(1 week ago)
Commons ChamberThank you, Mr Speaker.
“In the face of further geopolitical turmoil, now is the time to alter our approach to energy… Drilling in the North Sea and scrapping carbon taxes on British manufacturing would kickstart economic growth, tackle unemployment…as well as prevent further deindustrialisation.”
Does the Secretary of State agree with those comments from the Labour Member of Parliament, the hon. Member for Mid and South Pembrokeshire (Henry Tufnell)?
This party and this Government are taking a pragmatic approach to these issues. We are using existing oil and gas fields for their lifetime, including with tiebacks, which is welcomed by industry, but we are not going to fly in the face of the evidence. The answer to a fossil fuels crisis is not to double down on fossil fuels, but to double down on clean home-grown power that we control. The Conservatives used to believe that, before they jumped on another bandwagon.
This is extraordinary—mad, even. No other country on Earth would deprive itself of the vast natural resource we are lucky enough to have at our disposal underneath the North sea. The Jackdaw field alone could provide 250 million barrels of oil equivalent in natural gas to the UK, and it could be up and running by Christmas, but because of the Secretary of State it is stuck in limbo. It is utter insanity. His inaction is an act of national economic self-harm. When will he make a decision and act in the national interest?
Before the hon. Gentleman self-combusts, let me tell him that, as a result of the court decision, those projects are proceeding at risk. I will tell him the way we will make a decision. I am not going to comment on a live planning issue, but I will say in general that we will make a decision that is legally watertight. The last Government made a series of decisions that were found—[Interruption.] Conservative Members say “No, no”, but they do not care about the rule of law. We saw that when they said that we should rush headlong into a war with no regard for the impacts on our constituents.
(1 week ago)
Commons ChamberThere is some confusion about current SNP policy on oil and gas. Is it, or is it not, still SNP policy to be against new oil and gas in the North sea?
Graham Leadbitter
Current SNP policy on oil and gas is that there should be a proper assessment of each individual application. That is the normal licensing process. I would think most Members of the House would recognise that if a process is put in place, it should be applied rigorously and consistently.
Let me start by agreeing with fellow Aberdonian the right hon. Member for Oxford East (Anneliese Dodds) in paying tribute to all the energy workers, who, over decades, have worked in incredibly dangerous conditions. Some gave their lives to ensuring that the lights stayed on and industry continued to function in this country. Many of them came from my constituency.
I also pay tribute to the hon. Member for Stoke-on-Trent Central (Gareth Snell) for his outstanding contribution. He brought to the House’s attention the dependence of so many industries in this country to gas, and the de-industrialisation that we are seeing across so many aspects of our industry right now.
With war raging in the middle east and in Europe, Labour is a party being held captive by extremists who refuse to act in our national interest, who are content to see jobs lost in their thousands and who will not take advantage of our greatest asset lying untapped and unexplored under our own waters.
Laurence Turner
The hon. Member talks of the national interest, but does he agree that it was disgraceful that Gazprom was allowed to acquire an interest in the North sea in the years after 2011, without a word of protest from his party when it was in government?
We welcomed investment from around the world, but, obviously, we divested ourselves of any Russian investment in the North sea as soon as we could after Putin’s actions in Ukraine, as I am sure the hon. Member would have expected us to do as a responsible Government. On days like this we have to wonder whose side this Government are on, because unlike the Conservative Government, who acted in the national interest, they are not on the side of Britain or of the British people.
We have witnessed for four years now how Putin’s armies have weaponised energy not only to starve the people of Ukraine, but to weaken our continent. The Energy Secretary, if he were here, would tell us that that proves why we should double down on his plans to ditch oil and gas, except even under his ridiculously ambitious and unrealistic plans, Great Britain would still need gas to meet around 50% of its energy demand. The National Energy System Operator has highlighted that gas will be the UK’s energy of last resort for the next 10 to 20 years, and that we will require a diverse and resilient supply.
But Labour MPs—the enablers of this absurdity—would rather see us reliant on others for gas, such as Qatar or Norway, than on our own British industry. They would rather we get gas from other countries at a higher cost and with 15 times the emissions of our own supply, leaving us more exposed to price spikes.
To be absolutely clear, 100% of all British North sea gas goes directly into the British gas grid. I do wonder if Labour Members understand this, so let me explain: by choosing to use less from British waters, we have to import more and we become more insecure as a country. The real human tragedy at the centre of this blatant disregard for our national interest is playing out on rigs, in offices and in homes across the north-east of Scotland right now, and it is happening thanks to the Labour party, enabled by the Liberal Democrats.
While we are talking about the Liberal Democrats, we heard today from their spokeswoman, the hon. Member for South Cambridgeshire (Pippa Heylings), that they do not support any new oil and gas licences. I think she might want to explain that to their candidate for the upcoming parliamentary election in Shetland, who warned of the impact if the Clair oilfield was not expanded, or their candidate for North East Scotland who said:
“We are going to need oil and gas for the foreseeable future and it is better to support production here than rely on imports of LNG from abroad which are more polluting.”
