We know that consumers are frustrated by standing charges, which is why we are committed to lowering them. Ofgem has been consulting on introducing a zero standing charge tariff that would shift the costs on to unit rates. The consultation has now closed, and we will be working with Ofgem to take this forward.
Has the Department assessed whether the rising standing charges are discouraging residents in our constituencies from switching to heat pumps and electric vehicles because they are concerned about the fixed costs that will come with them?
There are fixed costs within standing charges relating to, for instance, the cost of maintaining and upgrading networks, which we have to cover, but we recognise the imbalance between the price that people are paying for electricity and the price that they are paying for gas. We are committed to dealing with that imbalance, because we think it right that consumers can transition to clean heat. That is the way in which we reduce the amount of energy we use and, critically, that is the way in which we reduce bills.
Since the last oral questions in March, the Government have consented to the Rampion 2 offshore wind farm, creating 4,000 jobs; reached the final investment decision on the HyNet carbon capture, utilisation and storage cluster, creating 2,000 jobs; invested £300 million, through Great British Energy, in UK clean energy supply chains; shortlisted 27 hydrogen companies for hydrogen allocation round 2; and created a new £100 million fusion investment fund. This Government are building the clean energy future in Britain.
The reason I was here on that Saturday when Parliament was recalled is because some of the mightiest structures in the North sea were made from British steel at the Nigg yard. On the question of renewables, may I ask the Secretary of State what we are doing about getting out the skills to fabricate floating offshore wind structures in the United Kingdom?
That is very much part of our plans. As the hon. Gentleman will know, in March we announced the provision of more than £55 million for the expansion of Port of Cromarty Firth to create offshore wind supply chains in this country, and last week, along with GB Energy, we announced that investment of £300 million in supply chains. We are determined not just to generate offshore wind in Britain, but to take advantage of the huge economic opportunity that it represents.
I hear what the Secretary of State is saying, but Scotland’s declining oil and gas industries have lost 40% of their jobs in the past decade, and today Grangemouth has warned that it may have to pause important projects involving a switch to greener and more sustainable forms of energy because of what it describes as soaring energy bills and the pressures of income tax. We know that Grangemouth needs investment, but it also needs more than the Government are doing at the moment. What intervention are they planning to protect jobs and the communities that could be hollowed out if Grangemouth is not saved?
As the hon. Lady will know, we inherited this situation from the last Government, but we set aside £200 million to build the future in Grangemouth and we are working closely with the Scottish Government on precisely that, in a Government-to-Government collaboration. As for the hon. Lady’s wider question about industrial energy prices, we should obviously look at what different sectors are saying.
A lot of nonsense is being talked about steel. UK Steel has said categorically that the difference between our prices and those of continental Europe is a result of our reliance on natural gas power generation. [Interruption.] Opposition Members say “Rubbish”, but that is what UK Steel has said, and that is why our clean power mission is right for families and right for business.
Today marks the end of more than a century of refining at Grangemouth. Scotland is once again a victim of industrial vandalism and devastation—and I do not want anyone in this Chamber to dare mention a “just transition”, because we all know that the Conservatives when they were in power, and the Scottish National party currently in Holyrood, have done nothing to avert this catastrophic decision. I put it to the Secretary of State that during the general election campaign the Labour leadership said that they would step in and save the jobs at the refinery. What has changed, and why have we not done the sensible thing for Scotland’s energy security?
My hon. Friend is talking about a very important issue, and Grangemouth has a very important role in Scotland. What I will say to him and to others is that as soon as this Government saw the situation that they had inherited, they put money in to help the workers, and they have made that huge investment commitment of £200 million, working hand in hand with the Scottish Government, so that we can build the future in Grangemouth. We are absolutely committed to building the future for Grangemouth communities, and we look forward to working with my hon. Friend and other Members on both sides of the House to do that.
Yesterday was International Workers’ Memorial Day. At a service this weekend in Falkirk, a Grangemouth refinery worker rightly called for oil and gas workers’ skills not to be considered obsolete, but utterly essential for the just transition. What consideration have Ministers given to the urgent policy recommendations in Project Willow to provide accelerated investment in clean energy infrastructure and the jobs it promises for Grangemouth?
My hon. Friend, who is also a really powerful advocate for his constituents, is absolutely right. Project Willow was left on the shelf by the previous Government. We put the money in to take Project Willow forward and we are now going to implement it. Absolutely crucial to that is ensuring the skills of oil and gas workers are properly used in the future, including with the skills passport which also lay dormant under the previous Government and which we are powering ahead with.
Through my work on the Select Committee, I have heard repeated concerns from industry leaders that existing workers in their 50s and 60s see no point in retraining because they believe they will see out their careers supporting old technologies. That has a knock-on impact on young entrants to the workforce, who have traditionally learnt their skills from more experienced workers. Will the Secretary of State outline what steps he is taking to incentivise retraining to support growth in the renewable energy sector?
The hon. Lady raises a really important point. That is why we are working with the Department for Education to make sure we do not just have a clean power plan that will help to create hundreds of thousands of jobs across the country and invest in supply chains, which I talked about earlier, but crucially offer opportunities for younger workers and inspire them about the possibilities that are available, and create opportunities for older workers, too. All that work is ongoing in Government.
