Oral Answers to Questions Debate
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Main Page: Martin McCluskey (Labour - Inverclyde and Renfrewshire West)Department Debates - View all Martin McCluskey's debates with the Department for Energy Security & Net Zero
(1 day, 9 hours ago)
Commons Chamber
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
The Government know that energy bills in Scotland remain too high. That is why we are fighting the consumer’s corner. The action we took at the Budget will ensure that from April the price cap will fall by 7%, or £117, which is fixed until the end of June. That is in addition to support offered to vulnerable heating oil customers in Scotland and the expansion of the warm home discount, which means £92 million in annual funding for Scottish consumers.
Scotland is one of the most energy-rich countries in Europe, and the Treasury and the UK Government have benefited to the tune of hundreds of billions as revenues have flowed in over the years, yet bill payers in Scotland pay among the highest prices in Europe. Labour promised that bills would be hundreds of pounds lower than they are now, yet two years in they follow the failure of successive Westminster Governments in terms of resilience and bills. Would Scotland not be better off looking after its own energy resource?
Martin McCluskey
Bills are going down by 7% from next week. We do not need to imagine a future with independence and what would happen with the SNP in power. Let us look at the record. The hon. Member’s party promised a publicly owned energy company six years ago; we delivered Great British Energy within 18 months. His party scrapped fuel poverty targets; we are lifting 1 million households out of fuel poverty by the end of this Parliament. While his party in government in Scotland abandoned the heat in buildings Bill, this Government are making the biggest ever upgrade to home efficiency through the warm homes plan, with £15 billion of spending.
Graeme Downie (Dunfermline and Dollar) (Lab)
Does the Minister agree one reason we need to see lower energy bills in Scotland—and that has been blocked—is the SNP’s ideological objection to nuclear power? I recently received a written answer from the Minister for Energy regarding a study by GB Energy to assess Scotland’s full potential for nuclear power. Will the Minister work with his colleagues to ensure that that analysis is published as quickly as possible so that the people of Scotland can see exactly how much we are missing out on thanks to the SNP’s ideological objection to nuclear power, and how much people are suffering as a result?
Martin McCluskey
My hon. Friend makes a crucial point. I know that he is an advocate for nuclear in Scotland, as am I. We are missing out on the opportunities of nuclear, and it is a disgrace that 1,300 Scottish nuclear workers have to move south every week just to get employment in the nuclear industry. I hope that the Scottish National party reverses its ideological ban on nuclear power as soon as possible.
Sarah Hall (Warrington South) (Lab/Co-op)
Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
We understand that many households, particularly in rural and off-gas grid areas, rely on heating oil as their primary source of heat. That is why my right hon. Friend the Chancellor has announced £53 million of support for those who heat their homes with heating oil, and £4.6 million will be delivered by the Scottish Government. Obviously, we continue to monitor the situation closely and will keep measures under review.
Mr MacDonald
In the remote highlands and islands, where mains gas is not available, where we have the highest level of fuel poverty in Britain, where local households and businesses rely on heating oil and electricity, and where much of Britain’s renewable energy is generated, but to minimal local benefit, does the Minister accept the unfairness of a highlander having to pay a multiple of what those in cities pay for energy?
Martin McCluskey
The hon. Gentleman makes an important point. I visited the Western Isles last week to speak directly to people who have been affected by the energy crisis, and I heard about the pressures people there are under. It is why we have welcomed the Competition and Markets Authority’s investigation into heating oil. On his point about people benefiting from local infrastructure, this morning we announced a trial for free wind power for people living near that infrastructure—he will be able to find the details in the Vote Office.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I welcome the UK Government’s support for heating oil customers in my constituency and the follow-up support from the Scottish Government, but I am slightly baffled that the Scottish Government have chosen to centralise support through Advice Direct Scotland, instead of entrusting local authorities. Will the Minister urge the Scottish Government to use local expertise, such as Tighean Innse Gall, which he met last week, and Point and Sandwick Trust, which have that local knowledge to find hard-to-reach customers, because we know that in rural areas people are reluctant to come forward for support?
Martin McCluskey
I was pleased to join my hon. Friend in Stornoway last week to meet those organisations. It is absolutely crucial—whether it is through the local government schemes that we are running in England or through the centralised scheme that the Scottish Government are running—that we take advantage of local knowledge to ensure that the support reaches the people who need it.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
In Aviemore it will be snowing tomorrow—in fact, in quite a lot of north Scotland it will be snowing to a pretty low level. People in those areas are suffering hugely from massive energy prices for electricity, heating oil and liquefied petroleum gas for tanks. In Aviemore, a 2,500-litre tank, which was filled in November for £1,400, now costs £3,400 to fill. That is the differential that people are having to pay. Does the Minister agree that £35 per household is frankly a drop in the ocean?
Martin McCluskey
I think the hon. Member should be careful not to sow fear about these issues among his constituents, which is precisely what his remarks do. My right hon. Friend the Chancellor provided £4.6 million to the Scottish Government, who have increased the fund to £10 million. It is absolutely imperative that the Scottish Government tell hon. Members and constituents how to access the funding. They are delivering that £10 million scheme, which they have told us will be available from 1 April, so it is up to them to set out how it will get to people.
