Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 27th February 2024 Commons Chamber

[Afzal Khan (Manchester, Gorton) (Lab)]

13. What estimate she has made of the number of households in fuel poverty in winter 2023-24.

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

Fuel poverty is a devolved matter. The latest figures, published on 15 February 2024, showed that 3.17 million households were in fuel poverty in 2023. The Government continue to deliver financial support to low-income homes and vulnerable households through the warm home discount scheme and cost of living payments.

[Kate Hollern]

As I am sure you are aware, Mr Speaker, the cost of living crisis is far from over for constituents in our area. The Government’s latest energy efficiency policy, the Great British insulation scheme, was supposed to insulate 100,000 homes a year, but so far just 3,000 families have been helped in eight months, including only 35 homes in Lancashire and just six in Blackburn. Will the Minister explain why currently it will take 60 years to meet their three-year target?

[Amanda Solloway]

Energy efficiency is incredibly important to this Government and we have many schemes available. The Great British insulation scheme alone has committed £592 million.

[Paul Blomfield]

I hear what the Minister says about the Great British insulation scheme. It comes after the green deal and the green homes grant, but frankly it looks like another failure. There are 1.4 million people living in South Yorkshire, but just 137 of their homes have been upgraded under the GBIS. My constituents want their bills cut, emissions reduced and their homes insulated, but Government incompetence is standing in the way. When will the Minister get a grip?

[Amanda Solloway]

We are spending £6 billion in this Parliament and a further £6 billion up to 2028 to make buildings, including private rented properties, cleaner and warmer. That is in addition to the estimated £5 billion that will be delivered for ECO4—the energy company obligation—and the Great British insulation scheme up to March 2026.

[Marion Fellows]

Over the past two years, my constituents in Motherwell and Wishaw, as well as the disability groups that I engage with, have told me harrowing tales of dire fuel poverty and energy debt, while the energy giants post record profits. Even with the new price cap, National Energy Action estimates that there will be 6 million UK households in fuel poverty, with energy debt sitting at £6 billion. After April, the only support available will be the £150 warm home discount, which has barely been increased in a decade. When will the Government take meaningful action and finally consult on an energy social tariff?

[Amanda Solloway]

Last winter, this Government delivered £40 billion for households and businesses. We also have the warm home discount, the winter fuel payment and the disability cost of living payment. We are committed to ensuring that affordability is top of our list in relation to energy security.

[Liz Twist]

We have had 14 years of fiasco after fiasco with energy saving schemes from this Government. Frankly, my constituents are fed up with it. In Gateshead, just seven homes have been upgraded under the Government’s latest energy efficiency scheme. Can the Minister say why this is such a disaster and why progress is so slow?

[Amanda Solloway]

We continue to drive energy efficiency improvements for lower-income and fuel-poor households, through schemes including the energy company obligation, the social housing decarbonisation scheme and the homes upgrade grant.

[Afzal Khan]

A recent report from the Energy and Climate Intelligence Unit exposes the Government’s record on insulation and says that the Government’s false claims about their success mostly involved taking credit for schemes that were a legacy of the last Labour Government. A record low of around 80,000 measures were installed in total under the Government’s programmes in 2022. Is not the truth that this Government are failing millions of people in fuel poverty?

[Amanda Solloway]

This Government have provided unprecedented support for people in this country. I have regular meetings with stakeholders, charities and different organisations. Undoubtedly, we are making sure that people have support through, as I have mentioned, the warm home discount, the energy price cap and lots of other payments, such as the cost of living payment of £900 per annum.

[Dame Andrea Jenkyns (Morley and Outwood) (Con)]

Talking of fuel poverty, the boiler tax results in consumers paying an extra £150 when they purchase a new boiler. Does the Minister agree that it is now time to ditch these unworkable and unaffordable net zero policies and let the British people decide how to heat their homes and what cars to drive so that they can keep more of their own money?

[Amanda Solloway]

No decision has yet been taken on that, but we have a commitment to ensure that we get the very best deal for all our constituents.

[Mr Speaker]

I call the shadow Minister.