We are working closely with the Brazilian presidency to support a high-ambition outcome at COP30 in Belém which reflects the scale of the challenge and our shared 1.5° goal. That includes ambitious new nationally determined contributions and the effective implementation of the global stocktake commitments, as well as action on issues such as tackling deforestation and methane emissions.
It was encouraging to see the Prime Minister’s commitment to going further and faster towards net zero at the international energy summit last week, because not taking action on climate change will cost us much more. Does the Minister agree that clean energy is not only good for the planet, but can give my constituents in Bedford and Kempston energy security and lower bills?
My hon. Friend is right. Other countries are looking to us. The conference last week was a good example of us being back in the business of global leadership. Whether it is through the Global Clean Power Alliance or our national mission to be a clean energy superpower, we are spearheading the transition because it is cheaper, cleaner and more secure. His constituents will benefit from that too.
I welcome the announcement made only a few days ago that the Government will adopt the amendment to the Great British Energy Bill to prevent slave-made goods, meaning that they will not be balancing their environmental consciences on the backs of some of the world’s most endangered and troubled individuals in the Uyghur population in Xinjiang. Will the Government extend that to the private sector to make sure no slave-made goods are coming into the UK? In New Ash Green and Ridley in my constituency, a solar panel farm is being put in that not only threatens the environment, but threatens to bring in slave-made goods into the United Kingdom.
I would dispute that it is threatening the environment, but we will be looking at the wider issue the right hon. Gentleman raises through the solar industry taskforce.
That is absolutely the case. It was heartening to see so many countries and so many representatives from business come together at the conference last week. We are showing global leadership on this issue. We know it is the way forward in terms of our energy security, and not putting us at the mercy of dictators and petrostates. I thank my hon. Friend for his support.
Given the sheer scale of the outages in Portugal and Spain over the past few days, is it likely that the conference will consider and possibly conclude that there is some correlation between the obsession with net zero and what happened in Portugal and Spain?
First of all, I am sure the whole House will want to send support to Spain and Portugal following the incidents yesterday. There were no effects in the UK, but we will continue to closely monitor the situation and any lessons learned from this event. I am not going to speculate as to its causes, but we do need to ensure that our own systems are as resilient as possible.
International leadership on climate change is critical for this Government, which is why we announced a world-leading nationally determined contribution at COP29 and were at the heart of negotiations during the summit. I have been working extensively with international counterparts to ensure maximum ambition from countries around the world at COP30, and look forward to further engagement.
I recently received letters from year 4 children at SS Peter and Paul primary school expressing concern over the impact of climate change on their futures, mentioning the extreme weather and the destruction of our natural habitats for our wildlife. The UK’s 10 warmest years on record have all occurred since 2002, and 2022 was the UK’s hottest year, with temperatures exceeding 40° for the first time. Despite being eight to nine years old, they gave suggestions for how the Government could help by providing cleaner sources of energy, such as making solar panels more affordable. Will the Secretary of State reassure me and those pupils that we are doing everything we can to be a world leader in tackling climate change and to sustain the future for our children?
I am glad to hear that the children at SS Peter and Paul primary school are taking such an interest in this issue. I can assure them that we are doing all we can to make Britain a clean energy superpower, such as lifting the onshore wind ban and setting up Great British Energy, and we are protecting nature too. We are also committed to engaging more with young people, and I will make sure my hon. Friend is kept informed of our plans.
It is welcome indeed to see the Government now playing a leading role internationally on climate action through the global clean power alliance, especially after a decade of failure that left us exposed to soaring gas prices. It is also great to see the Secretary of State standing up to climate deniers in this House, whose hostility to net zero would keep bills high and cost areas like mine the jobs and investment that they need.
One area where we need strong leadership is on funding climate action fairly. In the coming days, I will be introducing a Bill to make the biggest polluters pay for the action we need both at home and abroad. I do not expect the Minister or the Secretary of State to comment on a Bill they have not seen, but will the Secretary of State commit to a meeting between his Department and a broad group of charities and non-governmental organisations working to ensure fair and just climate financing?
I welcome my hon. Friend’s support for the Government’s climate leadership. We are doing all we can to mobilise climate financing in support of the new collective goal agreed at COP29. I would be more than happy to meet him and campaigners to discuss his Bill when he is ready to do so.
One area where we could show significant leadership is in the sphere of floating solar, which comes with huge benefits. My constituency has 2,000 acres of raised reservoirs where we keep half of London’s drinking water—you cannot see the top of them, Mr Speaker. Floating solar is twice as efficient as land-based systems and comes with none of the opportunity costs of putting solar panels on grade A agricultural land; in fact, floating solar panels actually improve the water quality underneath, so that Thames Water would have to use less filtration downstream. I hear, however, that the Government’s solar road map has disappointingly little about floating solar. Would the Secretary of State agree to meet me to discuss this further, prior to publication?
As I understand it, the solar road map has not yet been published, so watch this space. I have been having conversations in the past couple of weeks with international counterparts who are interested in floating solar, and I would be happy to get the hon. Gentleman a more detailed response on our plans on that front.
As the Minister knows, global leadership is about adaptation and mitigation. Does she expect the Climate Change Committee’s report on adaptation, which is due out tomorrow, to say that the Government are doing enough in this regard? Furthermore, will she show real leadership by requiring local authorities and major infrastructure providers to carry out climate risk assessments, so that, statutorily, they will have to ensure that climate resilience and preparedness form a part of their plans?
