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Harpreet Uppal (Huddersfield) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
Today, the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), is already at COP29 in Baku, where he will be leading climate negotiations. He sends his apologies. The Prime Minister is also at COP29 and will be speaking at the global leaders summit, announcing our ambitious 1.5°C-aligned nationally determined contribution and showing that the UK is truly back on the international stage. A written statement will also be made later today.
Harpreet Uppal
I welcome the leadership the Government are showing, in particular on NDCs, as my hon. Friend mentions. The news that this year is likely to be the hottest on record across the world is deeply concerning and reminds us that climate breakdown is a global challenge that we must all face. Does the Minister agree that we must have ambitious plans at home, so that we can go to COP and challenge other world leaders to do more to tackle climate change?
Kerry McCarthy
I completely agree with my hon. Friend. There is a direct link between taking action to protect the British people at home and leading on climate action abroad. If we want to protect our country from future energy shocks and the runaway cost of climate chaos, we must work with other countries to protect our planet. We now have the credibility to do that because of the action we have taken since entering government, as was apparent when I attended pre-COP meetings in Baku last month and as the Prime Minister will demonstrate in Baku today.
Carla Denyer (Bristol Central) (Green)
I warmly welcome the new Government target to cut carbon emissions, and I know the Secretary of State and the Minister thoroughly understand the importance of joined-up action on climate justice. Can she tell us whether every single Government policy across every Government Department will now be assessed to check whether it is compatible with 1.5°? What steps are the Government taking to ensure the global south is properly compensated for climate loss and damage?
Kerry McCarthy
On the second point first, at this COP we want to ensure that we fully operationalise the loss and damage fund, so we then start getting money into it and channelling money to developing countries. We also want to do that through the new collective quantified goal, which we hope will be ambitious and multi-layered.
On the question of looking at our policies across the piece, that is very much my job. We will be responding soon to the Committee on Climate Change’s report, which the hon. Lady will know was quite critical of the previous Government’s action. We will be setting out our plan to implement the NDC and looking at the next carbon budget. All those things require effort share across Departments to ensure we actually meet them. It is about not just setting ambitious targets, but making sure that, unlike the previous Government, we have a strategy to get us there.
Several hon. Members rose—
Mr Toby Perkins (Chesterfield) (Lab)
I am ready to go, and so is the Prime Minister—it is great to see him in Baku showing leadership. The recent Cali conference was a disappointment. Ultimately, nations were not able to reach agreement. Alongside the positive steps the UK Government are taking, what conversations are we having with international partners to recognise the necessity of an agreement that brings all western nations together in showing equal ambition?
Kerry McCarthy
I thank my hon. Friend for that question. I know he was at Cali. There was some progress on such issues as digital sequence information, but more needs to be done. We are very seized of the need to join up action on the nature and climate crisis. When I head out to COP29 tomorrow, Members will hopefully hear more from us on our efforts to protect forests and on the support we are giving to countries at risk of deforestation. We are also looking at nature-based solutions to climate change. The nature Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Coventry East (Mary Creagh)—will be out there as well, and we will have more to say, but I entirely agree with my hon. Friend the Member for Chesterfield (Mr Perkins) that we cannot deal with one crisis in isolation from the other.
Jess Brown-Fuller (Chichester) (LD)
For the UK to be an international leader on climate change we need to bring the business community with us. The Summer Berry Company in my constituency recently invested £8 million in ensuring it is carbon neutral, but it was then quoted a further £3 million to be able to feed its excess energy into the grid. What is the Minister doing to make additional grid connections affordable and accessible for green businesses?
Kerry McCarthy
The energy Minister—the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks)—is very much involved with that issue. We have also set up the energy superpower mission board, headed by Chris Stark. I had a conversation with him yesterday about what we can do to ensure grid capacity and grid connections in the right places. If the hon. Lady has a specific issue to raise and would like to write to me, I will make sure it is passed on to him.
Joy Morrissey (Beaconsfield) (Con)
When I asked the Secretary of State about the appointment of Rachel Kyte as his international climate envoy during our last questions session, he failed to say whether Quadrature Capital’s £4 million donation to the Labour party had been declared to the Department before her appointment, and I have still not received a reply to my letter of 17 October. Will the Minister tell me whether the Secretary of State declared those interests to the Department before Rachel Kyte’s appointment, and whether Ministers have ever met directors of Quadrature Capital or Quadrature Climate Foundation?
Kerry McCarthy
I am sure that the shadow Minister will receive a reply to her letter in due course, but I can tell her that Rachel Kyte is extremely well respected, and that her appointment as our special representative has been welcomed across the board.
Catherine Atkinson (Derby North) (Lab)
Bill Esterson (Sefton Central) (Lab)
Baggy Shanker (Derby South) (Lab/Co-op)
Joe Morris (Hexham) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
In just four short months, we have made rapid progress on achieving our mission for clean power by 2030. We have set up Great British Energy and announced its headquarters in Aberdeen, secured a record-breaking 131 renewables projects, and consented to record amounts of solar. We are getting on with delivering lower bills, energy security, good jobs and climate action.
Catherine Atkinson (Derby North) (Lab)
Rolls-Royce in Derby is an international leader in research on and the development of small modular reactors, and it is fantastic that the Government have acknowledged the role that SMRs will play in clean power generation, energy security and green jobs. In the Budget, we heard that the final decision on Great British Nuclear’s SMR competition will conclude next spring. Does the Minister agree that it is important for this opportunity to be seized as soon as possible?
Michael Shanks
I agree with my hon. Friend that nuclear will play a central role in our clean power mission, and will continue to be a critical part of our energy mix as we progress towards 2030 and far beyond. Great British Nuclear is continuing to drive forward the competition on small modular reactors, with bids currently being evaluated by the Department, and I look forward to having more to say about this in due course.
Bill Esterson
The last Government held a consultation on electricity market arrangements, but despite having said that that was their flagship policy in this area, they did not publish the results of that consultation. Does my hon. Friend agree that electricity and, indeed, energy market reform is crucial to achieving the Government’s stated 2030 clean energy targets and to reducing bills, and can he say whether this Government will publish the results of the last Government’s consultation and if so, when?