[Kerry McCarthy (Bristol East) (Lab)]

A year ago, the then Energy Secretary said that if suppliers had wrongly installed prepayment meters in any home, they would have to recompense their customers for the way they had behaved. One year later, can the Minister tell the House how many individuals who had a prepayment meter wrongly installed have had compensation, how many are yet to receive it and, of those still waiting, when they will get the compensation?

[Amanda Solloway]

One thing on which we can all agree across the House is that it was absolutely abhorrent that people had prepayment meters forced on them. We are working our way through the compensation, but I can assure Members that we are doing everything we can to ensure that, when prepayment meters are installed, we are doing exactly the right thing to make sure that everybody is kept safe.

[Kerry McCarthy]

I asked the Minister three questions but did not get an answer to any of them. Perhaps she can put the figures in the House of Commons Library, because she clearly does not have a clue what they are.

More than 3 million households are in debt to their energy suppliers and almost 10 million households are living in cold, damp and poorly insulated homes. The Great British insulation scheme is proving to be a great Tory insulation fiasco. Will the Minister tell me why the insulation scheme is proving to be such a disaster?

[Amanda Solloway]

We have taken great steps to support people. For example, last winter we gave unprecedented support to households and businesses. Of course, debt is a major concern, and I have regular meetings with stakeholders to ensure that we are doing the very best not only to get people out of debt, but to prevent them getting into debt in the first place.

[Kevin Foster (Torbay) (Con)]

3. What recent discussions she has had with Cabinet colleagues on delivering new nuclear power stations.

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[Grahame Morris (Easington) (Lab)]

5. Whether she has had discussions with energy providers on reducing energy standing charges for charities and businesses.

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

The setting of tariffs, including standing charges, in the non-domestic market is a commercial matter for suppliers. The Secretary of State and I have met suppliers and Ofgem multiple times over the past year to urge them to support businesses and keep bills down, and Ofgem has recently called for input and views on standing charges.

[Grahame Morris]

Mr Speaker, I associate myself with your earlier remarks about the sad passing of my dear friend Ronnie Campbell, and indeed Lord Cormack.

For months now, East Durham Trust in my constituency has been in dispute with its supplier, TotalEnergies, after TotalEnergies raised its standing charge from 40p a day to £20 a day—an increase of over 4,000%. Remarkably, after making complaints to the Department, Ofgem, Northern Powergrid and TotalEnergies, I found out just yesterday that TotalEnergies has agreed to remotely reconfigure the meter in question. Can the Minister explain why energy companies and distributors do not seek to address customer issues sooner, and does she agree that we have a failing regulator and an energy system that seeks to maximise profits?

[Amanda Solloway]

I am pleased to hear from the hon. Gentleman that the situation has been resolved, and I suggest that exactly the right recourse is to contact the relevant parties. We are now launching the ability of the ombudsman to help small businesses as well, which reassures me that such cases will be seen to more quickly and resolved sooner.

[Mr Speaker]

I call the SNP spokesperson.

[Dave Doogan (Angus) (SNP)]

In the UK, electricity standing charges will balloon by 12%, meaning that people in Scotland who were paying £90 a year in 2021-22 will soon need to find £216 a year—a 138% increase under this Tory Government. That removes the incentive to curb excessive use, and presents a disincentive to economise on energy usage. If costs and charges were redistributed to the unit price, consumers would be empowered to pursue reduced usage, knowing that that would translate into lower bills. What assessment has the Minister made of the savings that would be made, in terms of both carbon emissions and the need for vast pieces of new energy infrastructure, if the standing charges were rolled into unit prices?

[Amanda Solloway]

Standing charges, as I mentioned, are a matter for Ofgem. However, Ofgem has listened to public sentiment, and it has recently launched a call for input on standing charges. My understanding is that to date, it has had over 40,000 responses. The call for input closed on 19 January, and Ofgem’s paper aims to ensure a greater understanding of how standing charges are applied to energy bills and what alternatives should be considered.

