Written Statements

Monday 10th February 2025 Written Statements

Monday 10 February 2025

Public Inquiries: Enhancing Public Trust

Monday 10th February 2025 Written Statements

[The Paymaster General and Minister for the Cabinet Office (Nick Thomas-Symonds)]

I am today publishing the Government’s response to the House of Lords Statutory Inquiries Committee report, “Public inquiries: Enhancing public trust”.

Public inquiries are a valued and well-established part of our administrative justice system. Recent years have provided ample demonstration of their value. They are widely considered to be an independent, legitimate and trusted method of investigating complex issues of deep public concern. Inquiries have shown themselves to be a way to shed light on injustices of the past, and have provided a means for victims and survivors to finally have their voices heard, and to help to rebuild trust in national institutions.

The House of Lords Statutory Inquiries Committee was appointed last year to consider the efficacy and practice of inquiries established under the Inquiries Act 2005. The evidence it heard and the thoughtful report it published recognised that despite the value of inquiries, there is scope for improvements to make them more efficient and effective, and in particular, to ensure greater transparency and accountability in response to inquiry recommendations.

The Committee’s report is a valuable contribution to a timely discussion and the Government are grateful to Lord Norton and his colleagues for their report. Our response, which is published on gov.uk, signals my intention to build on this important work with a wider review of the policy and operational framework around public inquiries and I look forward to providing an update to Parliament on this work in due course.

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Energy Performance of Privately Rented Homes: England and Wales

Monday 10th February 2025 Written Statements

[The Secretary of State for Energy Security and Net Zero (Ed Miliband)]

The Department for Energy Security and Net Zero is today publishing a consultation on reforms to the minimum energy efficiency standards that are applied to private rented sector homes under the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015. Improving the energy efficiency of private rented homes is essential to cutting bills, tackling fuel poverty, reducing carbon emissions and increasing our energy independence.

Everyone deserves the security and comfort of a warm home. Our aim is to raise as many households in the private rented sector out of fuel poverty as possible. This consultation is a key step towards meeting our fuel poverty target and ensuring tenants have the warmer homes that they deserve. We are seeking views on a range of proposals to address poorly insulated homes, to help improve living standards and the enforcement of regulations, so that we ensure that tenants are better protected.

The Government are also seeking views on how best to support landlords in delivering effective and high-quality changes, such as changes relating to the energy performance certificate metrics that the new standard should be set against, the implementation timeline, and the maximum required investment, including whether the maximum required investment should be the same for all properties, or whether it should be varied, and under what circumstances a reduced investment might be allowed. Government also seek views on whether short-term let properties should be regulated under these standards, as well as on what role smart meter installation and letting agents should play.

Once we have considered the responses to the consultation, we intend, subject to availability of parliamentary time and approvals, to bring forward changes to both primary and secondary legislation so that we can implement improvements to the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015.

Government welcome responses to the consultation from all stakeholders, tenants, landlords, letting agencies and local authorities. We look forward to receiving feedback through the consultation and working with all those with an interest in improving the domestic private rented sector and tackling fuel poverty.

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Drax Power Station: Biomass

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Michael Shanks)]

In January 2024, the previous Government launched a consultation on supporting large-scale biomass generators when existing support ends in 2027. Since this Government came to office, we have carefully considered responses to the consultation and assessed the case for a new support mechanism.

Biomass currently plays an important role in our energy system, but we are conscious of concerns about sustainability and the level of subsidy biomass plants have received in the past.

The Department will very shortly publish our response to the consultation. Alongside it, I want to report on our conclusions about the role of Drax power station in Yorkshire in the years 2027 to 2031.

In coming to this view, we have taken advice from the National Energy System Operator on security of supply, analysed the effect on consumers of support for biomass versus alternatives, looked at issues around subsidy and sustainability in existing arrangements, and considered longer-term issues around decarbonisation.

First, on security of supply, we inherited a situation from the previous Government where there was no long-term planning for our energy system and its resilience. In the system we have inherited, large-scale biomass provides around 5% of our annual electricity generation, serving a specific role as a source of firm power.

To meet our needs between 2027 and 2031, we could seek to replace Drax with new gas-fired power stations, but in the timescale we have, there would be significant risks to relying on this approach. In that context, NESO has advised us that Drax plays an important role in delivering security of supply between 2027 and 2031.

Secondly, on price, we have undertaken comprehensive analysis of the costs of biomass against alternatives. Our central projections show that, on the right terms and in a much more limited role than today, biomass generation at Drax is the lowest-cost option, including when compared to gas-fired power stations, for bill payers during this period.

