Oral Answers to Questions

Kerry McCarthy Excerpts
Tuesday 12th November 2024

(1 week, 2 days ago)

Commons Chamber
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Harpreet Uppal Portrait Harpreet Uppal (Huddersfield) (Lab)
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1. What steps he is taking to establish international leadership on climate change.

Kerry McCarthy Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
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Today, the Secretary of State for Energy Security and Net Zero, my right hon. Friend the Member for Doncaster North (Ed Miliband), is already at COP29 in Baku, where he will be leading climate negotiations. He sends his apologies. The Prime Minister is also at COP29 and will be speaking at the global leaders summit, announcing our ambitious 1.5°C-aligned nationally determined contribution and showing that the UK is truly back on the international stage. A written statement will also be made later today.

Harpreet Uppal Portrait Harpreet Uppal
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I welcome the leadership the Government are showing, in particular on NDCs, as my hon. Friend mentions. The news that this year is likely to be the hottest on record across the world is deeply concerning and reminds us that climate breakdown is a global challenge that we must all face. Does the Minister agree that we must have ambitious plans at home, so that we can go to COP and challenge other world leaders to do more to tackle climate change?

Kerry McCarthy Portrait Kerry McCarthy
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I completely agree with my hon. Friend. There is a direct link between taking action to protect the British people at home and leading on climate action abroad. If we want to protect our country from future energy shocks and the runaway cost of climate chaos, we must work with other countries to protect our planet. We now have the credibility to do that because of the action we have taken since entering government, as was apparent when I attended pre-COP meetings in Baku last month and as the Prime Minister will demonstrate in Baku today.

Carla Denyer Portrait Carla Denyer (Bristol Central) (Green)
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I warmly welcome the new Government target to cut carbon emissions, and I know the Secretary of State and the Minister thoroughly understand the importance of joined-up action on climate justice. Can she tell us whether every single Government policy across every Government Department will now be assessed to check whether it is compatible with 1.5°? What steps are the Government taking to ensure the global south is properly compensated for climate loss and damage?

Kerry McCarthy Portrait Kerry McCarthy
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On the second point first, at this COP we want to ensure that we fully operationalise the loss and damage fund, so we then start getting money into it and channelling money to developing countries. We also want to do that through the new collective quantified goal, which we hope will be ambitious and multi-layered.

On the question of looking at our policies across the piece, that is very much my job. We will be responding soon to the Committee on Climate Change’s report, which the hon. Lady will know was quite critical of the previous Government’s action. We will be setting out our plan to implement the NDC and looking at the next carbon budget. All those things require effort share across Departments to ensure we actually meet them. It is about not just setting ambitious targets, but making sure that, unlike the previous Government, we have a strategy to get us there.

None Portrait Several hon. Members rose—
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Toby Perkins Portrait Mr Toby Perkins (Chesterfield) (Lab)
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I am ready to go, and so is the Prime Minister—it is great to see him in Baku showing leadership. The recent Cali conference was a disappointment. Ultimately, nations were not able to reach agreement. Alongside the positive steps the UK Government are taking, what conversations are we having with international partners to recognise the necessity of an agreement that brings all western nations together in showing equal ambition?

Kerry McCarthy Portrait Kerry McCarthy
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I thank my hon. Friend for that question. I know he was at Cali. There was some progress on such issues as digital sequence information, but more needs to be done. We are very seized of the need to join up action on the nature and climate crisis. When I head out to COP29 tomorrow, Members will hopefully hear more from us on our efforts to protect forests and on the support we are giving to countries at risk of deforestation. We are also looking at nature-based solutions to climate change. The nature Minister—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Coventry East (Mary Creagh)—will be out there as well, and we will have more to say, but I entirely agree with my hon. Friend the Member for Chesterfield (Mr Perkins) that we cannot deal with one crisis in isolation from the other.

Jess Brown-Fuller Portrait Jess Brown-Fuller (Chichester) (LD)
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For the UK to be an international leader on climate change we need to bring the business community with us. The Summer Berry Company in my constituency recently invested £8 million in ensuring it is carbon neutral, but it was then quoted a further £3 million to be able to feed its excess energy into the grid. What is the Minister doing to make additional grid connections affordable and accessible for green businesses?

Kerry McCarthy Portrait Kerry McCarthy
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The energy Minister—the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Rutherglen (Michael Shanks)—is very much involved with that issue. We have also set up the energy superpower mission board, headed by Chris Stark. I had a conversation with him yesterday about what we can do to ensure grid capacity and grid connections in the right places. If the hon. Lady has a specific issue to raise and would like to write to me, I will make sure it is passed on to him.

Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister, whom I welcome to the Front Bench.

Joy Morrissey Portrait Joy Morrissey (Beaconsfield) (Con)
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When I asked the Secretary of State about the appointment of Rachel Kyte as his international climate envoy during our last questions session, he failed to say whether Quadrature Capital’s £4 million donation to the Labour party had been declared to the Department before her appointment, and I have still not received a reply to my letter of 17 October. Will the Minister tell me whether the Secretary of State declared those interests to the Department before Rachel Kyte’s appointment, and whether Ministers have ever met directors of Quadrature Capital or Quadrature Climate Foundation?

Kerry McCarthy Portrait Kerry McCarthy
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I am sure that the shadow Minister will receive a reply to her letter in due course, but I can tell her that Rachel Kyte is extremely well respected, and that her appointment as our special representative has been welcomed across the board.

Catherine Atkinson Portrait Catherine Atkinson (Derby North) (Lab)
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2. What progress he has made on achieving clean energy by 2030.

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Jo White Portrait Jo White (Bassetlaw) (Lab)
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5. Whether he plans to support the development of fusion power plants connected to the grid.

Kerry McCarthy Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
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We agree that fusion could be a globally transformative green energy solution. The UK Government’s fusion programme continues to lead the world in the development of fusion energy, and our ambition is to continue to do so.

Jo White Portrait Jo White
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Two weeks ago, the Budget announcement that the first fusion power plant will be built in Bassetlaw was welcome news. Can the Minister provide greater detail on this commitment, alongside the funding support being made available for the next financial year?

Kerry McCarthy Portrait Kerry McCarthy
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My hon. Friend is a great champion for her constituency, and I was pleased to meet her to talk about this issue and to hear her Westminster Hall debate. I look forward to visiting her constituency later this month to see the fusion café and to visit West Burton, the site of the STEP project, after which I hope to be able to share more detail on how we will support fusion.

Jamie Stone Portrait Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)
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Dounreay, in my constituency, was the site of the UK’s first fission reactor. Today, we have a highly skilled workforce, a licensed site and a local population that warmly supports the industry. Will the Government seriously consider involving Dounreay as we bring fusion to its wonderful fruition?

Kerry McCarthy Portrait Kerry McCarthy
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I think fusion has huge potential, and so many companies stand to benefit. It is not just about the ultimate goal of fusion energy; it is also about all the technological advances we will discover. I have spoken to fusion companies which are, for example, finding uses for cancer treatment. I am very interested to hear what the hon. Gentleman has to say about the possibilities of fusion in his constituency. We want to see this proceed. If he drops me a line, I will be happy to explore the opportunities in his patch.

Andrew Bowie Portrait Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
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We have spoken a lot about the Conservative party’s record in government, and I am very proud of our record on fusion. We launched the Fusion Futures programme to provide up to £55 million of funding to train more than 2,000 people, we became the first country in the world to regulate fusion as a distinct energy technology, and we launched the process to build the spherical tokamak for energy production—I cannot say that as quickly—at what will be the first fusion power plant at West Burton in Nottinghamshire. [Hon. Members: “Hear, hear.”] Members are very welcome. Will the Minister confirm that it is still the Government’s intention, as it was ours, to have fusion power on the grid by 2040?

