Energy Costs

Martin McCluskey Excerpts

Tuesday 9th June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

It is a pleasure to serve under your chairmanship, Ms McVey. I am grateful to the hon. Member for Gorton and Denton (Hannah Spencer) for securing the debate, and I congratulate her on her first Westminster Hall debate and on giving hon. Members across the Chamber the opportunity to discuss a vital issue for all our constituents.

As I draw the debate to a close, I want to be very clear about this Government’s priorities. The increase in the price cap announced by Ofgem two weeks ago is not what any of us wanted, and it is caused by the war in Iran. Two days before the conflict began, the price cap fell by 7%—a reduction that is still built into the prices being paid today. As the Prime Minister has said, this is not our war, but we are now feeling the effects of it. That is why we are very clear that the strait of Hormuz must be reopened to traffic.

[Richard Burgon]

Is it not totally outrageous that energy giants will make billions in extra profits from Trump’s war on Iran while ordinary people are hit with higher costs? Does the Minister agree that we should introduce an emergency war profits tax to ensure that they cannot make a single extra penny in super-profits from this crisis? We can use that money to fund urgent cost of living support.

[Martin McCluskey]

My hon. Friend will know that decisions about tax are for the Chancellor. We already have the windfall tax on energy profits in place—a tax opposed by the SNP and the Conservative Opposition.

I will turn to the points raised by the hon. Member for Gorton and Denton and my hon. Friend the Member for Leeds East (Richard Burgon) in a moment. As I was saying, it is not our war, but we are now feeling the effects, and that is why we are very clear that the strait of Hormuz must be reopened to traffic. As Members across the Chamber would expect, we are continuing to monitor the situation. We are exploring all options for future support, but we are taking action now to deal with high prices.

Let us be clear why we are doing that: we know that the pressure of high energy costs is very real for many families across the country, as the hon. Member for Gorton and Denton described. Households continue to feel the burden of bills, particularly where incomes are tight, and there is little room in their budgets for unexpected costs. We are determined to return bills to the downward path they were on before the outbreak of the war. It is important to note that energy prices in 2025 were lower than they were in 2024. We delivered a 7% reduction in energy prices in February. They were on a downward trajectory before the outbreak of war in Iran. We are doing this to tackle fuel poverty and protect people from the rollercoaster of fossil fuel markets that has left too many families exposed to volatile energy prices for too long.

[Susan Murray]

It is good to hear the Government’s intention to reduce energy prices. The hon. Member for Gorton and Denton (Hannah Spencer) is right to call for more affordable energy. In France, electricity is about a third cheaper than it is here, with nuclear at the heart of the system. Does the Minister agree that ruling nuclear out or not progressing it quickly enough is wrong, and will he join me in calling for the assessment of Scotland’s nuclear potential to be published?

--- Later in debate ---

[Martin McCluskey]

I join the hon. Lady in those calls on nuclear energy, which is essential to our energy mix. She highlighted the example of France; one reason why its electricity cost is so low is that it carried on building nuclear through the ’50s, ’60s, ’70s and ’80s. Unlike this country, where we had a stop-start approach to nuclear energy, France has been able to keep costs low. It is disappointing that we have seen opposition to nuclear from the SNP, which will not allow it to be built in Scotland, and from the Green party, which has opposed it, including at Wylfa in north Wales, where we are creating a whole generation of new jobs around nuclear. More than 1,900 Scots move from Scotland to England each week to work on nuclear projects—people who could be working far closer to home if there was a new generation of nuclear energy in Scotland.

Turning back to the action the Government have already taken, in the autumn Budget we acted to reduce electricity costs, to the benefit of all households with a domestic electricity meter. We did that by scrapping the energy company obligation and moving 75% of the domestic costs of the renewables obligation to the Exchequer. By doing that, we have been able to provide immediate savings for households.

The average saving was around £117 within the price cap, but because it disproportionately fell on electricity—I know that the hon. Member for Inverness, Skye and West Ross-shire (Mr MacDonald) is interested in the cost of electricity, particularly in rural areas—the discount for rural areas and those on electricity was well over £300 within the price cap. As I said earlier, those changes are still factored into energy bills now; without that action, the July price cap would have been significantly higher.