I cannot pre-empt what is in the report. We will wait for it to come out, and then respond in due course. On local leadership, the hon. Lady and I share a local authority, and I would be very happy to discuss with it what more we can do to set an example—as Bristol has done so many times in the past—on how things can be done at a local level.
As we have seen in Portugal and Spain, renewable energy can sometimes be unreliable. Given the dominant role that China plays in our renewable energy infrastructure, will the Minister set out for the House the full details of the deal that the Secretary of State signed in secret with the Chinese Government?
My right hon. Friend, the Secretary of State, assures me that the deal was not signed. He will keep the House informed as and when it is appropriate to do so.
Under Ofgem’s current rules, suppliers must provide complete and accurate billing information. Critically, bills are required to be displayed in plain and accessible language. We will work with the regulator to ensure that suppliers abide by that. However, it is worth saying that we recognise that many consumers feel let down by a broken energy system that is not working on their behalf. That is why we are reviewing the role of Ofgem, to ensure that it has the powers necessary to be an effective consumer champion.
When it comes to bills, the public understand what unit costs are, but not what standing charges are. When I raised this with the previous Government and Ofcom, they said that it was a complex matter, but what I am asking for is transparency, so that people understand how the charge is made up, and can then make a judgment on what it looks like. Will the Government commit to asking Ofgem to ensure that that information is included in the billing, so that we can see the breakdown of costs—how much is going on human resources and how much is going on the actual infrastructure and wires—so we know exactly what is going on in the energy market?
We support transparency. Ofgem publishes the breakdown of all costs within bills, but there is more that we need to do to ensure that consumers understand what is going on. Critically for us, we know that consumers are very frustrated about the standing charges, which is why we are committed to lowering them. As I have said, a consultation is under way around what we do with standing charges, which includes introducing a zero-standing-charge tariff. Within that, we will be considering options to increase transparency.
Many households in rural and coastal areas, including in South East Cornwall, are not connected to the gas grid and rely on alternative fuels, which often cost them more. What steps is the Minister taking to ensure that, unlike under the previous Government, these residents are not left behind in future support schemes?
We are very clear that every part of the country must benefit from this transition, so whether it is through our warm home scheme or the work that we are doing locally through Great British Energy, we are making sure that there is a solution for every single part of the country. In my Department, I am doing a lot of work to make sure that we have a set of propositions for households in rural areas, so that they can upgrade their homes and have bills that are cheaper and homes that are warmer, which is the central plank of our warm home scheme.
Several times now, I have asked Ministers to rule out aligning the British carbon price with the European one and each time they have refused to do so. They have already abandoned their promise to cut energy bills by £300 a year, but alignment would increase wholesale costs and therefore increase bills for every family in the country. Can the Minister, at last, be straight with the public and tell us whether the Government plan to match the European carbon price—yes, or no?
We are engaging with industry on this matter. The Confederation of British Industry and Energy UK are clear that they should support alignment, but we are looking at that. Ultimately, we are doing everything that we can to bear down on energy costs in this country. That is why we are sprinting to clean power. We inherited an absolutely atrocious legacy from the Conservative party, which allowed businesses and consumers to bear the price of a broken system. We will not make the same mistakes, which is why we are cracking on with the job.
I think we are getting closer to the Government admitting their secret plan. As soon as the local elections are done, Labour is going to sell out to Europe, and the result will be higher bills for British families. But there is more: the EU is expanding carbon pricing to include transport and heating emissions, so alignment with the expanded scheme would mean extra taxes on every British family for driving their cars and heating their homes. Will the Minister rule out aligning at least with the expanded scheme and say no to new taxes on everyday life—yes or no?
I am absolutely disappointed by the Conservatives. I should expect more, but maybe I need to get used to being disappointed. We saw the press release a week ago, and it has had no publicity because it is a Conservative party scare story. It is absolute nonsense. The Government are serious about bearing down on the cost of energy for businesses, and we are getting on with the serious work of doing that. I suggest that the Conservatives get a grip and join us in that task.
We firmly believe that the clean energy transition is the economic opportunity of the 21st century. In recent weeks, we have secured thousands of new jobs in carbon capture, offshore wind and British supply chains. As we transform the way we power our country, we are determined to ensure that communities across our country benefit from good jobs and good wages. That is what our clean energy mission is all about.
I thank the Minister for her response, but could she go further in setting out the Government’s assessment of how in the clean energy transition new jobs can be created here in the UK in the manufacturing of components for offshore wind and other green energy projects?
I was delighted that last week the Government were able to announce an initial £300 million through Great British Energy to invest in supply chains for domestic offshore wind. The fund will boost domestic jobs, mobilise additional private investment and secure manufacturing facilities for critical clean energy supply chains. We are publishing our industrial strategy in the spring, which will set out our approach to the highest growth-driving sectors, including clean energy industries.
There was more good news last week for carbon capture, usage and storage workers in England, with £200 million in supply chain contracts for the Liverpool Bay HyNet project, which will even benefit north Wales now. That is on top of the £22 billion that benefits Teesside and Merseyside. I have checked, and those places were not the centre of the UK’s energy industry for the last five years. Why have the Government not allocated a single penny to the Acorn project in Scotland, where the clock is ticking and where investors are very concerned that this Government are not serious about it?