Kerry McCarthy Portrait Kerry McCarthy
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As I mentioned, I am very much looking forward to visiting West Burton soon. The Budget announced significant support for fusion energy in 2025-26 and, yes, we remain as ambitious as the previous Government for the potential of fusion energy.

Andrew Bowie Portrait Andrew Bowie
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Having confirmed that 2040 is still the ambition, which does the Minister think will come first: fusion on the grid or the final investment decision on Sizewell C?

Kerry McCarthy Portrait Kerry McCarthy
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The final investment decision on Sizewell C, as I understand it, is expected soon. We will hear more about support for that in the next spending review. Fusion energy has huge potential, not just in the long term but from the innovation we are already seeing in that sphere, which I very much welcome.

Seamus Logan Portrait Seamus Logan (Aberdeenshire North and Moray East) (SNP)
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6. What plans he has to support the development of carbon capture, utilisation and storage projects at Acorn.

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Lindsay Hoyle Portrait Mr Speaker
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Too long.

Kerry McCarthy Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
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I think the shadow Secretary of State needs to seek a debate if she wants to elaborate on these issues. Having attended COP last year as part of a cross-party delegation, I found it incredibly depressing to see the way the UK was received. It is really important that we are stepping up and showing global ambition. Reaching net zero in this country and getting to clean power by 2030 is a massive opportunity, not a cost.

Melanie Ward Portrait Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
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T4. Some 824 former miners in Cowdenbeath and Kirkcaldy are rightly delighted that our Government have returned over £1 billion from the mineworkers’ pension scheme to those who powered our country for decades. Does the Minister have plans to deliver similar justice to the 290 members of the British coal staff superannuation scheme in my constituency and, indeed, all those affected across the UK?

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Pippa Heylings Portrait Pippa Heylings (South Cambridgeshire) (LD)
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The US President-elect, Donald Trump, has repeatedly called climate change “a hoax”. I share the concerns of young people in South Cambridgeshire that these views represent a threat to our efforts to tackle climate change. The global community is meeting right now at the international climate summit in Azerbaijan—COP29. Does the Minister believe and share with me the view that the UK must rebuild its leadership by getting back on track with our climate and nature targets?

Kerry McCarthy Portrait Kerry McCarthy
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I agree that it is now more important than ever that the UK shows global leadership, and that is exactly what the Prime Minister, the Foreign Secretary and the Energy Secretary are doing with their presence at COP today—I will be heading out there tomorrow. I am very keen to work with the hon. Lady cross-party on these issues. Working with young people is very important as well.

Steve Race Portrait Steve Race (Exeter) (Lab)
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T5. I am proud that Exeter is already a global leader in climate research. Does the Minister agree that this Government’s mission on clean power will deliver lower bills, energy security and allow this country to enter COP29 as a world leader when it comes to climate action?

Kerry McCarthy Portrait Kerry McCarthy
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As I have said, showing domestic leadership gives us the credibility to show international leadership too. We will be doing both.

Lee Anderson Portrait Lee Anderson (Ashfield) (Reform)
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T3. Forests in North America are being chopped down to supply wood to burn at Drax power station, at a cost of £2 million a day in subsidies, while pensioners will perish this winter. Does the Minister agree that it is time to end this net zero madness and admit that fossil fuels are “a gift of the God?”

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Adam Thompson Portrait Adam Thompson (Erewash) (Lab)
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T7. The Joint European Torus fusion experiment in Oxfordshire has been delivering fantastic scientific results, standing at the forefront of UK science and the fusion experiment internationally. As JET begins to be decommissioned as we move forward to our next large experiment in Bassetlaw, can the Minister comment on how we will retain all the excellent science expertise that has been built up in JET over the past decade?

Kerry McCarthy Portrait Kerry McCarthy
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I got to see the JET project when I visited Culham. There is huge potential for a cluster there. Many more companies are being attracted to that sector. My hon. Friend is right that we need to maximise the skills that are there, but I am confident, having spoken to companies that have been attracted to Culham, and having spoken to international companies too, that we will continue to do so.

Helen Morgan Portrait Helen Morgan (North Shropshire) (LD)
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Many homes in my constituency are off grid, which means that their owners have to fill up the tank at the beginning of winter to keep warm. The pensioners who have lost the winter fuel payment are struggling with that up-front amount. Will the Minister review the level at which the winter fuel payment is removed, because the most vulnerable are struggling?

Joe Powell Portrait Joe Powell (Kensington and Bayswater) (Lab)
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T8. I have worked for many years with London School of Economics academic and UK resident Dr Gubad Ibadoghlu, who has been arbitrarily detained in Azerbaijan since July 2023 for uncovering corruption in the fossil fuel industry, despite a severe medical condition. During COP29, will Ministers meet their Azerbaijani counterparts to urge them to drop the charges and to release him?

Kerry McCarthy Portrait Kerry McCarthy
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I understand that the Foreign, Commonwealth and Development Minister has raised the case with the Azerbaijani Foreign Minister and urged allowing Dr Ibadoghlu to travel overseas for specialist medical care if required. We will continue to use our diplomatic channels to raise our concerns about the protection of freedom and human rights in Azerbaijan, including for my hon. Friend’s constituent.

Gareth Davies Portrait Gareth Davies (Grantham and Bourne) (Con)
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Conservative Members will never stop holding the Government to account for their pre-election promise to cut energy bills by £300. Have civil service officials conducted any modelling whatsoever that can legitimise that figure?

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Kerry McCarthy Portrait Kerry McCarthy
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We hope that, at COP29 in the coming weeks, we can settle on a figure for a new ambitious goal, which will not just bring in finance from donor countries, but mobilise private sector finance. We will use all the mechanisms we can to ensure that we get money to developing countries as quickly as possible. As my hon. Friend said, it is more urgent than ever to act.

Lindsay Hoyle Portrait Mr Speaker
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Order. I have got to get all Members in, and Ministers have got to help me and work with me.

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Rupa Huq Portrait Dr Rupa Huq (Ealing Central and Acton) (Lab)
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My constituent Konnie Huq, with Arts Council and Lottery funding, has compiled a kids’ climate guide, with Jamie Oliver among the contributors. Will Ministers join forces with her to get it out there, preferably to every school in the country, because we have got to start young?

Kerry McCarthy Portrait Kerry McCarthy
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I would be more than happy to meet with my hon. Friend and her constituent, who sounds rather familiar, to discuss what more we can do to support climate education among children, including in our schools.

Patrick Spencer Portrait Patrick Spencer (Central Suffolk and North Ipswich) (Con)
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I met with National Grid yesterday and communicated my concerns about the Norwich to Tilbury line but we remained constructive and talked about community benefit schemes. Unfortunately, it told me that the Government were dragging their feet on defining community benefit schemes. Can the Minister update the House on when they will bring forward guidance, and can he promise that a community benefit scheme is a real, positive economic benefit for my residents who are impacted by the pylons?

