Nuclear Industry: Cumbria

Jim Shannon Excerpts

Monday 14th October 2024 Commons Chamber

[Josh MacAlister]

I thank my hon. Friend for the intervention, and given that my entire speech is dedicated to that very point, I will gladly agree with her. West Cumbrians are incredibly proud of the part we played in the first clean energy revolution. We need only speak to some of those who worked at the power plant during its 47 years in operation to hear the pride in their voices.

After Calder Hall came another 10 nuclear power plants in 10 years—we opened 10 in 10 years.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Gentleman for securing the debate. He is right to point to the 10 power stations that were built, but if I may, I will gently remind him of the one that did not happen—although not as a result of what he says. Northern Ireland and the devolved nations have an important role to play in nuclear power provision. Almost 70 years ago there were plans to build Northern Ireland’s first atomic power station in County Tyrone, but ultimately they fell through. It is so important that we collectively have the facilities necessary to advance our nuclear power. Does he agree that, alongside his constituency and other areas of the mainland UK, more must be done to ensure that the devolved nations, including Northern Ireland, are considered for manufacturing bases and as potential areas for power stations in the future?

[Josh MacAlister]

I thank the hon. Gentleman for the intervention and I am glad to hear he is not blaming me for the decades-old issue with nuclear power in Northern Ireland. I agree with him that every corner of the United Kingdom could benefit from its energy output.

Richard Butler said at the time that Calder Hall was opened:

“It may be that after 1965 every new power station being built will be an atomic power station.”

From our dependence on fossil fuel towards the end of the 20th century, however, we know that that was not the case. It was the last Labour Government that reignited interest in new nuclear in 2005. The then Prime Minister, Sir Tony Blair, announced a review of the Government’s energy policy in order to reduce our reliance on foreign imports and tackle the threat of climate change. He recognised that we could not do that with renewables alone and he rightly and firmly put civil nuclear power back on the table.

In 2009, following an announcement by the then—and current—Energy Secretary, my right hon. Friend the Member for Doncaster North (Ed Miliband), we had ambitious plans for 10 sites to be the home of a new fleet of nuclear power stations, including three in Cumbria. The aim was for that fleet to shift the UK decisively from fossil fuels to clean, dependable power, to safeguard our nuclear skills and to provide energy security for decades into the 21st century. Moorside in my constituency, Hinkley, Sizewell, Hartlepool, Heysham, Wylfa, Oldbury and Bradwell were the communities identified to deliver that mission.

How many of them have a new nuclear power station today, 15 years on? Zero. Under the Conservatives, only one new nuclear project, Hinkley, was given the full go- ahead, and none opened during their time in Government. Fourteen years squandered—not only that, but we actually went backwards, with new nuclear projects collapsing on their watch.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 8th October 2024 Commons Chamber

[Ed Miliband]

The beauty of carbon budgets and the system that was introduced when I was last in government—to be fair, it was carried on by the previous Government of the past 14 years—is that they do at least in theory constrain what the Government do. It is very important that we take carbon budgets seriously in our plans. The plans we inherited from the last Government were way off track for meeting our carbon budgets, which is what this Government will do.

[Jim Shannon (Strangford) (DUP)]

I very much welcome the Secretary of State to his place. Climate change is real; it is not a myth. The quicker that everyone understands that, the better. Can I pose a question to the Secretary of State on rewilding? There are some suggestions among experts that rewilding by planting trees on moor and heather might not be the most constructive way of utilising rewilding. Has he had an opportunity to look at the issue of rewilding on moors and heather, which I understand that many experts think is detrimental?

[Ed Miliband]

I take the hon. Gentleman seriously on these issues, and I undertake to write to him or to have one of the Ministers write to him. I make the general point that rewilding and nature-based solutions are an essential part of tackling the climate crisis.

Carbon Capture, Usage and Storage

Jim Shannon Excerpts

Monday 7th October 2024 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

And the final word goes to Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Maybe not the final word, Madam Deputy Speaker, as that will be for the Secretary of State. I welcome the statement, in which he rightly underlined that anybody who ignores carbon capture, use and storage does so at their peril, and the Government’s commitment to carbon capture. While the amount set aside is incredible, so too is the requirement that every penny brings an achievement. How will the Secretary of State ensure that each region of the United Kingdom is involved in this net gain? I say to him gently that Northern Ireland is not mentioned in his statement; I am sure he will address that issue. There must be accountability to ensure the realisation of environmental goals, rather than simply the aspiration of achieving them.

[Ed Miliband]

I thank the hon. Gentleman for his question. I hope he has a conversation with his right hon. Friend the Member for East Antrim (Sammy Wilson)—[Interruption.] I see the right hon. Member does not want to talk to him right now. A good point to end on is the fact that, of course, jobs will be created in certain parts of the United Kingdom, but the measures announced will benefit supply chains across the whole United Kingdom. This Government look forward to ensuring that happens.