I welcome the hon. Gentleman’s support for Government policy and for our investment in CCUS. As he knows, Acorn is a matter for the spending review. I talk to many industries in Scotland, and everyone is supportive of the scheme. We support the scheme and are working closely with industry, but it is a matter for the spending review.
In 2025-26 alone we will upgrade up to 300,000 homes through the warm homes plan and other measures. That is more than double the number of homes upgraded last year. Later this year we will set out more detail of our warm homes plan to upgrade up to 5 million homes with energy-efficient technologies such as heat pumps, solar and insulation in order to deliver warmer homes and lower bills.
I recognise that there are very good schemes for those on lower incomes and that heating homes is really important. For many older properties and properties in conservation areas, as fast as we heat the homes, the heat just goes out the windows. In my area, where there are lots of older homes and homes in conservation areas, it is near impossible to get permission to apply double or triple glazing. Can the Secretary of State sort out this tension between having warm homes and older homes, particularly when he is trying so hard to ensure that homes meet the C grade rating for energy performance certificates by 2030? This needs to be sorted out with planning departments.
The hon. Lady raises a really important point. I am constantly on the look-out for small measures and large in the planning system that can obstruct the sensible energy efficiency measures, such as solar panels, that will make all the difference. I say to her and other Members of the House that if they have specific examples of barriers or interpretations of guidelines that are getting in the way—sometimes is not about the rules but about local councils’ interpretations of them—please bring them to our attention, because we are constantly trying to make it easier to make such upgrades happen.
Earl, a social housing tenant from Glastonbury, is disabled and has faced multiple barriers that have prevented him from self-funding improvements to the sustainability and energy efficiency of his home, in order to help him reduce his energy poverty and improve his health. What steps is the Secretary of State taking to ensure that social housing tenants receive energy upgrades in their homes, and in particular those living in older housing stock, where upgrades might be more complex to achieve?
It sounds as though the hon. Lady is raising an individual case, and if she wants to draw it to our attention, she can do so. On the more general point, I believe that her local authority has received £6 million as part of the warm homes local grant, so it would be worth talking to it about this. Again—I am sure that I speak for the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), on this—where there are specific issues about how particular schemes are working, please do draw them to our attention and we will seek to act on them.
Royal Shrewsbury hospital in my constituency was delighted to receive a £450,000 investment for solar panels, which will see our local trust save more than £1 million by reducing its energy bills in the lifetime of the project. Will the Secretary of State join me in celebrating this excellent start to our nationalised Great British Energy company and update the House on the next steps to get us towards that mission?
I do join my hon. Friend in that. I say to all Opposition Members who voted against GB Energy that many of them will now be getting solar panels on schools and hospitals in their constituencies. Let all their constituents know that those are local MPs who opposed cutting bills for schools and hospitals in their own constituencies.
I welcome the £17 million of Government funding for Norwich’s Labour-led city council to improve energy efficiency in homes, which will help tackle fuel poverty and provide much more comfort. Will the Secretary of State welcome Norwich Labour’s leadership on this issue and set out how we will provide more funding to local councils so that they can go further, faster?
My hon. Friend raises a really important point about the crucial role of local authorities in relation to these issues. One of the things that my right hon. Friend the Deputy Prime Minister has done is devolve more funding to combined authorities on this. We want to go further, including in relation to local authorities, because it is local authorities—including my hon. Friend’s, which I congratulate—who know best the particular needs of their own localities, and they are a key part of the answer to the energy efficiency upgrade that we need.
Great British Energy will support the creation of thousands of high-quality, well-paid jobs right across the country and help rebuild the UK’s industrial heartlands. Just last week, the Prime Minister announced £300 million for Great British Energy to kick-start supply chains here in the UK. Once the Great British Energy Bill finishes its final stages in Parliament, we will come forward with more exciting plans for our domestic clean energy champion.
I welcome the £300 million of investment for GB Energy announced last week. I think we all recognise the opportunities of the green energy transition, but what opportunities are there for my Harlow constituents to be part of that publicly owned energy company?
My hon. Friend is absolutely right to point out that, with Great British Energy and our clean power mission, we are trying to create the jobs that will deliver that transition here in the UK, which is something that the Conservatives failed on for many years. We expect that funding, and much more that will come from Great British Energy, to mobilise more than £1 billion in private investment in domestic supply chains, driving forward manufacturing and industry here in the UK and the good jobs that go with it.
What assessment has the Minister made of the number of jobs that Great British Energy will create in the People’s Republic of China?
I think the right hon. Gentleman gives the game away there. Although the Conservative party did not particularly care where the supply chains were, we in the Labour party are committed to delivering good, well-paid jobs in this country. If he was so concerned about investing in British supply chains, he might have bothered to vote for Great British Energy in the first place.
When GB Energy was first proposed, we were told it would employ 1,000 people and create 650,000 jobs. Fast-forward to February this year and that number has been revised down to 200 to 300, with a vague commitment to 1,000 at some point in the next 20 years. As the general secretary of the GMB said yesterday,
“they are going to open a shiny new office…on a high street full of charity shops because they are closing”
the city of Aberdeen down. GB Energy is a white elephant. If the GMB can see it, why cannot the Minister? Surely he agrees that the way to deliver jobs, growth and energy security and to protect communities such as Aberdeen is to lift the ban on licences, replace the energy profits levy as soon as possible and declare the North sea open for business.
