Oral Answers to Questions

Huw Irranca-Davies Excerpts

Tuesday 5th November 2013 Commons Chamber

The Chancellor of the Exchequer was asked—

[Huw Irranca-Davies (Ogmore) (Lab)]

1. What assessment the Office for Budget Responsibility has made of the effects on the economy of recent changes in energy prices.

[The Economic Secretary to the Treasury (Nicky Morgan)]

The Office for Budget Responsibility has not published any assessment of the effects of the recent energy price increases on the economy. The OBR’s last published forecast, “Economic and fiscal outlook” was issued in March 2013, and an updated forecast will be provided alongside the autumn statement. The Government are committed to doing all we can to keep energy bills down to support hard-working families.

[Huw Irranca-Davies]

I welcome the hon. Lady to her post. Is she aware that last year wholesale energy prices rose by 1.7%, but energy bills by 9.1%? Is it not time that the Government stopped defending the big six energy companies and actually called for a freeze on prices while we reset the energy market?

[Nicky Morgan]

It is very interesting to hear what the hon. Gentleman says, but the first thing he needs to do is explain to his constituents why he voted for the decarbonisation target, which is going to add £125 to energy bills. Secondly, it was the last Labour Government who created the big six. We started off with 20; they left us with the big six. Thirdly, this Government have set out very clearly how they will help households—by reviewing green levies, by encouraging switching, which I am pleased to see the Leader of the Opposition has taken up, and by increasing competition.