Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 18th April 2023 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

3. What recent assessment he has made of the effectiveness of the energy bill relief scheme.

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

The Government’s assessment of the energy bill relief scheme shows we have spent over £5 billion to date—that is around £35 million a day to help businesses, charities and public sector organisations to pay around half of their wholesale energy costs this winter. This support has been unprecedented in nature, demonstrating that this Government are always on the side of business.

[Mr Mohindra]

Linda from the Kitchen Croxley recently wrote to me about rising costs:

“I have spent nights awake imagining solutions…it would be so easy to give up… But my commitment to our customers and community remain so strong that I cannot do this”.

What is the Minister doing to support hard-working people such as Linda with their energy bills, so that she and other small businesses keep their doors open to customers?

[Amanda Solloway]

I applaud the work my hon. Friend does to support businesses in his constituency such as the Kitchen Croxley. I understand times are tough for many small businesses, which is why the Government have implemented the energy bills discount scheme, to take effect until April 2024. Businesses fixed into more costly long-term contracts are more likely to receive the energy bills discount scheme payment support due to how the baseline discount is calculated.

[Drew Hendry (Inverness, Nairn, Badenoch and Strathspey) (SNP)]

An effective way to give consumers energy bill relief would be to stop energy companies seeking to increase direct debits while they are holding on to reasonable amounts of credit that belongs to consumers—money that they could use elsewhere. Can the Minister update us on what conversations she has had with Ofgem to ensure that it regulates for that practice, and will she support Members coming to the It’s Your Money campaign in Committee Room 11 at 2.30 this afternoon to show their support for getting that change?

[Amanda Solloway]

That was an excellent plug by the hon. Member. He will know that I have been engaging with stakeholders—a whole range of stakeholders—including, of course, Ofgem.

[Jane Hunt (Loughborough) (Con)]

A steelwork company in my constituency is very concerned that the constructional steelwork sector is not included in the list of industries eligible for higher support under the energy bill relief scheme, despite being a high energy usage business. Without this additional support, which would amount to over £75,000 for the company, it will inevitably have to pass on its additional costs to its customer, which is the Government. Will the Minister please review the eligibility criteria and consider adding the constructional steelwork sector to the list of eligible industries?

[Amanda Solloway]

The energy bill relief scheme is expected to cost £7.3 billion over its duration. It provided a discount on the wholesale element of gas and electricity to ensure all businesses and non-domestic customers were protected from excessively high energy costs over the winter period. Of course, the EBDS will continue to provide a discount eligible to non-domestic customers, with a higher level of support provided under the energy-intensive industrial element of the scheme, which will be available to most energy and trade-intensive businesses, primarily in the manufacturing sector.

[Tim Farron (Westmorland and Lonsdale) (LD)]

Our hospices provide tender, professional, essential care for people nearing the end of their lives, yet they are considered, when it comes to energy bill relief, as businesses. As a consequence, despite the fact that they have had a 350% increase in their energy costs, there is not a special programme or specialist scheme to assist them. I have raised this with the Minister before. What progress has she made in looking at a package to help to support our hospices and others who care for those in desperate need in our communities?

[Amanda Solloway]

I thank the hon. Member for bringing up such an important subject. He will be pleased to know that this week I met Hospice UK to discuss that very subject and, indeed, I am working to see how we can be the most supportive.

[Sir James Duddridge (Rochford and Southend East) (Con)]

5. What steps his Department is taking to improve support for non-domestic meter customers.

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

The new energy bills discount scheme will continue to support all eligible businesses and non-domestic customers with their energy bills from 1 April 2023 until 31 March 2024. This follows on from the unprecedented £7.3 billion expected to be delivered through the energy bill relief scheme over the course of the last winter.

[Sir James Duddridge]

Many residents of East Beach residential park are grateful that they can access the energy bill support scheme alternative fund, but what steps is the Department taking to contact and help those who are not aware of the benefits of these schemes to identify what they are?