Michael Shanks
I congratulate my hon. Friend again on his appointment as Chair of the Select Committee—he brings a huge amount of knowledge and experience to the role—and I agree with him about the importance of reviewing electricity market arrangements. We are building on the last Government’s consultation, and we will have more to say in the months ahead. This is a crucial element of how we achieve clean power by 2030 and ensure that our energy system of the future is fit for what will be a different way of managing energy throughout the country. We will have more to say about that in the months ahead.
Baggy Shanker
Last week a report published by the National Energy System Operator noted that although the programme to roll out new small modular reactors was being developed for the mid-2030s, a 2030 roll-out date would in fact be possible. Given that SMR technologies hold exciting and significant potential for investment in jobs and infrastructure in constituencies such as mine, has the Minister considered the value of bringing the roll-out forward to 2030?
Michael Shanks
My hon. Friend is right to say that nuclear will play a vital role, and that it not only delivers on our energy security but creates good, well-paid jobs. Unlike the last Government, who in 14 years did not deliver a single nuclear project—there were many consultations and processes, but not a single nuclear power station was built—this Government are getting on with delivering a nuclear future.
Joe Morris
Last week’s report from the National Energy System Operator showed that not only is clean power by 2030 achievable, but it can lead to lower bills and more secure systems. Does the Minister agree that the only way to protect bill payers permanently is to go as far and as fast as possible towards our clean power mission by 2030?
Michael Shanks
My hon. Friend is absolutely right. The report published by the independent National Energy System Operator laid out not only that reaching our clean power mission is entirely achievable, but that it will bring down bills. The importance of the report is that it set the course for how that is possible. The reality, which the Conservative party refuses to accept, is that the only way to get us off the rollercoaster of high bills is to deliver at pace the clean energy that we know will deliver energy security and climate leadership, and bring down bills for people right across the country.
Tom Tugendhat (Tonbridge) (Con)
I am delighted that the Minister is setting out that the report promises an extra £40 billion of investment a year in the energy sector and, presumably, the taxes to go with it, which will of course come from the businesses that are paying for everything else in the Budget that has just gone by. Is there anything at all in his proposals that will actually bring down the cost of energy and not be replaced by taxpayer funding? It appears at the moment that there is nothing, and energy prices are already going up.
Michael Shanks
I would encourage the right hon. Gentleman to read the NESO report, because it sets out in great detail not only that clean power is achievable by 2030, but that it will lead to lower bills. What he says about investment misses the point: in the last few weeks, we have announced billions of pounds of private sector investment in these projects; indeed, Scottish Power has announced today that it will provide £1 billion. Companies are choosing to invest in this country, whereas they did not under the Conservative party. The reality is that once upon a time, the Conservatives recognised that the drive to net zero was important. They have abandoned that commitment now.
Sir Bernard Jenkin (Harwich and North Essex) (Con)
I thank the Minister for agreeing to meet the OffSET—offshore electricity grid taskforce—group of MPs later today; we are very much looking forward to the meeting. Does he recognise that achieving the 2030 deadline set out in the NESO report requires an acceleration of the process, which, in turn, is dependent on much higher levels of public consent?
Michael Shanks
I recognise the hon. Gentleman’s point, and I am looking forward to meeting him and his colleagues this afternoon to discuss the particular issues in his area. We need to build more network infrastructure across the UK to make this endeavour a reality, but he is right: we want to bring communities with us on this journey. That is why we have said that we are looking again at what community benefits will look like, building on some of the work that the previous Government did in consulting on this issue. Crucially, however, if want to bring down bills and deliver energy security, we will have to build the infrastructure, and that is what this Government are committed to doing.
Wera Hobhouse (Bath) (LD)
The Minister knows well the Liberal Democrats’ commitment to community energy. Will the Government establish a clean community energy scheme, look at the barriers that currently face community energy projects and look at supporting the National Grid to deliver community energy?
Michael Shanks
The hon. Lady and I have had a number of conversations, and I recognise her commitment on this issue. We have committed in the local power plan to delivering investment in community energy across the country. Importantly, we want not only to invest in schemes, but to deliver across Government the mechanisms needed to make it more possible for communities to deliver such schemes. That will build capacity in communities so that we can see more community energy.
Sir Desmond Swayne (New Forest West) (Con)
What is the beef behind the Government’s reluctance to embrace with enthusiasm locally generated community energy? Why did they vote against the amendment tabled to the Great British Energy Bill by the hon. Member for Bath (Wera Hobhouse)?
Michael Shanks
I think the right hon. Gentleman thinks that was a “gotcha” question, but, of course, the Conservative party did not vote for the Bill at all. Amendment or not, I do not think he can really speak about what Great British Energy might deliver, because, despite it being one of the most popular policies at the last election, the Conservatives failed to bother to vote for it.
Claire Coutinho (East Surrey) (Con)
Last week, the National Energy System Operator published a full systems cost analysis of the Secretary of State’s flagship project to carbonise the grid by 2030. This morning, the Secretary of State said on several media outlets that the report shows that his plans will lower bills. I remind the House that the report assumes that gas prices are 40% higher than the Department’s own estimates, that the price of carbon price is at least double what it is now, that the Government can commission more offshore wind in the next two years than in the last six combined without moving prices, and that they can build the grid at a pace we have never seen before in this country, without any delays. Even if all that is achieved, page 78 of the report shows that the cost of the system will be higher. For clarity, would the Minister like to repeat at the Dispatch Box the Secretary of State’s claim that the NESO report shows that Labour’s system will lead to a lower cost of electricity?
Michael Shanks
What the shadow Secretary of State has just outlined quite coherently is that the Conservatives have no ambition in this space whatsoever, but we do. I am very happy for the right hon. Lady to outline where our ambition is. We will build faster than the previous Government, although I have to say that that would not be difficult. The shadow Minister sitting next to her, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), said quite clearly at their conference that the previous Government had built infrastructure far too slowly, and their former Energy Minister, the right hon. Member for Beverley and Holderness (Graham Stuart), said that their onshore wind ban was “always mad”. We are quite happy to pick up where they left off and deliver the clean power that this country needs.