We also announced the continuation of the warm home discount scheme until 2030-31. That will provide around 6 million eligible households with a £150 rebate on energy bills each winter; it is a significant extension of what was available under the previous Government, and it has reached far more people in the last year than it did in the past.

The main, structural reason why we find our energy bills so high is because of our exposure, in this country, to volatile international gas markets. The only answer to dealing with those high prices is to take back control of our energy through clean, home-grown power and homes that are cheaper to run. That approach is supported by our warm homes plan. The hon. Member for Gorton and Denton alluded to the need for more retrofitting and improvements to be made to housing, and that is what we are doing through the warm homes plan, which represents the biggest public investment in home upgrades in British history.

[Tim Roca (Macclesfield) (Lab)]

The Minister is making a powerful point about the investments that the Government are making in green and clean energy. In Macclesfield, families are suffering from high energy costs at the pumps or in making sure that their homes are warm when they need to be. Does he agree that tackling climate change, investing in clean energy and bringing down bills come together as a coherent argument, and that we should all be making the case for that?

[Martin McCluskey]

My hon. Friend is a champion for his constituents. He is making the argument not just for lower prices at the pump and lower costs of energy, but for doing that in a clean, green way. Those two things do go hand in hand; we can reduce energy and fuel prices while people can also make important decisions about clean energy in their own lives. That is exactly what the Government are doing.

As I was saying, the approach that we are taking is supported by our warm homes plan, which represents the biggest public investment in home upgrades in British history. It is backed by £15 billion and will help upgrade up to 5 million homes by 2030; that means real improvements to the homes people live in.

Households will benefit from solar panels, clean heat technologies and batteries, and improved insulation. Insulation is an essential part of what we are trying to do in the warm homes plan; it has always been part of Government schemes and will into the future. All that is to cut bills and improve comfort for homeowners, renters and others. It will mean a housing stock that is better prepared for the future and a country that is less vulnerable to energy price shocks.

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

We are waiting for the Department for Energy Security and Net Zero to come up with the results of the community benefit consultation. The highlands only got £9 million of community benefit last year, and Scotland as a whole got less than £30 million. There are tens of thousands of jobs in renewables in the highlands, but they are not for locals; they are imported teams. Very often, offshore firms are doing the construction. We sell 10 times more electricity than we produce. Effectively, there is nothing in it for the people of rural Scotland to produce electricity. Does the Minister agree that the community benefit conclusion from DESNZ is crucial?

[Martin McCluskey]

The hon. Member makes a powerful point. We will come forward with the response on community benefits soon. I point him towards what we have already announced regarding a trial of free wind power for communities close to generation, which will be coming later this year. His point about workforce is also really important. That is why I am chairing a workforce taskforce with the TUC to work through those points and make sure that we have good, home-grown jobs that are unionised and pay decent wages, and that local communities are feeling the benefit of that.

[Mike Reader (Northampton South) (Lab)]

The hon. Member for Gorton and Denton (Hannah Spencer) referred to retrofitting in her speech, and the Minister has talked about its importance. In Northampton, one of the biggest concerns people have about committing to retrofit is getting a dodgy builder. The Energy Security and Net Zero Committee recognise that, and we have recommended to Government that they bring forward a licensing scheme for contractors and an accreditation scheme for tradespeople. Could the Minister set out how the Government are progressing on that?

[Martin McCluskey]

My hon. Friend makes a really important point. We are coming forward soon with our proposals for consumer protection. I have said before in this Chamber that the first thing that landed on my desk, when I came into this role in September, was the NAO’s report into the previous Government’s energy company obligation scheme, which was shocking—awful. To answer the point raised by the hon. Member for Gorton and Denton, my driving force behind any consumer protection work that we do is to make sure that no one faces such a situation ever again.

