Energy Social Tariffs

Amanda Solloway Excerpts

Thursday 23rd November 2023 Westminster Hall

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

This is an incredibly important issue, and I thank hon. Members from across the House for their contributions to the informed, interesting and heartfelt discussion. I particularly wish to thank the hon. Member for Motherwell and Wishaw (Marion Fellows) for raising this important topic for debate and for the previous conversations that we have had on this subject—I have had similar such conversations with many Members across all political parties. I also thank the hon. Members for Birmingham, Selly Oak (Steve McCabe) and for Southampton, Test (Dr Whitehead) and my hon. Friend the Member for Waveney (Peter Aldous) for their valuable contributions to this important debate.

As the Minister for energy, consumers and affordability, I am working really hard to try to bring down bills for households and to tackle fuel poverty as it is clearly the most important thing on my mind. I recognise the challenges that families face and continue to stand firm behind energy consumers.

Last winter, as Members will know, we spent £40 billion on an unprecedented package of support for households and businesses. That meant that a typical family have saved £1,500 through the energy price guarantee and energy bill support scheme since last October.

The hon. Members for Motherwell and Wishaw and for Birmingham, Selly Oak both raised the important issue of support for disabled people, particularly those with in-home medical equipment. The Government’s support package assists the most vulnerable with rising energy bills, including charges incurred by patients dependent on medical equipment and devices as part of their homecare. I am reminded of my mother who suffered with chronic obstructive pulmonary disease and who sadly died at the age of 67, so I am very conscious of the kind of care that we should be giving to this important group of people.

We have certain specialised NHS services, which include the provision of financial support to offset increased energy costs faced by patients using medical equipment at home. Home oxygen suppliers, as I have previously mentioned, also reimburse patients for the cost of electricity that is required to run oxygen-concentrate devices in a patient’s home.

As the departmental ministerial disability champion, I am aware that energy prices are a major concern for those with a disability or a long-term health condition. I am proud of the support that the Government offer to those with disabilities. That includes, for example, more than 6 million people across the UK eligible for extra costs disability benefits who have already received the £150 disability cost of living payment. It also includes the personal independence payment, which pays up to £172.75 a week to those with the greatest additional needs. Our national disability strategy, published in 2021, sets out the actions that the Government are taking to improve the lives of disabled people.

Members have my assurance that I continue to discuss with charities how we can best tackle fuel poverty and other such issues. I have had many recent meetings with Mencap, Scope, the Motor Neurone Disease Association and Citizens Advice, as well as many other stakeholders.

We set out in our 2022 autumn statement that we were exploring the best approach to consumer protection as part of wider retail market reform. The outlook has improved significantly since then, with the Ofgem price cap more than halving since its peak earlier this year. However, even with prices dropping, energy bills represent a challenge to many low-income and vulnerable households, leading to debt and self-disconnections. We have taken additional steps to support those households. The term “social tariff” means different things, but ultimately it is about providing financial support to those who struggle to afford bills, for one reason or another. We are approaching that in three ways. First, we are working closely with Ofgem, which I have very regular meetings with, and suppliers—of course, as the hon. Member for Southampton, Test asked, I have meetings with suppliers —in relation to those facing energy issues such as debt. Secondly, we are supporting those who face challenges particularly linked to energy—for example, because they live in a poorly insulated home. Lastly, we are supporting those with cost of living pressures.

However, it is important to consider any further energy support in the context of wider changes to incomes and Government support, including that which my right hon. Friend the Chancellor of the Exchequer set out in yesterday’s autumn statement. Although prices have stabilised, they could rise in the future. It is important that any new approach can respond to a future price spike. I was listening to all the hon. Members when they talked about long-term solutions rather than just putting a sticking plaster over this. That is one of the challenges that we face.

The energy price guarantee will remain in place until the end of March 2024 to have protection in place should energy bills increase significantly during this period. The Government have also ended the prepayment meter premium by providing a discount to prepayment meter customers through the energy price guarantee. As laid out in yesterday’s autumn statement, the Government continue to invest in infrastructure and will deliver more than £600 billion of planned public sector investment over the next five years, underpinning our future growth and supporting energy security, net zero and, of course, vital public services. We have also highlighted proposals to offer electricity bill discounts for properties close to electricity transmission infrastructure. That could be up to £1,000 per year over 10 years for those properties.

In the past year, we have worked with Ofgem and energy companies to ensure better treatment for energy consumers. I chaired a supplier roundtable on 24 October. I have of course had previous discussions, but at this meeting we discussed how the energy market can work better for all consumers, including the most vulnerable. We have already taken steps to stop prepayment meters being forcibly installed where they should not be. Suppliers are no longer permitted to forcibly install prepayment meters in households with certain categories of vulnerabilities, including people over the age of 75 and those who may be medically dependent on a continuous source of energy or heating.

[Steve McCabe]

I acknowledge the work that the Government have undertaken on prepayment meters. Would the Minister be willing to consider extending that to households in which a disabled person is living?

[Amanda Solloway]

I thank the hon. Member for that intervention. Of course, from a prepayment meter point of view, one thing that we really wanted to ensure was that we were not penalising those who were vulnerable. I am always very happy to consider anything that would help and enable us to ensure that.

We also welcome Ofgem’s new rules to ensure that all consumers get the service that they deserve. Suppliers will now be required to prioritise vulnerable customers first when they request help, offer timely repayment plans for those struggling with bills and make customer ratings easy to find on their websites. Furthermore, the Government and Ofgem have been working to progress towards a shared priority services register, which could make things easier for customers and better prioritise services to vulnerable consumers who are dependent on a regular energy supply.

Overall, the best approach to consumer protection is to have an effective retail market. That is why we are pursuing retail market reforms that will set us on a path to unlocking competition, investment and innovation, which will empower consumers and enable suppliers to succeed and usher in new business models.

The Government are reviewing the fuel poverty strategy for England. Under the current approach, we see energy efficiency as the best way to tackle fuel poverty as it contributes to the long-term reduction of energy bills, as well as reducing carbon emissions in line with net zero. There are multiple targeted schemes in place in England to deliver efficiency measures to low-income and fuel-poor households. Targeted energy efficiency support is provided to fuel-poor households in England, Wales and Scotland through the energy company obligation.

Last winter, we extended and expanded the warm home discount scheme, which supported fuel-poor households by taking £150 directly off their energy bills. For this winter, we expect over 3 million households to receive a rebate under the scheme. As the hon. Member for Birmingham, Selly Oak said, following a public consultation in 2021 we reformed the scheme in England and Wales to better target households in fuel poverty and provide the vast majority of rebates automatically. Last winter, around 95% of eligible households received their rebates automatically, without having to take any action, under this element of the scheme. The remaining 5% received their rebates after confirming their details to the Government’s warm home discount helpline.