Claire Coutinho
This is the ministerial team who told the electorate they were going to cut their bills by £300, without doing any homework to find out how those plans would work. They voted against our amendment to hold them to account on their own pledge just two weeks ago, and now they are trying to claim that the NESO report shows that their approach will lower bills when in fact it shows in black and white that the system will be much more expensive. Does the Minister not see that if they follow this plan, we will be a warning, not an example, to the rest of the world and that the British people will be colder and poorer as a result?
Michael Shanks
Time and again, the Conservatives run away from their record on this in office. The reason why people right across this country are paying more on their energy bills is that the Conservatives did not get us off the rollercoaster of fossil fuel markets, but we are now moving at pace. The right hon. Lady may want to keep us in the vulnerable state where we are reliant on international gas markets, but we are determined that we will not do that. We will bring down bills and deliver energy security. I am not ashamed to say that we will move with great ambition to deliver what this country needs and to deliver the good jobs that go with it.
Douglas McAllister (West Dunbartonshire) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
We are moving at pace to set up Great British Energy. So far we have appointed the start-up chair, Jürgen Maier, we have announced that the headquarters will be in Aberdeen and we have progressed the Bill through the House of Commons. This builds on the first partnership announced for Great British Energy, with the Crown Estate, and on a recent new deal to collaborate with Scottish public bodies. We are getting on with the job of delivering 21st-century public ownership for the British people.
Douglas McAllister
Every family and every business in my constituency paid the price of 14 years of Conservative failure with rocketing energy bills because the last Government failed to invest in clean energy. The Opposition continue to oppose Great British Energy. Does the Minister recognise the absurdity of their argument that they are quite happy with foreign public ownership as long as it is not UK citizens who own our energy?
Michael Shanks
My hon. Friend makes a good point. It is important to remember that, despite what the Conservatives might have us believe, Great British Energy is overwhelmingly popular with the British people. That includes the people in Scotland, because of course it was not just the Conservative party who did not vote for Great British Energy; surprisingly, the Scottish National party also failed to vote for a publicly owned champion in our energy space. We are getting on with delivering jobs and growth, delivered with public ownership through Great British Energy.
Neil O’Brien (Harborough, Oadby and Wigston) (Con)
Before the election, Labour said that Great British Energy would cut electricity bills by £300. After the election, the Labour Government voted against writing that into law and instead took away people’s winter fuel payments and made their bills more expensive. The Institute for Fiscal Studies has now said that their policies are fundamentally raising prices for consumers to the tune of £120 per household, and we know from the NESO report that this will get worse. Even if they triple the pace of wind roll-out, double the pace of grid connection and make other heroic assumptions, all of this is going to bump up costs further, is it not? We are doing this from the basis of having the high electricity prices in Europe. What assessment has the Minister made of the impact on British industry?
Michael Shanks
Question after question from the Conservatives shows that they do not recognise the part they played for 14 years in why we are paying higher bills than ever before. We are the only party with an ambitious plan to get us off the volatile fossil fuel markets. The Conservatives used to believe that, in our drive to net zero, we should build this infrastructure for the long term. They are now opposing it, but they will have to tell their constituents why they want to leave them exposed to rising bills.
Jo White (Bassetlaw) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
We agree that fusion could be a globally transformative green energy solution. The UK Government’s fusion programme continues to lead the world in the development of fusion energy, and our ambition is to continue to do so.
Jo White
Two weeks ago, the Budget announcement that the first fusion power plant will be built in Bassetlaw was welcome news. Can the Minister provide greater detail on this commitment, alongside the funding support being made available for the next financial year?
Kerry McCarthy
My hon. Friend is a great champion for her constituency, and I was pleased to meet her to talk about this issue and to hear her Westminster Hall debate. I look forward to visiting her constituency later this month to see the fusion café and to visit West Burton, the site of the STEP project, after which I hope to be able to share more detail on how we will support fusion.
Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
Dounreay, in my constituency, was the site of the UK’s first fission reactor. Today, we have a highly skilled workforce, a licensed site and a local population that warmly supports the industry. Will the Government seriously consider involving Dounreay as we bring fusion to its wonderful fruition?
Kerry McCarthy
I think fusion has huge potential, and so many companies stand to benefit. It is not just about the ultimate goal of fusion energy; it is also about all the technological advances we will discover. I have spoken to fusion companies which are, for example, finding uses for cancer treatment. I am very interested to hear what the hon. Gentleman has to say about the possibilities of fusion in his constituency. We want to see this proceed. If he drops me a line, I will be happy to explore the opportunities in his patch.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
We have spoken a lot about the Conservative party’s record in government, and I am very proud of our record on fusion. We launched the Fusion Futures programme to provide up to £55 million of funding to train more than 2,000 people, we became the first country in the world to regulate fusion as a distinct energy technology, and we launched the process to build the spherical tokamak for energy production—I cannot say that as quickly—at what will be the first fusion power plant at West Burton in Nottinghamshire. [Hon. Members: “Hear, hear.”] Members are very welcome. Will the Minister confirm that it is still the Government’s intention, as it was ours, to have fusion power on the grid by 2040?
Kerry McCarthy
As I mentioned, I am very much looking forward to visiting West Burton soon. The Budget announced significant support for fusion energy in 2025-26 and, yes, we remain as ambitious as the previous Government for the potential of fusion energy.
Andrew Bowie
Having confirmed that 2040 is still the ambition, which does the Minister think will come first: fusion on the grid or the final investment decision on Sizewell C?
Kerry McCarthy
The final investment decision on Sizewell C, as I understand it, is expected soon. We will hear more about support for that in the next spending review. Fusion energy has huge potential, not just in the long term but from the innovation we are already seeing in that sphere, which I very much welcome.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
Dame Meg Hillier (Hackney South and Shoreditch) (Lab/Co-op)
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
On 4 October, the Government announced £21.7 billion over the next 25 years to launch the UK’s carbon capture, utilisation and storage industry. We will provide further details on the next steps for CCUS, including track 2 projects such as Acorn, in the coming months.
