about schools and children throughout. If the Government insist on ploughing on with this divisive policy, they must at least exempt certain groups of children for whom it would be especially unjust or counterproductive to impose this tax. Surely, schools that charge the same as, or even less than, the average cost of a school place were not in the Government’s sights when they devised this scheme. There are small religious groups that have no state sector provision for their denomination. Why should they be disadvantaged? The continuity of education allowance exists expressly to support families who are serving our nation in the armed forces. Surely they should be protected.
The Government acknowledge the role of centres of advanced training and performing arts schools that come under the music and dance scheme, because, again, there is no equivalent specialist schooling available in the state sector. Then there are the many children who receive special educational needs support, including those with an education, health and care plan, whether or not they are at the school named in the plan, and those children who are applying for a plan.
Damian Hinds
I ask my hon. Friend to forgive me, as I must make progress.
As for children whose parents are priced out of a school, or face its closure, disruption to learning can be difficult at any time, but it is even more problematic when pupils have started a public examination course. Their next school might not even offer the subjects that they were taking, or the exams might not be marked by the same exam board. We need to think about those children. The tax levy should be postponed until pupils who are now in years 10 or 11, or in the lower and upper sixth form, have finished their exams—until 2025 or 2026.
The widest impact of all will be felt by state schools. Ministers have said repeatedly that there is no problem because there are plenty of spaces in state schools. We have repeatedly pointed out that that is of no help at all if those places are in the wrong places or the wrong year groups. They need to be where and for whom they are required.
Iqbal Mohamed (Dewsbury and Batley) (Ind)
State schools in my constituency are bursting at the seams. There are no spare spaces to move into for the more than 1,000 children being educated in independent schools there. The fees charged by those independent schools are a quarter to half of the cost of state school provision per pupil.
Joy Morrissey
In Buckinghamshire, we do not have the places. We have a lot of children in special education needs and disabilities schools, faith schools and other private schools. We cannot cope with the capacity loss. We have parents who are sacrificing everything to send their child to a SEND school. There is no provision in the county for them. The policy will result in a crisis of transportation and places, and children will suffer as a result.
Damian Hinds
I am grateful to both my hon. Friend and the hon. Member for Dewsbury and Batley (Iqbal Mohamed) for their interventions. Indeed, there are many places, particularly at secondary school level, where there are insufficient spaces available to accommodate a significant minority being displaced from independent schools—places such as Bristol and Bedford, Salford and Richmond, Worcester and Wycombe, and Bury North and Bolton North East.
Let us be clear: local authorities have a duty to find spaces for children. They take that duty very seriously, and a number of them are considerably worried about what may happen. In-year admissions can be especially complicated in any case: they can involve not only governors but the fair access protocol panel and, ultimately, a Secretary of State direction, all of which can add up to months out of school. Creating additional physical space in schools obviously takes time, and building new schools takes longer still. Time is needed to adjust, which is why our motion further calls on the Government to
“postpone imposition of the VAT charge for schools in areas where state schools in the relevant key stage are already on average”
almost full.
This Government barely have their feet under the table, and already they are a Government in chaos. That chaos is exemplified by this destructive, disruptive and divisive education tax that will interrupt learning; create place demand where it cannot be accommodated; put further strain on the SEND system; hit specific groups that we ought to be trying to protect; likely generate much lower revenue than anticipated; and quite possibly even end up as a net cost to the public purse. In their headlong rush to make a political statement, the Government appear simply to not have thought through the consequences. We call on them now to announce immediately that they are abandoning the unrealistic January implementation date, to publish a proper impact assessment, and then to entirely rethink this entirely counterproductive tax.
The Exchequer Secretary to the Treasury (James Murray)
This Government were elected to break down barriers to opportunity. We are determined to fulfil the aspiration of every parent in our country to get the best education for their children. We are committed to doing so by improving state schools and making sure that every child has access to a high-quality education. We will start to make this happen by expanding early years childcare for all by opening 3,000 new nurseries across England. We will recruit 6,500 new teachers, alongside improving teacher and headteacher training, and we will roll out further mental health support to schools and colleges in England. Those improvements to the state education system will begin our work to make sure every parent’s aspiration for their children can be fulfilled.