We are working with those affected by the problems with solid wall insulation and internal wall insulation. We are working through a process of audits to reach every single one of those homes by next year and make sure that those people get the support they need. The hon. Lady mentioned that in her remarks, and we are taking action on SWI and IWI to reach every household. In some of the hot spots for poor work, we are sending people door to door to make sure that we reach each household, audit the properties, work out what remediation is required and then remediate it. We will be able to provide a more detailed update on that work soon. Those actions and others will lift 1 million households out of fuel poverty by 2030.

The warm homes plan is an offer for everyone. For those on low incomes and in fuel poverty—those who need it most—we are providing £5 billion of direct grant support for home upgrades delivered by local authorities and social housing providers. Given where the hon. Lady’s constituency is, I pay tribute to the work that the Greater Manchester combined authority has been doing through the warm homes social housing fund and the warm homes local grant—it is leading the way in some of the work that is being done.

We are making it easier for everyone to access low and zero-interest finance for technologies that can bring bills down over time. We have a strategic partnership with the Green Finance Institute to establish low-cost loans, ideally before the end of this year, to make sure that people have access to finance and can take advantage of clean technology; we cannot have a situation, as we have had in the past, where only those people with the deepest pockets are able to access these cost-saving measures.

We are, of course, continuing to support the expanded boiler upgrade scheme available to every eligible household in England and Wales. We have also broadened the range of clean heat technologies supported by the boiler upgrade scheme and continue to work with the industry to make clean heat and home energy upgrades simpler.

As the situation in Iran has developed over the past few months, we have seen that households want the chance to generate and use their own clean electricity. That is why the Government are supporting a rooftop revolution to bring solar technology into more homes; hon. Members may have seen the increase in solar over recent months. Subject to final approvals, we are bringing an additional £100 million of funding to the warm homes social housing fund, to support the delivery of up to 57,000 solar installations in this financial year. Our plan is to make plug-in solar available in this country for the first time, opening opportunities for homes where traditional rooftop installation is harder.

We also know that, in too many cases, the people paying the price of inefficient homes are the people with the least power to change them. Around 1.6 million children in this country live in cold and damp conditions in private rented accommodation, which is frankly a disgrace. That is why, as part of the warm homes plan, we are introducing new minimum energy efficiency standards in the social and private rental sectors. Alongside what other parts of Government are doing on wider housing reforms, such as the Renters’ Rights Act 2025, they will make sure that renters can benefit from warmer homes and lower bills, and that energy affordability is not reserved just for owner-occupiers.

Before I conclude, I want to turn to a couple of other points. The hon. Member for Gorton and Denton raised some issues around taxation. I have already mentioned in response to other Members the windfall tax, which remains in place, opposed by the Conservatives and the SNP. We have also recently announced increases to the energy generators levy and the encouragement to take those generators from the contracts they are on at the moment on to longer-term contracts for difference. Within the price cap is a cap on profit; the earnings before interest and taxes allowance caps profit at 1.9% and ensures that profit is there, but adequately capped.

I agree with the hon. Lady that we need to be going further and faster on the deployment of clean energy, but I draw her attention to the actions of some of her colleagues in local authorities across the country, where Green councillors have opposed clean energy that, on the latest estimate, could power 9.9 million homes. If we believe in clean power and this agenda, we must place our political will behind it to make sure that we move away from fossil fuels as quickly as possible.

The Government’s message here is straightforward: we are acting to deliver support directly to those who need it most. We have a serious, long-term plan to reduce exposure to fossil fuel price shocks, improve the homes people live in and ensure that everyone can reap the benefits of this Government’s clean power mission. Our approach is practical, fair and, above all, rooted in the everyday concerns of households. I thank hon. Members for their contributions to this debate.

Question put and agreed to.

Draft Energy Prices Act 2022 (Amendment) (Northern Ireland) Regulations 2026

Martin McCluskey Excerpts

Tuesday 2nd June 2026 General Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I beg to move,

That the Committee has considered the draft Energy Prices Act 2022 (Amendment) (Northern Ireland) Regulations 2026.

It is a pleasure to serve under your chairmanship, Sir Alec. The draft regulations were laid before the House on 16 March.

