Cost of Heating Oil

Jim Shannon Excerpts

Wednesday 15th April 2026 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Dr Allin-Khan. Let me say a big thank you to the hon. Member for North Norfolk (Steff Aquarone) for his passion in seeking help for our constituents throughout the entire United Kingdom of Great Britain and Northern Ireland.

I want to speak about Northern Ireland in particular, and specifically the 68% of my constituents who do not have the luxury of turning on a gas boiler. They must instead watch the price of a drop of kerosene like a hawk—or like an Ulster Scot, as we are. On the Ards peninsula, where I live in Strangford, almost every household uses oil for heating.

While this House debates the energy price cap, we must remember that, in the vast majority of Northern Ireland, a cap is a myth. When the price of oil spikes, our people do not just see a higher bill at the end of the month; they see an empty tank and a cold home. They are at the mercy of a volatile global market, with no safety net. I do not want to be churlish, Minister—I never am—and I thank the Government for what they have done, but let us be honest: the £17 million package is a start, but it is a drop in the ocean.

A payment of £35 per household does not even fill a jerry can, let alone a tank to last a cold Ulster winter. We are part of the United Kingdom and need to be considered accordingly. The fact is that people should not be penalised simply because of our geography or our lack of a gas grid. No one is asking for a handout, but we are asking for a fair deal. There must be an increase in targeted support to reflect the actual cost of a 500-litre delivery.

I also believe that the Government need to review the winter fuel payment and restore the universal nature of that payment for our pensioners—that is my first ask. My second ask is that there needs to be infrastructure investment to fund long-term energy security, so that we are never this vulnerable again. Minister, on behalf of my constituents and others throughout the United Kingdom, the time for “monitoring the situation” is long over. The time for delivery is now.

--- Later in debate ---

[Martin McCluskey]

No one has said that this is the extent of all the support that will be on offer: I have been very clear about that, both in the Chamber and whenever I have been asked the question. The point of immediate support now was to provide people with relief from an immediate crisis. We have been very clear—the Chancellor was and the Secretary of State was—that it was never intended to provide discretionary support for every single heating oil user to fill up their tank. It was to provide immediate relief quickly from a pressing crisis that we were facing across the country. We are keeping everything under review. Were we in a situation later in the year where we need to look at providing further support, we will make decisions then, but right now that support is on offer to people.

Different local authorities are taking different approaches. That is in the nature of the trade-off that we had to make. North Norfolk is taking an approach that looks at means-tested benefits, but North Northamptonshire is not taking an approach that relies on means-tested benefits. It is asking for evidence that people are not able to afford a payment, which involves, for example, giving over bank statements to enable people to make an assessment based on income rather than on means-testing. So different authorities are taking different approaches. That is what we have to accept if we are deploying this through the crisis and resilience fund and not having a centralised scheme as we did before. But as I said, this is about doing things at speed to make sure that people have the support they need.

On the situation in Northern Ireland, the hon. Member for Strangford (Jim Shannon) highlighted that almost two thirds of homes rely on heating oil. We have allocated £17 million to support them. Again, we will keep that under review. We have heard complaints from the Northern Ireland Executive, as we have heard from others this morning, that it is not enough. But as I understand it—the hon. Member might want to correct me—there is not currently a scheme through the Northern Ireland Executive to deploy that money, so we do not yet know what the demand actually is in Northern Ireland for the take-up of that funding.

[Jim Shannon]

I do not want to be churlish—when we get something that is helpful, we accept it—but our indications are that those moneys will be disbursed across Northern Ireland shortly and that it will be £35 per household. As I asked in my contribution about pensioners, who are really feeling the pinch, what can be done for them specifically?

[Martin McCluskey]

As I said, once the funds are disbursed in Northern Ireland, just as across the whole of the United Kingdom, we will make an assessment as to what further work might need to take place. I will have further discussions with the Northern Ireland Executive. We are obviously keeping every option under review, especially as we start to think about later in the year and into the winter. In Northern Ireland, we are still to see what happens when the funds are disbursed.

In Scotland, we have heard from my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) about how Advice Direct Scotland is disbursing those funds. However, we cannot know at the moment how much is being given out, because the Scottish Government will not let Advice Direct Scotland provide us with that data, so there is no way for us to know what the situation in Scotland looks like.