Under the reformed scheme, we have focused the support to households in receipt of means-tested benefits who are living in properties that we estimate to be relatively costly to heat. We have used data on benefits and property characteristics to identify eligible households, and we estimate that the reformed scheme should enable around 560,000 more fuel-poor households to receive a rebate, including around 160,000 more households with a person who is disabled or has a long-term illness. At the time of the Government’s response to the consultation, we assessed that the proportion of rebates received by households with a disability or long-term illness should remain higher than the proportion of the fuel-poor population with a disability, and higher than the proportion of the overall population with a disability. Although the reforms were not possible in Scotland, because of differences in Government-held data, we implemented an expansion of the scheme in Scotland to support more fuel-poor households. The scheme obligates energy suppliers to provide additional energy-related and financial support, known as industry initiatives, to households in or at risk of fuel poverty. The industry initiatives may include benefit entitlement checks, energy advice, energy efficiency measures, financial assistance and debt write-off, and can be given to households regardless of their eligibility for a rebate.

The Government are also assisting households’ and individuals’ rising cost of living. That assistance will total over £94 billion for 2022-23 and 2023-24. For 2023-24, it will include providing over 8 million households on eligible means-tested benefits with additional cost of living payments that total up to £900, over 6 million people on eligible extra-costs disability benefits with a further £150 disability cost of living payment, and over 8 million pensioner households across the UK with an additional £300 cost of living payment.

The Government continue to stand firm behind energy consumers, especially our most vulnerable households. The Government are determined to drive down cost of living pressures, having already met our goal to halve inflation. As set out yesterday in the autumn statement, lower wholesale energy prices have been the main driver of lower inflation, but we recognise that we must continue to monitor the situation closely. We are committed, and I particularly commit, to delivering a fair deal for consumers, and most of all for vulnerable households.

Energy Costs and Charges

Amanda Solloway Excerpts

Tuesday 21st November 2023 Westminster Hall

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

I thank the hon. Member for East Lothian (Kenny MacAskill) for his passionate and informative speech. I will say at the start that renewable energy clearly does not fit into my portfolio, but if I cannot answer on any points I will try to find the answers and follow up subsequently in writing.

First, the Government have been clear on the importance of protecting energy consumers, and I take my role as Minister for Energy Consumers and Affordability incredibly seriously. That is why I frequently meet energy suppliers and the regulator to remind them of their obligations and my expectations that they will do all they can to support customers, especially the most vulnerable, this winter and beyond. In response to the wholesale energy price challenge caused by Russia’s invasion of Ukraine last year, the Government acted swiftly to provide support to UK households and businesses, delivering almost £40 billion of energy bills support through different schemes from October 2022. The Government also continue to stand firmly behind energy consumers.

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

Although I think our constituents are very grateful for the £40 billion of subsidy that was given across the cold winter last year, does the Minister agree that it would not have been necessary to spend that £40 billion of taxpayers’ money if we had carried on insulating homes at the rate that we had been up until the Liberal Democrats left government in 2015?

[Amanda Solloway]

I thank the hon. Gentleman for his intervention. Of course, the fact is that we had a cost of living crisis mainly, as I have pointed out, because of Putin’s illegal invasion of Ukraine. That was the situation we found ourselves in.

For households in fuel poverty, we have targeted support such as £150 directly off energy bills through the warm home discount, which last year we increased in value and extended to around 3 million households. We are also tackling the root problem through our energy efficiency schemes. We are looking at ways to make the warm home discount more flexible, and also to help respond to future increased pressures on consumers’ bills, and we continue to monitor energy bills and keep options under review.

[Carla Lockhart (Upper Bann) (DUP)]

Figures released by the utility regulator in Northern Ireland show that small and medium-sized enterprises in Northern Ireland are paying almost 10p per kW more than a typical EU price or that in the rest of the UK. Does the Minister agree that this places Northern Ireland businesses at a competitive disadvantage, particularly given the land border with the Republic of Ireland? Does she agree that further support measures need to be put in place, particularly for small to medium-sized businesses?

[Amanda Solloway]

I point out to the hon. Lady that I had a meeting yesterday with the Secretary of State for Northern Ireland, and we were discussing these very particular issues. She has my assurance that those discussions are always mindful and at the top of my thoughts.

I also encourage hon. Members to make their constituents aware of the Government’s “It All Adds Up” campaign, which shows simple measures to save people money on their energy bills this winter. I know that the hon. Member for East Lothian has a particular interest in standing charges, as he discussed them with me yesterday. Standing charges are a matter for Ofgem.

I am pleased to share that last week Ofgem published a call for input on standing charges to look at how they are applied to energy bills and what alternatives could be considered. The standing charge is used to recover the costs required to provide vital energy company services, including providing and maintaining the wires, pipes and cables that deliver power to a customer’s door. If the standing charge were scrapped, as the hon. Member for East Lothian suggests, suppliers would still have to recover reasonable costs in other ways, which would mean charging a higher price for every unit of power used. That could have significant consequences for some categories of vulnerable customers: for example, those with high energy use due to medical equipment. That is one of the reasons we are working through the matter very carefully.

The standing charge can also vary from region to region, as has been pointed out, because of the differing costs associated with the transmission and distribution of supplying energy to a particular area. Geographical factors mean it costs more to run the local electricity distribution network in the north of Scotland than elsewhere. To help protect consumers in the north of Scotland from those costs, a Government cross-subsidy scheme provides an annual cross-subsidy of some £112 million to that area. The scheme is funded by electricity suppliers from across Great Britain and reduces the electricity distribution charge for a typical household in the north of Scotland by more than £60 a year. The cost-reflective approach means that Scottish consumers actually pay lower charges for the high-voltage transmission network than most consumers in England and Wales.

I am also aware that the hon. Member for East Lothian is interested in the benefits available for communities located near transmission network infrastructure, especially those in Scotland near offshore wind facilities. Offshore wind farm developers already provide a range of community benefit packages developed in consultation with local communities. For projects based in Scotland, developers follow the Scottish Government’s offshore energy good practice principles when creating a community benefit package. However, we want to ensure communities hosting transmission network infrastructure can benefit from supporting the delivery of cheaper, secure and low carbon energy for all of Great Britain. We have therefore consulted on proposals for community benefits. The consultation proposed to introduce voluntary guidance on the appropriate levels and forms of benefits to give communities the knowledge, power and flexibility to decide what benefits they want in consultation with the project developer. The consultation has now closed and we intend to publish a response as soon as we can.