This Government are fully committed to fighting people’s corner to tackle the cost of living crisis across the United Kingdom. We are taking action on the matter as a priority and we are supporting devolved Governments to act when that is within their purview. I work closely with Ministers in the devolved Governments, including the Northern Ireland Executive. That covers work on the Budget commitments we are discussing, and more widely on the situation for energy consumers across the UK.

At last year’s Budget, alongside several positive changes to help working people across the country with the cost of living, the Chancellor announced significant changes to the cost of energy for households. Let me first set out the implications of those changes for consumers in Northern Ireland, before I turn specifically to the draft regulations.

The Budget set out that we would remove certain costs from energy bills in Great Britain, which led to energy bills in GB falling by 7% from 1 April this year. That reduced costs on bills related to the renewables obligation and the energy company obligation. Northern Ireland is in a different position as part of the single electricity market across the island of Ireland. Energy affordability is largely a transferred matter for the Northern Ireland Executive. From the outset of the Budget, however, we were clear that we would support the Executive to develop a comparable offer and that, subject to a business case, the Treasury would make such funds available.

The Northern Ireland Department for the Economy has since developed a proposal to remove costs—about £30 a year—from electricity bills, totalling £81 million of support over three years. That figure arises because in Northern Ireland, the starting point of policy costs on those bills is different from in Great Britain. In official-level discussions in the wake of the Budget, my Department and the Northern Ireland Department for the Economy worked closely to share learning about the policy design and its legislative basis. That joint working has supported the Northern Ireland Department’s development of its parallel policy.

On 2 March, the Minister for the Economy in Northern Ireland, Dr Caoimhe Archibald, wrote to me to ask that we take forward regulations to support delivery. We laid the draft regulations before Parliament a fortnight after receipt of that letter, and we are discussing them today. Although we are making the regulations to ensure that the Northern Ireland Department for the Economy has the powers it needs, I should be clear that it is entirely for the Northern Ireland Department to exercise those powers, and for the Executive to announce further details on the policy that they are taking forward.

Let me briefly set out precisely what the draft regulations do. They do not give the Northern Ireland Department any new powers that it did not already have in March; they amend the period in which various Energy Prices Act 2022 powers are available to the Northern Ireland Department. Those include a spending power and a direction-making power analogous to those we have used to deliver reduced costs on bills in GB. The effect of the amended time periods is that those powers will now be due to expire in February 2030. They should therefore be available to the NI Department for the duration of the transfer of the renewables obligation cost to the Exchequer.

[Jim Allister (North Antrim) (TUV)]

Apart from the fact that, because we are in effect under the EU-controlled single electricity market, our prices are so much higher than those in GB, I am particularly intrigued to understand the thinking behind a point made in the explanatory notes. It indicates that the extensions apply only so long as the First Minister and Deputy First Minister are in office. What is the correlation and why is that correlation there?

[Martin McCluskey]

That was part of the Energy Prices Act, as passed into primary legislation in 2022. It was intended to ensure that the powers were functioning at the time when the Executive were formed. I will go into more detail later.

As I was saying, the EPA powers available to the Northern Ireland Department include a spending power and a direction-making power analogous to those that we have used to deliver reduced costs of bills in GB. Those powers will now be due to expire in February 2030. I do not expect my Department to need to take further legislative steps in relation to policy in Northern Ireland, with the Executive now taking on its implementation.

Before I close, I repeat what I said when discussing the parallel regulations on the Secretary of State’s power: this is being taken forward in an international environment that is different from the one in which last year’s Budget took place. That difference reinforces the importance of what we are doing, but we also recognise that further steps may be needed. We have set out what we are doing in relation to heating oil, and contingency planning is under way in case further responsive and responsible action is required.

Ultimately, the draft regulations amend the period in which powers will be available to the Northern Ireland Department for the Economy, following a request from that Department to ensure that it can act as it needs to in order to reduce energy bills. I commend the draft regulations to the Committee.

--- Later in debate ---

[Martin McCluskey]

Let me first turn to the point that has been raised by the hon. and learned Member for North Antrim and the hon. Member for West Aberdeenshire and Kincardine. As I understand it—we were obviously not in government in this period; the party of the hon. Member for West Aberdeenshire and Kincardine was—during the passage of the 2022 Act, that section was formulated in such a way in order for the powers to be implemented once the Executive were formed. It does not mean that if there were not to be a First Minister and Deputy First Minister, the powers would cease.