Renewable Energy: Cornwall

Kerry McCarthy Excerpts
Tuesday 22nd October 2024

(1 month ago)

Westminster Hall
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Kerry McCarthy Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
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It is always a pleasure to see you in the Chair, Ms Vaz. I thank my hon. Friend the Member for Truro and Falmouth (Jayne Kirkham) for securing this debate and the other Members for their contributions. It is good to see a clean sweep of new MPs in Cornwall, although my hon. Friend the Member for St Ives (Andrew George) is a familiar face from days gone by. The passion of hon. Members for the region shines through, and all six MPs are brilliant advocates for Cornwall’s sheer potential.

I want to note the recent letter from the four Labour MPs in Cornwall to the Minister for Industry, the hon. Member for Croydon West (Sarah Jones), concerning the need for investment in the county. As the hon. Member for Truro and Falmouth mentioned, the Minister for Industry and the Secretary of State for Business and Trade have visited the region recently. I know that both are aware of the county’s incredible potential for economic and industrial growth. I understand that the four MPs will be meeting my colleague, the Minister for Industry, very soon to discuss the issues raised in the letter.

My hon. Friend the Member for Truro and Falmouth will be aware that one of the Prime Minister’s five missions for national renewal is making Britain a clean energy superpower, including delivering clean power by 2030 and accelerating to net zero. As has been mentioned, we have wasted no time in getting started. Within our first 100 days in government, we lifted the onshore wind ban in England, consented to more nationally significant solar projects than had been consented to in the past 14 years, and delivered the most successful renewables auction in British history. Now we are busy setting up Great British Energy, which will drive clean energy deployment, creating jobs, boosting energy independence and ensuring that UK taxpayers, bill payers and communities reap the benefits of clean, secure, home-grown energy. As we heard, Cornwall has a vital role to play in that clean energy mission, and indeed our mission to secure economic growth.

Cornwall may be primarily known as a tourist destination these days, but it has a proud industrial past. It was once known as the mining capital of the world, with tin mining and clay, and was where Richard Trevithick invented the high-pressured steam engine. As much as tourism is welcomed in Cornwall, we know that it puts pressure on the local infrastructure and economy, particularly the housing supply, which then has a knock-on effect on public services in the area.

From meeting local businesses in Cornwall when I went down with the now Chief Secretary to the Treasury last year, I know that there is excitement about the opportunities offered by Cornwall’s huge industrial potential from wind, geothermal, lithium and more. Great work is already being done through the continuing development of a local area energy plan in Cornwall and Isles of Scilly, and the Government are doing what they can to support the region too. Last September, three geothermal projects, all located in Cornwall, were successful in our contracts for difference auction for the first time, with contracts totalling 12 MW of generation. As part of my visit to Cornwall last year, I also went to see some of the exciting work that the Eden Project is doing on geothermal.

Critical minerals have been mentioned as an important area for future industrial development. Cornwall has some of the largest critical mineral deposits, with research showing that the county alone could meet more than half the UK’s 2030 demand for lithium, which is an essential part of the electric vehicle battery supply chain. As we transition to a renewables-based economy, the demand for critical minerals will only grow, and I note the concerns that have been raised about current sourcing and the need to diversify supply. Indeed, Cornwall is home to at least three of the 18 critical minerals, and I hope that local MPs, in the meeting with my hon. Friend the Minister for Industry, can further discuss how we can take advantage of all that Cornwall has to offer on that front.

The county is perfectly placed to take advantage because of its strong mining heritage—I was interested to hear what my hon. Friend the Member for Truro and Falmouth said about the potential for reopening tin mines—as well as a growing supply chain, skilled workforce and supportive local government. It has the support of national Government too. In 2023, the UK Infrastructure Bank’s first equity deal was an equity investment of approximately £24 million to support Cornish Lithium in the development of the UK’s critical minerals supply chain.

One of the most exciting areas with huge potential is the floating offshore wind that my hon. Friend the Member for Truro and Falmouth talked about, which would enable turbines to be set up where the seabed is too deep for traditional fixed-bottom turbines. A new report from the floating offshore wind taskforce says that the UK’s floating wind industry will be able to support 97,000 jobs by 2050, contributing £47 billion to our economy, and we want Cornwall to have a proper stake in that via the Celtic sea.

I reassure Members present that we want to do all we can to support floating wind infrastructure and supply chains to develop the Celtic sea, to ensure that we get the floating wind pipeline built and bring jobs and growth to the area. As part of leasing round 5, the Crown Estate has launched a £10 million supply chain accelerator fund, focused on capturing some of the economic opportunities identified by the Celtic sea blueprint. A further £40 million has been earmarked, which could be deployed on further opportunities nationally.

More broadly speaking, Members present will know that last week, the Chancellor announced that the UK Infrastructure Bank is becoming the national wealth fund. Capitalised with £27.8 billion, it will have additional financial capacity and an enhanced risk budget, as well as an expanded remit beyond infrastructure in support of the Government’s industrial strategy. At least £5.8 billion of the national wealth fund’s capital will focus on priority sectors, including ports infrastructure, which I am sure my hon. Friend the Member for Truro and Falmouth will be pleased to hear.

Also last week, we published in a Green Paper our vision for a modern industrial strategy—Invest 2035. That is a credible 10-year plan to deliver the certainty and stability that businesses need to invest in high-growth sectors. It will help us create a pro-business environment and support high-potential clusters across the country. It will channel support to eight growth-driving sectors, including clean energy industries, and it will support those sectors to create high-quality, well paid jobs across the country, backed by employment rights fit for a modern economy.

If the plan is to be a success, it needs to be designed and implemented in lockstep with local and regional leaders. That is particularly important in places such as Cornwall, where we are looking at reindustrialisation to an extent, rather than building on current industrial clusters. We will explore how to build on existing place-based initiatives, how to create the best pro-business environment possible in city regions and high-potential clusters, and how to identify, select and intervene in industrial sites to make them magnets for globally mobile investment.

As I said, unlocking Cornwall’s potential is slightly different from going into other areas. That is absolutely key. Planning was mentioned; we must undo some of the blockages in the planning system. In relation to the grid, I very much remember, from when I visited, the knock-on impact of the fact that the transmission line goes only as far as Indian Queens. Until we create the grid infrastructure to cover the right areas and provide sufficient capacity, we cannot deliver on Cornwall’s potential. I think that one of the things holding the Eden Project back with its geothermal work was that it could not get that broader grid connection. The former chief executive of the Climate Change Committee, Chris Stark, has been put in charge of the mission board, and one of his key tasks is to bring in a more strategic approach to grid planning, speed it up and stop those blockages that mean that projects just do not get off the ground because they are stuck in that system.

Skills are also a very important issue, on which I hope we can have continued engagement. I think I am due to meet my hon. Friend the Member for Truro and Falmouth next week to follow up on some of these issues. I want to reassure her and colleagues that our doors are always open, in terms of discussing these things, and I will return to my original point that I share the excitement that Cornwall has huge potential. I think we want a more balanced economy—

Perran Moon Portrait Perran Moon
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Looking at Cornwall, we have mentioned floating offshore wind, onshore wind, geothermal, tidal, solar, lithium, tin and manganese. Can the Minister name anywhere else in the UK where there is such a distillation of critical minerals and renewable energy opportunities? I am very excited by what she said about the cluster concept. Would not Cornwall be an ideal place to be an official cluster for renewables and critical minerals?