Seamus Logan
I thank the Minister for her encouraging answer. Acorn, including the St Fergus site in Aberdeenshire, not only has a significant role to play in achieving net zero in Scotland, but has the capacity to accept carbon from mainland Europe. This project could help the UK and Europe to achieve their net zero goals, and is significant not only for the port of Peterhead in my constituency, as the Minister knows, but for the local power station, which shares the same integrated ambitions. Acorn presents very significant opportunities, representing hundreds of millions of pounds in new investment, new jobs and economic growth for the north-east, for Scotland and for the UK. Can the Minister accelerate the decision making on the Acorn project, and will she commit to funding in 2025?
Sarah Jones
We are committed to track 2, and I recognise the huge advantages of Acorn that the hon. Gentleman has highlighted. Our record £21.7 billion investment demonstrates our long-term commitment and gives industry the certainty it needs. The ups and downs of CCUS under the previous Government did not provide the certainty that people required, and certainty is what we are looking to deliver. We understand that people want clarity, and we will be making further announcements in the coming months.
Dame Meg Hillier
The path to carbon capture and storage is littered with failure: three previous projects never got off the ground, despite lots of taxpayer money going into them. What precisely are the Government going to do to ensure that this project delivers?
Mr Speaker
If the hon. Lady would look towards me a little bit, I will be able to hear the question.
Sarah Jones
We realise that CCUS is an emerging industry, but it is also one that we can lead on internationally, thanks to the unique geography of the North sea. We will do all we can to help industry scale up in this technology, which we believe will play a crucial role in our mission towards clean power.
Dr Andrew Murrison (South West Wiltshire) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
The Government regularly meet stakeholders to discuss the development of our energy infrastructure. Last week, the Government received advice from the National Energy System Operator outlining its advice on the pathway towards clean power by 2030. Later this year we will publish our 2030 action plan, which will set out details on the future of our energy mix.
Dr Murrison
Offshore wind has been a real positive for our energy security and grid independence, but unfortunately not when the wind does not blow. Given the election of a President who tells us he is going to “drill, baby, drill,” what revision does the Minister anticipate to his timetable towards net zero?
Michael Shanks
As I said in my previous answer, later this year we will outline our action plan on how we will deliver on the 2030 target; there is no change to our timetable in that regard. The right hon. Gentleman raises a good point about what happens when the wind does not blow and the sun does not shine, and about ensuring we have a mix in our energy system. That is why we remain supportive of nuclear and why we have recently announced investment in long-duration energy storage, to ensure we can capture energy and use it when we need it.
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
I was delighted by Ofgem’s announcement this morning that it now recommends that the proposed Nautilus interconnector should be located at the Isle of Grain, not on the Suffolk coast. Since I have been elected, I have made firm representations to the Minister and Ofgem, including via its consultation, that the Suffolk coast should not have been considered and brownfield sites should have been considered first. Will the Minister meet me to discuss other National Grid projects in my constituency?
Michael Shanks
Ofgem has announced today decisions on a number of interconnectors. Those are decisions for Ofgem and not for the Government. We have recently announced the launch of a strategic spatial energy plan, to ensure that we plan such projects holistically, across the whole of the United Kingdom, and take into account a number of schemes when planning future energy, such as those my hon. Friend mentions in her constituency. I will continue to have discussions about that with Members from across the country.
Nick Timothy (West Suffolk) (Con)
China’s largest offshore floating wind turbine company, Ming Yang Smart Energy, plans to build its first manufacturing plant outside China in Scotland. Ming Yang benefits from huge subsidies in China, but there are serious questions about energy security and national security. The Secretary of State says he wants to end reliance on foreign autocrats, but when he was asked about this on the radio this morning, he had no answer. Will the Minister rule out allowing any turbines that might be controlled by hostile states?
Michael Shanks
We are encouraging investment in the UK to build the infrastructure that we need in the future. Just today, we have announced the clean industry bonus that will give as much support as possible to companies to build their supply chains here in this country. We will continue to look at supply chains and, of course, we take seriously the companies, across the range of business projects, that are investing in this country. There is a series of processes already under way across Government. Whenever anybody wants to invest in this country, those processes will be followed in the usual manner.
Ms Polly Billington (East Thanet) (Lab)
Mr Speaker, will you and the Minister give the House an opportunity to celebrate the £1 billion of investment announced today in offshore wind in this country? It will provide jobs across the country, as promised by this Government, which the British people are not used to after the past 14 years. Will the Minister meet me to discuss the infrastructure required to connect that clean, secure energy to our homes, in particular the Sea Link project that could have an impact in my constituency?
Michael Shanks
My hon. Friend is right to highlight the fantastic announcement today by ScottishPower of £1 billion of investment here in the UK, building the infrastructure that we need, and delivering jobs and skills in this country as well. It is one of a number of announcements that we expect, because we are not agnostic in this Government on delivering the industrial strategy that we need. My hon. Friend the Minister for Industry is working on that at the moment. We will deliver the jobs in this country to build the clean power of the future. We will deliver good, well-paid jobs and the energy security we need.
Andrew Pakes (Peterborough) (Lab)
The Minister for Industry (Sarah Jones)
Delivering good jobs is the driving force behind our growth and clean energy missions. Great British Energy and the national wealth fund will crowd in private sector investment to spread jobs across the country through investment in clean energy. I am delighted that the Prime Minister has today launched the clean industry bonus, which will incentivise developers to invest in the UK’s industrial heartlands, coastal areas and oil and gas communities, boosting jobs and delivering on another of our manifesto promises.
Andrew Pakes
I am also delighted with my hon. Friend’s commitment to delivering clean energy jobs. It is important to constituencies such as mine in Peterborough, which could be the King’s Cross for a new core hydrogen network—as recommended by the National Infrastructure Commission—thanks to National Gas’s Project Union. National Gas has its hydrogen-ready gas compression site in our city and we are about to open a new green technology centre to develop new green jobs and apprenticeships. Will the Minister commit to working with local authorities such as mine, colleges, and businesses such as National Gas, to deliver new jobs across the supply chain and in all parts of the country?