Which is it? What is the Liberal Democrats’ plan, and why do they always say one thing in this place and another thing everywhere else? Once again, we cannot trust a word that the Liberal Democrats say, but they are enabling the Labour party and choosing to see 1,000 jobs lost in the North sea every single month.
Tom Hayes (Bournemouth East) (Lab)
I thank the hon. Member for giving way. I am a fan of his work, but I do have to ask this question. The Conservatives and Reform would have joined the American-led war of choice without any questioning of the reasons for it, and the Conservatives and Reform want to leave the UK reliant on fossil fuels and overly exposed to energy price shocks. Can he please tell me what the difference is between the Conservatives and Reform?
I am equally a fan of the hon. Member’s work, but I would like to make this very clear: it is not that we would have joined the war ongoing in the middle east; it is that we would not have left British bases and British assets undefended in the way that this Government shamefully did by removing assets from the region when we knew very well what was coming round the corner.
One thousand high-skilled, high-paid jobs are being lost every single month, and this is personal. I have the immense privilege of living in and representing the north-east of Scotland. To me, these jobs are not figures on a spreadsheet, as they are to Labour MPs. They are my constituents, neighbours, friends and family. The callousness and disregard with which the Labour party is treating that region and these people at the minute will not be forgotten.
The Labour party refuses to acknowledge it, but it is real and it is happening—and at frightening speed. People are, right now, having to make a terrible choice: either they hang around in the north-east of Scotland awaiting the long-promised yet never-delivered renewable jobs boom, which always seems to be just around the corner and which pays far less, or they leave their homes, communities and families and move overseas. Many, indeed most, are choosing the latter. They are leaving the country altogether, taking their families and, crucially, their skills out of the United Kingdom to countries that have Governments who are awake to the reality and who support their domestic oil and gas industries—to places like Houston, Riyadh, Calgary or Stavanger.
In Stavanger they are drilling right now in the very same sea that we could be drilling in, only to sell it back to us. It is utterly perverse. Workers in Aberdeen are going to any country with an oil and gas industry in which the eco-extremism that the Secretary of State is so enthralled by is not found in government. That, by the way, is every other country in the world where there is a domestic oil and gas industry.
It used to be said that in every country in the world where there is oil and gas, you can find an Aberdonian accent. It turns out that soon, the only place where you will not be able to find an Aberdonian oil worker is, in fact, Aberdeen. There has been a steady beat of job losses every single month since Labour entered government—from BP, Hunting, Harbour Energy, Chevron, Well-Safe, Petrofac, and Ithaca Energy.
Labour MPs talk about what we did in government, but during the 2014-15 energy price shock, when jobs were sadly lost in the north-east of Scotland, we commissioned Ian Wood to produce a review into the future of the North sea. We implemented a policy of maximum economic recovery from the North sea. We reduced taxes on our domestic oil and gas industry, and we stabilised the workforce in our last six years. During our time in government, we made the North sea the most investable basin in the world. What are the Labour Government doing? The exact opposite. They are seeing job losses and investment turn away. They are surrendering this country to the whims of dictators overseas.
I could go on about the job losses. All the companies I mentioned have had operations in this country for many years, and when they are not cutting jobs they are consolidating their operations. I therefore welcome the recent intervention from the hon. Member for Mid and South Pembrokeshire (Henry Tufnell) in calling for an end to the Government’s war on the North sea. We can add his name to the ever growing list of people and organisations calling on the Government to change course: the GMB, Unite, Tony Blair, Octopus’s Greg Jackson, Great British Energy’s own Juergen Maier, who was appointed by the Secretary of State, and RenewableUK. Why are all those people wrong and only the Secretary of State right?
I will not because of time.
Notably, that list does not include one Scottish Labour MP. Indeed, some Scottish Labour MPs are actively campaigning to stop any production at all, with two of their number signing a letter asking the Secretary of State to block the Rosebank oilfield. For a moment, let us entertain the idea that clean power 2030 is not ridiculous and utterly undeliverable. Who does the Minister think will deliver it? The people with the skills needed for floating offshore wind are leaving in their thousands, and the assets to deploy those new technologies are moving overseas. Who does the Minister think will invest in the transition?
The Port of Aberdeen has recently invested in a new harbour to accommodate the long-promised boom in floating offshore wind, but there are no new turbines going out to sea today, the quayside has no blades waiting and the port is laying off staff because 60% of its revenue still comes from oil and gas; only 1% comes from renewables.
We could change course. I hope that Labour Members who represent Scottish constituents have paid close attention, and I hope they have thought about whose side they are on. Labour MPs have an opportunity to join us in the voting Lobby and demonstrate clearly whose side they are on. Are they on the side of British workers, our industry, our security and our economic success, or are they on the side of an increasingly isolated Secretary of State?