I now want to come on to prepayment meters. Historically, customers on prepayment meters have paid higher standing charges than direct debit customers, reflecting the higher cost of serving those customers. The Government subsidises prepayment meter customers through the energy price guarantee to ensure they pay no more for their energy than direct debit customers. That seems to be the fair thing to do. The support is due to end at the end of March 2024 when the energy price guarantee ends, but Ofgem is due to announce shortly how it will create an enduring replacement for that scheme so that prepayment meter customers will have that unfair premium they were paying removed from their bills once and for all. Furthermore, the Government have worked with Ofgem and the industry to see that the rules extending protections with regard to prepayment meter installations for the most vulnerable consumers have come into effect.

I wish to close by reminding all hon. Members that they should encourage their constituents to contact their energy suppliers if they are concerned about their energy bills or their ability to pay. Energy suppliers have an obligation to their customers and Ofgem has also introduced further rules on customer services for this winter. Once again, I sincerely thank the hon. Member for East Lothian for securing this incredibly important debate.

Question put and agreed to.

Energy Infrastructure Planning Projects

Amanda Solloway Excerpts

Thursday 16th November 2023 Written Statements

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

This statement concerns an application for development consent made under the Planning Act 2008 by Net Zero Teesside Power Ltd and Net Zero North Sea Storage Ltd for a full-chain carbon capture, usage and storage project, which includes a new gas-fired electricity generating station, with a post-combustion carbon capture plant, gas, electricity and water connections, and a CO₂ pipeline network, located on Teesside.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Net Zero Teesside project is 16 November 2023.

The Secretary of State has received new information from a statutory consultee, and has decided that it is necessary to set a new deadline of no later than 16 February 2024 for deciding this application to enable the Department to ensure there is sufficient time to consider this new information and to conduct the necessary consultations with interested parties.

The decision to set the new deadline for this application is without prejudice to the decisions on whether to grant or refuse development consent.

[HCWS39]

Cost of Energy: Dalmarnock

Amanda Solloway Excerpts

Tuesday 24th October 2023 Commons Chamber

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

Let me begin by thanking the hon. Member for Glasgow Central (Alison Thewliss) for tabling this incredibly important debate on the cost of energy in Dalmarnock. She makes a strong case for her constituents and, as the Minister for affordability, I am mindful of the issues that she raises. That is why the Government spent nearly £40 billion protecting households and businesses from spiralling energy bills last winter. That included robust support for households, covering around half of a typical energy bill last winter through the combined support since October 2022 of the energy price guarantee and the energy bills support scheme, with a typical household saving around £1,500 by the end of June 2023. The energy price guarantee subsidised the per unit cost that a household could be charged for its gas and electricity usage. The typical household was therefore paying £2,500 a year for its energy when prices were at their highest, between October 2022 and June 2023.

To put that in context, the Ofgem price cap reached £4,279 for quarter 1 of 2023, which is what a typical household would have paid for its energy had the Government not intervened. Alongside the EPG, the energy bills support scheme delivered a £400 non-repayable Government discount on electricity bills to help 28 million households in Great Britain.

The hon. Lady mentioned the difficulties some people in her constituency faced in accessing energy support last winter, particularly those who were unable to be reached automatically. The EBSS alternative funding was available to over 900,000 households in Great Britain that did not have a domestic electricity supply and were not eligible to receive support automatically through EBSS, providing them with £400 to support them with their energy bills. I note the comments from the survey, and I am very interested, as we discussed before, to see the results of that survey.

The scheme remained open for three months from 27 February to 31 May, and the Government used a range of methods to ensure that as many eligible households as possible knew that they could apply. That included press notices to highlight the scheme in national and regional media, and a request for local authorities to write to care homes and park homes in their area.

The alternative fuel payment scheme delivered £200 to households that use alternative fuels such as heating oil, liquefied petroleum gas, coal or biomass, helping around 2 million off-gas-grid households to meet their energy costs last winter. The scheme particularly supported households in areas that are not connected to the gas grid, and support was doubled to £200 in the autumn statement to reflect the price rises experienced by people using alternative fuels to heat their home.

Only last week, my Department published figures showing that over £24 million had been spent on EBSS and AFP support in Glasgow Central, where the district of Dalmarnock is located. That is just two schemes and does not include the significant support provided through the EPG. In total, the Government spent around £1.2 billion to support households in Scotland.

The Government have welcomed recent reductions in household energy bills. The energy price cap for quarter 4 of this year has been set at £1,834, which is significantly down from the £4,279 at the start of the year. The energy price guarantee will remain in place until March 2024, providing a safety net for consumers should energy prices spike unexpectedly by limiting the amount that suppliers can charge per unit of gas or electricity.

Additional support has been delivered through the welfare system for the most vulnerable households, with eligible households receiving a £900 cost of living payment during 2023-24. This is an increase from the £650 such households received the previous year. The Government will continue to provide targeted support for the most vulnerable, with 3 million households across Great Britain expected to benefit from the £150 warm home discount this winter. Eligible households will also receive the winter fuel payment, worth between £250 and £600, and the cold weather payment that provides £25 during very cold weather.

As I am sure the hon. Lady knows, fuel poverty is a devolved policy. We have responsibility for England, but it is right that we note the work that the Scottish Government are doing in this space and the lessons learned. Multiple schemes have been set up, including the winter heating payment, the home heating support fund and the child winter heating assistance scheme, to help reduce fuel poverty specifically in Scotland. As set out in the autumn statement, we are exploring the best approach to consumer protection as part of wider retail market reforms.

We welcome Ofgem’s new rules for energy suppliers, which will ensure that all energy customers get the good service they deserve. Suppliers will now be required to prioritise vulnerable customers when they request help, offer timely repayment plans for those struggling with bills, and make customer ratings easy to find on their websites.

In the longer term, improving energy efficiency will be key to tackling fuel poverty, contributing to the long-term reduction of energy bills, and reaching net zero. In addition to the £6.6 billion allocated in this Parliament, £6 billion of new funding will be made available from 2025 to 2028.

The Government have also extended the energy company obligation—ECO—from 2022 to 2026 and expanded it to a total of £4 billion to accelerate efforts to improve homes and meet fuel poverty targets, and £1 billion has been committed through the Great British insulation scheme, which will improve more than 300,000 of Great Britain’s least energy-efficient homes.

The Government’s vision for the energy retail market is one that works better for consumers, is more resilient and investable, and supports the transformation of our energy system. Much remains to be done to deliver our vision. That is why we are pursuing further targeted reforms, which will set us on a path to unlocking competition, investment and innovation, and helping the energy market to achieve net zero while protecting the most vulnerable.

The hon. Member mentioned talking to suppliers. I assure her that I talk to suppliers and other stakeholders, such as Citizens Advice, on an ongoing basis. It is important to have those conversations.