In England, we are having weekly stocktakes with the DWP, which is the Department responsible for the crisis and resilience fund. It is providing us with assurance on the disbursal of those funds, and we hope to have a dataset available in May that looks at how many applications and payments have been made, and what those payments look like across the country.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 24th March 2026 Commons Chamber

[Michael Shanks]

I reiterate that although methane harvested from such sites and used to generate electricity plays a role in electricity generation, it is less than 1% overall, so it is not an issue for our energy security. As the sites age, the amount of methane they omit reduces, and that reduction has been factored into our plans. We are looking at what transitional arrangements are needed to deal with both the methane issue and the electricity that is generated from it, and we will consult in due course.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister, as always, for his answers. It is important that we all get the advantages of the level of methane harvested from landfill sites. In Northern Ireland we also have landfill sites, with a lot of rubbish and therefore a lot of methane possibilities. I know that the Minister visits Northern Ireland regularly, so what discussions has he had with the relevant Minister there to ensure that we can get the advantages that he mentioned in his reply to the hon. Member for Warrington South (Sarah Hall)?

[Michael Shanks]

I thank the hon. Gentleman for his kind comments. My visits to Northern Ireland are important to me, and at the very first meeting of the reconstituted inter-ministerial working group we had a conversation on that exact question: how can we support the reduction of methane across the UK, and how can we support that through the electricity system? Clearly, that is a transferred matter in Northern Ireland, but I continue to have those conversations with colleagues in the Executive.

Oil and Gas

Jim Shannon Excerpts

Tuesday 24th March 2026 Commons Chamber

[Claire Coutinho]

My hon. Friend makes an excellent point. In the trade wars that we saw last year, China limited the export of several rare earth minerals that are critical components in the renewable supply chain. An energy system that is dominated by renewables is one that is completely reliant on China, and that is why we think it is the wrong approach. It is mad at the best of times not to want to make the most of our own resources, but in the middle of a supply crisis, it is completely unforgivable. Yet that is exactly what Labour MPs will vote for today. They are on the wrong side of history on this one. They should put their disastrous Secretary of State’s zealotry to one side, fast-track Rosebank and Jackdaw, reverse their disastrous bans and taxes, and put our energy resilience over their narrow political interests by backing the North sea.

[Jim Shannon (Strangford) (DUP)]

I thank the shadow Minister and the Conservative party for bringing this subject forward. My constituents tell me very clearly, “If we have oil, let’s dig it, let’s drill it and let’s make sure that we get the opportunity from it.” Is it not ludicrous for the Labour party to let Norway get all the assets from the drilling and let us get nothing, when it is coming from the same bed? For the Labour party to have that policy is ludicrous. It goes against the will of the people and against the will of us those of us on the Opposition Benches of this Parliament. I think the Minister should take a review of this decision.

[Claire Coutinho]

I think those are the strongest words I have heard from the hon. Member in my entire time in Parliament, and the Government would be wise to heed them. At the moment, we share the same basin with Norway. Last year, Norway drilled 46 new wells and made 21 new discoveries, while we drilled zero wells for the first time since 1964. This is exactly the same basin. There is not a geological difference; it is a political line drawn down the middle. It is quite clear that it is the approach of Labour and the Secretary of State that is driving the industry into the ground.

Heating Oil Support

Jim Shannon Excerpts

Monday 16th March 2026 Commons Chamber

[Martin McCluskey]

I thank my hon. Friend for his continued advocacy for his constituents in High Peak. The CMA is investigating areas of policy around the heating oil market and will come forward with suggestions. We will examine those suggestions in detail to determine whether or not regulation is required in the sector. However, it is clear from points that my hon. Friend and others have made that this market is not operating in the way that it should.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister very much for his announcement—the £17 million for Northern Ireland, as part of the £53 million package, is welcome. That recognition and funding is important, given the price of home heating oil. Some 62% of people across Northern Ireland have heating oil, including almost 80% of people in my part of the Ards peninsula—in my constituency, where I live—so it is very important that we get this right. Will the Minister commit to urgently engaging with his counterparts in Northern Ireland? My people want to see the money sooner rather than later.

[Martin McCluskey]

This funding has to work for people in Northern Ireland, including in the hon. Gentleman’s constituency of Strangford. That is why today, I have had another call—the second over the past few days—with Minister Archibald in the Northern Ireland Executive, and it is why I will continue to engage with the Northern Ireland Executive over the next few weeks.

Energy Markets

Jim Shannon Excerpts

Thursday 5th March 2026 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement. As soon as the first missiles were launched over Iran, those working in the energy sector were already warning that prices would escalate. The public can little afford the price gouging that took place when Russia invaded Ukraine, so what steps will the Secretary of State take to ensure that any rise is absolutely necessary and will not result in greater profits for certain people and companies? What consideration will be given to implementing energy schemes to help working families meet the cost?