We want to get on with these important changes right away, and to do so, they must be paid for. That is why to help fund improvements to our state schools, we have made the tough but necessary decision to end tax breaks for private schools. In the July statement, the Government announced that as of 1 January 2025, all education services and vocational training provided for a charge by a private school in the UK will be subject to VAT at the standard rate of 20%.
Graham Stuart
I know the Minister to be an honourable man, so will he take this opportunity to apologise to the House in the absence of the Secretary of State for Education for the malicious and spiteful tweet that she put out this weekend? That tweet was ill-advised, even if one believes that this policy is the right thing to do.
James Murray
Neither I nor any of my colleagues will make any apology for wanting to improve state education across this country to make sure that the aspiration of every parent in our country to get the best possible education for their children can be fulfilled. That is why we have announced that any fees paid from the date of the July statement, 29 July, relating to the term starting in January 2025 onward will be subject to VAT.
Shaun Davies (Telford) (Lab)
This package of support will put thousands of teachers back into school classrooms in Telford and across the country. Has my hon. Friend received any representation to say that if this change did not take place, those plans by this Government—who were elected by the people of this country—would go ahead by any other means?
James Murray
My hon. Friend makes an important point about the reason why we have taken the tough decision to end tax breaks for private schools. It is to fund our education priorities, because we know that the way to improve opportunities for people right across this country is to make sure that our state schools can provide the best-quality education for all children.
Priti Patel (Witham) (Con)
The Minister was in a similar debate this morning, in which he heard a range of views. He is a Treasury Minister, not an Education Minister or the Education Secretary; will he commit to publishing an impact assessment on the overall cost of this policy? There were parents in the Gallery listening to the debate this morning, and it is clear that there will be a legal challenge to this policy. Will the Treasury also publish the potential cost of that legal challenge and the bill that his Department will be footing in order to meet it?
James Murray
I thank the right hon. Member for her contribution. First, in terms of an impact assessment, while developing these policies, the Government have carefully considered the impact they will have on pupils and their families across the state and private sectors, as well as the impact they will have on state and private schools. In addition to having reviewed analysis published by third parties such as the Institute for Fiscal Studies, the Government have conducted their own analysis of the likely impacts of these policies, which draws on a range of sources.
James Murray
I am not going to give way, because I am responding to the right hon. Member for Witham (Priti Patel).
Mr Speaker
Order. It is a point of order, so you do give way, unfortunately.
Graham Stuart
I am grateful to you, Mr Speaker. Could you give any advice to me on how we can ensure that the impact assessment that must have been conducted on this policy is shared with the House? It is a fundamental—
Mr Speaker
Order. As you know, that is not a point of order—do not waste my time. Carry on, Minister.
James Murray
As I was saying to the right hon. Member for Witham, the Government will publish a tax information and impact note on the VAT policy change at the Budget, once the independent Office for Budget Responsibility has scrutinised and certified the costing of the final policy.
James Murray
I am still replying to the hon. Member’s right hon. Friend. [Interruption.] Maybe Conservative Members could sort this out on their side of the House before they come into the Chamber, but I will continue replying to the right hon. Member for Witham.
Turning to the legal cases, the Government have considered the policy’s interaction with human rights law and are confident that it is compatible with the UK’s obligations under the Human Rights Act. I hope that addresses the right hon. Member’s concerns.
Mims Davies
I thank the Minister for kindly giving way. This policy will have an economic impact in each and every constituency: on librarians, on maintenance people and on those who work in labs, in catering and as minibus drivers—everything that is predicated on schools such as the ones we are discussing. Will the impact assessment and the Treasury look at the wider implications for employment?
