Heating Oil Prices: Rural Areas

David Smith Excerpts

Wednesday 4th November 2026 Westminster Hall

[David Smith (North Northumberland) (Lab)]

I commend the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate.

As the first missiles went into Iran, bills doubled for the households in my constituency that use heating oil—there are about 5,000 of them. It was a terrible moment, and I am really pleased that the Government stepped in with the £53 million we have been talking about. In March this year, £5 million was given to the Conservative-run Northumberland county council for the crisis and resilience fund, which can be used for heating oil. The CRF can be used for heating homes, but it is very opaque; it is unclear how that money is being used and how much has gone the door. I have been asking, and I have not yet got a clear understanding.

I am pleased that Labour have provided further relief. They are providing £100 for energy bills for households in council tax bands A to D this winter. They are cutting the kerosene tariff—I will be chasing suppliers in my constituency to make sure they pass that on to consumers—boosting the boiler upgrade scheme, and so on. It is welcome that we are bringing in regulation to heating oil.

All the responses we have heard today follow an important principle: do not mess with the market when it is working, and do not let the market mess with people when it is not—that is where we have to step in. I ask my hon. Friend the Minister: what if higher heating oil prices are here to stay? What can we do in the medium to long term? I welcome the short-term measures we are taking.

Last year, I spoke to a development trust in Norham that wants to introduce a local grid in my constituency using renewables, solar and wind. Great British Energy, which I fully support, is supposed to support little communities like that. If we can circumvent this problem and get people off heating oil where possible, and if we can empower communities to have local grids, that is what we should be pursuing. Will the Minister say something about progress on that?

--- Later in debate ---

[Sir Ashley Fox (Bridgwater) (Con)]

It is a pleasure to serve under your chairmanship, Mrs Barker. I thank the hon. Member for Caithness, Sutherland and Easter Ross (Jamie Stone) for securing this important debate and for his thoughtful and eloquent speech. We have had a good debate this afternoon, which has highlighted the additional costs that fall upon our rural communities. I thank my hon. Friend the Member for Fylde (Mr Snowden) for his contribution, and I trust that he will not forget to top up his tank before Christmas. The hon. Member for South West Norfolk (Terry Jermy) highlighted the need for local councils to take a proactive approach to getting Government money out the door as quickly as possible. It seems that some councils are not doing that terribly effectively.

About 1.4 million households across the UK rely on heating oil, predominantly in rural areas, including many in my constituency. For those households, using heating oil is not a choice. Most are not connected to the mains gas network and have little practical alternative when it comes to heating their homes. They face particular challenges. They are exposed to unpredictable delivery costs and the burden of paying hundreds, sometimes thousands of pounds, up front to fill their oil tanks. Many are older and more vulnerable households, which simply cannot absorb sudden price shocks.

Recent international developments have demonstrated just how exposed those households have become. Disruption to oil supplies and shipping routes drove up household prices, with consequences quickly felt here in the UK. Households that had been paying £300 for 500 litres of heating oil suddenly faced quotes of between £600 and £1,000. For many families, that was simply unaffordable.

The Conservatives raised these concerns with the Government at the time and, after rather too much delay, some support was eventually provided through the crisis and resilience fund. While welcome, it addressed the consequences rather than the cause of the problem. That is why the Competition and Markets Authority’s investigation was so important. Following reports of cancelled orders, sudden price increases and demands for additional payments, the CMA identified significant concerns in the way that parts of the market were operating. The CMA intervened where suppliers may have breached contractual obligations by cancelling orders after prices surged, and secured compensation for affected customers. I welcome that intervention. However, investigations after the damage has already been done do not fix the issue.

I know that the Minister will refer to the Government’s intention to regulate the heating oil sector. I welcome the fact that action is finally being considered, but households deserve more than good intentions. Can the Minister tell us when the Government expect to implement the CMA’s recommendations and when consumers can expect to see tangible improvements? What timetable has been set for the Government’s work on price transparency and consumer choice, and when will Parliament be updated on the progress? Those questions matter because winter does not wait for reviews, assessments or consultations.