We are also looking to provide protection to those using heat networks, including people in Dalmarnock. Subject to the passage of the Energy Bill, heat network customers in Scotland will be protected by UK-wide consumer protection legislation, as well as the regulatory framework established by the Heat Networks (Scotland) Act 2021.

The Government will closely monitor energy prices and keep energy support schemes under review, as well as provide longer-term support to keep energy bills more affordable for all. One of the schemes that we are considering is the “It All Adds Up” campaign, which I encourage the hon. Member to support. We are trying to encourage households to look at where they can make further savings.

I am planning to visit Scotland in the near future, and I welcome the opportunity to engage more closely on this issue.

I sincerely thank the hon. Member for introducing this important debate and for all her efforts to ensure that her constituents are fully supported.

Question put and agreed to.

Energy Infrastructure Planning Projects

Amanda Solloway Excerpts

Tuesday 19th September 2023 Written Statements

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

My noble friend the Under-Secretary of State, Lord Callanan, has today made the following statement:

This statement concerns an application for development consent made under the Planning Act 2008 by Sunnica Energy Farm for the construction and operation of a solar photovoltaic energy generation farm, situated across west Suffolk and east Cambridgeshire.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Sunnica Energy Farm application is 28 September 2023.

I have decided to set a new deadline of no later than 7 December 2023 for deciding this application.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS1044]

Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 19th September 2023 Commons Chamber

[Clive Lewis (Norwich South) (Lab)]

9. What plans she has with Cabinet colleagues to help increase the capacity of local authorities to deliver area-based home retrofit schemes.

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

To support English local authorities, we fund an embedded technical assistance facility, providing access to experts, training and guidance to enhance their capability to deliver our domestic grant schemes.

[Clive Lewis]

Second time lucky. The Minister may be surprised—[Laughter]—to hear the following words leave my lips, and I know I am: I agree with the former Prime Minister, the right hon. Member for South West Norfolk (Elizabeth Truss), in her claim that low and middle-income households cannot afford to pay for the transition to net zero. Where we differ is that I do not believe that we should let the planet burn, as she does. Instead, the wealthy must pay for the green transition. Will the Minister commit to income and wealth redistribution and finally give households and local authorities the ability to transition successfully?

[Amanda Solloway]

The Government provide a wide range of funding to support local authorities in reaching net zero through the core settlement, grant funding schemes and UK growth funding. The Government are enabling local authorities to tackle net zero goals.

[Simon Fell (Barrow and Furness) (Con)]

One of the biggest challenges that we have in delivering home retrofit schemes in Cumbria is not with local authorities but with industry capacity and skills. What are the Government doing to try to send the right signals to industry so that we are getting the right skills into the supply chain to deliver some of these schemes, especially in areas such as Cumbria where we have skills deserts?

[Amanda Solloway]

My hon. Friend makes a really important point on skills. In fact, we have invested £15 million in subsidised training over the past three years and have provided 16,800 training opportunities. We will continue to support this important industry.

[Sir Desmond Swayne (New Forest West) (Con)]

10. Whether she plans to issue guidance to people with oil-fired heating on replacement of boilers.

--- Later in debate ---

[Janet Daby (Lewisham East) (Lab)]

17. What assessment she has made with Cabinet colleagues of the potential merits of introducing a mandatory price cap on heat networks.

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

The Government are providing millions in support for remedial work through the heat networks efficiency scheme. We are supporting customers with their bills via the energy bills discount scheme. Through the Energy Bill we will appoint Ofgem as a heat network regulator, so that customers benefit from fairer prices.

[Dame Meg Hillier]

I must declare that I live in a block with a heat network. Many heat networks will be quite expensive to change under the technical rules proposed by the Government for 2024. Given many blocks have also had cladding and other pressures on leaseholders, are the Government looking carefully to ensure that customers are not being overlayered with many more charges to remediate networks?

[Amanda Solloway]

Through the heat network efficiency scheme, the Government are providing £32 million to upgrade existing heat networks and reduce energy costs. The scheme will upgrade old equipment and help consumers in more than 10,000 houses to reduce their energy use. We will shortly announce the first awards from the fund.

[Elliot Colburn]

Residents living in New Mill Quarter in Hackbridge in my constituency have been plagued by a litany of problems since they were connected to the Sutton decentralised energy network, including an inability to change tariffs. Does my hon. Friend agree that residents have been let down by the mismanagement identified in an independent report on its poor running by Lib Dem-run Sutton Council? Will she commit to working with me to ensure that heat network customers, who have nowhere else to go for their energy, are protected by new measures in the Energy Bill?

[Amanda Solloway]

I know how hard my hon. Friend works for his constituents and I thank him for bringing this scheme to my attention. We want all heat network customers to receive a high-quality service and fair pricing, which is why we are appointing Ofgem as a regulator through the Energy Bill and currently consulting on how it will operate. Of course I will meet my hon. Friend.

[Janet Daby]

Many of my residents are locked into district heat network schemes. They have been paying up to 13 times more than the rest of the UK because they are not protected by the energy price cap. Do the Government not think it is time to implement a mandatory price cap straight away?

[Amanda Solloway]

At this moment in time we do not think that a uniform price cap would benefit consumers, given the huge diversity in size and scale of providers in the market. However, through the Energy Bill, the Secretary of State will have powers to introduce a price cap, should one be beneficial in future.

[Imran Hussain (Bradford East) (Lab)]

14. What estimate her 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, there were an estimated 3.26 million households in fuel poverty. The additional support we provided last year prevented 350,000 households from falling into fuel poverty in 2022. The established targeted support remains in place, while from July 2023 household energy bills have been falling.

[Imran Hussain]

Over 40,000 families in Bradford have been plunged into uncertainty as the Tory Government lurch from crisis to crisis. More than one in five of my constituents now live in fuel poverty, yet the Minister still comes here today with no real plans or solutions, and no real windfall tax on the booming profits of energy giants. Let me ask the Minister to put herself in the shoes of my constituents. What does she have to say to those who, frankly, have been abandoned and have to choose between a warm home, a full stomach and school uniforms for their children?

[Amanda Solloway]

Having experienced fuel poverty myself when I was growing up, I do understand completely how the hon. Gentleman’s constituents feel. That is why the Government are absolutely committed to ensuring that we support people. We have given unprecedented support. We have the warm home discount and the cost of living payment, among many other measures, to help constituents through the cost of living.

[Theresa Villiers (Chipping Barnet) (Con)]

16. What steps she is taking to help promote the creation of high-skilled jobs in the renewable energy sector.

--- Later in debate ---

[Jeff Smith (Manchester, Withington) (Lab)]

According to analysis by the Resolution Foundation, more than a third of British households face higher bills from the end of this month because of higher standing charges and the demise of the energy bills support scheme, and the people who use the least energy, and those in the poorest households, are disproportionately worse off. At the same time, the windfall tax has massive loopholes costing billions. Would not closing those loopholes and extending more help to people during the cost of living crisis be the right thing to do?