[Amanda Solloway]

My hon. Friend is right to highlight the energy bill support scheme alternative funding, providing £400, and £600 in Northern Ireland, to households who do not have a domestic electricity supply and therefore have not received the main EBSS payment. It is up and running and I urge all Members to encourage their eligible constituents, including those in park homes, to apply via gov.uk.

[Bill Esterson (Sefton Central) (Lab)]

British businesses pay among the highest energy bills anywhere in Europe, yet Make UK said the Government’s plan

“does little to tackle the real and immediate threat manufacturers face with rocketing energy bills.”

If the Government really wanted to support business, they would implement Labour’s plans, help small firms with energy efficiency, cut business rates and invest in renewable electricity generation for the long term.

--- Later in debate ---

[Mr Speaker]

Order. Mr Esterson, please do not take advantage of the Chamber; other colleagues want to get in as well. It is totally unfair

[Amanda Solloway]

This Government have an unprecedented record in helping both domestic and non-domestic customers, and the energy bills discount scheme will continue to provide a discount to eligible non-domestic customers, with a higher level of support provided under the energy and trade-intensive industry element of the scheme.

[Daniel Zeichner (Cambridge) (Lab)]

6. How many and what proportion of homes had energy efficiency measures installed in (a) 2010 and (b) 2022.

--- Later in debate ---

[Catherine McKinnell (Newcastle upon Tyne North) (Lab)]

18. What estimate his Department has made of the number of families in fuel poverty.

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

In 2022, an estimated 3.26 million households were in fuel poverty in England. The Government recognise how difficult the increase in fuel bills caused by Putin’s war in Ukraine has been for households across the country. That is why the Government have stepped in to provide unprecedented energy bill support to households this winter.

[Mohammad Yasin]

Will the Minister confirm when the energy bills discount scheme will be distributed to customers such as my vulnerable 81-year-old constituent Ann? Her bills have soared by more than 400% because she receives her energy via a communal system that is not protected by the same Ofgem energy price cap that applies to individual domestic consumers. Will the Minister confirm future bespoke support for heat network customers?

[Amanda Solloway]

I reiterate that we have been giving unprecedented support to domestic and non-domestic customers throughout this incredibly difficult situation, and we are making sure that we review the situation on an ongoing basis.

[Mr Dhesi]

At a time when many of my Slough constituents are struggling to pay their energy bills, oil and gas giants are raking in the windfalls of war, but the Prime Minister and his Government are too weak to stand up for the British people, and especially for the increasing number of households now living in fuel poverty. Energy efficiency measures are one of the best routes to tackling fuel poverty, but unfortunately not a penny of new money was announced in the Government’s relaunch just last month. Why is there such complacency when installation rates in 2020 were 20 times lower than in 2010?

[Amanda Solloway]

It has been estimated that without the additional support, a further 350,000 households in England would have been in fuel poverty in 2022. Energy efficiency improvements remain the best way to tackle fuel poverty in the long term and contribute to long-term reductions in both energy bills and carbon emissions, in line with net zero.

[Vicky Foxcroft]

One of my constituents and his partner have two young children, one of whom has a medical condition. In August last year, they were charged £778 for gas and electricity—18 times the bill of £43.15 from the previous February. My constituent is living in fuel poverty and struggling to feed his family. What steps is the Minister taking to ensure that families requiring high energy usage medical equipment do not fall into fuel poverty?

[Amanda Solloway]

I share the hon. Lady’s concern. I have been meeting various stakeholders, including representatives of citizens advice bureaux, to discuss how we can mitigate the situation, but I should add that we have been providing unprecedented support throughout.

[Catherine McKinnell]

Last year, Citizens Advice Newcastle saw a 229% increase in the number of people facing disconnection and needing help with energy top-up costs. While today’s announcement from Ofgem is welcome, it will still allow those who are deemed to be at medium risk—parents of children under five, pregnant women and those aged between 75 and 84—to be forced to have prepayment meters installed. What more will the Government do to ensure that vulnerable people will not be forced to have those meters installed and to face living without heat and light?