If I am incorrect about that, I will come back in writing to Committee members, but it is my understanding that the section is like that purely because, at the time that the 2022 Act was being discussed, there was not an Executive formed. The previous Government therefore took powers to take action directly, but the section was written in the way that it is to make sure that the Northern Ireland Executive were able to take action once they were formed. If I have said anything this morning that needs to be clarified, however, I will happily write to Committee members.

The hon. Member for West Aberdeenshire and Kincardine asked when we will see the £300 off bills. We stand by the commitment to have £300 off bills by the end of this Parliament. We have been very clear about that—I have been very clear about it and the Secretary of State has been very clear about it. Bills were on a downward trajectory before 27 February, when the situation in the Middle East started. We did not expect to be where we are today four months ago, and we do not know what the situation is going to look like four months from now. We hope that the strait of Hormuz reopens as soon as possible, so we have a free flow of goods through there and oil prices can reduce.

The hon. Member for Thornbury and Yate asked how this will work. I apologise if I did not pick up all the details of her request, but I think she was alluding to heating oil regulation as well. This legislation does not affect the work that the Government are doing on heating oil, which is with the Competition and Markets Authority at the moment. The CMA is working to an expedited timeline to return to Ministers by June with an assessment of how that market is operating. The Prime Minister and the Secretary of State have been very clear that they do not believe the heating oil market is operating in the way that it should, so after the CMA returns that assessment to us, we will study its conclusions to understand exactly what we need to do in terms of regulating that market.

[Carla Lockhart (Upper Bann) (DUP)]

People in Northern Ireland are struggling: our bills are higher and, as has been alluded to and as the Minister has addressed, a number of folks use home heating oil. The £81 million has been allocated to a Northern Ireland Department—a Sinn Féin Department—that is sitting on spend. Will these regulations allow that £81 million to be released to those who are hard pressed and hard pushed with regard to their energy? Will we be able to benefit exactly as folks in GB have over the last number of months?

[Martin McCluskey]

As I said in my opening speech, these provisions allow the Northern Ireland Executive now to take forward their own scheme and for that money to be released, pending the agreement of the final business case with the Treasury. As I also said in my opening speech, I have discussed this with the Northern Ireland Minister for the Economy, and we are taking forward these regulations at the Executive’s request to make sure that that funding can be released. Over the three years, it will amount to a £30 bill reduction, because of the removal of 75% of the renewables obligation, which will now be paid by the Treasury. Pending the Northern Ireland Executive coming forward with the business case—it is obviously for them to decide how it is disbursed—that £81 million will be disbursed to people across Northern Ireland.

[Carla Lockhart]

The Minister is being very generous with his time. I hope he will forgive me for making the point that I have limited trust in the ability of the Sinn Féin Minister in Northern Ireland to get this £81 million out the door to folks. What oversight will the Minister have of that money actually getting to the people who need it? It is sitting there and it needs to be distributed.

[Martin McCluskey]

Oversight will be done in the ordinary way that all oversight of spending is done. As I said, however, the final business case will be approved by the Treasury before that funding is released to the Northern Ireland Executive. Oversight will proceed as it normally would in such circumstances.

To conclude, these regulations are an example of good, practical intergovernmental working. They support our colleagues in the Northern Ireland Executive to deliver reduced energy bills. To be clear, these regulations are enabling in nature. Policy decisions on the use of the powers are ultimately for the Executive, as I said, with the funds available to them.

Until February 2030, these regulations give the Northern Ireland Department for the Economy similar spending and direction-making powers to those we have used to deliver reduced costs on bills here in Great Britain. These powers will apply for the duration of the transfer of renewables obligation costs to the Exchequer. As previously stated, I therefore do not expect my Department to need to take further legislative steps in relation to the policy in Northern Ireland, with the Executive now taking on the implementation. I commend these draft regulations to the Committee.

Question put and agreed to.