Some of the announcements in the Budget may have sounded impressive on the day, but for many households they will hardly be noticed. There may be £100 for certain households, but when some people’s energy bills are set to rise by more than £500, many will reasonably ask, “What was the point?” It is clear, however, that the Chancellor has at least noticed the Conservatives’ cheap power plan. Cutting VAT and scrapping carbon levies on energy bills—I find myself wondering where he might have got those ideas from. The broader problem is that the Government appear more interested in managing the consequences of high energy prices than in addressing their causes.

[David Smith]

On the hon. Member’s point about managing consequences, I welcome his positivity about the things that the Government are doing, but does he agree that it was a terrible idea for the last Government to abandon the UK’s gas storage in 2015?

[Sir Ashley Fox]

That is a complicated issue, because of course the cost of managing Rough would have meant a levy on gas bills, so it is not quite the easy solution that the hon. Member proposes. It is not as if gas storage automatically reduces all gas bills; in the long term, it may actually lead to higher costs for gas consumers. It is an important issue, but that is not the simple fix that the hon. Member claims.

The United Kingdom possesses significant oil and gas resources, world-class expertise and a highly skilled workforce, yet key decisions continue to be delayed. The decision on Jackdaw, for example, was delayed for months. I wonder why. Could it possibly have been an inconvenient by-election in Holborn and St Pancras? The future of Rosebank remains uncertain. Time and again, Ministers have chosen hesitation over action.

Good policy is not simply making an announcement; it is having a plan, delivering that plan and achieving results. That is the test by which households reliant on heating oil will judge this Government: are their energy bills lower? For millions of people, this debate is not about regulation or market design; it is about whether they can afford to keep their homes warm this winter. Rural families should not be disadvantaged simply because they live beyond the gas grid. Affordable energy should not depend on someone’s postcode, and far too often this Government forget our rural communities.

The Government talk repeatedly about managing expensive energy. That is not enough. People do not want expensive energy to be managed; they want energy to be made affordable. Let us therefore have clear deadlines, measurable commitments and action, not an obsession with process. If Ministers cannot tell households when they will feel the benefit of those reforms, all they are offering is more process and more delay. Families facing another winter of high costs cannot afford to wait. Those households need lower bills, warmer homes and a Government focused on making energy cheaper.

Jackdaw Gasfield

David Smith Excerpts

Wednesday 21st October 2026 Commons Chamber

[Michael Shanks]

I can give the hon. Member that assurance, but she does not need to wait on the new wealth fund; we have already committed funding to doing that. We published the North sea future plan, which charts a course for the future of the North sea, focused on not only oil and gas but the industries that come next and with the workers right at the centre of it. It is focused on how we provide the training support so that we can recognise the huge read-across from oil and gas skills into a lot of the other energy jobs and into defence and advanced manufacturing. We need to deploy those skills so that we can support workers the whole way through that process. We are already getting on with delivering it, and the North sea future jobs service should launch early next year.

[David Smith (North Northumberland) (Lab)]

I warmly welcome the statement, especially the word the Minister has used several times—pragmatism—and how that stands apart from the ideology we see, especially from the Green party. Does my hon. Friend agree that we cannot decarbonise our economy, make steps towards a fully renewable energy generation mix, or achieve energy security by relying on importing oil and gas from overseas, which is often more carbon intensive and which in some cases enriches authoritarian regimes such as Iran? Also, as the representative for North Northumberland where 14,000 households are off the gas grid, what more can his Department do to help heating oil and liquefied petroleum gas households to access less carbon-intensive products, such as hydrotreated vegetable oil?

[Michael Shanks]

Both are important questions. First, I recognise the point my hon. Friend makes around energy independence. We do require gas in the system at the moment, so this decision is partly around how we increase domestic production. But the long-term energy security and our energy independence do not come from oil and gas, which we will always be a net importer of at this point on, and so we have to build a way to get us off that fossil fuel rollercoaster in the future.