Sarah Jones
I completely agree with my hon. Friend’s sentiment and commend the work that he is doing in his constituency. Low carbon technology will of course play a critical role in our future, from hydrogen to carbon capture and to renewable energy. I am pleased that, in the Budget, we saw the funding of 11 hydrogen projects, which will drive jobs and growth. I am really keen to talk to him about his plans for Peterborough becoming the King’s Cross for a hydrogen network and applaud the work that is going on in his constituency around green jobs.
Tim Farron
Mr Speaker, perhaps if I start, the hon. Member for Strangford (Jim Shannon) could finish.
In order to safeguard renewable jobs and to create new ones, will the Minister consider a specific project that has hydro-turbine manufacturers such as Gilkes in Kendal, and many others around the country, working alongside our farmers to make use of streams, becks and rivers that go through farmland to create renewable industry and, indeed, new jobs?
Sarah Jones
We are ambitious to create all the jobs that we want to see in the green technologies of the future. I would be very interested to hear more about what the hon. Gentleman has to say. The Climate Change Committee estimates that up to 750,000 net jobs could be created by 2030. Opposition Members have decided that they do not support that path. The question is: why are they objecting to all these new jobs that we will be creating across our country?
Peter Swallow (Bracknell) (Lab)
Sadik Al-Hassan (North Somerset) (Lab)
Anna Dixon (Shipley) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We are committed to an ambitious warm homes plan, which will upgrade homes across the country, making them warmer and cheaper to run, by installing new insulation and rolling out low carbon heating such as solar and heat pumps. As a first step, the Government have committed an initial £3.4 billion over the next three years towards upgrading homes. We have already hit the ground running with the roll out of our warm homes local grant, and our warm homes social housing fund. We will set out more details in due course.
Peter Swallow
Too many of my constituents are living in poorly insulated social housing. New mother Dionne, for instance, had the insulation from her flat removed last year by her social landlord because it was full of mould and mildew. She is now facing her second winter without insulation. Will the Minister confirm that the warm homes plan will introduce tough new standards to ensure that social housing providers get on and insulate their housing stock?
Miatta Fahnbulleh
Yes, absolutely. Raising standards in the social housing sector will be a critical part of our warm homes plan. We have already announced plans to lift 1 million renters out of fuel poverty by raising the minimum energy efficiency standard in both the private and the social-rented sector, which will ensure that renters no longer have to live in cold, drafty homes. We will also unlock £1 billion-worth of investment to the national wealth fund in partnership with leading banks to upgrade more social homes, and we will set out more detail to build on that in due course.
Sadik Al-Hassan
I thank the Minister for her commitment to the warm homes plan. Many of my constituents in North Somerset have written to me in recent weeks, detailing their concerns that the scheme does not take sufficient account of higher energy usage due to long-term illnesses. Will the Minister share whether the Department has any plans to look into uplifting the warm home discount for participants with relevant long-term illnesses?
Miatta Fahnbulleh
We recognise that many vulnerable people, including those with high energy usage, often bear the greatest burden when energy prices increase. That is why we are doing all we can, including by working with energy companies, to make sure that we are providing additional support this winter and beyond. I will take my hon. Friend’s point away and follow up with him in due course.
Anna Dixon
Given that 64% of homes in Shipley have an energy performance certificate rating of D or below, I very much welcome the Government’s commitment to the warm homes plan. The charity Groundwork provides a “warm homes healthy people” scheme across Bradford district, installing energy-efficiency measures, and offering advice and support on energy bills. Does the Minister agree that local charities need support to continue to help those who are most in need this winter?
Miatta Fahnbulleh
It is a national scandal that so many homes across the country have an EPC rating that is below C—a failure of the last Government to deliver the scale of home upgrades that we need. We are determined to end the injustice of people living in cold and draughty homes. I completely agree that we must do everything we can to support vulnerable households with their energy bills this winter. That is why we are providing 3.3 million households with the warm home discount, why we are working with energy suppliers to provide additional support, including through charities, and why we have extended the household support fund.
Mr Gregory Campbell (East Londonderry) (DUP)
Does the Minister agree that we particularly need a comprehensive warm homes plan in rural areas in order to identify very old homes and ensure that insulation is targeted to maximise reduction in their energy usage?
Miatta Fahnbulleh
We will ensure that we see upgrades in every part of the country; we will be working with combined authorities, local government and the devolved Administrations to make sure that we are delivering the scale of upgrades needed across the country.
Tom Gordon (Harrogate and Knaresborough) (LD)
In the light of the warm homes plan, is the Minister aware of challenges faced by homeowners who used the green homes grant for spray foam insulation? Many now find their homes unmortgageable, and face significant costs for removal and repair. Will the Minister consider measures to support such homeowners as part of the warm homes plan?
Miatta Fahnbulleh
I am aware that many households have had upgrades that have not gone to plan. It is critical that we build confidence, because in the end we need to persuade consumers up and down the country to have these upgrades. There were schemes under the last Administration that were not regulated and did not have the correct standards, and we are working hard to make sure that we raise standards across the piece.
Dave Doogan (Angus and Perthshire Glens) (SNP)
We are going to need a warm homes plan, because with the snow and ice coming in on a cold front, Scotland is seeing a “sum front” heading north from this Labour Government: a £600 cut to the winter fuel payment and the pensioners’ cost of living payment—for winter weather that is here now. That was not in the manifesto. What was in the manifesto was a £300 cut to fuel bills, but those costs are now up by £450. When will this Government do a single thing for people facing fuel poverty?
Miatta Fahnbulleh
We will work across the country to tackle fuel poverty, but I remind the hon. Member that fuel payments are devolved. The Scottish Government have been given the biggest budget, and it is time to get on with the job and fix the situation.