James Murray
As the hon. Member knows, there are established processes for developing tax information and impact notes. This one will be developed in line with the OBR costing in the normal way and published alongside the Budget, so she will see all the information.
Several hon. Members rose—
James Murray
I have given way quite a lot, so I am going to make a bit of progress.
Alongside the announcements about VAT, the Government announced in July that private schools in England with charitable status would lose their eligibility for business rates charitable relief from April 2025, subject to parliamentary passage of the legislation. Those changes were set out in a technical note that was published online alongside draft VAT legislation, which together formed a technical consultation. As part of that consultation, the Government—both at official and ministerial level—have engaged with a broad range of stakeholders, including the devolved Governments.
We have listened carefully to the points that people have raised with us. We recognise that while this policy will raise revenue to help support improvements in the state education sector, it may lead to increased costs for some parents and carers whose children are in the private education system. However, let me be clear: while private schools will now be required to charge VAT on the education services and vocational training they provide, we expect that most private schools will be able to absorb a significant portion of this new VAT charge and keep fee increases affordable for most parents. They will be able to make efficiencies and recover the VAT they incur on the things they buy. Those recovered costs can be used to offset increases for fee payers. We are already seeing that some schools have committed to absorbing the VAT liability entirely, while others are choosing to cap fee increases at 5% or 10% to keep fees as low as possible for parents.
Dr Ben Spencer (Runnymede and Weybridge) (Con)
I had a pop at getting the Minister to give way during the debate this morning, and I appreciate his doing so now. I love the irony of what he is saying, which is, “We need to do this to raise all this money, yet it isn’t actually going to raise all that much money because it can be reclaimed.” On the impact assessment, it is really interesting that one line in the consultation document that went out this summer says:
“The government understands that moving schools can be challenging.”
How many of his own constituents have contacted him to say they will have to move schools as a result of this policy, and how do we measure the damage that moving schools is going to cause for so many children in our constituencies?
James Murray
I have been clear: the Government recognise that some pupils may subsequently move into the state education sector as a result of these policies. However, as is set out in a technical note—and I take it from the hon. Gentleman’s comment that he has read it—the
“number of pupils who may switch schools as a result of these changes represent a very small proportion of overall pupil numbers in the state sector. The government is therefore confident that the state sector will be able to accommodate any additional pupils”
whom this policy will cause to move.
Several hon. Members rose—
James Murray
I will make a bit of progress, because I have been quite generous in giving way so far.
I want to address some of the questions that the shadow Secretary of State asked in his speech, particularly about why we are introducing this policy from 1 January 2025. The reason we are doing so is simple: we want to raise the funding we need as soon as possible to deliver our education priorities for state schools across the country. Importantly, a January 2025 start date means that schools and parents will have had five months to prepare for the VAT change, and His Majesty’s Revenue and Customs stands ready to make sure schools are supported in delivering it.
James Murray
I am going to make some progress.
HMRC will put in place a number of measures to ensure that all private schools can be registered ahead of 1 January, including publishing bespoke guidance on gov.uk ahead of 30 October, updating registration systems and putting additional resource in place to help process applications.
Several hon. Members rose—
James Murray
I am going to make some progress, because I have given way quite a lot so far.
Ahead of this policy being implemented, the Government have carefully considered the impact that these changes will have on pupils and their families across both the state and private sectors, as well as the impact they will have on state and private schools. The Government’s costing of these policies is currently being scrutinised by the independent Office for Budget Responsibility. The Chancellor will confirm our approach to these measures at the Budget, when we will set out our assessment of the expected impacts of this change in the normal way.
We recognise that, as hon. Members have said, these changes may lead to some pupils moving into the state education sector. While the impact of this policy is being fully considered, we know that projections by the Institute for Fiscal Studies indicate that the number of pupils who may switch schools as a result of these changes is likely to represent a very small proportion of overall pupil numbers in the state sector—less than 0.5%—with any displacement expected to take place over several years.