The Government could decide to vote to end the ban on new licences and unlock the 2.9 billion barrels of opportunity that lie below the sea. They could vote to scrap the energy profits levy and vote to approve the Rosebank and Jackdaw fields immediately, but it is clear that they will not. As ever, there is only one party with a plan to get Britain drilling again, to make Britain secure, to cut bills and to deliver a stronger economy and a stronger country. That is, and always will be, the Conservative and Unionist party.
(1 week, 6 days ago)
General CommitteesIt is a pleasure to serve under your chairmanship, Mr Dowd. The regulations set out provisions for the continuation of the warm home discount scheme—fine. Last winter, 10 million British pensioners lost out on their winter fuel allowance as a direct result of decisions taken by this Labour Government. The only reason that number is not higher is that, as is now customary for this Government, they U-turned. The Government did so after pressure from the Conservative party and the general public, who made it clear in no uncertain terms that they were furious with the original decision to strip the payment from millions more. However, that U-turn came too late for many as over winter 2024-25 many pensioners were forced to choose between heating and eating. The original decision was not only unnecessary but not mentioned once by the Labour party during the general election campaign—and Labour Members have the gall to say that they worry about the cost of heating.
However, let us not forget the promise that was made during the general election—to reduce household energy bills by £300 per year. As it stands, those bills are £73 higher than when the Secretary of State took office after that election. The Labour party and the Government were warned multiple times by industry, academia, trade unions and us that the course they were charting would deliver not cheaper but dearer energy bills for British families and businesses. Energy generation in Great Britain is already some of the cleanest but, crucially, it is also the most expensive in the western world. The problem is that instead of taking unnecessary cost out of the system and making electricity cheap at source, the Government continue to pile cost after cost on to people’s bills, largely to pay for the Secretary of State’s net zero targets and his drive towards clean power 2030. Then they raise tax on everyone to cover the cost. That is exactly what the regulations do. The warm home discount is not paid for by energy suppliers or with free money; it is paid by everyone—all our constituents—through an extra tax on their energy bills.
Rather than cutting bills for everyone, as our cheap power plan would do, the Government are raising bills for everyone through higher taxes only to give a small proportion of households on benefits a discount. Our cheap power plan would cut everyone’s electricity bills by 20% immediately. We will not seek to divide the Committee, and will not stand in the way of the regulations moving forward, but we believe that the Government must take the steps necessary to meaningfully bring bills down, and not push them up further.
Lewis Cocking (Broxbourne) (Con)
If the Minister issued new oil and gas licences for the North sea we could produce more of our oil and gas here at home. That would mitigate some of the problems that he has just raised about being over-reliant on oil states.
(2 weeks, 1 day ago)
Commons ChamberI thank the Minister for giving me advance sight of the statement, although I really have to take issue with the Prime Minister’s earlier comments, taking credit for Ofgem’s decision to lower the energy price cap. That decision was taken not by the Government, but by Ofgem using a Conservative mechanism, and it was in fact taken weeks before the current crisis began. But why let the facts get in the way of this Government’s spin?
I am glad to see that the Government have today taken steps to support those households across Great Britain and Northern Ireland that rely on heating oil—steps that those of us on this side of the House called for when prices began to rise weeks ago. Those households are, as the Minister has highlighted, acutely exposed to price shocks, and the stories we have heard from consumers across the country are very concerning indeed. Just this morning, I heard from a constituent who faces a lump sum bill of over £1,000. These consumers are often served by a single local supplier, meaning that there is no realistic competition.
Let us be under no illusions: this announcement has come about only after the pressure put on the Government by the Opposition. The Leader of the Opposition and my right hon. Friend the Member for East Surrey (Claire Coutinho) called for these actions almost two weeks ago. Like everything with this Government, they end up doing the right thing only after weeks of dither, delay and inaction—but today’s announcement will be welcome news for rural households, and nowhere is that more apparent than in Northern Ireland, where over 60% of homes rely on oil for heat.
Although I welcome the announcement, I would be grateful if the Minister could provide some clarification. First, can he explain what, if any, support will be made available to those who heat their homes with liquid petroleum gas? Furthermore, it appears that the allocation of funding for Scotland, Wales and Northern Ireland is to go directly to the devolved Administrations and not directly to local authorities. Considering that the Minister represents a Scottish constituency, he understands just as well as I that handing over a cheque to the Scottish Government does not guarantee that money will be spent where it was intended to be spent. Can he therefore outline how this Government will ensure that those in Scotland, Wales and Northern Ireland get the support they need, and that this funding is not siphoned off for other priorities determined by devolved Ministers? Why was this money not awarded directly to local authorities in those nations as it is being delivered across England?
It is also my understanding that this funding is inclusive of Barnett consequentials. Could the Minister confirm whether that is the case? If it is, will he confirm that Scotland is being short-changed due to the higher proportion of households on heating oil than the Barnett formula would account for?