I am not quite sure which one of the variety of parts in that speech the hon. Gentleman would like me to respond to. As usual, he steamrolls through his question faster than he ran the marathon— I congratulate him on that. He happens to be the only person in Aberdeenshire who is against investment in his community. When Labour Members voted to deliver investment through Great British Energy—not through jobs in the headquarters but through the investment it makes in supply chains and innovation in his city—he voted against it, and he will have to answer to his constituents for that.
Nuclear power is a critical part of our clean power ambitions. We are making strong progress on Sizewell C and Great British Nuclear is driving forward its small modular reactor competition. We have also seen the nuclear regulatory taskforce set up by the Prime Minister, and we are ending the legacy of no new nuclear being completed in the 14 long years when the Conservatives were in power.
The transition to net zero is a chance to create decent, high-skilled jobs for the future. That includes the next generation of small nuclear reactors, which could revolutionise our energy market and deliver cleaner affordable energy. The SNP has vetoed nuclear energy projects in Scotland for almost 20 years, determined to leave Scotland behind. Is Scotland missing out on the economic opportunities that nuclear offers?
Planning matters, including the siting of new nuclear, are devolved to the Scottish Parliament, so it is rightly for it to decide. However, I agree that Scotland is missing out on the huge potential of new nuclear. If the ideological block introduced by the SNP were lifted, billions of pounds could be invested in Scotland, with the countless skilled jobs that go with that. That could well be delivered next year if a Scottish Government are elected that take the industry and opportunity of Scotland seriously and deliver those well-paid skilled jobs—that would come by electing a Scottish Labour Government.
Data from the last year showed that Ynys Môn saw a drop of 57% in jobs linked to the nuclear industry; the worst figure for a UK constituency. Despite Wylfa being recognised as the best site for new nuclear in Europe, we saw no development from the last Government. Will the Secretary of State and the Minister give us the recognition and acknowledgment that Wylfa needs new nuclear and that that will be seen in the near future?
The hon. Lady has raised with me that point and the wider question of energy jobs in her constituency a number of times, and I thank her for that and for the way she has done so. Wylfa is an important site and continues to be one that the Government are considering. We will take forward those decisions in due course. As I have said to her on a number of previous occasions, we are committed to delivering the jobs that go with that and Wylfa remains an important site.
Industrial energy prices doubled under the previous Government and industry suffered, as did consumers, when wholesale prices rocketed at the start of the Ukraine war. The best way to secure bills for the long term—for industry, as well as for consumers—is to deliver clean power by 2030. The truth is that the Tories ran down our energy infrastructure, just as they ran down our road and rail infrastructure and our public services. We are rebuilding that infrastructure, making it more secure for the long term and less reliant on foreign dictators, thus giving us energy independence, good jobs and cheaper bills.
Growing the economy will need cheaper energy, but INEOS’s chief executive has warned that Labour’s crippling carbon taxes and other levies threaten UK manufacturing and make us more reliant on imports. When will Ministers start listening and realise that their dogma-driven energy policy is costing jobs and investment, and when will they actually act to make our electricity prices more competitive?
As UK Steel said recently, the main driver of the price disparity is the wholesale electricity cost, which is driven by the UK’s reliance on natural gas. The best way to secure bills for the long term is to deliver clean power by 2030, and that is what we are doing.
Green jobs are great jobs, and I welcome the £43 billion of private investment in clean energy since the election of this Labour Government. In order to bring down our industrial energy prices further, what steps will the Government take to get us on to clean energy that we control and off the fossil fuels that are in the control of dictators?
My hon. Friend is right to point out the huge amount of private sector investment that is coming in with clean energy. This is why, in the industrial strategy, clean energy is one of the growth-driving sectors where we have seen 10% growth in the economy. We are also seeing hundreds of thousands of jobs, which the Conservatives now seem determined to oppose. We will introduce the clean energy of the future, and that is why we are pushing for clean energy by 2030. That will bring down bills, give us energy security and create really good quality jobs.
Before I answer the hon. Lady’s substantive question, I want to offer her my huge congratulations on smashing to smithereens on Sunday the previous record held by a female MP in the London marathon.
Great Britain has a highly resilient energy network with diverse sources of supply. The national energy system operator can balance the system in a wide range of scenarios, including potential disruptions to offshore infrastructure.
The UK currently has about 15 GW of offshore wind capacity, which supplies about 17% of our energy. In order to reach the Government’s 2030 targets, this will have to increase by three times to 40 to 50 GW in just five years, and to achieve that we will have to rely on Chinese wind infrastructure and technology. What specific risk assessment have the Government carried out into the impact of this exposed vulnerability and reliance on China for what will be a significant amount of our energy supplies?
I will not comment on individual investment cases, but in every single case the Government make an assessment and we look at the national security implications seriously, just as the Conservatives did when they were in government. I would just gently say that the reason the supply chains in this country are as weak as they are is that they were underfunded and under-invested for years by the Conservatives. There could have been a decision, at the point when they took ambitious steps to move towards clean power, to build the supply chains here, but they chose not to do so; they chose to tow things into our waters instead. We are reversing that, but it cannot happen overnight.
At the 2024 autumn Budget, £1.8 billion was allocated to local authorities and social housing providers, supporting them to deliver warmer and more energy-efficient homes across the country, targeting low-income households in particular. This goes alongside our plans to raise standards in rented properties to ensure that no social or private renter has to live in a cold, draughty home.