[Andrew Jones (Harrogate and Knaresborough) (Con)]

7. What steps she is taking to help increase private sector investment in green technologies.

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[Theo Clarke (Stafford) (Con)]

11. What steps she is taking to help reduce the price of fuel at petrol stations.

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

Last week, we launched a consultation, closing on 12 March, on requiring petrol stations to report a change in price within 30 minutes. Pumpwatch will enable drivers to make informed decisions on where to buy fuel and will reignite competition.

[Theo Clarke]

I thank the Minister for her answer, but my constituents in Stafford remain concerned about the price of fuel, particularly given the pressures on their household budgets. I welcome the fact that the price of a tank of fuel is lower than it was when prices were at their peak, but what is she doing to ensure that my constituents get the best price for their fuel?

[Amanda Solloway]

We are committed to making sure that consumers get a fair deal. That is why fuel retailers must remain transparent and not overcharge drivers. The Pumpwatch consultation will require all petrol stations to report prices within 30 minutes of their changing. That will enable tech companies to develop new ways for UK drivers to search for the cheapest fuel.

[Richard Foord (Tiverton and Honiton) (LD)]

In rural communities across Devon, people feel the pressure of high fuel costs. The cost of fuel in towns such as Honiton is almost 20p a litre higher than at petrol stations just 30 miles away. What steps will the Government take to ensure fairness, and to introduce rural fuel duty relief of the sort that we already have in some parts of north Devon?

[Amanda Solloway]

Pumpwatch will help with those things, but it is unacceptable for any fuel retailer to overcharge drivers. That is why the Secretary of State held a roundtable in December with fuel retailers to make it clear that we expect them to pass on savings to consumers when prices fall.

[Helen Morgan (North Shropshire) (LD)]

14. What recent steps she has taken to help improve the energy efficiency of homes.

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

I pay tribute to the hon. Member for her committed work to support her constituents living in rural areas. We have a proud record of energy efficiency. We are encouraging, rather than forcing, people to make the right choices, and we pushed back the ban on gas boilers while increasing the boiler upgrade scheme to £7,500, which is one of the most generous grants in Europe.

[Helen Morgan]

There are 1,858 listed properties in North Shropshire, according to the Listed Property Owners Club, and 24 conservation areas across our historical market towns and villages. That means that there is a large number of buildings that owners find it difficult to upgrade to make them energy-efficient. What conversations has the Minister had with her colleagues in the Department for Levelling Up, Housing and Communities and the Department for Culture, Media and Sport on enabling people to bring those homes into the 21st century and make them energy-efficient?

[Amanda Solloway]

The hon. Member makes a good point. We have those consultations across Departments, and local authorities in rural areas in England are eligible for grants. I can give my assurance that we have those cross-government meetings.

[Steve Double (St Austell and Newquay) (Con)]

Many off-grid homes across Cornwall cannot convert to energy-efficient heating schemes without incurring huge costs. One option for them is to use hydro-treated vegetable oil. Can the Minister lay out what plans the Government have to support those using renewable liquid heating fuels, and will she back the campaign by our excellent candidate for Camborne and Redruth, Connor Donnithorne, to axe the tax on HVOs?

[Amanda Solloway]

I thank my hon. Friend for raising that point. We have begun developing a consultation on the role of renewable liquid fuels in heat. We expect Department for Energy Security and Net Zero Ministers to receive detailed information on the shape of the consultation in the coming weeks, and aim to publish in the summer of 2024.

[Andrew Selous (South West Bedfordshire) (Con)]

15. When she plans to publish the second consultation on the review of electricity market arrangements.

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[Kevin Foster (Torbay) (Con)]

T2. Energy is a vital purchase for the hospitality sector, and can make up a large part of the overall costs. What steps is the Secretary of State taking to ensure that the energy costs faced by pubs, hotels and food businesses do not put them out of business?

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

I thank my hon. Friend for that important question. Wholesale energy prices have fallen compared with last year. The Government have been supporting eligible businesses locked into high contracts through the energy bills discount scheme, until they can take advantage of lower fixed-price rates. My hon. Friend will be interested to hear that the Government delivered more than £7.4 billion to non-domestic energy users last winter, covering around half of many businesses’ energy bills.