COP29: UK Priorities

Jim Shannon Excerpts

Tuesday 10th September 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Member for Ealing Southall for introducing this debate. Last week, she talked about waste; this week she is talking about COP29, and it is pleasure to hear her speak on both those matters. I look forward to many more contributions from her in Westminster Hall.

The COP29 climate summit in Baku, Azerbaijan, will be the first “COP of peace”. We hope that will be the case and we will see how it goes, focusing on the prevention of future climate-fuelled conflicts and using international co-operation and green issues to help to heal existing tensions. In terms of our climate, and green success, there is still much to be done, so it is great to be here and talking about that subject.

Hon. Members who have made contributions have grasped that. I thought the balance that the hon. Member for Whitehaven and Workington (Josh MacAlister) aimed for in his contribution summed up where I am as well. I hope to develop the idea of balance in my thoughts.

One of the themes of COP29 is that of an inclusive process for inclusive action, which is one of those statements we need to think about for a wee minute to see what it actually means. It aims to encompass the host’s plans to engage with international stakeholders to ensure that everyone’s voice is heard.

[Mr Gregory Campbell (East Londonderry) (DUP)]

On international stakeholders, does my hon. Friend agree that in taking the balanced approach which he and others have recommended, we need to ensure that the major polluters—those who are polluting more than all the other undeveloped nations together, such as Russia, China and so on—are persuaded and pressurised to reduce their emissions, because if they do not, many of the actions that are being promoted among developed countries are going to be of little or no effect?

[Jim Shannon]

I thank my hon. Friend for his intervention, and his as always wise and salient words. The big countries in the world, such as China, Russia and others, have a disregard for fossil fuel pollution and seem to wish to pollute the rest of the world from their own countries. There is a real need for them to do something.

I am really pleased to see the Under-Secretary of State for Energy Security and Net Zero in her place. She sat on the Opposition side of the Chamber in many debates; she and I would have been alongside each other on many things, supporting the same objectives and the same targets. It is a real pleasure to see her today and I wish her well. It also nice to see the shadow Minister, the hon. Member for Wyre Forest (Mark Garnier), in his place.

I always bring the Northern Ireland perspective to debates, because it is important that we understand—perhaps appreciate is a better word—things that are happening in Northern Ireland and how they contribute to policy at Westminster. In Northern Ireland, as a smaller nation of the United Kingdom, we are not shy to the feeling of being left behind, so it is important that efforts are made to engage with international stakeholders, which my hon. Friend referred to.

I will give an example. Climate Northern Ireland brings together members from the key range of sectors to share best practice and enable positive action to address the impacts of climate change. It is funded by the Department of Agriculture, Environment and Rural Affairs of the Northern Ireland Assembly, and aims to support the development and implementation of climate policy—it is really important, and core to the Department’s policy—by enabling the exchange of expertise and advice between Government Departments, public bodies and civil society. It brings them all together under one umbrella to pursue a policy that coincides and works alongside the one at Westminster.

I live in Greyabbey in Strangford and am a farmer there. I was saying to some people I met earlier this morning that I love to come here for the history, but I do not enjoy the concrete. I like to get back home to where the fields are green and where I can walk out and breathe the fresh country air, but that does not take away from where we are. Numerous neighbours of mine own farms themselves. It is really important that we have balance in this debate.

[Pippa Heylings (South Cambridgeshire) (LD)]

The hon. Member talked about peace and working together with international stakeholders. I would like to add to the calls on the Government for a special climate envoy nominated for our country, because all the things that are being said here today require diplomacy, negotiation and preparation before any climate summit.

I have 15 years’ experience of working in international climate negotiations, from the developing country aspect. I have witnessed how important the roles of special representatives, other climate envoys around the world and climate ambassadors are. Would the hon. Member, and the hon. Member for Ealing Southall (Deirdre Costigan) who introduced this debate, agree that the climate envoy should be nominated by the Prime Minister, so that it has the gravitas to put the UK back into a global leadership position, which the former Conservative Government trashed?

[Jim Shannon]

I thank the hon. Lady for her intervention and for the work she did in her previous occupation. That brings a wealth of knowledge to debates here; we can all learn and be the wiser for that. The Minister might be able to respond to our thoughts. We are looking for a climate envoy, as the hon. Lady referred to. We should all recognise the justification for that. I look forward to hearing in the Minister’s response on how that is to be taken care of.