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

The hon. Gentleman will be aware that the Government are raising a 75% energy profits levy, and he will also be aware that standing charges are a matter for Ofgem. Let me reiterate, however, that we are mindful of the cost of living crisis and have been providing support with the warm home discount, the £900 cost of living payment, and a raft of other measures to support people through this crisis.

[Peter Aldous (Waveney) (Con)]

T2. The launch last week of the Great British insulation scheme was very welcome. So as to build on this and to kickstart a mass retrofitting revolution, will my hon. Friend liaise with the Treasury to obtain its support for the introduction of such fiscal measures as an energy-saving stamp duty and an employee benefits scheme similar to the cycle to work scheme?

[Amanda Solloway]

The Government set the aspiration in the clean growth strategy of upgrading as many homes as possible to energy performance certificate band C by 2035, where practical, cost-effective and affordable. We remain committed to that aspiration. Although tax policy sits with the Treasury, we are considering how to improve energy efficiency for owner-occupied homes and plan to consult by the end of 2023.

[Rachael Maskell (York Central) (Lab/Co-op)]

T7. Energy companies have accumulated hundreds of pounds, if not over £1,000, in consumer credit. When those companies go into administration, the company taking over does not honour that credit and people often with very little means have lost hundreds or thousands of pounds. How will the Minister ensure that they get compensation and get credited by the new company with the amount of money they have lost?

[Amanda Solloway]

I can assure the hon. Lady that we are in constant conversations with Ofgem on such matters. Although this is a matter for Ofgem, I have a regular meeting to make sure that we are on top of this.

[Elliot Colburn (Carshalton and Wallington) (Con)]

T3. Energy from waste requires burning waste and it is therefore not conducive to net zero. The expansion of the Beddington incinerator in my constituency is not needed to meet local demand, so can my right hon. Friend assure me that the Environment Agency will take that into account before making a decision on whether or not to license?

[Barry Gardiner (Brent North) (Lab)]

In the Select Committee inquiry into preparations for this winter, one of the repeated calls that we have heard from expert witnesses is to support the vulnerable and fuel poor with a social tariff. Will the Minister do that?

[Amanda Solloway]

Of course we are aware of the challenges that are facing consumers this coming winter, which is why we are keeping the price cap as a safety net. To give the hon. Gentleman reassurance, we will be monitoring the situation in case we need to look at this further.

[Stephen Hammond (Wimbledon) (Con)]

T5.   Recent investment in electric vehicle charging and the EV supply chain shows the benefit of the Government setting clear targets so that the private sector has the confidence to invest. Does my right hon. Friend agree that if we had similar policy consistency across the whole of the economy, we would see greater investment in green growth and in meeting decarbonisation by 2050?

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[Samantha Dixon (City of Chester) (Lab)]

Almost 20% of the housing stock in my constituency dates from before 1919 and is therefore classified as historical. What plan does the Department have to improve skill levels in retrofitting historical residential buildings?

[Amanda Solloway]

As I previously mentioned, retrofitting is one of our most important projects. Of course, skills are a real issue, which is why we are delighted that this will enable us to enhance our skill bases.

[David Duguid (Banff and Buchan) (Con)]

I welcome my right hon. Friend the Secretary of State to her new role. Given the vital role that oil and gas play in managing our energy security as demand continues, albeit declining, and the vital jobs, skills, technologies and expertise in that industry, 90% of which are thought to be immediately transferrable to the renewables sector, does my right hon. Friend share my disappointment at today’s reports of Humza Yousaf’s vow to end Scotland’s place as the oil and gas capital of Europe?

--- Later in debate ---

[Alison Thewliss (Glasgow Central) (SNP)]

My constituent Lee Haywood is on a communal heat network, and he and his neighbours saw their price per kWh double last winter. What protection can the Minister give as we come into the next winter, as residents in Dalmarnock are really worried that prices will again soar in this unregulated area?

[Amanda Solloway]

We have put in place protection to ensure that prices are not going to go up; we have the energy price guarantee. In addition, let me point out that prices are coming down.

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

This morning, I received a text from one of the leadership team at one of our local hospices. It said that

“there has been no additional support for our energy costs. Costs have gone up while statutory support hasn’t changed... Hospices UK lobbied for additional support…to no avail… We operate 24/7 and have to keep the heating on—you know what the weather is like in Cumbria in the winter!”

When will the Minister come up with a bespoke support scheme for our vital hospices?

[Amanda Solloway]

I thank the hon. Gentleman for the meetings we have had, and I am mindful of the situation that hospices face. We have given support and I will make sure that I keep monitoring the situation.

[Caroline Lucas]

On a point of order, Mr Speaker. In the exchange about the amendment on flaring just now, I do not think I heard the Minister formally withdraw his accusation that I got my facts wrong, and I certainly did not hear him apologise. Given that he has now accepted that he got his facts wrong and my facts were right, I would love him to formally correct the record and perhaps even to apologise as well.

Energy Supply Market: Small Businesses

Amanda Solloway Excerpts

Wednesday 13th September 2023 Westminster Hall

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

It is a great pleasure to serve under your chairmanship, Ms Fovargue. I thank my hon. Friend the Member for Aberconwy (Robin Millar) for securing this incredibly important debate, and I thank all who have taken part.

I know that my hon. Friend the Member for Aberconwy has been working tirelessly to try to ensure the best outcomes for businesses in his constituency and more widely. I was a beneficiary of that when I went to Conwy earlier this year on holiday with my daughter and granddaughter. He will know from our recent meeting that for me, as Minister responsible for energy consumers and affordability, it is really important that both domestic and non-domestic customers get the service they deserve. That is and always has been one of my priorities. Yesterday I met Kate Nicholls from UKHospitality, whom I have met on many occasions. I will continue to meet representatives from all sectors to understand their experiences and find out how we can support them.

My hon. Friend the Member for Aberconwy knows that the energy crisis has impacted households and businesses alike. Despite volatility in the energy market, exacerbated by Putin’s illegal invasion of Ukraine, the non-domestic energy market has remained more stable than its domestic counterpart. In part, this can be attributed to the factors that differentiate the non-domestic market from the domestic market, such as different supplier hedging strategies, risk sharing with customers, and bespoke contracts for businesses with different energy requirements.

However, we do recognise the difficulties that businesses continue to face, with energy bills much higher than historical norms. That is why the Government have stepped in to provide unprecedented levels of support for business energy costs. The energy bill relief scheme provided £7.4 billion of support for more than 1.9 million energy contracts. Obviously, it would have been unsustainable for the Government to continue to support such large numbers of businesses at the level of the energy bill relief scheme. The Government have been clear that the levels of support provided under the energy support schemes are time-limited and are intended as a bridge to allow businesses to adapt.