Pippa Heylings (South Cambridgeshire) (LD)
Homes in the UK are among the least energy-efficient in Europe, with unparalleled health, productivity and carbon emission costs to society, as a result of the last Government’s failure to act. I agree with the Minister: it is a disgrace that this is happening in one of the largest economies in the G7. We welcome the news of the warm homes plan coming next year, but does the Minister agree that an emergency home insulation programme this winter, with free insulation for people on low incomes, is necessary so that people in South Cambridgeshire do not have to face the choice between heating and eating?
Miatta Fahnbulleh
Let me assure the hon. Member that we are hitting the ground running with home insulations. We are rolling out our warm homes local grant and our warm homes social housing fund, to target people this winter—this year—because we need to deliver the biggest ever upgrade.
Shaun Davies (Telford) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
As the first step towards the warm homes plan, we have committed an initial £3.4 billion. That includes £1 billion towards public sector decarbonisation, because we know that we have to ensure that our schools and hospitals reduce their energy bills.
Shaun Davies
Decarbonising the public sector is good for our net zero target, but it also releases money for more teachers, nurses and street cleaners, so that savings benefit our communities rather than energy giants. Schools across Telford are crying out for that investment. Will the Minister do all she can to decarbonise the public sector in the years to come?
Miatta Fahnbulleh
I completely agree; decarbonising our public sector will not only reduce emissions but lower bills. We estimate that the £1 billion that we have allocated to public sector decarbonisation will reduce bills by about £40 million per year. That is a big step forward, but there is more work to do.
Jim Shannon (Strangford) (DUP)
It is clear that there is a role for all schools across this great United Kingdom to play in public sector decarbonisation. They also have a role in educating the children in their classrooms, who we want to be the pioneers of tomorrow. What has been done to ensure that the good things that happen on the mainland of the United Kingdom are shared with regional Administrations such as the Northern Ireland Assembly?
Miatta Fahnbulleh
We will work on that with the devolved Administrations across the United Kingdom. Good practice is happening across local government and regional government. We will ensure that everyone can learn from it, and we will deliver the biggest upgrade in a generation.
Joani Reid (East Kilbride and Strathaven) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
The energy transition presents an incredible opportunity for job creation right across the UK, particularly in our industrial and coastal communities. Through Great British Energy, we will build on Scotland’s reputation as a world leader in energy and secure long-term, well-paid jobs in the industries of the future.
Joani Reid
I recently had the privilege of opening an extension to the Kype Muir wind farm in my constituency. The extension alone will generate enough power for 53,000 homes for 30 years. My constituency is also home to part of Whitelee, the largest onshore wind farm in Europe. However, not one of those turbines was manufactured in the UK, let alone locally. What steps is the Minister taking to develop UK manufacturing capacity in that area?
Michael Shanks
I know well my hon. Friend’s constituency—it is next door to mine—and both wind farms she mentions. She says quite rightly that, for all the expansion in those technologies over recent years, very few of those jobs, particularly in manufacturing, have been in this country. We will do everything we can, through Great British Energy and the clean industry bonus we have announced today, to grow our domestic supply chains, build industry in this country and win jobs for Britain.
Harriet Cross (Gordon and Buchan) (Con)
Last week, just days after the Budget, Apache announced that it would exit the North sea by 2029. It said:
“The onerous financial impact of the energy profits levy…makes production…beyond 2029 uneconomic.”
What assessment have the Government made of the impact of those policies on current jobs in north-east Scotland, and how will Great British Energy compensate for the loss of those jobs?
Michael Shanks
We are working with industry in the north-east of Scotland to ensure that this is a just and prosperous transition. We have announced our next steps of responding to court judgments, and a consultation is open at the moment. We will have more to say about that in the months ahead. The hon. Lady must recognise that if she wants to see investment from Great British Energy, she might actually have to support its creation in the first place. The Conservatives cannot have it both ways; either they want a public energy company to invest in the jobs of the future—
Michael Shanks
Or they do not, as her right hon. Friend has just confirmed from the Back Benches. She cannot have it both ways.
Christine Jardine (Edinburgh West) (LD)
The Minister of State, Department for Energy Security and Net Zero (Sarah Jones)
The Budget was a major step forward, paving the way for investment in clean, home-grown power, creating jobs and delivering energy security. Last week, the National Energy System Operator provided definitive evidence that our clean power mission is achievable and can give us greater energy security and lower energy costs. The Conservatives have spent the past year arguing for a system that would keep the British people locked into energy insecurity and higher costs. While they are locked in arguments about the past, we are getting on with delivering lower bills, energy security and good jobs for the British people.
Christine Jardine
The price cap rise, winter fuel payment cuts, higher standing charges and lower temperatures are all things that my constituents in Edinburgh West—particularly my pensioners—are coming to me with concerns about. What is the Secretary of State planning to do to work with Ofgem and the energy companies to come up with a fairer set of circumstances for my constituents and others in similar situations?
Sarah Jones
We are looking to bring down standing charges. The hon. Lady has mentioned a lot of cases where people are struggling; we appreciate that, and we are doing what we can. The Budget set out how we are going to protect the most vulnerable people and ensure that people are supported in the way they need to be. We have a lot to do after 14 years of Conservative Government; we are trying to unravel that and support people. Our push for clean energy by 2030 will lead to lower bills, and that is what we will be working on.
Dan Aldridge (Weston-super-Mare) (Lab)
Mr Speaker
Order. Topical questions should be short and punchy. I am sure you are going to get to the end of your question any minute now.
Dan Aldridge
Can I urge the Minister to go further and faster in delivering clean power for our communities, which the NESO report so clearly stated would lead to lower bills and energy security?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)
My hon. Friend is right; there are good projects right across the country that we hope to invest in in the lead-up to delivering in 2030. The NESO report clearly set out that our aim is achievable. The Conservative party wants to continue having the arguments of the past; we are determined, with ambition, to deliver on the arguments of the future.