Kerry McCarthy Portrait Kerry McCarthy
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I am not sure that we quite have an official badge of cluster; we just have clusters, but yes, I think Cornwall is different in terms of the geography and the current use of the land and we have to approach it in a sensitive way, and one in which we might not have to approach areas that currently are perhaps transitioning from traditional fossil fuel industries to the clean industries of the future. This area is bringing something that, to an extent, is genuinely buried in the land—the industrial heritage there. It has so much potential. The question is how we can work across Departments, starting with my own, DESNZ, but also bringing in other Departments that can unlock that potential. I am sure that the brilliant advocates that there are in the region will all be pushing, and I really hope that we can see swift progress, because clean power by 2030 is such an important part of the Government’s mission and I do not think we can do it without Cornwall playing its part.

Question put and agreed to.

COP29: UK Priorities

Kerry McCarthy Excerpts
Tuesday 10th September 2024

(2 months, 1 week ago)

Westminster Hall
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Kerry McCarthy Portrait The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Kerry McCarthy)
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It is a pleasure to see you in the chair, Dr Huq, and even more of a pleasure to be standing here in the Minister’s place rather than on the Opposition Benches. I thank my hon. Friend the Member for Ealing Southall (Deirdre Costigan) for securing this important debate. She has certainly hit the ground running, as this is her second Westminster Hall debate—I think many new MPs are yet to discover where Westminster Hall actually is.

My hon. Friend was a powerful voice on climate issues as deputy leader of Ealing council and as its cabinet member for climate action. I acknowledge from the outset—it has been brought up by a few Members—that local government has a huge role to play in helping us to deliver net zero. As a Bristol MP I would be expected to say that; I have previously boasted about the many achievements of Bristol council on that front in this House. I will not do that today, but it is really important and we are looking at how we can make the local net zero forum work more effectively.

My hon. Friends the Members for Ealing Southall and for Manchester Rusholme (Afzal Khan) mentioned the impact on diaspora communities living here, including on constituents of Pakistani and Indian heritages. As a Bristol MP, we have a significant Somalian community and we know that the Horn of Africa has been absolutely ravaged by droughts and floods. We are dealing with the consequences of climate change here in the UK, but some people are also dealing with the consequences where their families and friends are based. I look forward to working with my hon. Friend the Member for Ealing Southall, and I am sure that she will continue to drive this agenda forward in Parliament. I also thank other Members for contributing to the debate and I will reply to some of their specific points later.

We are almost halfway through what is a decisive decade to halt climate change. As global surface temperatures continue to rise following 12 months of record-breaking warmth; as people around the world face the very real effects of this crisis with rising sea levels, nature loss and food insecurity; and as we see climate vulnerable countries devastated by extreme weather events, it is clear the decisions that we make now will define our planet’s tomorrow. If we want to leave future generations a world that is liveable and safe, we must stick to the Paris agreement and keep 1.5° of global warming within reach.

As we have heard, we are currently way off track. Last year’s global stocktake confirmed that emissions need to peak by next year and fall by 43% between 2019 and 2030 to reach the Paris goal, yet we are currently on course for global emissions to fall by just 2%. We need to increase climate finance at least fivefold, phase out coal seven times faster, and reduce forest loss at least twice as fast.

Here in the UK, the Climate Change Committee’s July report provided a wake-up call. It found that the UK is not even on course to hit our own 2030 target of 68% emissions reductions, and highlighted a slowing of pace and reversed or delayed key policies. I will not reply here in detail, but the Government’s response to that report is coming. We will address some of the specific criticisms about domestic policy, including on the new homes standard and energy efficiency. I hope that the hon. Member for North Herefordshire (Ellie Chowns) has heard enough about retrofitting and the warm homes agency in other forums. We will very much be announcing our policies across the piece.

Ellie Chowns Portrait Ellie Chowns
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The whole point is that I have not heard anything about it. I have heard two speeches by the Secretary of State for Housing, Communities and Local Government and she has not mentioned it at all, which is why I asked that specific question. I look forward to a written response, but I urge the Government to take the point on board, because even the warm words are not there yet, let alone the action.

Kerry McCarthy Portrait Kerry McCarthy
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The hon. Member will know that a consultation on the new homes standard closed in March and we are looking to respond to that. Obviously, we want to make sure that our housing stock is as sustainable as possible, as well as setting up the warm homes agency to retrofit the 5 million homes that we have made a priority. I am pretty sure I have heard her mention retrofitting and get an answer from our Department, but I digress.

We very much need to up the pace. We are determined as a Labour Government to get us back on track by becoming climate leaders at home and abroad. That means decarbonising our power sector by 2030. We have already taken ambitious steps by lifting the onshore wind ban, giving the go-ahead to major solar proposals despite opposition in some quarters and setting up Great British Energy. We will also ensure that every large company has credible 1.5°-aligned plans for transition. As I said, we will be revealing more details as we move on, particularly in terms of setting out the next carbon budget, but also in our response to the CCC report.

Demonstrating strong leadership at home will give us the credibility that has been sadly lacking in recent years to demonstrate strong leadership abroad. Several Members, including my hon. Friend the Member for Stratford and Bow (Uma Kumaran) and the hon. Member for Bath (Wera Hobhouse), mentioned that we were in Dubai last year. It was quite a depressing experience, particularly when we met climate activists from climate vulnerable countries who pressed us on what the UK was doing—the country that led with the groundbreaking Climate Change Act 2008 and then raised the ambition to net zero—and whether it had completely abdicated its sense of international leadership. That was a constant refrain.

That is why in my first few weeks in this role, I spoke with key climate organisations about how we could restore the UK’s global leadership. I also held a roundtable with non-governmental organisations to discuss their priorities on climate action, as I will do again before Baku. In fact, I will be holding a series of roundtables with various stakeholder groups.

The Energy Secretary hosted the COP29 and COP30 presidencies, as well as Lord Sharma, who presided with distinction over COP26 in Glasgow, at a recent event in London to discuss how we can ramp up global ambitions. He then travelled to Brazil to strengthen ties ahead of next year’s Amazon COP, reflecting that this is a sequence. It is not just about what happens in Baku; we are already looking ahead to COP30 as well.

As we prepare to head to Azerbaijan this autumn, it is worth reflecting on the progress that has been made by the UK delegation in recent years. I make it clear that, after a couple of months in the Department, I have no criticism of the civil servants. They are incredibly dedicated and hard-working, and it is down to them that a lot of what I am about to mention has got over the line, regardless of a lack of political direction.

In Glasgow, we saw the proportion of global GDP committed to net zero go from 30% to more than 90%. In Sharm El Sheikh, we agreed a landmark fund to support those most vulnerable to the effects of climate change. Last year in Dubai, we saw real progress on the pledges made in previous years. We welcomed 13 new members to the Powering Past Coal Alliance, including the USA and the UAE, meaning that 180 Governments, businesses and organisations have now committed to phasing out unabated coal power.

We were one of 123 countries to support the global pledge to triple renewable energy and double energy efficiency by 2030. We expanded the breakthrough agenda, which is our clean technology accelerator. We announced £1.6 billion of new international climate finance projects. We agreed half a billion pounds to protect forests and the rural communities depending on them. We committed £50 million for loss and damage to help developing countries to deal with the impact of climate change, and we signed an international green public procurement pledge to boost the use of green steel, cement and concrete.

We are absolutely determined to build on those successes in Baku, so the Energy Secretary will be breaking with recent tradition and leading the delegation himself, demonstrating the importance we attach to international negotiations at this critical time. I will be accompanying him, and we will hear more in due course about whether other Government Members will be coming with us.

Going into this COP, we have three priorities. The first is increasing finance. COP29 presents the first opportunity in 15 years to agree a new post-2025 finance goal. It is critical that the new collective quantified goal addresses the needs and priorities of developing countries, and we stand ready to work with Azerbaijan and its COP29 presidency to make that happen. As I said, meetings have already been taking place with them.