The Government could go further and heed our calls to deliver a 20% cut to everyone’s energy bills—and I mean everyone’s—through the Conservative’s cheap power plan by axing the carbon tax and the rip-off wind subsidies now. That cut would be worth around £165 to the average family. The Government should also bring about another one of their famed U-turns and cancel their planned fuel duty rise later this year—a rise that will add £156 to struggling families’ bills, because Labour’s plans always lead to more costs for families and businesses.
Let us take today’s announcement as an example. We cannot ignore that this support will be funded through Labour’s tax rises on working people. Why? Because this Government have made a choice—a political choice—to shut down the North sea and forgo £25 billion of tax receipts that an attractive, investable and successful North sea oil and gas industry would, and still could, provide. Backing the UK’s oil and gas industry is about driving the economic growth that we so desperately need, which in turn would deliver greater tax receipts than the current regime. It is about becoming more energy secure. One hundred per cent of all the gas produced in the British North sea is used in the British gas grid. The less we use from British waters, the more we have to import—at a higher cost and with a bigger carbon footprint—from Qatar, the USA and Norway, which continue to explore in the same sea in which we are prevented from exploring.
Backing the UK’s oil and gas industry would support a vitally important skilled workforce—a workforce that right now is packing up and going overseas. What will it take for this Government to change course—revenue, investment, job security? What is it that this Government do not get? Just today, the CEO of RenewableUK joined the chorus of voices calling for an overhaul of this disastrous act of economic self-harm being inflicted by this Labour Government. We read in The Times at the weekend that we are currently led by the “least intellectually curious” Prime Minister of all time, so it is no surprise that the Secretary of State has been given free rein to inflict his myopic vision of a future—[Interruption.] Those are not my words; they are the words of people in the Cabinet today! Surely at this time of such global instability, the case for a thriving oil and gas industry is clearer than ever.
We welcome the action announced today on heating oil, but there are serious questions—not just from me but from the industry, the renewables sector, the trade unions, and, frankly, everyone other than those sitting on the Labour Benches—over wider Government energy policy that need to be answered, and answered soon.
Martin McCluskey
Dear, oh dear! Where to begin? I will do my best to wade through the many points that hon. Gentleman raised.
First, the energy price cap is reducing on 1 April because of actions that this Government took to take £150 out of energy costs. That will see every bill in this country reduced. People listening should hear that their bill will go down in April, and that is protected to the end of June. The hon. Gentleman appears to be criticising us for a lack of speed. If he would like to volunteer how many days it took for the last Conservative Government to provide support for people on heating oil, I am all ears. How long did it take his party in government? It took them nearly 200 days. We are around three weeks into this conflict in the middle east, and we have come forward with support today.
LPG will be eligible in so far as the English schemes that we have funded additionally today through these actions, and we are making that clear to local authorities in a letter that has been sent from Ministry of Housing, Communities and Local Government Ministers today. It will be for the devolved Administrations—Wales, Scotland and Northern Ireland—to determine how they distribute the funds. I hope that they will work at the same speed as this Government to ensure that they are available on 1 April, but all nations already have crisis funds available that they could be deploying for this purpose, just as we will be deploying them for this purpose in England from today; if there are people in crisis now applying to the existing household support fund, they will be eligible for support from today, and the additional funding will come after 1 April.
The hon. Gentleman talked about the funds being Barnettised, but the funds are not being Barnettised; Scotland is not being, in his words, short-changed. The funds are being allocated based on census data on how many heating oil-fuelled households there are in each individual nation. That is why Northern Ireland comes out with £17 million, Scotland with £4.6 million and Wales with less. It is not a Barnett share; it is based on the number of households that use heating oil.
Finally, I do wish that the hon. Gentleman would stop coming to this Chamber and talking down the UK’s oil and gas sector. [Interruption.] No, I do wish that he would stop talking it down. He has implied from his Dispatch Box that the taps are being turned off in the North sea; they are not. The North sea is working today at full capacity and has been for some time. On Thursday, I was in Aberdeen, speaking to workers in that sector and to workers in floating offshore wind, who will benefit from our decision to invest in clean energy. If we take our eyes off the opportunities that will be available in future, it is a road to ruin. The hon. Gentleman will also know that more extraction from the North sea will not reduce the price of energy. We are a price taker, not a price maker. That is not our road to cheaper energy for households.
(1 month, 3 weeks ago)
Commons ChamberIt is unusual—indeed, unheard of, in recent months anyway—for the Secretary of State and I to agree on anything on energy policy, but it is probably not the first time this week that he secretly agrees with a Scottish politician. I know he agrees that new nuclear, particularly SMRs, offer huge potential for the UK and for Scotland. This week, Trade Unionists for Safe Nuclear Energy launched a petition addressed to the First Minister of Scotland, calling on him to lift the ban on new nuclear development in Scotland. Can that group expect the Department’s support?
The hon. Gentleman is right about this. Let me put it this way: given the scale of the climate change challenge, only those who are dug in dogmatically can oppose new nuclear. Given the scale of the challenge we face, we need all the tools at our disposal. It provides good jobs and energy security, so it is only for dogmatic reasons that the SNP Government oppose it. There is one difference between him and me, and that is that he promised SMRs, but we are delivering them.