Thirdly, we have looked at previous arrangements for subsidy and sustainability. We believe that they simply did not deliver a good enough deal for bill payers and enabled Drax to make unacceptably large profits. At the same time, they demanded levels of sustainability that are not now in line with the latest scientific evidence or global best practice, including supply chain emissions well above the European standards. We have concluded that if Drax is to continue to play a role in our power system, these arrangements must urgently be improved going forward.

Fourthly, we have looked at issues around decarbonisation. Our finding is that there is a potential role for bioenergy with carbon capture and storage, or power BECCS, but realistically this will take time to implement and therefore cannot form the primary basis of this decision.

Following this assessment, and given the circumstances we have inherited, the clear evidence is that Drax is important to delivering a secure, value-for-money power system in the period 2027 to 2031. But we have also concluded that we cannot allow Drax to operate in the way it has done before, or with the level of subsidy it received in the past. On this basis, we have secured heads of terms that will form the basis of a very different agreement with Drax for support during the period 2027 to 2031. A summary of this agreement is included at the end of this statement. First, it will ensure that Drax plays a much more limited role in the system, providing low-carbon dispatchable power only when it is really needed.

Drax currently operates as a baseload plant, running around two thirds of the time. This means that it provides power even when other renewable sources are abundant. This must not continue in the same way. Under the new arrangement, Drax will be supported to operate at a maximum load factor of just 27%—operating less than half as often as it currently does. This will be guaranteed by the design of the dispatchable contract for difference that we have agreed. When renewable power is abundant, Drax will not generate, and consumers will benefit from cheaper wind and solar instead.

Secondly, the contract will deliver much better value for consumers. It will significantly reduce the amount paid in subsidies compared to the existing support mechanism. This new deal halves the subsidies for Drax —equivalent to a saving of nearly £6 per household per year. Furthermore, our analysis shows this will save consumers £170 million in subsidy in each year of the agreement, compared with the alternative of procuring gas in the capacity market.

The deal limits the expected rate of return for Drax to a level below that of monopolies regulated by Ofgem. But while this is our central estimate, we are not prepared to take the risk of prices soaring in response to volatile fossil fuel markets. As a result, the agreement includes a built-in windfall mechanism with rates of 30% and 60% that would claw back excess profits made by Drax. This will guarantee a much fairer deal for consumers than in the past.

Thirdly, we will introduce tough new measures on sustainability. We will increase the proportion of woody biomass that must come from sustainable sources from 70% to 100%. We will also significantly cut the allowable supply chain emissions to a level in line with the much stricter regulations currently operating in the rest of Europe, and we will exclude material sourced from primary forests and old-growth forests from receiving support payments. There will be substantial penalties on Drax if these criteria are not met.

We will go further to ensure greater confidence that these standards will be met. The Government will appoint an independent sustainability adviser to work with my Department, the Low Carbon Contracts Company and Ofgem to ensure our monitoring and enforcement measures are robust and keep pace with the science.

These measures represent a profound shift from the past on sustainability and on value for money. In this context, this is the right deal for security of supply and price in the period 2027 to 2031, given the circumstances we have inherited from the previous Government.

But nevertheless, we recognise the strength of concerns about the use of unabated biomass. It is not a long-term solution. We are determined that the next time these decisions are made, Government are not left in the circumstances we have been left in. We will do the work that was not done by the previous Administration on strong and credible low-carbon alternatives, so that we have proper options in 4 years’ time.

To help that process, we are setting up an independent review to consider how respective greenhouse gas removal, including large-scale power BECCS and direct air carbon capture and storage, can assist the UK in meeting our net zero targets and ensuring security of supply, out to 2050. Further details of the review will be shared in due course.

These steps are about fulfilling our duty to ensure security of supply and the best deal for bill payers. We have faced up to the circumstances left by the previous Government and delivered a step change in value for money and sustainability. This Government will do whatever it takes to deliver energy security and protect billpayers now and into the future.

Overview of heads of terms for a low-carbon dispatchable contract for difference with Drax Power Ltd—related to electricity generation at its Selby plant.

Overview

Government have agreed heads of terms with Drax Power Ltd for a low-carbon dispatchable contract for difference at its 2.6 GW Selby power station. The heads of terms define the commercial terms that will underpin a new contract to be finalised over the coming months.