[Mr Speaker]

I call the shadow Secretary of State.

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[Mr Toby Perkins (Chesterfield) (Lab)]

T6. The Under-Secretary of State for Energy Security and Net Zero, the hon. Member for Derby North (Amanda Solloway) spoke about the Government’s approach to differential fuel prices in different towns. Motorists in Chesterfield remain mystified as to why major supermarkets are charging them more than they charge customers just a few miles up the road in Sheffield. It is clear that the Government’s approach is not working. When I wrote to the major supermarkets, they admitted that they charge Chesterfield customers more. There is no reason why customers in Chesterfield should be charged more than customers in Sheffield, so will the Minister tell us what she is doing about that?

[Amanda Solloway]

I could not agree more that we should not be paying different prices at different petrol stations. That is one of the reasons why we have launched a consultation on Pumpwatch, and why we have very regular meetings with the suppliers to make sure that they are not doing this. They should not be doing it and we are very clear about that.

[Peter Aldous (Waveney) (Con)]

T9. Offshore Energies UK’s industry manifesto highlights the once- in-a-lifetime opportunity that a home-grown energy transition provides to bring investment and jobs to communities all around the UK. This requires close collaboration between the private and public sectors. Can Ministers confirm that the Government are absolutely committed to such a partnership?

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[Sir Mark Hendrick (Preston) (Lab/Co-op)]

T10. Government statistics released last week show that 469,000 low-income households in the north-west live in energy-inefficient properties. Hundreds of households in the Fishwick area of Preston are still struggling with cold, damp homes after the failed installation of insulation more than a decade ago. Will the Minister commit his Department to future fuel poverty schemes that will prioritise the fixing of past mistakes, as well as renewed support for good insulation to be fitted in older terrace properties around the country?

[Amanda Solloway]

The Government are already committed to ensuring that households have the necessary energy efficiency. We have introduced the social housing decarbonisation boiler upgrade scheme, the home upgrade grant and many other initiatives, and we are of course helping all our constituents with affordability.

[Trudy Harrison (Copeland) (Con)]

We have made huge progress in decarbonising our electricity sector, but decarbonising transport and heat is much more tricky. Will the Minister encourage our plans in Copeland to harness any power that can be obtained from new nuclear for that purpose, and will he meet us so that we can discuss those plans?

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[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

Every single winter, the village of Altnaharra in Sutherland is the coldest community in the whole of the United Kingdom. Some parts of the United Kingdom are colder than others—that is geography. May I ask that this fact be taken into consideration when the Government look at schemes to help people with the cost of paying their electricity bills?

[Amanda Solloway]

I thank the hon. Gentleman for his question. As he will know, the Government delivered over £40 billion in support last winter. We expect the warm home discount to support around 3 million households this winter, with the final figures to be published later. Since 2011, the warm home discount has delivered over £3.5 billion in support for eligible low-income households.

[Dr Luke Evans (Bosworth) (Con)]

I welcome the news that Ofgem has put the price cap down by 12%, which represents a discount of about £20 for every average home. There is one problem, though: the standing charge is still relatively high. I know there is an open consultation, but would the Government consider transparency about the standing charge on bills so that the public understand exactly what it does?

[Amanda Solloway]

I thank my hon. Friend for his question. Clearly, it is vital that we had the call for input on the standing charges, and we await with anticipation how we will react to the over 40,000 responses that we have had so far.

[Imran Hussain (Bradford East) (Lab)]

I have recently been inundated with correspondence following the collapse of SSB Law, a legal firm that took thousands of defective cavity wall insulation cases to court. It has left constituents with tens of thousands of pounds in costs that they cannot afford during an unprecedented cost of living crisis. Can the Minister assure me that the Government have a plan to address this scandal? What compensation will my constituents be offered to remove faulty cavity wall insulation so that they can finally be free of its devastating consequences?

[Amanda Solloway]

It is always awful to hear of these cases. I will write to the hon. Gentleman on the issue.