The second priority is raising ambitions to speed up the global net zero transition. In particular, we want to use COP29 to build momentum for the new nationally determined contributions, which are due by February 2025. We have already started planning our next NDC and we will do everything we can to encourage partners to be ambitious and wide-ranging with theirs. We will also develop a clean power alliance to bring together a coalition of countries at the cutting edge of ambition. Every country must show domestic action to contribute to the critical targets agreed last year on energy, methane, forests and more.

Thirdly, we must deliver on existing commitments and continue to support people on the frontline of the climate crisis, championing their voices through initiatives such as the climate and development ministerial, which places developing countries at the heart of work to improve access to finance for climate adaptation. I know that the hon. Member for Bath feels strongly about that. We look forward to co-chairing the fourth climate and development ministerial in Baku later this year. We also want to encourage even greater action on deforestation, which accounts for about 10% of global emissions, and we are committed to co-ordinated action outside the main negotiations, including making vital clean technologies accessible and affordable through the breakthrough agenda.

I will quickly turn to some of the key points made in this debate. I welcome the fact that the hon. Member for Bristol Central (Carla Denyer) and my hon. Friend the Member for Stratford and Bow support what we are doing in the consultation on no new oil and gas licences. As they said, it is important that this is a just transition and that we take local communities with us. My hon. Friend the Member for Whitehaven and Workington (Josh MacAlister) talked about the importance of nuclear to his constituency. He has already proved to be a real champion for that; nuclear is very much part of the mix.

I say to the hon. Member for Strangford (Jim Shannon) that one of the first things I said when I got into the Department was that I wanted to make sure that the devolved Administrations were part of the conversation as we headed into COP, and officials have been talking to the Department of Agriculture, Environment and Rural Affairs; we know that we want to have those conversations. Members asked about the appointment of an envoy, which is under consideration—again, watch this space. My hon. Friend the Member for Stratford and Bow talked about the role of cities, which I have already said is important. She will know that I recently met the head of C40 Cities, Mark Watts, and we talked about whether the UK can sign up to CHAMP—the Coalition for High Ambition Multilevel Partnerships—so that is on my radar.

I have covered the main points and I want to leave a minute for my hon. Friend the Member for Ealing Southall to reply. Although that was a quick canter through things, I hope that it has got across that we want to be in the driving seat when we go to COP. We can do that only if we have established our credibility at home, and I hope that we have done so.

Oral Answers to Questions

Kerry McCarthy Excerpts
Tuesday 21st May 2024

(6 months ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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When it comes to who controls and benefits from our energy system, why does the Government refuse to put the British people first? As we have heard, foreign-owned firms, whether France’s EDF or Denmark’s Ørsted, reap the rewards of energy produced in Britain. As they benefit British people pay the price, exposed to sky-high energy bills and beholden to volatile international prices. Why is the Minister so opposed to putting power back into the hands of the British people?

Justin Tomlinson Portrait Justin Tomlinson
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There is not a single country around the world that thinks Governments alone can deliver increased energy security. By working with businesses, we can unlock the private investment to do it. And talk about irrational: imagine a career politician, the shadow Secretary of State, running UK energy. Consumer bills would rocket.

Kerry McCarthy Portrait Kerry McCarthy
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The Minister is completely missing the point, so I will use a real-world example. In Bristol, we have set up the 20-year Bristol City Leap project with Ameresco and Vattenfall, a partnership between the public and private sector that will help the city to cut carbon dioxide, bring down bills and deliver green jobs. Actually, the Government are piloting a similar project in York, because it has been such a success in Bristol. But why should it be Vattenfall, a 100% Swedish state-owned firm, rather than a British equivalent, such as Labour’s GB Energy, that benefits? Why can Swedish taxpayers profit from investing in our future, but British taxpayers cannot?

Justin Tomlinson Portrait Justin Tomlinson
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Politicians with zero business experience are high risk. It was not so long ago that the shadow energy security Minister highlighted the success of Robin Hood Energy, backed by Nottingham City Council, which delivered a £38 million loss.

Oral Answers to Questions

Kerry McCarthy Excerpts
Tuesday 16th April 2024

(7 months, 1 week ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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We come to the shadow Minister.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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I welcome the Minister to his post. I think he is struggling a little bit to get with the programme, but hopefully he will soon be on message. [Hon. Members: “Oh!”] That was in terms of his answer to the question about being anti-net zero.

The Department confirmed last month that curtailment payments cost a whopping £1.4 billion last year. That is bill payers’ money being used to pay providers to switch off wind power and switch on gas. Why should people be paying even more on their energy bills to switch off cleaner and cheaper energy because the Government have failed to deliver the net zero capacity that we need?

Justin Tomlinson Portrait Justin Tomlinson
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That is why we have been focusing on expanding the interconnectors network so that, where we produce energy that we cannot use domestically, it can be sold. I also welcome last year’s large-scale expansion of battery farms—they have been springing up at an amazing speed—which allow us to store the energy supplied that exceeds demand.

Kerry McCarthy Portrait Kerry McCarthy
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I look forward to hearing the Minister’s predictions of what the curtailment payments will be in the coming year, because they were up for the previous year. In a survey of energy industry leaders, nearly 90% said that we need new policies to make the UK more attractive to investors. Nearly two thirds are moving investment out of the UK, and three quarters blame a lack of clarity from this Government on net zero. Is it not time for Ministers and Back Benchers to drop the culture war and put British industry and jobs first?

Justin Tomlinson Portrait Justin Tomlinson
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On a lack of clarity, I think the shadow Minister has mixed things up with the green prosperity plan. Even I cannot keep up with the latest position of senior figures in the Labour party, but I think the shadow team lost that battle. The reality is that in 2023 we secured £60 billion of private investment in low carbon technology, which was up a staggering 71% on the previous year. That is a credit to our team who delivered that.

Energy Rebates: Highlands and Islands

Kerry McCarthy Excerpts
Wednesday 6th March 2024

(8 months, 2 weeks ago)

Westminster Hall
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Westminster Hall is an alternative Chamber for MPs to hold debates, named after the adjoining Westminster Hall.

Each debate is chaired by an MP from the Panel of Chairs, rather than the Speaker or Deputy Speaker. A Government Minister will give the final speech, and no votes may be called on the debate topic.

This information is provided by Parallel Parliament and does not comprise part of the offical record

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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It is a pleasure, as always, to see you in the Chair, Mr Paisley. I thank the hon. Member for Inverness, Nairn, Badenoch and Strathspey (Drew Hendry) for bringing forward this debate, as well as all four Members who have taken part and highlighted the specific circumstances that mean fuel poverty is even more of an issue in their constituencies than in the rest of the UK.

We know that overall the average fuel poverty gap increased by 66% between 2020 and 2023. We know that 3 million people are in debt to their energy providers. We know that the Government are struggling to roll out their home insulation scheme; we saw figures the other day showing that in the first eight months of the Great British insulation scheme, only 2,900 houses had benefited from measures meant to benefit 300,000.

Obviously, in areas such as the ones represented by the Members present, home insulation is even more of a challenge. That is partly because of the nature of the homes—they are older buildings that are difficult to retrofit—but also because there is a much smaller retrofit-skills market. The scattered nature of the housing and its isolation means that the economies of scale from rolling out an insulation scheme would be far more difficult to implement. Unless local skills and finance can be mobilised, the areas are unlikely to be first in the queue to benefit from national schemes.