Following advice from the National Energy System Operator as to the utility of this plant for security of supply purposes, the heads of terms for a four-year CFD was agreed that ensures Drax will provide low-carbon dispatchable electricity when the system, and in turn consumers, most require it.

Heads of terms summary

The key terms are as follows:

Duration—1 April 2027 to 31 March 2031. This arrangement will commence on 1 April, the day after existing support arrangements conclude, and be limited to four years in duration.

Strike price—£113 per MWh (2012 prices).

Generation collar that caps the annual load factor eligible for subsidy at 27%. Together the strike price and the capped load factor are projected to halve the subsidy that Drax will receive during this contract period, compared against Drax’s current arrangements (under the renewables obligation and CFD). This is equivalent to savings of nearly £6 per household per year. Furthermore, Drax is obliged to generate to a minimum annual contract floor of 22%, ensuring the system, and consumers, can rely on its presence.

Excess returns mechanism on profit. This contract has been calibrated to provide Drax with a limited return over the contract period. However, should Drax make higher than anticipated profits in an extreme price scenario, a profit clawback mechanism is in place to protect the consumer.

Enhanced sustainability criteria. The CFD substantially tightens sustainability criteria. It increases the proportion of biomass that must be sustainably sourced from 70% to 100%, reduces the supply chain emission threshold from 55.6 grams of CO₂ equivalent per megajoule to 36.6 grams of CO₂ equivalent per megajoule (aligned with international best practice—for example, the EU’s RED III), and, will include provisions to exclude material sourced from primary and old-growth forests from receiving support payments.

Robust contract compliance arrangements. Should Drax not comply with the sustainability criteria, then subsidy payments for electricity generated from whole consignments of biomass generation can be revoked, and there is a termination right for repeated breaches of those requirements.

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Local Authority Public Health Grant

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Health and Social Care (Ashley Dalton)]

On 7 February, the Government published the public health grant allocations to local authorities in England for 2025-26.

Funding for local government’s health responsibilities is an essential element of our commitment to invest in preventing ill health, promoting healthier lives and addressing health disparities.

It is an important component of our plan for change in health, through which we will build an NHS fit for the future, tackle the underlying drivers of ill health and health inequalities, and deliver three fundamental shifts: from hospital to community, from analogue to digital and from sickness to prevention.

In 2025-26 we are increasing funding through the public health grant, and the 100% retained business rate arrangement for local authorities in Greater Manchester, to £3.858 billion. This represents an average 5.4% cash increase, or 3.0% real-terms increase, compared to 2024-25.

The 2025-26 public health grant will continue to be subject to conditions, including a ringfence requiring local authorities to use the grant exclusively for public health activity.

Following the next phase of the spending review in spring, we will aim to issue multi-year allocations from 2026-27 and will also consider whether further funding reforms could support local authorities to improve health outcomes for their local populations.

Full details of the public health grant allocations to local authorities for 2025-26 can be found on www.gov.uk. This information has been communicated to local authorities in a local authority circular.

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Reform of Home Buying and Selling: Next Steps

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Rushanara Ali)]

The current home buying and selling process is notoriously slow, with transactions taking 21 weeks on average, while countries like Norway manage this in as little as four weeks. This is costly and uncertain for households, with one in three transactions falling through. The cost of these failed transactions is felt by households, who lose around £400 million each year in direct costs alone as a result, and there are much larger indirect impacts on people’s ability to make the right choices for their work and families. This Government are committed to reforming the housing market, making transactions easier and giving people more control over the management of their homes.

That is why, this week, the Government have set out new plans to modernise and streamline the way in which people buy and sell property. These modern, digital transactions will revolutionise the information available to consumers, delivering the right data at the right time, reducing the number of collapsing chains. The system will be enabled by accessible, standardised data, meaning that trusted information can be shared easily between customers and property professionals. This improved system will support our economy, increasing the volume of property transactions, and facilitating the labour market.

We have unveiled a package of measures to push this vision forwards. This includes: piloting approaches to digitalising and opening up crucial property data; committing to the introduction of common data standards across the home buying and selling sector, and continuing to drive adoption of digital identity services and electronic signatures in home buying and selling; and harnessing the information and expertise held by His Majesty’s Land Registry to drive innovation in the prop-tech sector and develop new services.

We know that this Government cannot do this on their own. That is why this work will be carried out in conjunction with the Digital Property Market Steering Group: representatives of industry and Government experts committed to digitalising home buying and selling, and delivering this change that is so badly needed.