The difference is that this Secretary of State’s ambition for nuclear pales in comparison with our ambition when we were in government.
When I served as the Minister for nuclear, it was a source of the greatest frustration that, despite the many countless—indeed, huge—strides we took to kick-start the new nuclear age in the UK, none of the investment or the jobs would be seen north of the border. The Scottish National party is most at home refighting the battles of the past—they tend to be the battles of the 14th century—but in this age of nuclear revolution across the world, the aversion to nuclear is inexplicable. It is a luddite approach. The SNP is anti-science, anti-progress and anti-jobs. There can and should be a future for nuclear in Scotland. Does the Secretary State not agree that this is the time for the SNP Government to drag themselves into, and to move Scotland into, the 20th century—let alone the 21st century—change course and lift this ridiculous ban?
(2 months, 1 week ago)
Commons ChamberI thank the Secretary of State for the advance copy of his statement.
Today’s announcement is long overdue—overdue by an entire year, to be exact. During the general election, the Labour party claimed that it would cut household bills. This announcement should be part of that, but in that time, since the general election and on this Secretary of State’s watch, energy bills have not fallen; they have gone in the opposite direction. Energy bills are up by £200 since the election, partly as a result of the Secretary of State’s own political choices.
We believe that there is a greater role in our energy system for home batteries, we support a more technology-agnostic approach to air-to-air heat pumps, and, of course, we believe that rooftop solar is much better than carpeting the countryside in huge solar farms, but the Secretary of State is ignoring the core problem. We are in an electricity price crisis of his own making. Even if we are as charitable as possible and accept that the Government will reach the 5 million households who they say will benefit from this plan, it will do nothing to cut bills for 83% of the country. However, all those households will pay much higher taxes because of Labour’s Budget, including taxes to fund the Secretary of State’s £15 billion plan, and they are struggling with their energy bills now because of the choices of the Secretary of State.
Let me now turn to the specific measures in the plan. The Department’s own figures show that the public are becoming more sceptical about heat pumps. Between winter 2024 and spring 2025, the proportion of people saying that they were unlikely to install an air source heat pump increased from 38% to 45%, and if you ask anyone why they do not want a heat pump, they will say it is because of the high up-front costs. [Interruption.] Yes, they will—but it is also because of the high ongoing running costs, which often make heat pumps more expensive to run than gas boilers.
There is a serious risk that the Government’s legally binding targets are forcing them to push people into buying heat pumps, but all those families will be locked into sky-high running costs, because the Government have a political target that is pushing up electricity bills at the same time. This plan does nothing to address those high ongoing running costs. Indeed, last week the Government announced that they were locking the country into higher energy prices for decades through their botched wind auction. Just imagine that there was a plan on the table to cut the cost of running a heat pump by 20% instantly: a cheap power plan that would not involve raising taxes on working people to fund handouts; a plan that would axe the carbon tax, and scrap the Secretary of State’s rip-off wind subsidies to cut bills for every family in the country. Would that not be a far better approach to making make heat pumps much more attractive?
What steps will the Department take to ensure that low-interest loans will provide good value for money? How many homes will benefit from the low-interest and zero-interest loans scheme, and how will it be determined who gets a low-interest loan or a zero-interest loan?
As for the changes to the minimum energy efficiency standards for rented homes, the Secretary of State will know that the previous Government did more than any other to improve energy efficiency standards, with half of all homes having an energy performance certificate rating of C or above when we left office, compared to 14% when the Secretary of State left office in 2010. Has his Department carried out any impact assessment of what the 2030 deadline will cost landlords, and how much of the cost will be passed on to renters? His own Government’s data shows that it will cost more than £12,000 to upgrade a home from EPC E to C—£12,000 that will then be passed on to families in increased rents. We cannot ignore all the costs that this Government are imposing on the housing sector, and the impact that they will have on the cost of living for families.
The Government are going to set up a new quango, the warm homes agency, to administer these schemes. Can the Secretary of State tell us how much this quango will cost the taxpayer, how it will be held accountable, and why he decided to spend money on setting up a new quango rather than those functions being delivered by his own Department, which he controls?
The Secretary of State has already been forced, by this House, to ban Great British Energy from spending taxpayers’ money on solar panels when there is evidence of forced labour in the supply chain, and of course we welcome that, but can he assure the House that he will apply that same ban on slave labour to solar panel installations funded by the warm homes plan? When will he publish details of how that mechanism will work, so that it can be scrutinised by the House?
The Government are ignoring the fact that the affordability crisis that the Secretary State talks about is a crisis of his own making. They are ignoring the fact that they are locking the country into paying higher bills for far longer. If they truly want to encourage people to adopt green technology, like heat pumps or electric vehicles, they need to make electricity cheap. They could adopt the Conservatives’ cheap power plan to cut everyone’s electricity bills by 20% and scrap the reckless clean power 2030 target, which is locking everyone into paying higher bills for far longer.