Claire Coutinho (East Surrey) (Con)
The Prime Minister is set to announce at the conference of the parties that he is making the UK’s already stringent carbon emission targets even higher. That is despite the fact that we contribute only 1% of global emissions, while the leaders of the world’s highest-emitting countries—making up over 60% of emissions—are not attending. The Climate Change Committee has said that this target will require, for example, an accelerated shift away from meat and dairy, less travel and a gas boiler ban for the British people, yet the Government’s approach would see our reliance on imports from China—which is 60% powered by coal—go through the roof. Does the Minister agree that an approach that is asking for more sacrifice and hardship from the British people, in return for more goods from one of the world’s largest carbon emitters, would mean fewer jobs in Britain and more carbon in the atmosphere?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
I think the shadow Secretary of State needs to seek a debate if she wants to elaborate on these issues. Having attended COP last year as part of a cross-party delegation, I found it incredibly depressing to see the way the UK was received. It is really important that we are stepping up and showing global ambition. Reaching net zero in this country and getting to clean power by 2030 is a massive opportunity, not a cost.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
Sarah Jones
I am proud that we have finally ended the injustice of the mineworkers’ pension scheme. Miners across the country powered our economy for decades, working in the toughest environments; they should not have had to fight for so long for a fair pension. I travelled to Barnsley with the Secretary of State to meet former mineworkers and talked about the difference that the Labour Government have made. Of course, we will look at any suggestions that the BCSSS comes forward with.
Pippa Heylings (South Cambridgeshire) (LD)
The US President-elect, Donald Trump, has repeatedly called climate change “a hoax”. I share the concerns of young people in South Cambridgeshire that these views represent a threat to our efforts to tackle climate change. The global community is meeting right now at the international climate summit in Azerbaijan—COP29. Does the Minister believe and share with me the view that the UK must rebuild its leadership by getting back on track with our climate and nature targets?
Kerry McCarthy
I agree that it is now more important than ever that the UK shows global leadership, and that is exactly what the Prime Minister, the Foreign Secretary and the Energy Secretary are doing with their presence at COP today—I will be heading out there tomorrow. I am very keen to work with the hon. Lady cross-party on these issues. Working with young people is very important as well.
Steve Race (Exeter) (Lab)
Kerry McCarthy
As I have said, showing domestic leadership gives us the credibility to show international leadership too. We will be doing both.
Lee Anderson (Ashfield) (Reform)
Michael Shanks
It perhaps will not surprise the hon. Gentleman or the House that I am not going to agree with his final point. Net zero is incredibly important to deliver climate leadership, lower bills and the jobs of the future. But on biomass, we rightly expect full compliance with all regulatory obligations on biomass, and consumers rightly recognise the high standard of accountability from generators.
Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)
Sarah Jones
That is correct. It will mean, on average, an extra £29 a week, putting right a wrong that has persisted for far too long. Although the money is important and a key part of it, we have done the right thing—and about time too. Some 112,000 members across the country will benefit.
Richard Fuller (North Bedfordshire) (Con)
Thank you, Mr Speaker, for permitting me to raise this important constituency matter from the Back Benches. On 2 July this year, during the installation of a ground source heat pump in a constituent’s back garden, a gas field was struck and gas was released. On 19 October there was an explosion, which resulted in the deaths of two of my constituents and the continuing evacuation of 50 households. Matters related to the period between 2 July and 19 October are subject to investigation. I am advised that this is the first such instance of gas being encountered, but given that ground source heat pumps are expected to play a significant role in decarbonising home heating, will the Minister undertake to review the regulations covering the installation of ground source heat pumps, and will she arrange a meeting for me with the relevant Minister to discuss these matters further?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I am sorry to hear about the incident that the hon. Gentleman has raised. We absolutely need to ensure, as we roll out all low-carbon technology, that standards are at the highest level. I undertake to meet him to understand the specific circumstances and see what we can do in terms of reviewing regulation.
Adam Thompson (Erewash) (Lab)
Kerry McCarthy
I got to see the JET project when I visited Culham. There is huge potential for a cluster there. Many more companies are being attracted to that sector. My hon. Friend is right that we need to maximise the skills that are there, but I am confident, having spoken to companies that have been attracted to Culham, and having spoken to international companies too, that we will continue to do so.
Helen Morgan (North Shropshire) (LD)
Many homes in my constituency are off grid, which means that their owners have to fill up the tank at the beginning of winter to keep warm. The pensioners who have lost the winter fuel payment are struggling with that up-front amount. Will the Minister review the level at which the winter fuel payment is removed, because the most vulnerable are struggling?
Miatta Fahnbulleh
We are doing everything we can to help the households that will struggle with bills this winter. We have had a big push to increase the uptake of pension credit and we are working with energy suppliers to provide additional support this winter, alongside our warm home discount, which will provide a rebate of £150 to households in fuel poverty. We have also extended the household support fund.
Joe Powell (Kensington and Bayswater) (Lab)
Kerry McCarthy
I understand that the Foreign, Commonwealth and Development Minister has raised the case with the Azerbaijani Foreign Minister and urged allowing Dr Ibadoghlu to travel overseas for specialist medical care if required. We will continue to use our diplomatic channels to raise our concerns about the protection of freedom and human rights in Azerbaijan, including for my hon. Friend’s constituent.
Gareth Davies (Grantham and Bourne) (Con)
Conservative Members will never stop holding the Government to account for their pre-election promise to cut energy bills by £300. Have civil service officials conducted any modelling whatsoever that can legitimise that figure?
Michael Shanks
We arrived at the figure through independent analysis. We stand by the reality that the only way to bring down bills is to commit to our 2030 target. The National Energy System Operator backs that, but the Conservative party fails to support that action. The hon. Member therefore must explain what the Conservative plan is for reducing bills for people who are paying more than they have ever paid.
Tim Roca (Macclesfield) (Lab)
My constituents understand that tackling the climate crisis and getting lower bills go hand in hand, and they are excited about Great British Energy. Will GBE invest in community energy projects in places such as Macclesfield?
Michael Shanks
My hon. Friend is right to make a point about community energy. The local power plan that we are committed to will deliver community energy projects throughout Great Britain. I am sure that Macclesfield has some fantastic projects that Great British Energy will look at. We want to unleash the potential of community energy across the country.