In the farming community where I live, we understand the huge significance of farming and agriculture for our climate, as well as the contribution to the local economy. That is why it is important to get the balance right. I work closely alongside the Ulster Farmers Union and the National Farmers Union. I declare an interest that I should have mentioned earlier: I am a member of the Ulster Farmers Union and work alongside it on many policies. It has pledged support for issues such as measures on emissions. It is important to bring people along; it is important to bring along the farming community. It is important to understand the goals, then we can work together. That is what everyone wants but it is never easy to achieve. As I have said before, these things are hard to do without the commitment of funding for our Government. Maybe we can get some clarity from the Minister on the commitment to Northern Ireland.

The Minister’s interest in Northern Ireland has never been in dispute, but I would like to hear whether she has had an opportunity to talk with the DAERA Minister in Northern Ireland, Andrew Muir, or with civil servants and Government officials, to see how we can work on this together. If we are going to do it, it is always better to do it together.

I understand the Labour Government have not yet published their priorities for COP29. I am keen to see what they are. When we reflect on the most recent policy document, that sets out a commitment to keeping 1.5 alive. Limiting global temperature increases is really important. Some people believe that is not happening but, as we look about us around the world, we know we have to address this key issue. Building resilience and reversing biodiversity loss were priorities set out in the Paris agreement. I understand that the Secretary of State for Energy Security and Net Zero has met current and past COP presidents.

Other roles are taken by local councils, stakeholders and small, medium and large businesses. Most importantly, I honestly believe our constituents want to do their bit, but they must be given the means to do so. My way of doing politics has always been to try to bring everyone with us. It is in the nature of life that we might not agree on everything but, when we have a joint goal, we can focus better together. We are always better together and have roles to play at councils, at the Northern Ireland Assembly, and at regional and Westminster level.

COP provides a fantastic opportunity for the United Kingdom of Great Britain and Northern Ireland to pave the way in climate success, by being adaptable and showing that we are willing to learn as a collective. There is a lot to learn and a lot to do; let us do it together.

Great British Energy Bill

Jim Shannon Excerpts

2nd reading
Thursday 5th September 2024 Commons Chamber

[Ed Miliband]

I will make a bit more progress.

I had the chance to visit the Lawrence Weston turbine in Bristol, which Members may know about. It is England’s tallest onshore wind turbine, and it is 100% owned by the local community, powering at least 3,000 local homes and reinvesting revenues into local projects.

[Jim Shannon (Strangford) (DUP)]

rose—

[Ed Miliband]

I have caught the eye of an infrequent contributor to this House, so I will give way.

[Jim Shannon]

I thank the Secretary of State for what he is putting forward. It seems logical for the UK to manufacture this process, rather than others doing it for us. The question for my constituents, I say respectfully to the Secretary of State, is, what will the price of energy be at the end? A LucidTalk poll for National Energy Action evaluated the impact of rising energy prices on households in Northern Ireland. It found that 41% of households were spending more than 10% of their income on their home energy costs. How can we make sure that my constituents, and indeed all our constituents, can have energy they can pay for?

[Ed Miliband]

The hon. Member is absolutely right. This is a massive concern for all our constituents, and Great British Energy is a crucial tool to bring down prices for our constituents. The truth is that every Member in this House has to make a judgment on this. Do they believe that business as usual, staying on fossil fuels, will give us the energy security we need? We discussed this in the House on Tuesday. The truth is that we had the worst cost of living crisis in generations because of our exposure to fossil fuels. We are seeing prices rise again on 1 October, not because of Government decisions but because of our dependence on international gas markets. The argument for clean energy 15 years ago was a climate argument; it is now as much an energy security argument as a climate argument.

Clean Energy Superpower Mission

Jim Shannon Excerpts

Thursday 18th July 2024 Commons Chamber

[Madam Deputy Speaker (Dame Siobhain McDonagh)]

I call Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

Oh, thank you—you caught me off guard there, Madam Deputy Speaker, because I am so used to being the last one in the House to be called.

I welcome the Secretary of State to his place. I know it has always been his ambition to have the opportunity to have this role. Now he has it, I hope it goes well for him, and we will support him in what he is trying to achieve. With the new Government comes a new way of achieving goals and aims. I represent Strangford, which is a mostly rural constituency. Farming is a way of life and a key part of the economy. It creates thousands of jobs and opportunities, and is key to our future. Green energy and net zero are important for that as well. Will the Secretary of State confirm that the farming community and agrifood needs will be paramount in any effort to achieve a better world for all of us to live in?

[Edward Miliband]

I thank the hon. Gentleman for his kind words. In the last few days, I have sometimes sai3d to people that I feel that I am going back to the job I did 15 years ago, but getting to try and do it better. I am sure Members on the Opposition Benches would agree with that. It is an amazing opportunity and a big responsibility.

