Warm Home Discount

Luke Murphy Excerpts

Thursday 19th June 2025 Commons Chamber

[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.

[Luke Murphy (Basingstoke) (Lab)]

I welcome the Minister’s statement. I think the shadow Minister was right to highlight this statement being made on the warmest day of the year—this is a Government announcing a warm home plan to literally fix the roof while the sun shines, which the Conservatives failed to do. This announcement will benefit nearly 3 million families, no doubt helping thousands in Hampshire, including many in my constituency.

First, on data sharing, one reason it is tough for many families and households to access these benefits is the inability to access data between the suppliers and the Government. Secondly, given that the legacy of the previous Government was to leave us with the highest electricity prices in Europe, can the Minister confirm that the Government are continuing to look at ways to bring down electricity costs for both consumers and businesses?

[Miatta Fahnbulleh]

As always, my hon. Friend puts it perfectly. I will pick up his point on data sharing, which is critical. My Department and the Department for Work and Pensions have been working over the past few months on the sharing of means-tested benefit data so that this will be automatic; come this winter, all eligible consumers will receive a letter informing them that they will be getting the warm home discount. It will be transferred on to energy bills as a credit—a direct payment for consumers—because we have done the groundwork to put that in place.

On my hon. Friend’s critical second point, the relative cost of gas and electricity is incredibly high, and we know that is a problem for both households and businesses, particularly as we try to make that transition to clean energy. We are continuing to do that work. I am very clear that we need to deal with that question in order, for example, for our plans to upgrade homes to have the bite and traction they need, and we are absolutely committed to doing so.