[Amanda Solloway]

The abuse of prepayment meters in recent months has been disgraceful. We have demanded urgent action, and we welcome the code of practice announced today. As I have said, I have been meeting representatives of citizens advice bureaux across the country, and we are discussing how we can continue to provide the unprecedented support that we have already been giving.

[Sir Christopher Chope (Christchurch) (Con)]

Many of the people who are in fuel poverty live in park homes. Perhaps the Minister would be interested in meeting me, in my capacity as chairman of the all-party parliamentary group on park homes. At a meeting of the APPG yesterday, considerable concern was expressed about the fact that the alternative funding scheme was not delivering for many park home residents because of anomalies and inflexibilities. The Department for Levelling Up, Housing and Communities has written to the Minister’s Department about this, but has not yet received a response.

[Amanda Solloway]

As I have said, I am always keen to meet stakeholders, and of course I should be happy to meet my hon. Friend.

[Jack Brereton (Stoke-on-Trent South) (Con)]

T1. If he will make a statement on his departmental responsibilities.

--- Later in debate ---

[Rachel Hopkins (Luton South) (Lab)]

T2.   Energy-intensive businesses need Government support to transition to a low carbon economy, including the Vauxhall van plant in Luton South, yet last month’s “green day” saw only weak reannouncements on carbon capture and storage and nuclear, and no new money for industry. Can the Minister explain why the Government are failing to help our motor manufacturing industry to decarbonise?

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

We have announced an unprecedented £20 million investment in the development of carbon capture, utilisation and storage and a £185 million extension to the industrial energy transformation fund, and confirmed the first winners of the £240 million net zero hydrogen fund. In addition, this Government have provided more than £2 billion since 2013 to energy-intensive industries to make electricity costs more competitive.

[Peter Aldous (Waveney) (Con)]

T8. Maximising investment in renewables is vital to bringing new jobs to coastal communities such as Lowestoft. I would be grateful if my right hon. Friend confirmed that he is working closely with the Treasury to prepare a comprehensive fiscal strategy that will form part of the autumn statement, and that it will include tax incentives, the reform of capital allowances and measures to unlock private investment in ports.

--- Later in debate ---

[Paul Holmes (Eastleigh) (Con)]

The Government’s commitment to park home payments is welcome, but residents in Eastleigh are still awaiting their payments because the council says it does not have access to Government systems. Will the Minister make sure her officials speak to Eastleigh Borough Council today to get this sorted? Will she commit to writing to let me know what has gone wrong so that we can get my constituents the payments they need?

[Amanda Solloway]

All the councils that are able to participate in the scheme have received the money from the Government, with 99% of local authorities onboarded so far. Ninety five per cent. of councils are processing claims, with the majority of applications having been accepted and paid. However, we are working to understand the specific problem in Eastleigh, and I will update my hon. Friend as soon as I can.

[Chi Onwurah (Newcastle upon Tyne Central) (Lab)]

T5. The experience of my constituents who are on prepayment meters is atrocious, and today’s announcement from Ofcom will do absolutely nothing to protect vulnerable groups such as those with Alzheimer’s, the under-fives and those who are over 75 but under 85. Will the Secretary of State answer the question he did not answer earlier, and say why he is not protecting the vulnerable from prepayment meters and the lack of energy support?

--- Later in debate ---

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

T9. The Minister must surely recognise that fuel poverty cannot be solved by threatening to send vulnerable people to court or imposing the installation of smart meters. When will he stop passing the blame to Ofgem? When will he really start to support vulnerable people who are facing fuel poverty?

[Amanda Solloway]

It is incredibly important to this Government that we support vulnerable people. We are looking at all of the issues around prepayment meters, but we have provided £400 of support through vouchers and I encourage all Members to ask their constituents to come forward to get those if they have not already collected them.

[Mark Pawsey (Rugby) (Con)]

In Rugby, we are proud of the rate at which we provide new homes. I recently visited Barratt Homes’ Ashlawn Gardens development, where I heard that intending purchasers of new homes now place an enormous priority on the size of their energy bills. Does the Minister agree that it is important for house builders to promote the thermal efficiency of their products?