Energy Update

Debate between Greg Hands and Naz Shah

Monday 5th September 2022 Commons Chamber

[Greg Hands]

I had a helpful and productive day in August, partly spent in my hon. Friend’s constituency, and he and I ran a session for industrial energy users with Andy Street, the brilliant Mayor of the West Midlands Combined Authority. It is important to recognise that many businesses in this country are not in classic energy-intensive industries and therefore do not qualify as such, but are nevertheless big users of energy. We need to ensure that support is available so that such businesses can get through this coming winter. That is exactly the opinion that I have reflected within Government as we move forward.

[Naz Shah (Bradford West) (Lab)]

According to Electric Radiators Direct, Bradford ranks highest in the country for the difference between average resident income and average yearly energy bill. Friends of the Earth claims that 52% of neighbourhoods in Bradford are among the worst affected across England and Wales.

Everybody in the country knows and we in this House know that the energy profits levy is in fact a windfall tax—a Labour idea. We have another suggestion for the Minister: freeze energy prices. The Government can name it what they want. We have the ideas, and we are handing them over. What is stopping the Minister freezing energy bills?

[Greg Hands]

I am not quite sure about Labour’s position. On the one hand, it says that we copied its windfall tax proposal, but it also says that what we have done is somehow inadequate. The energy profits levy is projected to raise twice what Labour’s proposal was ever projected to generate.

When it comes to Bradford, that is exactly why we are ensuring that the assistance is as targeted as possible and goes to the most vulnerable and in-need households. That is why we have offered the one-off payment of £650 to more than 8 million households on means-tested benefits, the cost of living payment to 8 million pensioner households, and the £150 disability cost of living payment to 6 million households. In addition, we have the £144 million discretionary local authority fund for distribution to those identified as being in need. A huge amount of Government action has already taken place, and more is to come.