It is always a pleasure to be opposite the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). Let me make a few points to him, in the gentlest way I can. Let me deal first with his point about the cost of electricity. In her Budget, the Chancellor did more in one decision—namely, to transfer 75% of the renewables obligation to public spending to cut electricity costs—than the last Government did in 14 years in power.
The hon. Gentleman is shouting about bills. Let me tell him that the average bill in 2025 was lower in real terms than in 2024, and so was the price cap, as he will know from the figures. I am incredibly proud that this Government, unlike the last Government, are taking £150 of costs off bills thanks to the Chancellor’s decision, funded by taxes on the wealthy—and the Conservatives oppose all those tax measures.
The hon. Gentleman talked about renters. I think that, basically, what I heard—and perhaps it should not surprise me—was that he is actually against the higher standards for renters. He would leave private renters languishing in cold, damp homes, which is what the Conservatives did during their 14 years in power. We are proud of the decision that we are making. Thanks to the brilliant work of the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), we actually have a supportive quote from the landlords. Even the landlords want more action than the Conservative party when it comes to the renters! To amuse the House briefly, I will read out that quote. Ben Beadle, chief executive of the National Residential Landlords Association, said:
“a clear roadmap for the reform of PRS MEES is welcome.”
Even the landlords are more on the side of renters than the Conservative party.
The hon. Gentleman asked why we were setting up the warm homes agency. I will tell him why. He said, “Wouldn’t it be better to do this within Government?” The Conservatives presided over a scandalous and shocking disaster in the ECO scheme, a mess that we are having to clear up. We are going to reform the system so that we have a proper agency with proper technical expertise to ensure that nothing like what they visited on thousands of families across the country ever happens again.
I like the hon. Gentleman, and I feel a bit of sympathy for him because he has nothing to say about this issue. Let us just be honest about this: the Conservatives failed over 14 years, and we are delivering.
(3 months, 4 weeks ago)
General CommitteesIt is a genuine pleasure to serve under your chairmanship for the first time, Sir Alec. Congratulations on your appointment to the Panel of Chairs.
This statutory instrument amends The Heat Networks (Market Framework) (Great Britain) Regulations, building on the commitments made in part 8 of the Energy Act 2023—what an Act that was. Heat networks are largely unregulated, leaving consumers vulnerable to expensive heat network contracts with little to no control, since the decentralised heat and water networks are not governed by the same regulation as other utilities. The remaining components of those regulations come into force in January 2026, and along with the Energy Act 2023—with which I am incredibly familiar, having spent hours, weeks and months of my life as the Bill Minister for that legislation—they create the foundation of a regulatory framework.
The statutory instrument establishes a special administration regime for protected heat network companies, designed to maintain essential heating services to ensure continuity of service if a heat network operator becomes insolvent. It mirrors similar arrangements in other regulated sectors, such as electricity and gas. As the Minister said, the statutory instrument also gives Ofgem the powers to investigate disproportionate pricing on heat networks. What guarantee can the Minister give that that will adequately protect the 500,000 homes across the country, including some in my own constituency, that have very little power over the price they pay to be connected to a specific heat network?
The lack of regulation for heat networks has created challenges for consumers. The Energy Act addressed that by introducing a comprehensive regulatory framework for heat networks. Under that Act, Ofgem will become the statutory regulator for heat networks from January 2026. The Act also provided for the appointment of consumer advocacy bodies and ombudsman services, which began earlier this year, and it sets out a staged implementation timeline. From 27 January 2026, the full authorisation regime and special administration permissions will come into effect, marking a significant step towards a regulated market—something that we very much welcome.
Although the statutory instrument is a necessary step towards the regulation of heat networks as set out in the Energy Act, I take this opportunity to reiterate the genuinely desperate situations some of our constituents find themselves in as a result of unregulated decentralised heating, paying extortionate fees with no way out. There have been well-documented cases of consumers facing high cost and limited options under existing arrangements.
With the new framework live at the end of January, it is essential that Ofgem and the Government are fully prepared to deliver effective protections for consumers. I would be grateful if the Minister confirmed what steps are being taken to ensure that the special administration regime will effectively protect consumers, and that the amendments introduced by this statutory instrument are sufficient to ensure fairness. We do not, of course, intend to oppose the regulations, but I emphasise the need for robust implementation to ensure that heat network consumers receive the protections promised under the Energy Act.
(3 months, 4 weeks ago)
Commons ChamberI will in a moment.
On the one hand, 60% of these people are working—and the Conservatives do not really want to explain why they want to cut help for those people. But let us discuss the 40% of households that are not working and will be impacted. What we are seeing here—I am old enough to remember—is a re-run of the last Tory Government and their attempt to blame the poor for their poverty. Leaving that aside, however, what the Conservatives are actually saying is, in truth, that they believe in punishing the children of people who are out of work and on benefits—
The hon. Gentleman says from a sedentary position that that is absurd, but it is not. The Conservatives believe in punishing children—
I will in a moment—let me develop my argument.