The hon. Gentleman makes an important point about the role of rural of communities, particularly farming communities. We are determined to get the balance right between food security, nature preservation and clean energy. The truth is that we, as a country, have not thought about the role of our land enough in recent years. We hope that will be driven by the land use framework that will be produced by my right hon. Friend the Secretary of State for Environment, Food and Rural Affairs.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 21st May 2024 Commons Chamber

[Andrew Bowie]

I completely agree with my hon. Friend. The small modular reactor technology selection process—the fastest of its kind in the world, I might add—continues to progress quickly and is currently in the tender phase, allowing vendors to bid for potentially multibillion-pound technology development contracts. Companies will have until June to submit their tender responses, at which point Great British Energy will evaluate bids and negotiate final contracts. The aim is to announce successful bids later this year.

[Jim Shannon (Strangford) (DUP)]

The Minister is always quick and keen to ensure that all parts of this great United Kingdom of Great Britain and Northern Ireland have advantages. When it comes to the technology to which the question refers, when will Northern Ireland get the same advantage?

[Andrew Bowie]

As the hon. Gentleman knows, I am keen to ensure that every part of our great United Kingdom of Great Britain and Northern Ireland benefits from the expansion of nuclear power and the benefits that it can bring, not only for meeting our net zero objectives but for the economies in which these small modular reactors will be built. I would be happy to meet him at any time to explore what benefits can be accrued in Northern Ireland from the expansion of our nuclear capacity here in the UK.

Innovation Centre for Energy Transition: Peterborough

Jim Shannon Excerpts

Tuesday 14th May 2024 Westminster Hall

[Paul Bristow (Peterborough) (Con)]

I beg to move,

That this House has considered the potential merits of an innovation centre for energy transition in Peterborough.

It is a pleasure to serve under your chairmanship, Sir George. Once again, I have the pleasure of making the case for my super city of Peterborough. In February, I hosted a reception in Parliament to launch the business case for a facility in Peterborough for researching and developing hydrogen technologies. I want to attract high-skilled, high-wage jobs to my growing city; I made that key promise to the people of Peterborough, and this proposal is an excellent opportunity to achieve that as it would bring globally competitive research and development technologies to the UK.

I want the UK be a green, low-carbon economy. We should be proud that we have made enormous strides in that regard since 2010. Investment in technology, not punitive measures that would make working people colder and poorer, is the way to continue the drive towards net zero and make the UK competitive over the coming decades. We must drive productive growth in new industries and technologies.

Partners in Peterborough including the city council, Anglia Ruskin University, TWI and key businesses are developing their case for a high-growth energy cluster at the new university campus on Peterborough’s Embankment. It is the culmination of a 10-year plan to transform the local economy and will platform technology-focused foreign direct investment in the UK to drive growth in the green economy and address some of the most challenging obstacles to the international community’s transition to new energies.

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Gentleman on securing this debate, and I support his efforts to increase Peterborough’s potential. Does he agree that if we are ever to come close to our net zero target, investment is needed on a large scale? I support what he is saying and agree that university research, corralling the best and brightest minds, is essential. Does he envisage that that will include university students from across the whole of the United Kingdom and will lead to a UK-wide centre with UK and global benefits?

[Paul Bristow]

The hon. Gentleman must have had a sneak glance at my speech, because that is exactly what I am going to say.

We must do that while creating new high-skilled and well-paid job opportunities in Peterborough. The ambition is to create a new research institute called the global innovation centre for energy transition, through which to attract large global energy production companies, including Shell, BP and the Abu Dhabi National Oil Company, and a consortium of domestic industrial high energy users. Foundation industries, such as steel, glass and concrete producers, will develop the new technologies needed for the safe transmission, distribution and use of hydrogen in industrial and domestic applications. The ecosystem created will also focus on related technologies for the storage of hydrogen and carbon dioxide, as well as the production of sustainable aviation fuels.

Global energy and technology companies are ready to partner with the UK Government to invest in the establishment of the centre and fund a 10-year programme of research and development worth £150 million. These firms will pool resources, knowledge and investment at sufficient scale, as well as scientific expertise, to generate the enabling technologies to produce new products and systems that will allow the new market to form and grow.

Excitingly, the R&D programme will create opportunities for local businesses and supply chains to link into the research institute’s global network, attracting R&D investment into the east of England from large knowledge-intensive businesses in Europe, the US and the Gulf states. That in turn will increase demand for higher level skills, improving access to better quality jobs, and increasing aspirations and wages for local residents. That is important to the UK and to Peterborough.