Oral Answers to Questions

Martin McCluskey Excerpts

Tuesday 2nd June 2026 Commons Chamber

[Mr Gagan Mohindra (South West Hertfordshire) (Con)]

11. What steps his Department is taking to help reduce household energy bills.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

We recognise that the latest price cap that has been announced will be deeply concerning for households, many of whom were already struggling before the Iran crisis hit. That is why the Government have already taken action. We have taken £150 of costs off energy bills, extended the warm home discount to nearly 6 million families and provided over £50 million of immediate support for vulnerable customers who use heating oil. We will, of course, continue to monitor the situation closely ahead of winter and stand ready to take action.

[Olly Glover]

The energy price cap increase is estimated to cost each household an extra £18 every month, which is the price of a regular essential food shop at a discount supermarket. I note the measures that the Minister says the Government are taking, but in addition will the Government urgently bring forward a social tariff for vulnerable low-income households?

[Martin McCluskey]

The hon. Member makes an important point. The Government do not want anyone to be making the choice between heating and eating. That is why across Government we are working on a data sprint to work out how we can use household income date to ensure that we are targeting support at the right people.

[Shockat Adam]

The typical annual dual fuel bill is 40% higher today in real terms than it was in 2021. After accounting for inflation, that means it is £511 more per household. The bad news does not stop there, with Ofgem announcing that the crisis is going to get worse, with a 13% increase to the energy price cap. My constituents in Leicester South were already suffering. Labour promised to fix that, but the cost of living is just getting worse. The Minister says that the only way to protect our country is through clean, home-grown power, so what is he doing to decouple the bills from gas prices and when will my constituents feel that?

[Martin McCluskey]

The hon. Gentleman’s constituents in Leicester will benefit from the decisions that we have already made. Those decisions take £150 off energy costs and extend the warm home discount and the warm homes plan, providing £15 billion of support. We are delinking and we are already taking action, as the Secretary of State announced last month. Ofgem has pointed out that although last week wholesale gas prices at the price cap went up by 24%, electricity went up by 5%. As it said:

“This reflects the increase in the amount of renewable generation on the system and therefore reduced reliance on gas”.

[Mr Mohindra]

In my constituency, 3,199 households currently experience fuel poverty due to high energy costs, and costs linked to the Government’s clean energy agenda could mean that household bills are set to rise by at least £100 in the next four years. How long will hard-working families in South West Hertfordshire have to pay the price for Labour’s ideological dash away from domestic energy production until it has a credible plan to fill the gaps in its energy policy?

[Martin McCluskey]

That comes from a member of a party that learned no lessons from the last energy crisis. We will not make the same mistakes, which is why we are investing in clean power by 2030, which will drive down bills. Only today, we have seen the jobs benefit from the investment in clean energy, supporting 1.1 million jobs, 22,000 small businesses and £105 billion for our economy.

[Torcuil Crichton (Na h-Eileanan an Iar) (Lab)]

I welcome the Government’s measures to support domestic consumers of kerosene heating oil. I am told that if those who are eligible filled their tanks today, they would pay the equivalent of what they will be paying in February 2027. In my constituency we have big commercial users of kerosene oil, such as distilleries, seaweed manufacturing, tourist amenities and chemical plants. What measures is the Department taking to support commercial users of kerosene oil?

[Martin McCluskey]

I pay tribute to my hon. Friend for all the work he does to advocate for his constituents in Na h-Eileanan an Iar; I was pleased to visit him recently to see the impact that the increases in heating oil are having on his constituents. We are looking closely at the non-domestic heating oil market, and we will come forward with more proposals in due course.

[Ms Polly Billington (East Thanet) (Lab)]

I congratulate my hon. Friend and the team on reducing the cost of energy, including with recent efforts to break the link between the volatile gas price and electricity prices. However, every witness before the Energy Security and Net Zero Committee, when we ask how to decarbonise and reduce bills, tells us, “Make electricity cheaper.” What further efforts will the Government make in reforming the energy market in order to achieve that?