I am pleased to see the Government’s commitment to provide thousands of low-income households with energy-efficient upgrades. This could not have come too soon for my vulnerable constituents who are living on housing estates with outdated energy systems that sometimes leave them without hot water and heating for months on end. Camden Council, which I know the Minister knows well, has plans to upgrade the energy efficiency of those estates, but in many cases it just does not have the resources to replace the heating systems with heat pumps, which would lower bills and carbon emissions even further. What assurances can the Minister give me that local authorities will be given the support necessary to deliver the energy upgrades to the highest possible level?
My hon. Friend makes an important point. Local authorities will have a critical role to play in our warm homes plan. Under our warm homes schemes, we are offering substantial support to enable low-income households to transition to clean heat. For example, our warm homes social housing fund allows grant recipients to receive an additional £7,500 clean heat upgrade, and under our warm homes local grant, £15,000 is being provided on top of the baseline to enable all households, particularly low-income households, to benefit from clean heat.
I know how on top of her brief the Minister is, so will she confirm that fewer than a third of council homes had an energy performance certificate C rating in 2010 compared with over 70% by last year? Less than 12% of homes in the UK had decent insulation in 2010 when Labour last left office and when the right hon. Member for Doncaster North (Ed Miliband), who is chuntering from a sedentary position, was in power, and more than 50% did by the time we left office. Will she commit to a faster rate of improvement under this Government than we ever saw under the previous Labour Government?
I welcome the right hon. Member’s commitment to our plans to upgrade homes. However, he is trying to rewrite history, because when we look at the record of the previous Government, we see many failures, but the most abject and egregious was the failure to insulate enough homes to ensure that households were protected from price rises. That is the Conservatives’ legacy, and it is one we are determined to turn around. That is why we are committed to upgrading millions of homes across the country.
The National Wealth Fund has a critical role to play alongside Great British Energy in driving investment and jobs into clean energy industries. The fund is already making great progress, including participating in the latest round by GeoPura, a UK-based green hydrogen pioneer, as well as supporting critical minerals in Cornwall, as part of our mission for clean power by 2030.
Our Labour Government are driving economic growth in Luton and Bedfordshire through our support for the sustainable expansion of Luton airport and the exciting new Universal Studios. Does the Minister agree that we need to match those positive developments with incentivising investment in renewable energy to ensure that the pursuit of growth contributes to meeting our climate commitments?
The Government welcome the plans to invest in and around Luton, including the expansion of Luton airport and the incredibly exciting Universal theme park, which is on the “perfect site”, as its president said. It also has perfect MPs. These projects, along with the mass clean power investments we are delivering, will grow the economy and deliver direct benefits to the communities that host this vital clean power infrastructure which will take all of us off the fossil fuel market rollercoaster.
The domestic user of electricity pays 24p per kilowatt; the domestic user of mains gas pays 6p. People who live in urban Britain buy their energy for a quarter of the price paid by people in rural Britain. This is a massive problem, and I wonder whether the Minister could explain how the Government will address it.
I thank the hon. Gentleman for that question, though it was not quite about the National Wealth Fund. He is right to highlight electricity prices. This is a challenge for industry and one we inherited from the previous Government. The best way to bring those bills down is to secure clean power by 2030, but he is right to highlight the challenges, and that is what we are trying to fix.
Last week, 60 Governments and more than 50 global businesses gathered in London for the first global summit on the future of energy security with the International Energy Agency. I heard from country after country the hard-headed case for clean energy’s role in delivering energy security to free us from the global fossil fuel markets controlled by petrostates and dictators. I also heard from many clean energy businesses that Britain was the place where they wanted to invest because of the clarity and speed of this Government’s mission.
Homes in rural areas experience some of the highest rates of fuel poverty in the UK. Rural properties are less energy efficient than the national average and many are simply harder to insulate. Will the Minister confirm that my constituents in Penrith and Solway will see the additional challenge of rurality reflected in the Government’s ambitious warm homes plan?
One hundred per cent—my hon. Friend is absolutely right about that. The Minister for Energy Consumers and I often discuss how we have to ensure that our warm homes plan takes account of the particular needs and challenges facing rural areas.
Voters
“feel they’re being asked to make financial sacrifices…when they know that their impact on global emissions is minimal… Present policy solutions are inadequate and…therefore unworkable… The current approach isn’t working… Any strategy based on either ‘phasing out’ fossil fuels in the short term or limiting consumption is a strategy doomed to fail.”
Does the Secretary of State agree with his former boss Tony Blair?
The shadow Minister talks about the Tony Blair Institute report. I agree with a lot of what it says. It says that we should move ahead on carbon capture and storage, which the Government are doing. It says that we should move ahead on the role of artificial intelligence, which the Government are doing. It says that we should move ahead on nuclear, which the Government are doing. The shadow Minister said only three weeks ago, after his party dropped its net zero policy—this will surprise people, Mr Speaker—
Order. No, Secretary of State. This is topical questions; I do not need a full statement.
To be honest, I was looking forward to hearing what I said a few weeks ago, Mr Speaker. It is okay for the Secretary of State to admit when he is wrong. As Tony Blair said yesterday, this strategy is “doomed to fail.” Why can the Secretary of State not see what the GMB and Tony Blair see, which is that clean power 2030 is doomed to fail and it is time for a change of approach?