First, there is the obvious case for transitioning towards more sustainable, greener energy sources. Hydrogen can form an important part of our future energy mix in the UK, but the UK’s natural gas network is currently unsuitable for the transportation of hydrogen, which can permeate and cause failure in steel pipes—a phenomenon known as hydrogen embrittlement. New transmission networks will need to be developed from new materials. Those include protective inner coatings or non-metallic network materials to safely store, transport and distribute hydrogen. The UK Government plan to assemble sufficient evidence by September 2024 to enable a decision to be made in 2025 on whether to upgrade the national grid distribution network. The global innovation centre for energy transition can be operational in 2026 and ready to develop the solutions to enable the transformation.

Many of the foundation industries’ process equipment for the production of glass, steel and concrete, although having shown the ability to use hydrogen cost-effectively in pilot trials, is at risk of component failure and may present serious safety risks. Significant research is needed to develop safe materials, equipment and operating procedures to allow the transition of those industrial processes from natural gas to hydrogen. There are no other plans in the UK to attract research and development activity in this emerging sector.

Global firms are looking at addressing specific aspects of the broader challenge. Those disparate efforts will create a patchwork of solutions. By attracting a critical mass of the key players to integrate their R&D programmes in the UK, there is an opportunity to lock those firms into a joint endeavour for decades to come. That in turn provides the UK with the opportunity to find ways of convening its science base as a partnership with, for instance, the Henry Royce Institute and the high value manufacturing catapult to create a solutions network bespoke to the challenges around the transmission, storage and use of hydrogen and CO₂.

In a stepwise manner, we can use the opportunity to integrate R&D in the UK, expanding the network of UK institutes that can create an anchoring effect, which makes it difficult for the energy companies to disengage and disintegrate their R&D efforts in this specific field. The ultimate benefit of attracting and integrating global R&D efforts is the opportunity to link intellectual property into UK supply chains for myriad technical applications, including design, manufacturing and services.

The second reason for developing the technology and why it should be done in Peterborough relates to the opportunity to develop a high-value industry that can provide opportunities for high-skilled workers and help to level up the regional economy. The business structure of Peterborough has transitioned over the last few decades from industries based in engineering and manufacturing to lower value services in retail, wholesale, transport and storage, accommodation and food services. Employment has remained relatively high, but average wages are 9% lower than the national average.

Peterborough was on a trend towards the classic low-wage, low-skill equilibrium, but in recent years it has emerged as an increasingly innovative economy. It is now among the 15 cities with the highest number of business start-ups and patents in the UK. The move towards more knowledge-intensive industries can also be observed when looking at the make-up of its industrial structure, with five high-performing business sectors, including advanced engineering and manufacturing, agri-tech, food and drink, digital and creative, energy and environment, and financial services.

Making further progress is not without its challenges. Peterborough has for a long time been an education cold spot, with low levels of participation in higher education and low skill levels among the working-age population. It has limited wage and productivity growth, at 6% below the national average. Skills of level 4 and above are lower than in the wider region, but are now improving quickly. We are turning a corner. The new university has helped to turn the situation around and will accelerate the trend, providing the necessary skill base for existing firms and new science and tech businesses that can be attracted into the city by a new research centre.

Although there are signs that industry formation is improving, with new start-ups in knowledge-intensive industries, the local ecosystem is fragmented and lacks strong links to higher education and research institutions. The proposed R&D facility will provide the demand-side driver for innovation and growth. It will accelerate the positive progress we are making with recent investment and levelling-up projects in our city.

The future for Peterborough will benefit from a new rail upgrade with faster links into London and across the east of England to Cambridge and other neighbouring cities and towns, and the development of the city centre around the new station quarter will provide new, affordable, grade A commercial premises that will help to attract new businesses into Peterborough. The regeneration of the station quarter, combined with an R&D facility for green energy at the university campus, will create better links to London and Cambridge, enabling greater spill-out effects.

The immediate benefits of a new research facility and R&D programme stem from rapidly establishing an innovative ecosystem that generates increasing demand for high-skilled workers in Peterborough and the fens. They include the creation of 100 direct jobs in R&D and 200 indirect jobs in related science, technology, engineering and maths activity. The R&D programme will also create 500 indirect and induced jobs through the participation of 150 local firms in global supply chains, as well as new business start-ups and spinouts.

There will be a substantial positive economic impact on Peterborough city and the surrounding region. Investment in the R&D programme will generate a positive impact in new opportunities for graduate-level employment, encouraging both participation in higher education and, more important, the local retention of graduates. As we become a more skilled working city, it is important to retain our graduates. The R&D centre will allow us to do just that.

However, the wider benefits will also accrue to the UK as a whole. The global market for these new technologies is huge. The forecast value of global hydrogen transmission and distribution pipe networks is estimated to be £427 billion by 2050. By anchoring the underpinning knowledge for these solutions into the UK via the global innovation centre, we significantly increase the chances for British firms—those regionally around Peterborough, and those connected through hubs in Middlesbrough and Port Talbot—to be integrated into future supply chains.