[Martin McCluskey]

My hon. Friend will know that we are taking action, which the Secretary of State announced, to further delink the cost of electricity from gas. As Ofgem said last week in relation to the price cap, we are already seeing the effects of that. Because of the additional renewable generation in the system, we are seeing the effects of that. Every turbine we build, every solar panel we deploy and every reactor we bring online will ultimately reduce our reliance on fossil fuels and bring down the cost of electricity.

[Matt Western (Warwick and Leamington) (Lab)]

A good way of reducing bills is to reduce consumption. In Germany, about 12 years ago, subsidised mortgages were introduced to help reduce the cost of installing triple glazing in houses. However, in conservation areas in this country, such as in my constituency, people are prevented from installing even secondary glazing, so they cannot reduce their bills, even though they would desperately like to. Will the Minister meet colleagues in the Ministry of Housing, Communities and Local Government to get this issue sorted?

[Martin McCluskey]

I would be more than happy to meet to discuss that. The warm homes plan—our £15 billion investment in home energy upgrades, which is the biggest in British history—will go a long way to achieving some of the ends that my hon. Friend describes. I point him towards the work that we are doing jointly with the Green Finance Institute to bring forward low-cost consumer loans so that people across the country can benefit from clean technology.

[Hannah Spencer (Gorton and Denton) (Green)]

One in three households in the constituency that I represent live in fuel poverty, and they face even higher bills from 1 July. Does the Minister agree that the Ofgem energy price cap should be frozen to provide universal support for households now and to give people certainty in the cold winter months ahead?

[Martin McCluskey]

I welcome the hon. Lady to her place, and I look forward to working closely with her on this brief, as I have done with other colleagues from her party. She will know that we have said we are looking at all contingencies in relation to the support that we may need to offer in the winter, but that has to be paid for. We need to ensure that we have proposals that do not make the same mistakes that the Conservatives made in the last crisis, when they wrote a blank cheque in order to provide support to people, so we will come forward with plans for support in the winter.

[Chris Webb (Blackpool South) (Lab)]

Blackpool is home to something special and remarkable: a pioneering eco community hub at Palatine library that offers free, independent energy advice and is helping residents to make sense of new technologies to reduce their bills. Since July 2024, when it opened, it has visited 1,300 homes, offered 1,000 winter packs and saved over £111,000 in energy bills. I met a new trainee green doctor there, Luke Hollowell, who is going into homes to support residents. Will the Minister meet me to discuss this eco hub, to ensure that we can keep it going for the long term and maybe roll it out across the country?

[Martin McCluskey]

I pay tribute to my hon. Friend for the work he is doing on this issue in his constituency, and I would be happy to meet him to discuss it further. I have seen for myself the benefits that green doctors—energy doctors—bring to constituencies across the country when I have visited those programmes. That kind of local support will be central to the work we are doing in setting up the warm homes agency, which will provide advice and guidance to people across the country.

[Mr Speaker]

I call the shadow Minister.

[Greg Smith (Mid Buckinghamshire) (Con)]

Labour came to office with bold promises to cut energy bills, but in the real world we have seen bills go up, up and up again. In answer to the first question, the Secretary of State said that he wanted to do all he could to cut energy bills, so here are some ideas for how he could do so. He could scrap carbon taxes, he could remove VAT from energy for three years, and he could scrap legacy renewable subsidies—that would save people £200. It is called the Conservatives’ cheap energy plan and, in the national interest, we do not mind if he steals it. Will he?

[Martin McCluskey]

We can see the economic recklessness of the Conservative party when the hon. Member stands at that Dispatch Box making uncosted promises and claims. Before this crisis, bills were going down—they were going in the right direction—and no one would have anticipated the consequences of the war in Iran. Let us look at the balance sheet of the past two years. This Government have made the biggest investment in warm homes in our history, with record-breaking renewables delivering for 23 million homes. As of today, there has been £90 billion of clean energy investment, and every single wind turbine we deploy and every single nuclear reactor that is online reduces energy bills for consumers across the country.

[Clive Jones (Wokingham) (LD)]

9. What recent discussions he has had with Cabinet colleagues on the potential merits of providing further support to businesses with the cost of energy.