The Conservatives say that this was their idea in the first place, but there is a crucial difference: they proposed abolishing the renewables obligation—
But they had with no way of paying for it. “Yes”, says the hon. Gentleman. This is quite extraordinary—all the sins of opposition combined into one. The Conservatives had 14 years to do it, but they never did, and suddenly it is such a great idea to just abolish the renewables obligation.
“Yes”, says the hon. Gentleman—although, of course, he was an Energy Minister and he never did it. [Interruption.] He looks a bit sheepish now, doesn’t he? That is rare for him. Basically, I think the Conservatives’ argument is that they would just rip up all the contracts that the Government have signed—including lots of contracts that the Conservatives themselves signed—sending a message to every investor in Britain that the British Government will not honour the contracts that they sign. If it had been a remotely serious policy, they would have carried it out when in government, but it was not a remotely serious policy, because they are not a remotely serious party; that is the truth. In fact, it is all more Liz Truss. They will the ends; they want the cut in energy bills, which is good, but they do not have the foggiest idea of how to pay for it. Taken together, the choices made in the Budget, including on energy, will make life more affordable for people, and will begin to tackle the problems that I have outlined.
(4 months, 2 weeks ago)
Commons ChamberTwo Labour promises gone in one day—that must be a record, even for this failing Government. We heard today confirmation that there is no way that the Government are going to cut energy bills by £300 by 2030. This is a party that campaigned on the pledge of cutting bills by £300, yet we have seen families’ bills go up. The party consistently blamed volatile gas prices, until the gas price fell; now it must confront the reality that its extortionate auction rounds, race to Clean Power 2030 and strangulation of our North sea industry are impacting households up and down the country. This Government have no plan to cut energy bills for the British people.
In comparison, our cheap power plan, as set out by my right hon. Friend the Member for East Surrey (Claire Coutinho), would cut families’ bills by 20% immediately. Our cheap power plan would take £165 off the average electricity bill by axing the carbon tax on electricity generation, stopping the Secretary of State’s rip-off auctions and scrapping ridiculously expensive old renewable subsidies.
Andrew Lewin (Welwyn Hatfield) (Lab)
I apologise, Madam Deputy Speaker. I do not normally read in the Chamber—I do not think it is good form—but in this case I will. This is available on the shadow Minister’s website. He says:
“I am also proud of the UK’s world-leading role in tackling climate change…with the UK being the first country to introduce legally binding long-term emissions targets under the landmark Climate Change Act in 2008.”
He now wants to scrap that Act, does he not?
Yes, I do want to scrap that Act. We will scrap that Act because the cost to the British people is far too high and it is unsustainable. That is why we want to bolster domestic energy security by backing British oil and gas, supporting workers and reducing reliance on imports, which have soared as a direct result of this Government’s policies.
I will not because time is limited, and I want to give the Minister time to respond—oh fine, go on!
Tom Hayes
I thank the hon. Member for giving way. On that same website, he talks about the deep emissions cuts that result from the Climate Change Act’s emissions targets. Does he agree with the website that were it not for the Climate Change Act, those emission reductions would not have happened?
I did not know that my website was such a go-to place for Labour MPs. I recommend they read some of the other things on that website, including the setting out of how our cheap power plan will reduce bills.
I have not had time to go on my hon. Friend’s website, but I hear it is a good read. The fact of the matter is that he puts forward a policy that will cut energy bills—the opposite of what the Government are doing—create jobs in the North sea and ensure economic growth. Is that not the case?
Yes, and I recommend he looks at my website because everybody else in the Chamber seems to have done so by now.
I am interested in hearing what he has to say about cutting bills. Does he not recognise that the cost of letting climate change go on unmitigated is a vast one for every household in this country?
I remind the hon. Lady that, as she well knows, we cut our carbon emissions faster than any other developed nation on Earth and yet global warming is increasing. We need to encourage other countries to reduce their emissions, but we do not do that on the backs of British bill payers, who pay far too much for their energy. I thought the Liberal Democrats would be supportive of creating jobs and reducing bills and the burden on British people, but obviously they are not.
The Government’s policies have seen imports soar as a direct result. Those policies have been described as “naive” by the GMB; “incorrect” by the American ambassador; they will make Britain increasingly dependent, according to the Norwegian Government; they need replaced, says Scottish Renewables; and they lead to a “haemorrhaging” of energy jobs, according to none other than the head of Great British Energy, Juergen Maier. In fact, the only person who seems to think that this is a good way to manage our energy industry is the Energy Secretary.