That is not what the report says. The shadow Minister is talking absolute nonsense. The point I was going to make was that he said:
“Look, nobody’s saying that net zero was a mistake. Net zero in the round was the eminently sensible thing to do.”
Those are not my words but his. Some people say that the Tory party has only one policy. Actually, it has two: it is against net zero and, through the shadow Minister, it is for net zero.
The Office for Clean Energy Jobs is focused on developing a skilled workforce in core energy and net zero sectors that are critical to meeting our mission to make the UK a clean energy superpower. My right hon. Friend the Secretary of State and I are working with Skills England to assess skill needs and engaging with the Department for Education on apprenticeships and the wider growth and skills offer.
Following the publication of the Severn estuary commission report on tidal power, will the Government produce a national policy statement to support tidal range energy, and will they publish a review of the available opportunities?
I have had a number of meetings on this issue since coming into post. Clearly, tidal could play an important part in an energy mix. We have been clear that we are supportive of it in principle, but questions about its cost benefit and value for money must be answered. We are happy to continue looking at it in future, as projects develop and more detail comes forward.
My hon. Friend asks an important question. New nuclear is absolutely part of the energy mix. That is why we announced important reforms to the national policy statement. The previous such substantive reform was based on the one I published as Energy Secretary in 2009. We have updated the statement in order to enable new nuclear to be built right across the country, including in his constituency.
The hon. Lady asks an important question. I was in touch with the National Energy System Operator yesterday following the events in Spain and Portugal—the UK was not affected. NESO and my Department take this incredibly seriously. I would also add, given that there has been some comment on this, that we should not jump to conclusions about what happened. Let us see what happened and the reasons for it, and then learn the lessons.
My hon. Friend is right: this clean energy transition is about creating jobs. I was delighted to open the factory, which is creating 200 jobs and is a £40 million investment, manufacturing cylinders for heat pumps. This is an opportunity that this Government are going to seize for Britain.
The hon. Gentleman never ceases to amaze me, and not in a good way. Reform has made its decision; I am not sure what the Conservatives’ position is. Cheap, clean, home-grown power is the answer for Britain, because it gives us energy security and frees us from the petrostates and dictators. We are in favour of it; Reform is against it. Goodness knows where the Conservative party is.
Order. I have a lot of Members I need to get in. These are topical questions—they are meant to be short and punchy.
My hon. Friend is right to point out that public charging points are critical. That is why the regulator, Ofgem, allocated £22 billion over the next five years to maintain and upgrade the infrastructure. I have had a number of meetings with network operators about this question, and I work closely with my colleagues in the Department for Transport to ensure we are rolling out more points.
My constituents continue to face higher electricity bills—among the highest in the country at approximately £961 per year. One of my local hairdressers tells me that their electricity has gone up from £150 to £450 a month. Will the Government commit to bolder policies by easing restrictions on solar and wind power and driving investment in renewables to help struggling businesses?
The hon. Lady is 100% right—clean, home-grown power is the answer—so that is an unequivocal yes.
My hon. Friend is right: there is a long-standing issue around industrial energy prices. The key is getting off the rollercoaster of fossil fuel markets, because just as family finances were ruined in the cost of living crisis, it is the same in relation to business finances and public finances. It is an essential part of the answer.
In my constituency, many elderly and disabled people face very high energy bills due to essential medical equipment and heating needs. What support are the Government providing to ensure that these households are protected from the high cost of electricity?
We know that consumers are under pressure with energy bills. That is why last winter, £1 billion of support was provided to help vulnerable customers through our warm home discount and through industry. That is why we are extending the warm home discount from 3 million households to 6 million households and doing ongoing work to ensure we are supporting the most vulnerable households with bills.
My hon. Friend raises a really important issue about interconnectors. It is something I have been talking to the regulator about, particularly in relation to France, and indeed to my French counterpart, Marc Ferracci, who was in London for our international energy summit. I am happy for the Department to engage with her and tell her about the work we are doing on that issue.
During the general election, the Secretary of State repeatedly promised my constituents that if they voted Labour, their energy prices would be reduced by £300—not by “up to” £300. Will the Secretary of State repeat that promise at the Dispatch Box?
We said we would cut bills by up to £300, and that is absolutely what we are determined to do.
The hon. Gentleman says that bills have gone up, but let me give him a little basic lesson: they have gone up because we are exposed to fossil fuel prices. The only way to bring them down is by having sources of clean, home-grown power that we control.
Westminster city council owns the network, and we know that it is considering options for refurbishing and potentially decarbonising it. In the round, we are committed to working with district networks to do two things: to increase technical standards, so that they are more efficient; and, critically, to properly regulate them, so that we protect consumers from unfair prices.
When will the Government decide whether to support the UK-Morocco power project?
I know the right hon. Gentleman has an important interest in this project. We continue to have discussions with Xlinks and obviously we are happy to brief him on those discussions.
Unlike Conservative Members, I really welcomed the £200 million investment last week. It will be integral to creating the good jobs of the future in constituencies that are developing key technologies for offshore wind, like my constituency of Stafford, Eccleshall and the villages. With that in mind, will the Minister and the Secretary of State visit my constituency to see GE Vernova and the hard work that it is doing there?
Yes is the answer; I look forward to it. My hon. Friend is 100% right: this is about the jobs of the future. Conservative Members might want to turn their back on them; we will not.