Having the technology developed here also gives the UK first-mover advantage for the global roll-out of new technologies. The proposal to build a new research institute on the university campus in Peterborough presents a huge opportunity for the regional and national economy. To achieve it, we will need to build on existing expertise and import key elements of the Greater Cambridge innovation ecosystem into Peterborough, creating inherent connectivity between the two cities, which will help to rebalance growth across the region.

We will also need to encourage more residents into higher education, enabling access to higher-value jobs. Currently, the proportion of the working-age population with high-level qualifications at level 4 and above is 36.3%. That is below the regional average of 39.6% and the national average of 43.6%. However, that position is also improving, and the gap has narrowed by more than half since 2018. If Peterborough matched the national average for skills, an extra 9,130 people would have an NVQ level 4 qualification or above.

The establishment of the new university in Peterborough has provided an essential component for an innovation ecosystem, investing in human capital to improve higher-level skills to meet local economic needs, as well as providing vital interactions between businesses and higher education. A new research institute is now needed to build on these developments and to raise demand for higher-skilled jobs in the local economy by attracting global firms and connecting research and industry via a bespoke facility and an R&D programme that can translate research into practice in the local economy. That would provide a strong future energy sector focus to what is currently a fragmented innovation ecosystem, and it would harness regional, national and global opportunities in this emerging sector.

The proposals for a global innovation centre for energy transition at Peterborough have the potential to leverage significant economic benefits for Peterborough and the whole UK. The investment proposals are expected to generate approximately £160 million of private sector investment over 10 years from 2025, against a public investment of £30 million. That would provide a benefit-cost ratio of 3.3, which represents exceptionally good value for money.

We need an urgent meeting with Ministers to realise this opportunity for the UK and for my city. It involves several Departments, spanning trade, energy and levelling up. I hope that the Minister can say today that she is willing to take part in this effort, help me convene such a meeting and get the project moving. I am proud of the progress we are making in Peterborough. As I stated earlier—

Household Energy Debt

Jim Shannon Excerpts

Tuesday 23rd April 2024 Westminster Hall

[Kenny MacAskill (East Lothian) (Alba)]

I beg to move,

That this House has considered levels of household energy debt.

It is a pleasure to serve under your chairmanship, Sir George. It may seem strange to be debating energy debt with summer fast approaching. However, although the weather has largely improved, the energy debt situation most certainly has not. Millions have not bright sunshine, but black clouds hanging over them. Growing numbers in Scotland and across the UK are struggling, and many are drowning, as debts mount but energy needs remain constant. Ofgem has found that energy debt levels now stand at a staggering £3.1 billion—billion, not million—and that the average debt has increased by about 50% over the last 12 months, with the number of households in debt increasing by about 20%.

The situation is worsening. National Energy Action, a fuel poverty charity, estimates that even with new price cap levels, about 6 million households in the UK will be in fuel poverty. The situation in Scotland, with its more northerly latitude and harsher climate, is even more bleak. Energy Action Scotland suggests, based on the Scottish Government’s house condition survey, that fuel poverty afflicted 31% of households in 2022. That is almost one third of people in an energy-rich land that powers the UK economy living in fuel poverty—and that was two years ago. In northern areas and the islands, the figure was almost, or even over, 50%. Those are the parts closest to the oil and gas fields, yet they are denied access to affordable fuel.

The new bounty of renewable energy adds to the perversity. Scotland is providing 124 billion kWh to be cabled south. That is enough to power Scotland’s homes 12 and a half times over, yet many Scots cannot afford to heat their own home. What an absurdity for a country to be energy rich, yet its people fuel poor.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this issue forward. He is right to highlight fuel poverty. In England, the fuel poverty figure—the proportion of households where more than 10% of wages go to pay for fuel—is about 13%, and he mentioned that in Scotland it is 31%. In Northern Ireland, it stands at 22%. Does he agree that people need help? As he rightly said, just because the summer months are coming and it will get better does not mean that the problem is disappearing. We must take more effective steps right now, and we look to the Minister for the answers.

[Kenny MacAskill]

I fully accept the hon. Member’s intervention. This is an issue across the United Kingdom, including Northern Ireland. Climatic matters are worsening the situation in Scotland, but other factors affect other areas. As I will go on to say, the days of the summer months being some protection are long passing.

What does this mean for those in debt? They are real people, not statistics. Citizens Advice Scotland states that the average fuel debt for someone seeking its help is about £2,300. That is just the average—for some, it will be worse—and it is only for fuel; people may have other debts as they juggle their finances trying to manage. During 2023, the disability charity Scope received 7,422 referrals to its disability energy support service. Of those referred, 364 were in debt. Disabled households require an additional £975 per month simply to have the standard of living of a non-disabled household, yet their average debt is more than £1,100.