This Government are sacrificing an industry and livelihoods, communities and prosperity on this mission, many of them in my constituency. The irony is not lost in the north-east of Scotland. We import more gas from abroad, from the very same sea that we are prevented from exploiting ourselves, and at a higher carbon footprint, while workers in Aberdeen and across the north-east of Scotland and the domestic supply chain across the United Kingdom see their jobs disappear. Aberdonians are incredibly proud of the fact that an Aberdonian accent can be found in every oil-rich nation on earth. Soon, the only place we will not find a Scottish oil and gas worker is in Aberdeen itself. One thousand jobs are set to be lost every month as a direct result of the policies of this Labour Government, because those people are leaving. They are off to the middle east, Australia, the far east, South America, Mexico, the USA and Canada—in fact, they are off to anywhere the British Labour party is not in charge of energy policy.
This successful industry is enduring a politically manufactured decline, made in Whitehall and devastating livelihoods across the UK and particularly in Scotland. This Government are demonstrating a reckless disregard for the industry, which for decades has kept the lights on in this country; an industry that we will continue to need for decades to come.
The oil and gas industry has been through challenging waters before. The 2014-15 global downturn and oil price collapse saw a contraction in operations and job losses. Yet the response could not be more different. In 2015, the Conservative Government commissioned the Wood review and initiated a policy of maximum economic recovery from the North sea. We recognised the value of the domestic industry and acted accordingly.
Our oil and gas industry is facing tough times again, but this time the downturn is only in the UK. Globally, the energy industry is booming. In the UAE and Saudi Arabia, the gulf of America, South America and Norway, activity is increasing, and New Zealand has just overturned the ban on drilling brought in by its previous Labour Government. The difficulties experienced in our domestic industry are the result of political decisions driven by ideology over pragmatism.
I very much hope the Chancellor is listening to us on these Benches, and to the workers in the oil and gas industry, their unions, the businesses, the Americans, the Norwegians, the renewables industry and even Juergen Maier, because we are at a critical turning point. The industry stands on a precipice. The Chancellor must act now. If she does not act now, at this Budget, the UK will not have a domestic oil and gas industry left to salvage. The real irony is that the Secretary of State, in his vitriol and zealotry, is jeopardising the future of renewable energy in the North sea. As the Port of Aberdeen CEO said this week as he announced further job losses, our energy sector risks being “stranded” in limbo between the destruction of our oil and gas industry and a nascent renewables sector. Also this week, we saw Shell divest from offshore wind projects. The Government just do not get it. With their scorched earth strategy against our traditional offshore industries, they are decimating a skilled workforce and dismantling a world-leading supply chain. Talent and capital are moving elsewhere.
We need cheap energy, and that means all of the above: nuclear, gas, hydropower and innovative technologies, and renewables if it can be proven that they will cut bills. As this Labour Government rip the floor from beneath the oil and gas industry of today, they will soon realise that they are losing the workforce, the supply chains and the investment of tomorrow, but there is another way: our way. The Government should declare the North sea open for business, reduce our reliance on imports, get rid of the energy profits levy, build more nuclear—big and small—create energy abundance and cut electricity bills for families by 20% right now using our cheap power plan. They could do it but, blinded by ideology, I very much doubt they will.
(5 months, 2 weeks ago)
Commons ChamberMy hon. Friend is right, and I hope that the massive expansion to schools and hospitals that we have already ensured in 15 months is welcomed across the House.
They did not need GBE to do it.
The hon. Gentleman says that we did not need GB Energy to do that, but the Conservatives never did it—not in 14 years. It is precisely through a publicly owned energy company that we are doing this, to the benefit of citizens across our country. I agree with my hon. Friend the Member for Burton and Uttoxeter (Jacob Collier) that there is huge opportunity here, and we intend to expand the plan.
How many jobs have to be sacrificed on the altar of this Secretary of State’s vainglorious eco-zealotry before the Government acknowledge the utter destruction of the UK’s industrial base that is being wreaked by policies driven by an out-of-touch green lobby that has captured what is laughably still called the Department for Energy Security?
Chris McDonald
It is no wonder that there is so much laughter around the Chamber, because the policies of the previous Conservative Government saw industry decline. They were prepared to let industry decline because, fundamentally, they do not believe in industry, and now we find that they do not believe in climate science. We on this side of the House know that we can achieve decarbonisation in this country by winning investment from industry—investment that is coming in from all around the world. Our policies are giving industry the confidence to invest in creating jobs here in the UK.
On their watch, two oil refineries have closed in just one year, with Jim Ratcliffe warning of a million job losses to come. Thousands are being laid off in the North sea, as companies divest themselves of assets and investment dries up. Factories are closing and plants are shutting down. It is no wonder that the head of Unite the union is calling for the Secretary of State to be sacked. We know that the Prime Minister tried to do that but failed, so, short of that, will they instead consider our plans, which would save industry and jobs: scrapping the Climate Change Act 2008, scrapping the levies, scrapping the windfall tax and putting cheap energy first?
Chris McDonald
I would like to thank the Minister for reminding the House of the litany of errors that we had to pick up when we came into office. My portfolio is filled with companies that have struggled so much over the past 10 years, but those companies now find that they have a partner in Government who will work with them to attract the investment to build jobs in the UK. If the Opposition do not like those jobs, they can continue as they are.