Greg Smith (Mid Buckinghamshire) (Con)
National Grid’s rationale for rebuilding East Claydon substation is based on speculative applications, not consented real schemes. Will the Minister therefore meet me to find a way to get National Grid more grounded in reality rather than speculation?
Michael Shanks
I am happy to look at specific cases, but the Secretary of State’s role as final decision maker on some planning applications means that I cannot comment on them. However, generally speaking, the hon. Member makes an important point about looking at how we plan projects holistically throughout the country. That is why we have announced the first ever spatial energy plan for the whole of Great Britain.
Richard Burgon (Leeds East) (Ind)
The devastating scenes of flooding in Spain remind us all of why urgent investment is needed to deal with the deadly consequences of climate change. Does the Minister agree that that investment should be paid for by the polluting companies that have caused the climate crisis?
Kerry McCarthy
We hope that, at COP29 in the coming weeks, we can settle on a figure for a new ambitious goal, which will not just bring in finance from donor countries, but mobilise private sector finance. We will use all the mechanisms we can to ensure that we get money to developing countries as quickly as possible. As my hon. Friend said, it is more urgent than ever to act.
Mr Speaker
Order. I have got to get all Members in, and Ministers have got to help me and work with me.
Alison Bennett (Mid Sussex) (LD)
Bolney in Twineham parish in my constituency hosts the Rampion windfarm substation, which leads to several battery energy storage solution applications. What reassurance can the Minister give my constituents about the adequacy of the regulatory framework?
Michael Shanks
Batteries will play an important role in our energy mix in the short duration storage that we need. We will continue to look at whether the regulatory arrangements are sufficient. Obviously, we want all the applications to be for safe projects. The regulations are in place to ensure that. If we need to do any more work, we will happily look at that.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
We had a very successful all-party group meeting last week on floating offshore wind in the Celtic sea. I know the Minister is supportive and ask him to consider mechanisms such as ringfencing contracts for difference and investment in ports to kickstart the investment in the Celtic sea.
Michael Shanks
My hon. Friend is right to raise the important potential of the Celtic sea in our green energy transition. I will be in Wales tomorrow to speak at a green energy conference on exactly that question. There is huge potential in floating offshore wind. We want to bring the manufacturing jobs in the supply chain to this country as well, which is why we launched today our clean industry bonus to bring that investment here to build the factories of the future and deliver the good, clean jobs of the future.
Alicia Kearns (Rutland and Stamford) (Con)
The wind industry has rightly agreed a standard compensation package for rural communities with big wind plants. The solar industry, however, is, unsurprisingly, busy whitewashing Uyghur slave labour in its supply chains rather than doing that. If it will not act, will the Government step forward and recognise that they must support rural communities by creating a standardised compensation programme?
Michael Shanks
The hon. Lady has pursued this and several other issues to do with the solar industry for a long time. We are currently looking at all the options, particularly around community benefits, to ensure that they are at a scale—following on from the previous Government’s consultation on whether they should be compulsory—that genuinely benefits communities.
Dr Rupa Huq (Ealing Central and Acton) (Lab)
My constituent Konnie Huq, with Arts Council and Lottery funding, has compiled a kids’ climate guide, with Jamie Oliver among the contributors. Will Ministers join forces with her to get it out there, preferably to every school in the country, because we have got to start young?
Kerry McCarthy
I would be more than happy to meet with my hon. Friend and her constituent, who sounds rather familiar, to discuss what more we can do to support climate education among children, including in our schools.
Patrick Spencer (Central Suffolk and North Ipswich) (Con)
I met with National Grid yesterday and communicated my concerns about the Norwich to Tilbury line but we remained constructive and talked about community benefit schemes. Unfortunately, it told me that the Government were dragging their feet on defining community benefit schemes. Can the Minister update the House on when they will bring forward guidance, and can he promise that a community benefit scheme is a real, positive economic benefit for my residents who are impacted by the pylons?
Michael Shanks
Clearly I cannot speak for National Grid but I can speak for this Government and in four months we have moved as quickly as possible on what a community benefit scheme will look like for network infrastructure as well as for generation projects. The Conservative party had 14 years to put in place a different scheme and did not; in four months we are moving as quickly as we can.
Perran Moon (Camborne and Redruth) (Lab)
As Ministers know, the European powerhouse of critical minerals is Cornwall, including its vast quantities of lithium, essential for our transition away from fossil fuels. Will the Ministers agree with the industry’s call for a target of 50,000 tonnes of lithium?
Sarah Jones
I thank my hon. Friend for his question and look forward to meeting him shortly to talk about tin among other things. We are looking at our critical minerals strategy; there is a big role to play in his neck of the woods for lithium and tin, and we will be pushing that as hard as we can.
Chris Law (Dundee Central) (SNP)
Ahead of the general election the Labour party was warned that its plans for the North sea in Scotland would lead to up to 100,000 Scottish job losses. Last week this became a reality when the US oil firm Apache said that it would end all its operations in the North sea by the end of 2029, citing this UK Government’s Budget and tax regime. Can the Minister explain why this UK Government sees the jobs and livelihoods of oil and gas workers in the north-east of Scotland as expendable?
Michael Shanks
I do not believe that at all. This Government are committed to a just and prosperous transition. The reality is that 100,000 jobs have been lost in the oil and gas industry in the past 10 years. If we do not recognise that there is a transition under way and put in place the measures to produce the jobs of the future, we will have more losses. The party that the hon. Member represents could have done something about that by supporting Great British Energy headquarters in Aberdeen but he failed to show up and vote for it.
Noah Law (St Austell and Newquay) (Lab)
I declare an interest as a chair of the all-party parliamentary group for critical minerals. Domestic supplies of copper and, of course, Cornish tin are critical to the UK’s energy security. What consideration has the Minister given to ensuring that copper and tin are recognised as critical minerals?
Sarah Jones
The process in terms of what is on the list of critical minerals is independent, but I have a strong interest, as does my hon. Friend, in ensuring that we produce as many critical minerals here as we can and that the supply chains around the world are working for us. I am looking at a critical minerals strategy, which will come forward in due course.