We believe that the energy bills discount scheme provides balance. With wholesale gas prices now at lower levels than before Putin’s invasion Ukraine and having almost halved since the energy bill relief scheme was announced, the energy bills discount scheme supports businesses until April 2024 and limits taxpayer exposure to volatile energy markets. The Government are also committed to providing the right tax environment for businesses to invest and grow. In his autumn statement, the Chancellor announced that the Government are going further to support high street businesses by reducing the burden of business rates with a package worth £13.6 billion in total over the next five years. This included freezing the business rates multiplier for another year to protect businesses from rising inflation, and increasing relief for retail, hospitality and leisure from 50% to 75% for 2023-24—up to £110,000 per business.

In addition to financial support, I have been clear in numerous meetings with energy suppliers and in my ongoing meetings with Ofgem that it is essential for energy suppliers to provide all customers with clear communications to enable them to understand their energy contracts and the options available to them. I continue to encourage all suppliers to proactively reach out and speak to their customers. As a result of our work with suppliers, we have seen some offering, as has been discussed throughout the debate, a blend and extend option, where some costs are reduced and payments are spread over a longer period. It is, of course, the responsibility of the supplier to ensure that customers can make an informed decision, including understanding the impact of the renegotiations—such as blending and extending their existing contracts—and what that means for their entitlement to energy bills discount scheme support, and the costs and benefits over the short and longer term.

I know that specific concerns have been raised about the hospitality sector, and my hon. Friend the Member for Aberconwy raised them again today. As I discussed with UKHospitality yesterday, although these are commercial matters I will continue to press suppliers to ensure that they treat all businesses based on their individual circumstances and do not take a blanket approach to the sector. The changes that Ofgem is already making following its recent non-domestic market review, and the work that we in the Government are doing, will improve the situation for all sectors, and I know that UKHospitality is supportive of all the measures.

The non-domestic energy market has not required much intervention in the past, as it broadly delivered good outcomes for business customers. However, the energy crisis has exposed areas where consumer protections can be improved for business customers, especially our small and medium enterprises, as everybody in the debate has mentioned. Ofgem conducted a review into the non-domestic energy market. It published its report findings in July, alongside policy consultation questions related to its proposals. We welcome its findings and believe it is vital that businesses receive good customer service and support from their energy supplier and any third-party providers.

Ofgem is investigating potential breaches of licence conditions and rules for certain suppliers through its compliance processes, and it will not hesitate to take enforcement action if necessary. However, we know that it is not just about compliance against existing rules. We want to ensure that businesses understand how they receive their energy. Ofgem’s non-domestic review findings proposed several regulatory changes that will improve a business customer’s experience with their supplier and energy broker, such as expanding transparency on energy broker commissions to all businesses and expanding access beyond microbusinesses to the alternative dispute resolution service for third-party intermediaries such as energy brokers.

The changes, along with other initiatives—such as a new code of conduct for third-party intermediaries being developed by the Retail Energy Code Company—will address some of the key challenges we have heard from businesses. We will closely monitor progress in this space to see whether further Government action is needed. We understand that the Government can play an active role in improving the experience of businesses with their energy contracts, which is why we are exploring how the energy ombudsman can support more businesses with their energy issues by expanding access to dispute resolution between customers and suppliers to more than just microbusiness customers. We plan to consult on any proposed changes to ensure that stakeholders can express their views before any final changes are enacted. We are already in discussions with interested groups and will continue to engage proactively.

I reiterate that the Government and I are committed to improving the retail energy market for households and businesses alike. We have recently set out a new vision for the future energy retail market to ensure that it works better for all consumers, while guaranteeing that the market returns to a resilient and investable state and supports system transformation. I sincerely thank my hon. Friend the Member for Aberconwy for securing the debate and for the work he has carried out on supporting businesses with their energy concerns. I look forward to continuing to engage with him on this incredibly important matter to ensure that our British businesses can thrive.

Full Chain Carbon Capture, Usage and Storage project: Development Consent

Amanda Solloway Excerpts

Thursday 7th September 2023 Written Statements

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

This statement concerns an application for development consent made under the Planning Act 2008 by Net Zero Teesside Power Ltd and Net Zero North Sea Storage Ltd for development consent for a full chain carbon capture, usage and storage project, which includes a new gas-fired electricity generating station with post-combustion carbon capture plant, gas, electricity and water connections and a CO₂ pipeline network, located on Teesside.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the net zero Teesside project is 14 September 2023.

The Secretary of State requested further information to be supplied by the applicants Net Zero Teesside Power Ltd and Net Zero North Sea Storage Ltd by 30 May. The applicants submitted this information on 4 August. The Secretary of State has, therefore, decided to set a new deadline of no later than 16 November 2023 for deciding this application, to enable my Department to ensure sufficient time to consider this information and to conduct the necessary consultations with interested parties.

The decision to set the new deadline for this application is without prejudice to the decisions on whether to grant or refuse development consent.

[HCWS1008]

Oral Answers to Questions

Amanda Solloway Excerpts

Tuesday 4th July 2023 Commons Chamber

[Mrs Heather Wheeler (South Derbyshire) (Con)]

6. What assessment his Department has made of the adequacy of additional support for energy and trade intensive industries.

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

Wholesale energy prices have fallen significantly since the peak of the energy crisis, so the energy bill discount scheme strikes a balance between providing support and certainty to business and limiting the impact on public finances.

[Mrs Wheeler]

I thank my hon. Friend for a proper Derbyshire answer. Can she give more information on how the Government are working to help wedding venues and hospitality in general with extreme costs for electricity and gas, particularly where businesses have signed long-term contracts in the face of falling world prices?

[Amanda Solloway]

I thank my hon. Friend from South Derbyshire—it is a great county to live in, with great hospitality—for her question. Businesses, including the hospitality sector, have already benefited from the energy bill relief scheme, which ended on 31 March and provided £7.4 billion of support. We are mindful of the fixed-term contracts, which are a supplier issue, and we are constantly engaging with stakeholders and suppliers on that.

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

Last week I attended the opening of the first phase of a new solar farm at Newcastle airport. It was 50% funded by the regional development fund, which post Brexit we no longer have access to. The further three phases are vital to ensure that the airport meets its net zero target and the Government meet their solar target, so what are the Government doing to ensure that those further three phases will be supported in some way by the Government?

[Amanda Solloway]

I thank the hon. Lady for that information. With your permission, Mr Speaker, I will take that question away and find out more details.

[Mr Speaker]

I call the shadow Minister.

[Kerry McCarthy (Bristol East) (Lab)]

The director general of UK Steel said this week:

“There are huge question marks over if government really wants to sustain steel, the backbone of British manufacturing, or just leave it to shrink and rely on other nations’ supply.”