All Members in this debate have spoken eloquently, partly about the conditions that mean that fuel poverty is more of an issue: the longer darker nights, the cold, and the rain that “comes straight at you”, as the right hon. Member for Orkney and Shetland (Mr Carmichael) described. The hon. Member for Inverness, Nairn, Badenoch and Strathspey said that a third of people are living in fuel poverty, and a fifth of people are living in extreme poverty.

One of the things that I am grappling with is the debate about prepayment meters. We know about forced disconnection, when people simply cannot afford to carry on paying for their electricity. What is more difficult to ascertain is the extent to which people, while not going to those extremes, are living in very cold conditions because they have cut back on paying bills. We know that when there is energy bill support, and when prices come down, their energy use will go up, which implies that they were using less energy than they needed to keep themselves warm. A point was made about the impact on the health of children, older people and people with disabilities. People with disabilities have higher energy costs.

Drew Hendry Portrait Drew Hendry
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I am grateful to the hon. Member for underlining that there are big impacts on health, as well as the point that where there is a rebate and some funding to help people, it has a measurable impact. The whole point of the proposal on the highland energy rebate is to put that in place. It is an excellent point to underline and I am grateful that she has brought it to the table.

Kerry McCarthy Portrait Kerry McCarthy
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I would say that we do need to look at this in the round. Hopefully, the Minister will enlighten us a bit more, but Ofgem did a call for input on standing charges, which I think closed at the end of January. As far as I know, the outcome has not yet been published, but I think that it is for the Minister to give us some more details about the balance between standing charges, unit prices, and indeed the discussions about the social tariff. We are certainly looking at all those things.

As the hon. Member for Inverness, Nairn, Badenoch and Strathspey has said, the fact that the highlands and islands lack access to the gas grid means that they are in a particularly difficult situation. It was mentioned that 62% of properties in mainland Scotland were off the gas grid; I think I have that figure too. However, some places are almost entirely off grid, as I think the hon. Member said. That obviously leads to significantly higher costs because oil is often then used as a fuel, or heating is entirely electric.

Again, we have very much taken on board the point about decoupling from gas prices, but this all means that those people do not benefit immediately when wholesale prices do come down. I have figures here from Lochalsh & Skye Housing Association, which says that households in the area pay an additional £1,000 a year on energy bills compared with an average-sized home in the rest of Scotland, amounting to a 76% premium. That is just one figure illustrating the problem.

The point was very well made that Scotland is home to a huge amount of old and new generation energy generation. As the right hon. Member for Ross, Skye and Lochaber (Ian Blackford) asked, where is the benefit for Scotland from that? I was reading through a report from Changeworks on fuel poverty in the region in advance of this debate, and there was a quote from an energy adviser that really stood out:

“The annoyance of being a 321% net generator of green electricity to the rest of the UK, all from renewables, yet we have no access to the polluting fuel which is mains gas and the price of energy is four times the cost.”

Again, we know that renewable energy is going to be way cheaper than fossil fuels, and that is one of the reasons why Labour is committed to the “clean power by 2030” mission—because we know that that will help bring down energy prices. However, I can appreciate how absolutely galling it is to be somewhere where so much energy is generated—I think the right hon. Member for Ross, Skye and Lochaber talked about an economic renaissance for the highlands and islands linked to renewable energy—yet to be last in the queue to actually benefit from that. We absolutely need to tackle that unfairness.

I do not know whether anyone wants to intervene on this, but my understanding is still that the SNP is opposed to a windfall tax within our proposal. It is telling that we have this debate today, with the upcoming Budget; I hope that we see firm action from the Chancellor on tackling fuel poverty and recognising many of the unfairnesses that have been raised. There is some talk— I think we have actually heard most of the Budget already, which is not normally the case—about movement on a windfall tax on oil and gas. Labour is calling for an increase in the rate on the energy profits levy to 78%—

Drew Hendry Portrait Drew Hendry
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Will the hon. Lady give way?

Kerry McCarthy Portrait Kerry McCarthy
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Sorry, I will just finish what I was saying. And we are calling for an extension of the sunset clause to 2029, which would raise billions of pounds for the green transition, cutting household energy bills in the process.

Drew Hendry Portrait Drew Hendry
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I apologise if I got it wrong, but I thought that the hon. Member was inviting an intervention on that subject.

Kerry McCarthy Portrait Kerry McCarthy
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I was, but I just wanted to get my bit in first, otherwise I would have lost track.

Drew Hendry Portrait Drew Hendry
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Yes, of course. The point—I think I have to underline it again and again in this debate, and I think that the hon. Lady understands this—is that there is already a windfall tax, and other taxes coming from the highlands and islands through renewable energy, and we are getting nothing back. We are already seeing the effect of money being taken out, and it is not going back into the pockets of the consumers who are being punished in this way.

Kerry McCarthy Portrait Kerry McCarthy
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To do justice to the issues that hon. Members are raising, I will not go down the path of having an argument about the windfall tax, because we want to focus specifically on fuel poverty in constituencies.

Drew Hendry Portrait Drew Hendry
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The hon. Lady did actually raise the issue of windfall tax, so to say that she does not want to debate it is rather perverse. Let me try to help her a bit: over the past two years, oil prices rose to extraordinary levels and, as a result, many oil production companies made excess profits and have engaged in large-scale share buybacks. It is pretty simple and straightforward: in effect, it is a return of capital to shareholders, but it is untaxed. The Labour Opposition and the Government missed the opportunity to recognise the one-off nature of the situation. A one-off tax on share buy-backs could have alleviated the impact of higher energy prices, but both the Government and the Opposition missed the chance.

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Kerry McCarthy Portrait Kerry McCarthy
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We have been calling for a windfall tax for quite some time. We have also been challenging the generosity of the investment allowance that goes to oil and gas companies, which I think is 91p in the pound. Not least because my voice seems to be slightly failing me, let us keep to the topic—[Interruption.] I will draw my remarks to a close.

Scotland’s huge potential for renewable energy generation shows the need for a place-based approach that allows people to feel that they are part of the transition and are directly benefiting. It is particularly galling that Scotland is responsible for so much of the new renewable energy generation, but is not benefiting. In some ways, it should be benefiting more than other parts of the country because it is doing the generation.

What Joe Biden has done with the Inflation Reduction Act in the States very much demonstrates a place-based approach to the green transition. I think that about 70% of the investment has gone into Texas, which is traditionally an oil-producing state but has been keen to embrace the benefits of the green transition not just for jobs, but for the community. Labour’s local power plan is partly about community energy generation and how communities can directly benefit from renewables and use them to serve their needs, but an element of it is about lifting places up because they have made a contribution to the rest of the country.

I suspect that the Minister will tell us she cannot say anything about what is being announced in the Budget today, but I would like some reassurance that she recognises the geographical disparities whereby some parts of the country are being hit harder by fuel poverty. There is an overarching need to tackle the fuel poverty that affects millions across the UK. Could the Minister say something about the geographical disparities? Could she also give some indication of where the Government are on the fairness of pricing, on the impact of standing charges versus unit prices, and on prepayment meters? I look forward to hearing from her.

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Amanda Solloway Portrait Amanda Solloway
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The hon. Gentleman is right. He has made that point clearly on several occasions, and I am prepared to discuss more fully the highland energy rebate paper that I have been sent.