According to Age Scotland, older people have been massively impacted. Its research highlights that the majority of over-50s in Scotland feel financially squeezed and are cutting back on essentials, yet pensioners in Scotland have the highest rates of fuel poverty, with 36% in fuel poverty according to the most recent data. Worryingly, 24%—more than any other household group—are classified as living in extreme fuel poverty. All those statistics will have worsened as energy prices have risen and the general cost of living increased. The perversity of having to choose between heating and eating is growing, not diminishing. These are not just numbers or statistics; they are human beings, some of them even children.

While spring is usually a season for looking forward with anticipation, this spring has seen the heaviest rainfall ever recorded in many parts of Scotland, and with that rain come damp and cold. The days may be getting longer, but the need to heat homes remains as vital as when the nights were longer. Climate change is making our climate more changeable, but that simply makes it more challenging. As inclement weather straddles even supposedly moderate months, heating is often a year-round requirement, and not just for those who are unwell or housebound. The seasons turn and summer will be followed by autumn and then winter, exacerbating an already difficult situation. The thought of the colder months to come will send a shiver through many—from fear, not cold.

Energy is about access to not just heat but power. It allows the mother to power the washing machine to keep her kids clean and tidy; the parent to power the school laptop, ensuring that those children can achieve their educational potential; and individuals to charge their phones in order to access employment opportunities, benefiting not just themselves but society collectively. Rather than berating and punishing people for not being in work, maybe the Prime Minister would be better advised to assist them in achieving it.

The need for power even applies to those who need life-saving equipment. Ill health not only often keeps people housebound but makes them more susceptible to the cold. Being able to keep warm is essential for recovery. Similarly, dialysis and oxygen are not luxuries to prettify someone’s home; they are essential for their very existence. That is why the debate is urgent. The time to act is now, not when winter is upon us. By then the situation will be even worse for many, and tragically it may even be too late for some.

National Energy Action advised that not only are more people falling into debt but those already in debt are seeing their situation worsen. Only about one third of the overall debt figure of £3.1 billion consists of debt where there is an arrangement to pay. That arrangement may be manageable for many, but for some it might prove too much, as energy and other costs increase. What happens then? Two thirds of that debt—over £2 billion—consists of “arrears”, which is defined as debt without a repayment arrangement. If someone has no plan for how to repay, and is struggling to meet their current bills without even considering meeting arrears that have accrued, how will they get through spring, let alone winter? Many people see no way out of the morass facing them.

Action is needed to address energy debt every bit as much as the continuing crisis of energy costs. Ofgem has called for inputs on debt and affordability, with submissions closing on 13 May. However, Ofgem is a creature of statute; it can only do what it is authorised to do, and the parameters and the final decision remain with Government. That is another reason why this debate is apposite: it is not just that the situation is worsening, but that the decisions must be made now.

Those facing this crisis with the burden weighing them down are not the feckless or ne’er-do-wells who never seek to pay their way, but the poorest and most vulnerable in our society. It is not a “won’t pay” campaign, as I once ran in Scotland against Thatcher’s poll tax, but simply a “can’t pay” situation for those who just do not have the cash or wherewithal.

Another cruelty of our energy market is that those with the least pay the most, hence they face the highest risk of debt, not just difficulty in paying their bills. Energy costs have increased for all, but the proportion paid by the poorest and most vulnerable is greatest. As National Energy Action pointed out, standing charges have almost doubled over the past five years, with households now paying over £300 regardless of payment method. It is an energy poll tax that hits the poorest hardest. The billionaire with his swimming pool pays the same as the widow with her kids in a council flat. Charges vary across the country, with those in colder Scotland paying a higher rate than those here in London.

Tariff prices are also highest for those least able to pay. Standard credit is far more expensive than direct debit, but for some no other method is available. They are left paying more from a smaller budget. Prepayment has seen tariff costs belatedly reduced and is now the cheapest tariff, but it can have other issues for those forced to pay by that means. Let us recall that the moratorium on forced installation of prepayment meters has ended. Warrants are now being obtained to force them on even those who do not want them, for they obviously suit suppliers, who can monitor and even restrict consumption, even if more people will be afflicted by that perverse euphemism, “self-disconnection”—a benign phrase, but a wicked outcome. It is not a voluntary choice, but imposed by financial circumstances. Lacking the funds to buy the card or pay for more credit, people simply go without.

Let us also remember that putting people on to prepayment meters has other significant consequences. As Citizens Advice Scotland points out, it results in debt repayments being added to consumption charges—folk pay more but get less, with debt, not just standing charges, to be met before they even get a flicker—and people may not be able to switch supplier even if lower tariffs are available.