[Ed Miliband]

The hon. Gentleman speaks with great eloquence on these issues on behalf of his constituents and others. He is absolutely right to say that, in a situation like this, everyone has a responsibility. The Government have a responsibility, and private companies have a responsibility too—he is right to make them aware of that. On the wider question about the impact on families, it is important that the Government are vigilant about the steps we can take to help people.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 10th February 2026 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

rose—

[Mr Speaker]

Order. Jim, you were not here—you have just appeared—and the problem is that I think you missed the first part of the question. [Interruption.] Do not worry, Jim—just get on with it!

[Jim Shannon]

I thank the Secretary of State and I know he is interested in small modular reactor schemes, which we are very interested in having in Northern Ireland. The shadow Secretary of State has also giving a commitment to them. Can I please ask the Secretary of State what discussion he has had with the Northern Ireland Assembly—Gordon Lyons, in particular—to ensure that we can also benefit?

[Ed Miliband]

Obviously, this is devolved to the Northern Ireland Assembly and Executive, but I think the hon. Gentleman makes an important point. Throughout the United Kingdom, there is huge potential for SMRs. This is the technology of the future, and it can play a really important role in our energy mix across the UK.

Consumer Energy Bills: Government Support

Jim Shannon Excerpts

Tuesday 27th January 2026 Westminster Hall

[Luke Taylor]

Absolutely, and I will come on to the package that the Government outlined last week. It was very welcome, but we need to go further on immediate measures.

More than 12 million households are struggling with high energy bills today. It is not just the cold, but what creeps in with it: the damp and mould in children’s lungs and the reliance, for some families, on heating that produces dangerous carbon monoxide, which presents a threat to life and limb. Let us be clear: in parts of Britain where fuel poverty is all too common, we are at risk of letting one generation slip away slowly, sitting lonely in their homes, shivering, while we raise another forever stunted by a cold childhood.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing this matter forward; it affects everybody in the United Kingdom of Great Britain and Northern Ireland. About 39% to 40% of households in Northern Ireland are classed as being in fuel poverty, meaning that they spend more than 10% of their income on energy just to keep their homes warm. Those stats are significantly above historic measures, and many working families do not qualify for Government assistance. The hon. Gentleman is right to say that the Government must do more. Does he agree that very little action has been taken to ease pressure on working families, and that more must be done to adjust thresholds so that those families are eligible for support and assistance?

[Luke Taylor]

The hon. Member highlights the gap between families who are eligible for support and those who just cannot quite make ends meet. Clearly, there is a challenge in making any measure completely comprehensive and ensuring that those in need get the support they require.

When Beveridge wrote of his five great evils all those decades ago, he had in mind specifically the kind of poverty that we are talking about here—not just in material terms, but in access to living conditions that make a higher quality of life possible. In the decades since, we have clung to the findings of his report while slowly letting the meaning of those words decay, assuming that things such as freezing to death in one’s own home were evils conquered by the “white heat” of revolution. We were wrong, and squalor, by means of poor housing, insulation and lack of warmth, is back in Britain. It is here, not just in the homes of the poorest and most vulnerable, but all too often in the suburban houses of middle-income families and in urban flats where young people raise kids.

That is to say nothing of parts of rural Britain, where very old, pre-modern insulation in housing is still the norm. For too many families and pensioners I meet, across neighbourhoods, ages and even incomes, this is the single most pressing issue in their lives. We do not need a new Beveridge report to tell us that—not that we are wanting for heartbreaking statistics. We can see it with our own eyes and hear it with our own ears, and we feel it in our bones when we knock on doors in our constituencies, time and again, day in, day out.

When an issue gets to the heart of people’s quality of life in such a huge way, the state has a duty to cut through the roadblocks, take the lead and do something about it quickly. This Government, however, have taken too long to do so. The announcement last week of the warm homes plan is welcome; we Liberal Democrats have been pushing for it for years. Many organisations working in this space, such as the MCS Foundation, are relieved to see it finally outlined.

Warm Homes Plan

Jim Shannon Excerpts

Wednesday 21st January 2026 Commons Chamber

[Ed Miliband]

My hon. Friend speaks eloquently, and I am sure that what he said will resonate with Members across the House when they think of constituents who are poor and vulnerable and face a choice between heating and eating. The key priority is to get the money out to local and combined authorities. They are the best people to deliver the plan. Looking back over previous years, it is the experience of those authorities that means they are the best way to get help to people most urgently.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for his statement. It really is good news, and we all welcome the warm homes plan and help for families. However, I have some concerns. I know that the Barnett consequential for the devolved nations has been confirmed, and that is good news, but the Executive will be the administrative body for the plan in Northern Ireland. Can the Secretary of State outline how they will ensure access to and deliver the scheme, and—I ask this gently—how will the so-called squeezed middle-income families obtain help for insulation? Those squeezed middle-income families are highly taxed due to fiscal drag and struggle to heat their homes and pay their mortgage.