I turn to energy prices and support. Despite the rise in standing charges, energy prices have fallen significantly since the winter of 2022-23. The 2024 quarter 2 price cap of £1,690 is 60% lower than the 2023 quarter 1 price cap peak. It is important to note that the Government reacted quickly to support households last winter. About £40 billion was delivered to support households and businesses, an average of £1,500 per household between October 2022 and June 2023. We delivered £40 billion to support households and businesses last winter, with a typical household receiving £1,500 in support between October 2022 and June 2023. Many highlands and islands households off the gas grid also benefited from the £200 alternative fuel payment schemes.

Despite the fall in energy prices since the winter of 2022-23, the Government have continued to support households. We are delivering a package of support worth £104 billion—an average of £3,700 per household—between 2022 and 2025.

Debt is an incredibly important challenge at the moment. Although we are doing a lot to help households, we know that some have fallen into energy debt. We want to support them to ensure that consumers do not fall into further debt. Last year, Energy UK announced a voluntary debt commitment: 14 energy suppliers announced their collective commitment to go above and beyond the current licensing conditions to help households with their energy bill debt. Those energy suppliers will aim to provide immediate assistance to those in debt and will arm people with knowledge and resources to empower them to manage their bills more effectively. For assurance, I regularly meet stakeholders such as Citizens Advice to discuss what can be done to address consumer debt. I welcome further input from hon. Members on the issue.

Kerry McCarthy Portrait Kerry McCarthy
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This week, I met some academics who are doing some research into debt levels. As I understand it, the average is about £1,000 per household, but I do not know the extent to which some people are in only £100 or £200 of debt and others are in five-figure debt. Do the Government have analysis of that? Does the Minister have figures she could share with me or put in the House of Commons Library?

Amanda Solloway Portrait Amanda Solloway
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It is important that we consider the different levels of debt. It is quite complicated to get those figures because the suppliers have them, but I have pushed to see whether we can get a flavour of them. One of the things that I would advise households struggling with their bills to do is to speak to their supplier before going into debt, to receive help and support as soon as possible.

We have talked about prepayment metres, which can be a useful tool for consumers to manage their budgets and for energy suppliers to manage debt. However, it is important that the rules around their use are sufficient to protect consumers and are properly enforced. Involuntary installations should be used only as a last resort. Ofgem has strengthened its licence conditions for suppliers to conduct involuntary prepayment metre installations with exemptions in place for households with vulnerable individuals, such as those with people over 75 or children under the age of two.

The Government have already committed to supporting households past April 2024. Though I obviously cannot comment on today’s Budget, in the autumn statement we announced the biggest increase to the living wage and an increase to benefits of 6.7%. Earlier this year, we also cut national insurance for 27 million people, worth £450 for the average worker. As hon. Members have noted, in the autumn statement we also committed to giving communities living nearest to electricity transmission infrastructure up to £1,000 off their electricity bills for the next 10 years. That will apply across England, Wales and Scotland, including the highlands and islands, and they may be able to benefit from the scheme. We will also publish guidance this year on the wider benefits for local projects and provide an update on the electricity bill discount scheme.

As hon. Members have mentioned, many households in the highlands and islands are off the gas grid, which means they rely more on electricity. I also understand that many highlands and islands residents will use more energy and subsequently pay more for their energy bills due to the inclement weather, colder temperatures and poor insulation, but also due to having older and larger properties, which are harder to heat. To address that, the Government have already introduced several domestic energy efficiency schemes for all households in Great Britain to help lower bills and reach net zero targets. As an example, the Great British insulation scheme is delivering low-cost and free insulation to the least efficient homes in lower council tax bands, including many vulnerable households. The scheme will run until March 2026 with a value of £1 billion.

Since it was launched in January 2013, the energy company obligation has delivered around 3.8 million measures in approximately 2.5 million homes. Across ECO schemes, around 31,600 measures have been delivered to 23,100 households in local authority areas in the Scottish highlands and islands since 2013. As hon. Members will know, fuel poverty is devolved, with the Scottish Government responsible for the matter in Scotland. However, the ECO and the Great British insulation scheme are delivering energy-efficient measures to the least efficient low-income homes in Scotland. We are currently reviewing the fuel poverty strategy for England and will engage with the devolved Administrations as part of the process.

I understand this is a complex matter and one that is important to all hon. Members here. I thank them for bringing it to the debate. I would be happy to meet people further to today’s discussion. Finally, I want to touch on lived experiences and the impact on health. Having been brought up in a household that was fuel-poor, I know what it is like. I know the impact that that can have on someone’s health, especially as my mum suffered with chronic obstructive pulmonary disease and we found it incredibly difficult to manage all those challenges. My commitment is therefore to do the very best I can to support all those energy-poor households.

Oral Answers to Questions

Kerry McCarthy Excerpts
Tuesday 27th February 2024

(8 months, 4 weeks ago)

Commons Chamber
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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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A year ago, the then Energy Secretary said that if suppliers had wrongly installed prepayment meters in any home, they would have to recompense their customers for the way they had behaved. One year later, can the Minister tell the House how many individuals who had a prepayment meter wrongly installed have had compensation, how many are yet to receive it and, of those still waiting, when they will get the compensation?

Amanda Solloway Portrait Amanda Solloway
- View Speech - Hansard - - - Excerpts

One thing on which we can all agree across the House is that it was absolutely abhorrent that people had prepayment meters forced on them. We are working our way through the compensation, but I can assure Members that we are doing everything we can to ensure that, when prepayment meters are installed, we are doing exactly the right thing to make sure that everybody is kept safe.

Kerry McCarthy Portrait Kerry McCarthy
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I asked the Minister three questions but did not get an answer to any of them. Perhaps she can put the figures in the House of Commons Library, because she clearly does not have a clue what they are.

More than 3 million households are in debt to their energy suppliers and almost 10 million households are living in cold, damp and poorly insulated homes. The Great British insulation scheme is proving to be a great Tory insulation fiasco. Will the Minister tell me why the insulation scheme is proving to be such a disaster?

Amanda Solloway Portrait Amanda Solloway
- View Speech - Hansard - - - Excerpts

We have taken great steps to support people. For example, last winter we gave unprecedented support to households and businesses. Of course, debt is a major concern, and I have regular meetings with stakeholders to ensure that we are doing the very best not only to get people out of debt, but to prevent them getting into debt in the first place.

Draft Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024

Kerry McCarthy Excerpts
Tuesday 20th February 2024

(9 months ago)

General Committees
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Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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It is a pleasure to see you in the Chair, Dame Maria. As the Minister has said, this delegated legislation brings the Nuclear Decommissioning Authority’s pensions into line with wider public sector pensions, as a result of the Public Sector Pensions Act 2013, by moving from a final salary scheme to a career average scheme.

We do not object to the broad objectives—as the Minister will recall, we had this discussion during the passage of the Energy Act 2023—but we have a few issues with the way the consultation has been run and how long the process has taken, which have been raised by unions and affected members. I pay tribute to everyone who works at the NDA. They are integral to keeping the public safe, and they should be recognised when determining legislation. We do not want to build in disincentives through watered down pensions for the people who work there.

I want to address a couple of points that have been raised. The unions did vote in favour of the reforms, but that was because they were worried about what the alternative would be; it was not an overwhelming endorsement. Legislation is needed to implement the proposals because the members of these schemes currently have statutory protection against detrimental changes under the Electricity Act 1989 or the Energy Act 2004. Although, as I said, union members voted in favour of the reforms, albeit a little reluctantly, there is concern about these protections being broken again. That was not helped by the fact that during the consultation many respondents felt that the terminology used to describe the application of the powers was too broad or unclear.