Dr Evans
I am very grateful to the Minister for giving way. This is about children—and even the Prime Minister made a choice to better the education of his children—so putting this in place in January, halfway through a year, is going to have a significant emotional impact on families and children. That is why it should be delayed. If it is good enough for the Prime Minister to make such choices for himself, why cannot this Government make choices for the rest of the nation, and support the most impacted families and children?
James Murray
I have made clear the reason why we are proceeding with this policy to a January 2025 date, which is that we want to raise the money as soon as possible to invest in our improvements to state education. There will have been five months for parents and schools to prepare for the change.
James Murray
I am still responding to the hon. Member for Hinckley and Bosworth (Dr Evans), so please let me come back to that point. HMRC is putting in place bespoke guidance, and it is standing by to make sure that schools are properly registered for the change. All the evidence we have seen from the IFS and so on suggests that the impact on the state sector will be very small, which means that it will not have a material effect on children’s education.
Several hon. Members rose—
James Murray
I am going to make some progress.
To pick up the point made by the hon. Member for Hinckley and Bosworth, I am not denying that some pupils may have to move into the state sector, but we expect much of this to take place at natural transition points, such as when a child moves from primary to secondary school, or at the beginning of their GCSE or A-level years. As I have said, the IFS expects any displacement to take place over several years. We are confident that the state sector will be able to accommodate any additional pupils, and that these policies will not have a significant impact on the state education system as a whole.
Several hon. Members rose—
James Murray
I am going to make some progress. I am sorry, but I have taken a lot of interventions.
I would like to address the issue of special educational needs. It is a point that many hon. Members have raised, and I know that some parents are concerned about the impact of this policy on pupils in private schools with special educational needs. Let me start by saying that we have considered this element of the policy very carefully. Our proposed policy makes sure that pupils will not be impacted where they have acute additional needs and an education, health and care plan in England, or its equivalent in other nations, specifies that these can be met only in a private school.
Marie Goldman (Chelmsford) (LD)
I thank the Minister for giving way on that specific point, because he is relying on those schools still being open because other parents have not left. How will he address the situation in which parents of children needing that extra support rely on such schools for their special educational needs, yet those schools have closed because they cannot afford to stay open any longer?
James Murray
We will take a community-wide approach that sees improved SEND provision in mainstream state schools, as well as ensuring that state special schools cater for those with the most complex needs.
Jen Craft (Thurrock) (Lab)
As a parent of a disabled child, the issue of SEND education in this country is very important to me, as it is to a number of my friends and acquaintances. Let us be clear that the SEND system in this country is broken, and it was the actions of the previous Government that left us with parents being desperate and having to search for alternatives to mainstream education for their children. The vast majority of my constituents who find themselves without suitable education placements for their children, for reasons of disability or educational needs, are unable to afford to send their children to a private school. Does the Minister agree with me that perpetuating a system of inequality is not the solution for our broken SEND system?
James Murray
I thank my hon. Friend for her comments. She is absolutely right to say that we need to improve SEND provision for all children in this country in a financially sustainable way, and she speaks with great experience.
Several hon. Members rose—
James Murray
Let me make a bit of progress.
We want to improve state schools across this country so that when people have children with special educational needs, they never need to send them to a private school because the provision in state schools is better. That is the crucial point behind our approach, which my hon. Friend the Member for Thurrock (Jen Craft) was right to highlight.
Several hon. Members rose—
James Murray
I am going to make a bit of progress, because I have been quite generous in giving way so far.
I was talking about when EHCPs in England, or their equivalents in other nations, specify that a child’s education can be met only in a private school. In cases where pupils’ needs can be met only in a specified private school, local authorities will fund their places and be able to reclaim the VAT. Similarly on business rates, the Government are developing an approach to address the potential impact of these changes when private school provision has been specified through an EHCP. More widely, as we have just been addressing, we as a Government are committed to transforming the system for supporting children and young people with SEND in all schools. We need to deliver better outcomes in a financially sustainable way.
James Murray