Euan Stainbank (Falkirk) (Lab)
About 30% of households in the Braes villages use alternative heating sources such as heating oil—that is far above the district, constituency or Scottish nationwide average. The Scottish Government’s decision to deliver the scheme nationally rather than locally is creating anxiety in those communities that they may be forgotten by Holyrood. What assurances have Ministers received from their Holyrood counterparts that Scottish heating oil support will be available and proportionate for communities such as the Braes villages?
Martin McCluskey
I welcome my hon. Friend’s advocacy for his constituents. It is essential that the Scottish Government scheme, which is running to support people with heating oil costs, finds its way to the people who need it. I am disappointed that the Scottish Government have chosen to centralise the funding rather than work alongside local government, but it is for them to set out how they will ensure that everyone is reached.
I declare an interest: my home is off the gas grid and my boiler is fuelled by domestic heating oil. I have listened carefully to the Minister’s answers, and there have been significant gaps—there has been no mention of liquefied petroleum gas, for example. Although it is always right to support the most vulnerable in our society, I am not sure that he has fully understood that there are many households on modest incomes across rural communities that do not receive benefits and simply do not have £500, £600 or £700 lying around to meet a bill that they have not budgeted for.
Perhaps the Minister could answer a specific question on certainty. While the CMA investigation goes on, customers continue to place orders without knowing how much they will be charged when the oil is delivered. He could implement an interim measure before a wider set of changes to stop that practice. Will he do so?
Martin McCluskey
I think I need to start by correcting some of what the hon. Gentleman said. In my statement last week, I confirmed that LPG was part of the support—perhaps he did not hear that. Our priority, all the way through this crisis, has been to ensure that funding reaches people at speed. That is why we have delivered support in two weeks, not 200 days. On his point about means-testing, the funding is discretionary, so local authorities can decide how to provide it to people. I think he also called for a CMA investigation. We will look and study the results of the investigation to see what needs to happen to regulate the industry, but, as I said from the Dispatch Box a number of times last week, it is clear that the market is not functioning properly.
Dr Roz Savage (South Cotswolds) (LD)
Michael Wheeler (Worsley and Eccles) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
I thank my hon. Friend for his important question. We are taking three additional measures. We are expanding and extending the warm home discount to 2031. We have supported heating oil customers with the £53 million-worth of support that was announced last week, and our £15 billion warm homes plan is the biggest home upgrade plan in British history. All of that is wrapped up in our clean energy mission—clean power 2030—which will ultimately give us control of our energy.
Martin McCluskey
We moved swiftly to introduce funding to support people. The £53 million-worth of support, which is being disbursed through the crisis and resilience fund in England and Wales, will provide support for people through this immediate period. We will keep other measures under review, but if hon. Members have examples of unfair pricing practices, it is important that they report them to the CMA so that it can consider them as part of its review.
Callum Anderson (Buckingham and Bletchley) (Lab)
Mark Sewards (Leeds South West and Morley) (Lab)
Martin McCluskey
We heard in the responses to our 2024 consultation the concerns about the continued risk to consumers arising from some of these TPIs. The Government plan to bring in new regulation of TPIs and will appoint Ofgem as the regulator, which will be empowered to put in place rules to protect small and medium-sized enterprises and other TPI customers.
Martin McCluskey
The support on offer is not means-tested; it is at the discretion of local authorities to decide the criteria for those applications. That is the first point. The second point is that the CMA is investigating this in detail. As my right hon. Friend the Secretary of State said earlier, if there are any examples, please bring them to my attention and to the CMA’s attention, so that they can be considered as part of that review.
Martin Rhodes (Glasgow North) (Lab)
Terminally ill people often have additional energy needs and energy costs. What steps is the Department taking to support those people who are terminally ill with increased energy costs?
Martin McCluskey
I welcome my hon. Friend’s advocacy for those people. No one with a terminal illness should have to face concerns about their energy bills. I will soon be meeting the Minister for Health Innovation and Safety, my hon. Friend the Member for Glasgow South West (Dr Ahmed), to discuss how Government can better share data in order to target support at vulnerable people and those with health conditions.
The Secretary of State will be aware of the very high dependence in Northern Ireland on home heating oil. Although the Government have offered some help in the past 10 days, has consideration been given to what happens beyond the summer period if the crisis in the middle east continues over the next few months?
Martin McCluskey
We have supplied £17 million to the Northern Ireland Executive, and I had a constructive conversation last week with Minister Archibald about how that is deployed. We will keep other measures under review as the situation develops.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
I thank the Minister for his focus on securing UK private investment in critical minerals—it is fantastic to see. I know the Secretary of State agrees that Cornwall is vital for future UK energy security. One test and demo model in the Celtic sea has come forward in auction round 7, but I want to ask the Secretary of State about the timing of AR8, and whether he will look again at test and demo models in the Celtic sea, so that we can really use that energy base.