Our vision is for a housing market that works for people of all ages, across all tenures, and in communities across the country. We therefore intend to publish a long-term housing strategy later this year setting out this vision, the steps we will take to achieve this, and how we will provide long-term certainty to the market.

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Plan for Barrow

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

Economic stability, secure borders and national security are the foundations of the Government’s plan for change. To deliver long-term change and achieve the Government’s missions, everything possible must be done to secure these foundations.

This Government are committed to supporting the town of Barrow-in-Furness to play its crucial role in supporting and sustaining the defence nuclear enterprise. BAE Systems’ Barrow shipyard is the only facility in the UK with the infrastructure, site licence and resource to design and build the UK’s nuclear submarines—including the new Dreadnought class. At the heart of that role is Barrow’s community, and that is why the £200 million Barrow transformation fund is a long-term investment in the people of Barrow.

The Barrow Delivery Board is the local governance institution that will decide on use of the transformation fund and deliver the plan for Barrow. The board, including representation from the Ministry of Housing, Communities and Local Government and the Ministry of Defence, will embody this Government’s commitment to empowering local leadership, taking independent and bold decisions in Barrow’s best interests.

The Government are today announcing the appointment of Dr Simon Case as chair of the Barrow Delivery Board. This is a crucial, outward-facing role that will set the strategic vision of the board, deliver the plan for Barrow, and ensure that Barrow’s community sees the fullest benefits. Dr Simon Case was most recently Cabinet Secretary and head of the UK civil service, bringing with him a wealth of leadership experience and understanding of complex policy and delivery challenges. As Cabinet Secretary, Dr Case was part of the development of the plan for Barrow, providing him with an understanding of both the area and the defence imperative of the work required.

The Government are confident in the board’s ability to deliver the plan for Barrow and committed to continuing to work with local partners on this important priority.

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Prison Capacity Review

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Justice (Sir Nicholas Dakin)]

My noble Friend, the Minister of State for Justice (Lord Timpson), has made the following statement:

Unlike the previous Government, this Government have a plan to ensure we are never again in a position where we have more prisoners than prison places. We have launched the independent sentencing review to ensure that our future prison system is sustainable, in balance and that there is always space in prison for dangerous offenders. In December, we published the 10-year prison capacity strategy and the first annual statement on prison capacity. Our strategy is detailed, setting our commitment to build the 14,000 places the last Government failed to deliver, with the aim of completing the build programme by 2031. Our plan is realistic, recognising that prison building is complex. We are also committed to improving transparency via the publication of an annual statement on prison capacity.

The Lord Chancellor announced that we would be launching a review into the handling of prison capacity. The previous Government’s approach to the criminal justice system was flawed and this review will consider the reasons why prison supply and demand did not meet, making recommendations that may help future Governments avoid the cycle of repeated prison capacity crises, helping to guide our strategy.

Specifically, the review will consider strategic supply and demand choices and how these choices affected remaining prison capacity. It will shine a light on relevant decision making and an analysis of impacts on the wider criminal justice system. Alongside this written ministerial statement, the terms of reference for the review have been published on www.gov.uk.

The Lord Chancellor has appointed Dame Anne Owers to lead the review. Her extensive knowledge of the criminal justice system means that this review will be conducted to the highest standards. The review will report its findings in spring 2025.

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Requirements on Ukrainian Drivers and Vehicles

Monday 10th February 2025 Written Statements

[The Parliamentary Under-Secretary of State for Transport (Lilian Greenwood)]

The UK is continuing to support Ukrainians following the illegal invasion by Putin.

The Government are extending by 13 months the period for which certain Ukrainian driving licence holders can drive mopeds, motor bicycles and cars—category B—in Great Britain (GB), beyond the current 36 months. This will allow certain Ukrainian licence holders to drive in GB for a period of up to 54 months—four years and six months—after becoming resident.

This will continue to support Ukrainian licence holders’ ability to get around and adapt to living in GB.

Separate to the driving licensing extension statutory instrument, the Government will extend the existing exemption for certain Ukrainians on specific visa schemes from registering and paying vehicle excise duty (VED) on their Ukrainian-plated and registered vehicles to align with the length of their UK visas. The extension is effective from 4 March 2025, to ensure that Ukrainians can continue to use their vehicles without needing to register or pay VED. Further information will be posted on www.gov.uk.

Finally, driver licensing is devolved in Northern Ireland, so the relevant regulations would need to be followed by those Ukrainian refugees resident there.

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