Warm Home Discount

Joy Morrissey Excerpts

Thursday 19th June 2025 Commons Chamber

[Joy Morrissey (Beaconsfield) (Con)]

I thank the Minister for advance sight of her statement—what a delight it was to receive an update on the warm home discount on this, the warmest day of the year. I know that the Minister is a tireless champion for the people of Peckham and for the most vulnerable, and I thank her for all the work that she does behind the scenes for those causes.

Exactly one year ago today, the Chancellor said:

“Great British Energy, a publicly owned energy company, will cut energy bills by up to £300.”

What has happened since? Bills have not fallen by £300, as was promised so many times by the Prime Minister, the Chancellor, the Energy Secretary and Labour MPs. In fact, bills have gone up by almost £300—the opposite of what they all promised just a year ago. On top of that, this Government took the winter fuel payment away from millions of pensioners through a cold winter. This announcement will provide support for some, but it is nothing more than a sticking plaster—the fact is, this Government’s energy policy is making people colder and poorer.

The Minister has not said a single word about how this expansion will be paid for. It is a £400 million commitment, but there was no detail in either the Government’s press release or the Minister’s statement about how it will be funded. Will the warm home discount still be funded by levies on everyone’s energy bills? If so, this policy means that energy bills will increase for the majority of bill payers, yet the Minister did not say so in her statement. Will she therefore inform the House whether she has asked her Department to calculate by how much levies on everyone’s bills will increase to pay for the £400 million of extra spending? If so, will she inform the House so that our constituents know how much their bills will increase by under this Labour Government?

The Government’s press release said that the expansion of the scheme will be offset by efficiency savings across the energy system, but we have no detail about what those efficiencies are, or how much money will be saved. In fact, the system is becoming less efficient. The National Energy System Operator recently said that the cost of balancing the grid by paying wind farms to switch off when it is too windy increased by 10% to £2.7 billion a year, warning that this will triple to £8 billion a year by 2030 as this Government rush to build more wind farms and solar farms on agricultural land than ever before. That is what this Government are delivering: more subsidies, more levies, more payments for wind farms to switch off, more tech imported from China, and more costs added to everyone’s bills.

Will the Minister share some proper detail with the House on exactly how much this will cost the British people? I suspect the answer will be a resounding no. This is a statement devoid of detail because it is designed simply to distract from the fact that this Government’s energy policy is in chaos and driving bills higher and higher. This is a Government driven by the ideology of net zero, not by making energy bills lower for families across Britain. It is a Government of broken promises.

[Miatta Fahnbulleh]

I think the hon. Lady has some cheek, given the previous Government’s record on energy bills. When, under their watch, families across the country were paying sky-high energy bills—with people still paying the price of that today—the idea that the Conservatives would try to lecture us on energy bills is pretty rich.

Let me take the hon. Lady’s questions directly. Yes, we are committed to reducing energy bills by £300. We have passed the legislation on Great British Energy and the institution is up and running. We are doing the job of driving down bills—we stand by that commitment, and the way we will deliver it is through investment in clean power. It is very clear that our reliance and dependence on global fossil fuel markets under the Conservatives’ watch was ultimately what led to bills rising. Labour will not make that mistake, which is why we are investing record levels in renewables. That is the way we will drive down costs in the system and drive down bills.

This policy is not about ideology; it is about families across the country. The status quo is not tenable. We do not think it is acceptable to have bills at the current levels and to leave families exposed, which is why we are taking action.

The hon. Lady asked specifically how this policy will be paid for. The warm home discount is paid for under the price cap. We are very clear that we do not want other families’ bills to increase in order to pay for this change. We have worked with Ofgem to look for savings within supplier operating costs, for instance. Given that debt spiked under the energy crisis, meaning that all households are currently paying a bit on the debt allowance, we are also working with Ofgem to get that debt burden down. We will use the savings there to cover the cost of this policy. We are very clear: support for those who need it; protection for all households.