[Ed Miliband]

I thank the hon. Gentleman for his important question. The Minister for energy consumers met the Minister for Communities yesterday to talk about how we can work together—for example on the Warm Homes Agency, which is UK-wide, and hopefully on the solar loans as well. We want to do everything we can to work with the Northern Ireland Executive to help serve the people of Northern Ireland.

Oil Refining Sector

Jim Shannon Excerpts

Wednesday 14th January 2026 Commons Chamber

[Martin Vickers]

I thank the hon. Gentleman for his kind words. Equally, I recognise how he has stood up for his constituents over the Grangemouth issue, and I compliment him on that.

[Jim Shannon (Strangford) (DUP)]

I also thank the hon. Member for bringing forward the debate. He is right to refer to the Lindsey oil refinery, but all of the United Kingdom of Great Britain and Northern Ireland is affected by the sector if we become vulnerable and reliant on foreign entities. Does he agree that for the nation’s energy security and future energy provision, we need to right this wrong and invest in British-based refineries and energy provision, because otherwise everybody in this great United Kingdom of Great Britain and Northern Ireland will suffer as a result?

[Martin Vickers]

I thank the hon. Member for his intervention. No debate would be complete without such an intervention. He is absolutely right that it is the United Kingdom’s energy security that we are referring to.

To turn to the future of the Lindsey refinery, which has been part of the local economy in my constituency for over 50 years, the closure is a tragedy not just for the immediate workforce, 124 of whom have already been made redundant, but for the area as a whole: the bars, restaurants, hotels, haulage firms, Humberside airport, catering suppliers—the list goes on. North Lincolnshire council receives around £2 million a year in business rates, which could steadily reduce over coming years. Needless to say, that would leave an enormous hole in its budget, which would have a consequent impact on the local community.

At last week’s question time, the Secretary of State said in reply to me that fault lay with the owner, Prax. I agree that the directors bear responsibility, but it is my constituents who are feeling the consequences. A Minister has previously stated that the Government are not in the business of saving failed businesses—even, it seems, when they are a vital national resource.

Factored Energy Arrangements: Pricing

Jim Shannon Excerpts

Wednesday 14th January 2026 Westminster Hall

[Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)]

I beg to move,

That this House has considered energy pricing for consumers with factored energy arrangements.

It is a pleasure to serve under your chairmanship, Mr Stuart. I am pleased to have secured this debate on a systemic regulatory failure that is quietly draining the bank accounts of residents across Scotland and the wider UK. We are in the midst of a cost of living crisis, yet large numbers of domestic residents are being charged inflated business electricity tariffs for the essential communal services that keep their buildings safe and functional.

In a nutshell, the issue is that in many residential developments, services such as stairwell lighting, fire alarms, lifts and door entry systems are powered via shared electricity meters. Despite that electricity being used entirely for domestic living, residents are routinely charged business energy rates. It is not a niche issue; it is a systemic failure driven by outdated rules and weak enforcement.

The financial harm to our constituents is stark. A typical communal supply, using around 1,000 kWh per year, would cost roughly £380 on a fixed domestic tariff. Under the frequently used standard variable business tariffs, that same usage can rise to around £1,465, an excess cost of approximately £1,100 per meter every year. Across a modest development of 75 flats, it can add around £12,000 annually to residents’ collective bills.

What makes that particularly galling is that many residents are entirely unaware of how their communal electricity is billed. They may not know whether it is on a separate meter, how many accounts are involved, or whether it is charged at domestic or business rates. The costs are simply absorbed into factoring charges, leaving consumers unaware of both the issue and their rights—unaware when they are being roundly fleeced for someone else’s failure to either act properly or correctly inform them. The root cause of the issue is simple: it is a regulatory mismatch. The problem sits at the intersection of Ofgem regulation, supplier interpretation and third party management structures.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for bringing forward this debate. He and I spoke beforehand, but he might not be aware that consumers with factored arrangements in Northern Ireland were historically vulnerable to high, unregulated prices, similar to consumers in GB, but the Northern Ireland Assembly moved to correct that vulnerability. Does he agree that, UK-wide, those in communal schemes must have protection from gouging and be able to access better priced energy?

[Graham Leadbitter]

That is absolutely the case. To take Scotland as an example, consumers have a route to address complaints about this issue through the regulation of factors, but it is complex and cumbersome. There should be a simpler way to do it through the energy regulator, as I will touch on later in my speech.

Many communal meters are correctly classed as profile class 01, a domestic designation based on usage. However, where a property factor, managing agent or company holds the contract, suppliers often automatically apply the business tariff.