The Government will claim that energy prices have fallen and, of course, over the recent period that is most certainly true; however, the baseline is not last year, but when the energy crisis arose. Prices are far higher than they were then, and the supposed global issue of energy costs, whether due to the war in Ukraine or other international pressures, has seen prices in the UK rise far higher than in other lands. Everyone is suffering as a result—business and domestic customers—but it is the poorest and most vulnerable feeling the most pain.

Moreover, while the energy price guarantee has dropped, let us not forget that there has been sleight of hand. Not only is the guarantee predicated on average costs, hence it takes no account of differing circumstances—climatic issues in northern parts, personal needs such as ill health, and so on—but the average energy consumption used in formulating it was reduced, as it was stated that household insulation had improved. Of course, that is the case for many well-insulated new homes, but in all likelihood it will not apply to someone in an older property, whether they own it or live in a council house, are a housing association tenant or have a private landlord, yet their needs remain the same.

National Energy Action states that if it was calculated on the former assessment, the price cap would be £1,769, not £1,690, for the typical dual fuel household. That is almost an additional £100 for those in the poorest housing stock to find. Prior to the crisis, the price cap for the typical dual fuel household paying by direct debit was £1,138. It is now 56% higher, but costs have risen even more for those in harder-to-heat households or on higher tariff payment methods.

Ofgem acknowledges that there is £3 billion of debt in the energy market. The End Fuel Poverty Coalition calculates that there are allowances in the energy price cap to service that debt amounting to £1.5 billion per annum. That just pays for servicing the debt, not for reducing it. Can the Minister confirm whether that is the case? If that is happening, how is it being calculated, collected and distributed? Where is the transparency? Are consumers paying for their suppliers’ accrued debt? Surely we are entitled to know what we are paying for and what the big corporates are getting from us.

We know that there is a crisis at the moment and that the winter to come could be harsh and cruel, so what is to be done? First, a social tariff, once alluded to by Ministers and standard in many lands—even those without the exorbitant prices we face—should be introduced. That would provide solace for the poorest and most vulnerable. Secondly, we should restore the moratorium on the forced installation of prepayment meters, which is iniquitous and cruel.

Thirdly, the warm home discount scheme needs to be reviewed and enhanced. Rather than being issued arbitrarily to second home owners—never mind to those not requiring them, as was once done—payments should be centred on those most in need, addressing hardship and mitigating existing and even increasing debt. The current support of £150 is simply inadequate and too many are missing out entirely, even though they are entitled and in need. The payment was £140 before the energy crisis arose and prices rocketed; it badly needs to be increased to reflect that. The Social Market Foundation has made proposals that the Government would do well to adopt.

Finally, we need a debt write-off scheme, as suggested by National Energy Action. The amount owed and the number in debt are such that many can never make full repayment. The only way to achieve much reduction is to provide support through matching payments. The details of the scheme can be discussed, but the principle should be non-negotiable. It need not be a blank cheque for others simply to cease paying; it could be time limited to debt incurred during the fuel crisis, and other criteria could be applied. Banks were bailed out. Wastage of personal protective equipment, if not fraud, has been written off. It seems that there are unlimited funds for weapons of war, but not for a war on poverty. If assistance can be given to the few, similar support should be provided for the many.

Energy debt levels are rising and, with winter looming, fears for access to warmth and power, as well as for people’s ability simply to keep body and soul together, are increasing. Those are basic human needs and should be human rights. Action needs to be taken to ease the cost of energy and reduce the burden of debt for the poorest and most vulnerable. Will the Minister meet me and representatives of National Energy Action to discuss the crisis? Even more importantly, will she address the perversity of fuel poverty in an energy-rich land?

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 16th April 2024 Commons Chamber

[Claire Coutinho]

I thank the hon. Gentleman. I have been following tidal power for many years, and he is right to point out that the UK has both a strong record in renewables and an interesting geological landscape for new renewable technologies. We have dedicated £105 million—our biggest ever budget—to the flow of emerging technologies through AR6, but I would be delighted to meet him to discuss his work further.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her response. There is always a competition. As I represent Strangford, the fishing sector is very important to me. It is important that we have floating offshore wind projects, but also to ensure that fishing can be sustainable. In these discussions, can she confirm that the interests of the fishing industry and representation from the fishing industry are given appropriate weight, taking into consideration the need for sustainable fishing to continue? Without fishing my people will lose jobs.

[Claire Coutinho]

I thank the hon. Gentleman. We are passionate supporters of the fishing industry. We continue to have conversations with the Department for Environment, Food and Rural Affairs to ensure that we share our marine bed in an equitable way, not only getting the most out of it for our clean energy needs but protecting the fishing industry.