He is right to say that. It is four years since the Government promised the green steel fund, but not a penny has been paid. Why are the Government failing our steel communities so comprehensively?

[Amanda Solloway]

That is absolutely not true; we are legislating for that at the moment. It is incredibly important to the Government that we combat that and support the energy and trade-intensive industries.

[Kerry McCarthy]

The Committee on Climate Change said last week that

“the Government has high ambitions for decarbonisation but no policy to deliver it”.

We have been slow to react to the US Inflation Reduction Act and to the EU’s proposed green deal industrial plan. The right hon. Member for Maidenhead (Mrs May), who, for the benefit of the Minister, is not from the Labour Benches, said:

“Where the UK once led, we are now falling behind.”

When will Ministers snap out of their appalling complacency and come up with the strategy and timeline that we need to support the UK in the global race for green jobs and investment?

[Amanda Solloway]

We have met all our carbon targets and will continue to do so. The Government have made the commitment to continue hitting and progressing on those targets.

[Clive Efford (Eltham) (Lab)]

7. What discussions he has had with the Secretary of State for Levelling Up, Housing and Communities on the adequacy of the planning system for clean energy projects.

--- Later in debate ---

[Stephen Farry (North Down) (Alliance)]

11. What assessment he has made with Cabinet colleagues of the adequacy of workforce skills for delivering net zero projects.

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

We recognise that having the right skills within the workforce is critical, which is why we established the green jobs delivery group.

[Stephen Farry]

The Climate Change Committee has expressed concern that the UK is falling behind on a range of net zero commitments, including on skills. A skilled workforce, alongside new green jobs, is a key component of the green new deal, but the workforce plan is not due until 2024. In the light of the urgency of addressing climate change, will the Government commit to bring that forward to some time later this year?

[Amanda Solloway]

We are working as quickly as we can on ensuring this. The new skills that will be required are really beneficial for the UK economy, so we are keen to work with the green jobs delivery group and the Department for Education in looking at apprenticeships and how we can push this forward as quickly as possible.

[Nicola Richards (West Bromwich East) (Con)]

12. What steps he is taking to encourage private sector investment in clean energy technologies.

--- Later in debate ---

[Anna Firth (Southend West) (Con)]

15. What energy cost support his Department has provided to customers on traditional prepayment meters.

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

The Government have provided support to customers on traditional prepayment meters through the energy bills support scheme and energy price guarantee.

[Anna Firth]

I very much welcome the measures that the Government have announced to support those on traditional prepayment meters, but many residents in Southend West, such as those living in Trafford House in Leigh-on-Sea, are on communal heat networks. They are still facing higher prices and have no control whatsoever over their heating. What are the Government doing to encourage heat suppliers to apply for the energy bill discount scheme ahead of the deadline at the end of this month, which will benefit my constituents who have no control over their energy bills?

[Amanda Solloway]

My hon. Friend is a great advocate for all her constituents, and she will be interested to hear that the Government are committed to supporting domestic heat network customers with their bills. That is why we introduced the energy bills discount scheme heat network support, which aims to ensure that heat network customers do not face disappointingly higher bills compared with customers in equivalent households.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

Can the Minister tell us the value of prepayment meter vouchers not cashed by the 30 June deadline? What can the Government do to ensure that support reaches those people who are eligible to get it?

[Amanda Solloway]

All hon. Members will know how abhorrent we found the use of forced entry to people’s houses over prepayment meters. However, we have worked hard and consistently to ensure that all those on prepayment meters are treated fairly and given support.

[Mr Rob Roberts (Delyn) (Ind)]

16. What steps he is taking to introduce small modular nuclear reactors into the energy mix.

--- Later in debate ---

[Hannah Bardell (Livingston) (SNP)]

18. What plans he has to support households with energy costs in winter 2023-24.

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

The Government are committed to cheap energy for all. Last winter, we covered half a typical energy bill through the combined support of the energy price guarantee and the energy bill support scheme since October, with a typical household saving around £1,500 by the end of June.

[Hannah Bardell]

There is a huge gulf between the reality and the practice of the Government. The Public Accounts Committee has warned this Tory Government about their lack of planning on support for consumers with the cost of energy this winter. Lack of preparedness seems a serious ailment within this Government. Given that Sense research has found that more than 30% of disabled people are cutting back on their use of medical equipment, when will we get a proper plan from this Government, instead of the profiteering off the backs of the most vulnerable, as we see from so many energy companies?

[Amanda Solloway]

We are of course making plans, and I do not accept that we are not planning. We are also talking to stakeholders and ensuring that we are giving the best support we can to all those who will be vulnerable in winter 2023-24.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

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

--- Later in debate ---

[Robbie Moore (Keighley) (Con)]

T5.   Many businesses across my constituency, including Lishman’s butchers and Clip ’n Climb in Ilkley, have kindly contacted me about needing additional support to help with their energy prices. The Government have done a huge amount to support domestic users, but will the Minister outline what more support can be provided to small independent businesses?

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

My hon. Friend will be interested to hear that the Government provided more than £7.4 billion of support to businesses—more than £35 million a day—through the energy bill relief scheme last winter.

[Mary Kelly Foy (City of Durham) (Lab)]

T6. Mine water heating is an emerging technology that employs the heat stored in former mines to heat buildings. It is low-carbon and efficient, and it could be a boon for our country, especially in deindustrialised areas such as County Durham that experience high levels of fuel poverty. What forms of support is the Minister offering? Will he meet me to discuss how we can take this forward in the north-east?

--- Later in debate ---

[Dame Nia Griffith (Llanelli) (Lab)]

Following a debate in Westminster Hall on making heritage buildings more sustainable, will the Secretary of State undertake to meet his colleague the Minister with responsibility for culture to push for the urgent revision of guidelines to allow greater flexibility in the siting of solar panels and other renewable installations on heritage buildings, in order to make them more environmentally sustainable and economically viable?

[Amanda Solloway]

Speaking for myself, I would be delighted to have a meeting on that subject.

[Mark Pawsey (Rugby) (Con)]

At a time when the cost of generating electricity is falling thanks to the increasing use of renewables, my constituents do not understand why the price of electricity remains linked to the price of gas. I know that the Government are undertaking a review of electricity market arrangements. When might they expect to see a change?

Energy Company Obligation Schemes

Amanda Solloway Excerpts

Tuesday 27th June 2023 Westminster Hall

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

It is a great pleasure to be serve under your chairmanship, Mr Paisley. I congratulate the hon. Member for Ceredigion (Ben Lake) on securing this incredibly important debate and thank all those who have contributed. As you may know, Mr Paisley, this issue is not in my portfolio; however, I am here to represent the Government and to take away any questions that I am unable to answer today.