Another question has been raised: why are the Government not applying the Hutton reforms to public service pensions in full? Lord Hutton ruled out providing pensions on a defined contribution basis, but the Government refuse to apply that recommendation to the many thousands of employees in the NDA estate who are in the defined contribution section of the CNPP.

Finally, the Minister talked about the starting gun being fired in 2011; that has been a hell of a long time to get off the starting line. I know that the Minister is a speedy marathon runner, as well as being a speedy talker—it is not like him to drag his feet. Members of the scheme were first balloted on the reforms back in 2017, with the Government taking the decision to bring forward this statutory instrument in December 2018. I know that it required the Energy Act as paving legislation but the fact that it has taken until 2024 to reach implementation is not optimal, to put it mildly.

It is said that the estimated total savings are expected to be about £200 million. What impact has the delay had on the estimated savings?

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Andrew Bowie Portrait Andrew Bowie
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I thank the shadow Minister and my hon. Friend the Member for Amber Valley for their questions. The hon. Lady asked about the time it has taken for us to bring the changes forward. She is absolutely right: it is sub-optimal that it has taken this long. Having met the unions in the latter part of last year, I am aware of the concern and the not inconsiderable worry caused by how long it has taken us to bring this forward. However, we did need to wait for parliamentary time and the actions that we brought forward through the Energy Act to allow us to make the changes required to bring the NDA’s pension schemes into a much better place than where they were.

It should be recognised that the pension is very good. Allowing a full pension award at 60 for the majority of members when most public pensions are linked to a state retirement age of 67, as my hon. Friend the Member for Amber Valley mentioned, was a considerable win for workers at the NDA and something we are proud to have achieved. It means that the Nuclear Decommissioning Authority—a vital part of our effort to maintain a safe, sustainable nuclear estate in this country—will continue to be attractive to the best and brightest. We all agree that that should be an ambition.

The NDA will, of course, continue to engage extensively in communicating the reform to employees affected by the changes and the trade unions that provide representations across the NDA group. Of course we are always happy to look at the impact of the changes once they have been implemented. There is the ability after the implementation of this secondary legislation to make changes to how the schemes operate.

Kerry McCarthy Portrait Kerry McCarthy
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Did the Minister address the point about the £200 million savings or did I miss that?

Andrew Bowie Portrait Andrew Bowie
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No, the hon. Lady is absolutely right. Sorry, I had forgotten that she asked. There will be significant savings, of course, for the NDA and that is a good thing. We have reached a good settlement on the new pension scheme. It is a good pension for members. We will continue to attract the brightest and best into the organisation and give people certainty about where they are going to be when they hit retirement age, while providing significant savings for the Nuclear Decommissioning Authority, which will allow it to carry on with its important work for this country, at Sellafield and the other nuclear sites in which it is engaged across the UK. That work is only set to grow, by the way, as more of our civil nuclear fleet reaches the stage of having to consider moving into decommissioning mode. The NDA’s work is about to increase exponentially so the savings made by the changes will be important and allow it to do more and do it effectively.

The Government remain committed to ensuring that pension schemes are fair, efficient and in line with the wider public sector. The regulations are essential to the successful implementation of a CARE-based pension reform of the NDA group. Crucially, they preserve commitments to excellent benefits, including provisions for members to retire at the current retirement age. They also yield financial savings that will be used to bolster the NDA’s mission of responsibly decommissioning the UK’s nuclear legacy. I urge the Committee to support the draft Nuclear Decommissioning Authority (Pension Scheme Amendment) Regulations 2024.

Question put and agreed to.

2.41 pm

Committee rose.

Oral Answers to Questions

Kerry McCarthy Excerpts
Tuesday 16th January 2024

(10 months, 1 week ago)

Commons Chamber
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Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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Having shared a constituency border with the former Member for Kingswood for 14 years, I know that he was genuine in wanting what was best for his constituents. He knew that a green transition would protect their jobs at Rolls-Royce and Airbus, help the science park to thrive, and bring opportunities for small and medium-sized enterprises and the self-employed. He knew that home insulation and clean energy would bring warmer homes to Warmley and Woodstock, and lower bills to Bitton. He resigned because he had lost all hope that this Government would deliver on those things. He was right, was he not?

Graham Stuart Portrait Graham Stuart
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Just to spell it out—because we do have to speak very slowly for the Opposition Front-Bench team—we have cut our emissions more than any other major economy, and our plans and the expectation of the UN are that we will continue to lead the world. That is leading the world: not talking about it, not promising to borrow £28 billion and put everyone’s taxes up, and then fluctuating on a daily basis. It is about delivery. We have delivered and will continue to do so.

If we want to see the reality of Labour on energy, we only need to go to Nottingham. There, Labour invested in Robin Hood Energy, which went spectacularly bust—a forerunner of a Labour Government, perhaps, if there ever were to be one. It is typical of Labour to reverse all the principles of Robin Hood: all Labour does is steal from the poor in order to pay for the bailiff.

COP28

Kerry McCarthy Excerpts
Wednesday 29th November 2023

(11 months, 4 weeks ago)

Commons Chamber
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Urgent Questions are proposed each morning by backbench MPs, and up to two may be selected each day by the Speaker. Chosen Urgent Questions are announced 30 minutes before Parliament sits each day.

Each Urgent Question requires a Government Minister to give a response on the debate topic.

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Lindsay Hoyle Portrait Mr Speaker
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I call the shadow Minister.

Kerry McCarthy Portrait Kerry McCarthy (Bristol East) (Lab)
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The UN has warned that the world is on course for a catastrophic 2.8°C of warming, in part because promises made at COP26 and COP27 have not been fulfilled. We are running out of last chances. We know what we need to do and we know how to do it, but where is the sense of urgency? The Prime Minister was shamed into attending COP last year. I would have thought he would be ashamed to be there this year, after his climate climbdown last month derailed momentum at exactly the wrong time. The world needs climate leadership.

Does the Minister think it is acceptable for the Prime Minister to sabotage the UK’s history of climate leadership with his cynical backtracking on net zero? Labour will be going to COP with a message that the UK can be a climate leader again and that, in doing so, we will cut energy bills and boost energy independence at home, which this Government have conspicuously failed to do. Labour will put the UK back in a position of leadership and establish a clean power alliance. We will pledge to issue no new oil, gas or coal licences and set an example with our mission for clean power by 2030. What example does it set if the current UK Government ignore the science and global consensus on fossil fuels, especially when the Energy Secretary admits that her policy will not even cut bills?

Labour will also be working for multilateral development bank reform to help developing countries access capital, as well as championing the UK as the future green finance capital of the world, with mandatory 1.5°C-aligned transition plans for FTSE 100 companies and financial institutions. Can the Minister tell me what the Government will be doing to advance that agenda?

There is so much more that the UK can and must do to reduce emissions and deliver energy security, to cut energy bills and to back British industry. With Labour, Britain would lead the world at COP. Labour is ready to lead; is the Minister?

Amanda Solloway Portrait Amanda Solloway
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As I have mentioned, we do take this issue incredibly seriously. If I think about some of the facts, as the hon. Member rightly mentioned, at the G20 the Prime Minister announced $2 billion to the green climate fund. That is the biggest single funding commitment that the UK has made to help the world tackle climate change. Half of that contribution will go to adaptation. We are committed, and that is why we have a presence at COP28. The House will see that senior members of the UK Government are there, as well as King Charles.