Secondly, my hon. Friend is absolutely right that off-gas-grid households have felt the significant impact of the war in the middle east as heating oil prices have skyrocketed. We very quickly put in place a fund to provide support for those households—much quicker than the previous Government did when Russia invaded Ukraine. I encourage all his constituents to ensure they have accessed that fund as people will be starting to refill tanks at this time of year, but we are also doing as much as we can to support, through the warm homes plan, the decarbonisation of those households who, of course, have access to the electricity grid and so can take advantage of solar panels, batteries and heat pumps, and we will say more about that in due course.

Solar Farms

David Smith Excerpts

Thursday 15th May 2025 Commons Chamber

[David Smith (North Northumberland) (Lab)]

I am proud that Britain has set ambitious targets for clean energy. We want 95% of our energy to come from low- carbon power sources by 2030. The Government are changing the planning system, as we have heard, so they can deliver the renewable energy of the future.

It is important that the benefits of that ambition are felt by us all, and I am keen to ensure that my constituency of North Northumberland is not overlooked in the new energy race. That means that our solar farms should be local, farmer friendly and effective so that they serve my constituents as well as the whole country. We have heard phrases such as “large-scale prime agricultural land” a lot. We just have to think through where the solar farms are going to be. It need not be an either/or, as seems to have been suggested here at times.

First, it is crucial that solar farms have local support and are rooted in communities. I know many in North Northumberland want renewable community energy that directly benefits them and their neighbourhood now. I have spoken to very small rural communities in my constituency that are well on their way in their attempts to get local solar farms. They want to sign up to the ambition of Great British Energy for the future.

We want to make sure that solar panels are a part of everyday life. In 2013 the Government estimated that there were a quarter of a million hectares of south-facing commercial roofs in the UK. We should make good use of those roofs to ensure that new build homes, for example, have solar panels for the benefit of their owners and their neighbourhood. That is entirely legitimate.

Secondly, solar farms must go hand in glove with farmers. In North Northumberland we have highly productive land that is outstanding for local farmers and for our national food security. It is therefore crucial that we use our scarce land for the best possible purpose. However, let us be clear to the Conservative party, which claims to be for farmers and the party of free choice and small businesses: it is for those farmers and landowners to decide whether they want to diversify.

Early research by Lancaster University suggests that sheep farming, sheep grazing and solar farms—actually called “agrovoltaics”—can go hand in hand. Solar farms could represent one strand of healthy diversification for many farm businesses, and I welcome that.

[Adrian Ramsay (Waveney Valley) (Green)]

I have been listening carefully to the hon. Gentleman’s points, including about the opportunities for agrivoltaics. I suspect that a lot of residents would be more open to solar farms if they were combined with food growing in the ways that he has described. Yet those are not the sorts of applications that I see coming forward in East Anglia. Will he ask the Government to be stronger in their planning policies to encourage and require solar farms that are combined with food growing?

[David Smith]

I was just about to say that I welcome the Government’s proposed new land use framework, which I think is key. The land use framework, which no Government have had before, will help landowners make sensible and effective decisions with their land. I trust that will include a strong focus on both food production and renewable energy.

Finally, and most importantly, solar farms must lead to lower bills. I am optimistic that as we ease the influence of foreign dictators off our energy supply and generate more of our own renewable energy, the British people will begin to see the benefit. Skilled jobs and lower bills will be the reward for the countries that win the clean energy race, and the best reward for investment in solar and wind power will be lower bills for my constituents in North Northumberland.

We have heard a lot of what I think is a false dichotomy here today, for instance from the right hon. Member for North East Cambridgeshire (Steve Barclay). Setting up that false dichotomy between food security and energy security is not the way forward. We must do both together. I want my constituents to be part of the national conversation as we move towards net zero. They are keen to see lower emissions, lower bills and local jobs, and that means ensuring that solar farms are local, farmer friendly and effective so that they serve the British people well.

[Madam Deputy Speaker]

Order. We will have a two-minute time limit from after the next speaker. I call Llinos Medi.