As we need some oil and gas while on the road to a clean energy economy, does it not make sense to produce our own, rather than importing it from other countries and thus increasing the global carbon footprint?
A consultation has just closed on the future of North sea energy. We have been very clear that our manifesto commitment was to not issue new licences for exploring new fields, but we will manage existing fields for the entirety of their lifespan.
MPs across the Humber region are united in support for the Viking carbon capture, usage and storage project. Can the Government give an update on any progress with track 2 programmes?
As with Acorn, we think Viking is a really important project. I am very proud of the progress we made on track 1, and we are obviously looking at both Viking and Acorn in the spending review.
Will the Secretary of State ensure that GB Energy has a focused plan to deliver, and to help the 1,500 farmers in my constituency to tap the latent energy in their becks and rivers, so that we can support farming as well as the battle against climate change?
The hon. Gentleman makes a very important point about the role that local community energy can play; I think that is what he is alluding to. We are committed to ensuring that. Great British Energy local has already made some announcements in this space, including on local energy funding in England. We will have much more to say in due course, but we want to ensure a partnership, so if the hon. Gentleman writes to me, I will make sure that what he says gets to GB Energy.
The Scottish National party celebrated the closure and demolition of Longannet coal power station in my constituency without having a plan for its future. The former First Minister pressed the button on the charges herself. What conversations do Ministers plan to have with the site owner, Scottish Power, about the future of the site, and what role might there be for the UK Government in bringing investment and jobs to my constituency?
My hon. Friend is right to make the point about Longannet. We have conversations with Scottish Power on a number of issues, including this. He again emphasises the important role that nuclear could play in Scotland in the future. It could obviously be an important site for a range of uses, but if the ideological ban on nuclear by the SNP were lifted, we could look at other opportunities for such sites.
When I was at the Scotland Office, I was regularly lobbied by retired senior executives from the electricity industry who wanted to state their concerns about how long it would take to reboot the network in Scotland if there was a major outage. Obviously, I sought the necessary assurances from those running the network, but in the light of what has happened in Spain and Portugal, I would be reassured if Ministers sought those assurances again.
My Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks), and I regularly discuss this issue, which relates to one of the first duties of Government. I reassure the right hon. Gentleman that not only is this a focus for Government, but we will look at what happened in Spain and Portugal to see if there are any lessons to be learned about our resilience.
As the chair of the all-party parliamentary group on fusion energy, I know that fusion technology not only has the potential to create thousands of jobs, but could also be the answer to our long-term clean energy security needs. Does the Minister agree with me that supporting fusion is a good example of the Government’s crowding in private sector investment, creating jobs and winning investment for places like the east midlands?
My hon. Friend is a real champion for his constituency, and for the benefits that the development of fusion will bring. We continue to invest and to have discussions with international counterparts. There is a very bright future for fusion, and for his constituents as a result.
The Minister will be aware of the switch-on of Moray West offshore wind farm at Buckie, in my constituency, last week, creating jobs, delivering clean energy and helping our nation to achieve net zero. Does the Minister accept that the current transmission charging regime poses significant and immediate threats to investment in offshore wind in Scotland? Will he meet me and industry representatives to explore that matter further?
We were delighted to switch on the wind farm; the Secretary of State for Scotland was there to push the button last week. It is a fantastic example of the potential of offshore wind. Of course, I am happy to meet the hon. Gentleman. I have already met him, and had a very enjoyable conversation, and I am very happy to talk about the issue. The review of the electricity market arrangements that we are going through will look at the issue of transmission charges. It is an important conversation to have, and I am happy to speak to him on the subject.
The United Kingdom was particularly susceptible to changes in international gas prices during the energy crisis, and bills and prices soared as a result. Under this Government, GB Energy is installing solar panels in hospitals in my Camborne, Redruth and Hayle constituency, but will the Minister remind us which party presided over the worst cost of living crisis in memory—
Order. Mr Moon, please. You will not get called again if you carry on like that. I am sure the Minister will know the answer.
I am delighted to remind the House that it was the Conservative party that left us with energy insecurity, and we are never going to leave this country vulnerable in the way that it did.
As my hon. Friend the Member for Ashfield (Lee Anderson) said, the Government seem to have a three-point plan. Point one is to cover farmland in solar panels, and point two is to block out the sun. What is point three?
I have been contacted by several constituents who have experienced failed ECO4 scheme installations. What support is there for constituents when installations go wrong? Are rogue installers getting paid for work that is not completed properly? What steps are being taken to address such failures?
We are aware of issues that we have had with ECO4 and the Great British insulation scheme. If constituents have been affected, they should have received a letter from Ofgem. They should be able to contact their installer, who is obliged to fix the work, and there is a clear redress mechanism. There is a wider point: we know that the system for quality assurance and consumer redress is not fit for purpose and we are determined to overhaul it.
In the 1970s, global warmists wanted to put black dust on the Arctic to block the sun. Now the Minister wants to put black dust on clouds to block the sun again. Is his plan not bonkers? £50 million of taxpayer’s money has been spent, which will only put up energy prices even further.
This is like conspiracy theories gone mad. I feel like we have entered a whacky world. Let us keep our eyes on the prize. As a country, we are vulnerable because of our exposure to fossil fuels. This Government have one mission alone: to get clean, home-grown power, so that we take back control.