I welcome all Members’ contributions; they really have been incredibly helpful. I thank everyone, particularly the hon. Member for Ceredigion, for the suggestions they made throughout the debate. One of the things that we really need to apply within all of this activity is common sense, and a lot of the suggestions that I have heard today have been based on common sense.

Although they are not relevant to this debate, I will also talk about the energy costs that really play on my mind as the Minister with responsibility for consumers and affordability. Clearly, there are many schemes that I could go into, although, as I say, they are not relevant. I will just say what many hon. Members have already said, which is that we must encourage all consumers to make sure that they get all of their benefits. I thank the hon. Gentleman for raising that issue; as Members of Parliament, we should always encourage people to do that.

The energy company obligation is the Government’s most successful domestic energy efficiency scheme in Great Britain. It obliges larger energy suppliers to deliver bill savings for households by installing energy efficiency measures. Since it began in 2013, it has delivered 3.6 million measures in more than 2.4 million properties, which means that over 9% of British households have had an ECO measure installed. Low-income and vulnerable households will save over £19 billion on their bills over the lifetime of the measures that have been installed. As the hon. Gentleman may know, over 17% of households in his constituency have received ECO measures over the last decade.

ECO4 was introduced last year and runs until March 2026. It has continued to support low-income and vulnerable households while also increasing the focus on the least energy-efficient properties and on fuel poverty. To be eligible for it, households either have to be in receipt of means-tested benefits, live in social housing or be referred by their local authority or energy supplier. For the first time, part of the overall target has been met by upgrading the equivalent of 150,000 of the worst-performing homes, with those living in homes with energy performance certificate ratings of E, F or G the most likely to be in the deepest fuel poverty. Also for the first time, we set a minimum requirement for energy efficiency improvements, depending on a home’s energy efficiency rating. This means that more of the households receiving help will be brought out of fuel poverty permanently. We estimate that at current energy prices, households benefiting from ECO4 will reduce their annual energy bills by over £600 on average.

Delivery under ECO4 commenced last April, with around 130,000 measures delivered to over 43,000 low-income households. The scheme data shows a gradual increase in delivery, and recent reporting from the supply chain indicates that delivery has continued to increase through May and June.

I am sure that the hon. Member for Ceredigion will be delighted to hear that Ceredigion continues to benefit disproportionately from ECO4; over 1% of all measures installed under ECO4 have been in his constituency. This success is partly due to the explicit incentive within the scheme to treat off-grid rural homes in Wales and Scotland, and it is also thanks to the ECO Flex provision, which allows up to 50% of the overall obligation to be met by treating homes that have been referred by a local authority or a devolved Administration. Ceredigion is one of the leaders in that part of the scheme.

Nevertheless, I assure the House that we are not complacent. We continue to monitor delivery closely, working with local authorities, energy suppliers and devolved Administrations to share best practice about ECO Flex and to remove administrative barriers where possible. Ofgem has recently republished guidance that should make the ECO Flex process easier, and, as has been mentioned, we are considering how the whole scheme can be amended. We recognise that costs have increased since we developed ECO4 and that, as the hon. Gentleman explained, meeting the minimum improvement requirement in certain homes is challenging. We are considering whether changes to the policy are desirable and analysing the potential impact of such changes. For example, we will need to examine the consequences of relaxing the minimum requirement for our fuel poverty targets, given the imperative of proofing homes to band C. Making changes to ECO4 will require a public consultation and amendments to affirmative regulations, so any changes we decide to make will be well informed by external stakeholders.

On the hon. Gentleman’s point about expanding the list of technologies, the primary legislation that enables ECO4 and GBIS limits technologies to those that reduce space heating costs. While we are open to expanding the eligible technologies in the future, that would require a change in primary powers. Beyond ECO4, and in response to persistently high energy prices, we have extended the help available through a new eco energy efficiency scheme: the Great British insulation scheme, which many Members mentioned. Previously consulted on as ECO+, it will boost support for those on the lowest incomes and the most vulnerable, and extend help to a wider pool of households who are also challenged by high energy bills.

ECO4 and the Great British insulation scheme are a major expansion of the Government’s action on energy efficiency. The predecessor ECO3 scheme was worth £640 million annually, and total ECO funding has now reached £1.3 billion per year to March 2026. We estimate that by April 2026, the GB insulation scheme will have delivered about 376,000 measures to about 300,000 households, helping households to cut heating bills by an average of £300 to £400 per year.

These schemes also create continuity for the supply chain. To further facilitate supply chain growth, the Government have increased funding for training schemes, as many Members mentioned. The Department’s £9.2 million home decarbonisation skills training competition, launched in September 2022, has awarded grant funding to 19 training providers in England to deliver subsidised training in the energy efficiency, building retrofit and low-carbon heating sectors. That training will deliver an estimated 9,000 training opportunities to the building retrofit, energy efficiency and heat pump sectors through to summer 2023. That includes accredited training to qualify standard installers and retrofit co-ordinators.

Alongside the energy efficiency upgrades we are making through the Great British insulation scheme and ECO4, the Government are investing £6.6 billion over this Parliament in clean heat and energy efficiency, reducing our reliance on fossil fuel heating. In addition, £6 billion of new Government funding will be made available from 2025 to 2028. We have heard it said that consumers are at the heart of everything we do, and I give my assurance that one of the things we are doing is reaching out to stakeholders. Hon. Members have also mentioned places such as citizens advice bureaux. Clearly it is important that we talk to people about the cost of living but also what we are doing in our ongoing support.

The Government investment I have listed, as well as specific investment in building a market for green finance, means that a range of green financing options are already available from high street lenders to owner-occupiers and private landlords. They include things such as green mortgages and additional borrowing facilities, or cashback offers to homeowners undertaking energy retrofit. Some energy suppliers also offer 0% finance for certain energy efficiency products. Improving the energy efficiency of our homes is the best long-term solution to reducing energy bills and tackling fuel poverty. ECO4 and the GB insulation scheme will support that, while also helping to protect our nation’s energy and support our net zero target.

A comparative assessment of cost assumptions for the ECO4 scheme and those set out in the Great British insulation scheme consultation has also been talked about. We are monitoring ECO4 delivery against the current cost assumptions, and we will consider changes if necessary. Changing the cost assumptions may require a change to the overall energy bill reduction target, to the estimated funding, to policy details of the scheme, or a combination of all three. Such changes will require public consultation and regulatory change.

There are many more areas that I could discuss, but I will end by thanking the hon. Member for Ceredigion again for securing this important debate. I look forward to continuing to engage with him and all ECO stakeholders to ensure that the schemes continue to help fuel-poor households, support jobs and deliver value for consumers.