--- Later in debate ---

[Tracy Gilbert (Edinburgh North and Leith) (Lab)]

14. What steps his Department is taking to regulate heat networks.

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

For too long, heat networks have been left unregulated, with consumers paying the price. That is why I am pleased that we have now established Ofgem as the heat network sector regulator, delivering statutory redress, advice and advocacy to protect households. We aim to develop the regulatory framework further, and recently concluded a consultation on mandating minimum technical standards.

[Tracy Gilbert]

I thank my hon. Friend for his answer. May I also place on the record my thanks to him for coming to meet my constituents from Saltire Street and Saltire Square, and for listening to what they said about the long-running issues that they have been facing with their district heating networks?

I welcome the regulation that this Government have brought forward. Can my hon. Friend confirm that data on pricing will now need to be reported quarterly to Ofgem, and that this will help increase transparency for my constituents and others?

[Martin McCluskey]

I was very pleased to meet my hon. Friend’s constituents in Edinburgh to discuss the issues that they face with their heat network. The poor experience that they have had is an example of why we have introduced this regulation, and I commend her for the campaign that she has been running on their behalf. She is right to say that, under the new regulatory framework, heat network suppliers will be required to submit pricing data quarterly to Ofgem, improving oversight.

[Mr Speaker]

I call Gregory Campbell. Sorry—Jim Shannon.

[Jim Shannon (Strangford) (DUP)]

He’s the one with the hair, Mr Speaker; I don’t have any.

I welcome the Minister’s response to the hon. Member for Edinburgh North and Leith (Tracy Gilbert). The regulation of heat networks is not just an issue for her constituency, as the Minister well understands. My request to him—he is one of the Ministers who always respond very positively—is that he makes sure that we in Northern Ireland are able to take advantage of the opportunity that the hon. Lady mentioned, and that he gives us a good answer.

[Martin McCluskey]

The hon. Gentleman will know that I take a keen interest in Northern Irish politics. I spent this morning in a Delegated Legislation Committee, delivering a reduction in bills through the removal of the renewables obligation. I am more than happy to discuss further with him how the regulation of heat networks might operate in Northern Ireland.

[Kerry McCarthy (Bristol East) (Lab)]

15. When he plans to publish the Government’s response to the consultation entitled “Voluntary carbon and nature markets: raising integrity”.

--- Later in debate ---

[Kerry McCarthy (Bristol East) (Lab)]

T6. I thank the Minister for the £13.5 million for the Temple Quarter heat network in my constituency. Where Bristol leads with City Leap, others can follow, so what are the Government doing to support other places in following our example, in order to get investment in decarbonising our cities?

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

My hon. Friend is a big champion of not just Bristol, but climate action more generally. Bristol is one of the trailblazing heat network cities, and its City Leap partnership is a model of what other local authorities can consider. I am pleased that we have announced nearly £35 million in this Parliament for the further development of its heat networks.

[Dr Ben Spencer (Runnymede and Weybridge) (Con)]

T2. Why does the Secretary of State think that Tony Blair is so critical of his policies?

--- Later in debate ---

[Tom Gordon (Harrogate and Knaresborough) (LD)]

Last September, I met the Minister for Energy Consumers, the hon. Member for Inverclyde and Renfrewshire West (Martin McCluskey), to discuss those who have been adversely impacted by incorrectly installed spray foam insulation. Has the Department considered remediation or support for those affected?

[Martin McCluskey]

We are considering a range of remediation options in a number of schemes for which the Department is responsible, most of which were operated by the previous Government. We will come forward with proposals soon.

[Suella Braverman (Fareham and Waterlooville) (Reform)]

I, too, offer my condolences to the Secretary of State.

The Secretary of State will be familiar with the Russian-backed AQUIND application for a submarine interconnector that will cut through Portsmouth naval dockyard, affecting my constituency, and go on to France. The Ministry of Defence has raised national security concerns. We have been waiting over a year for a decision from the Secretary of State on the application. When will he issue one?

Energy Infrastructure Planning Projects

Martin McCluskey Excerpts

Thursday 14th May 2026 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

My noble Friend Lord Whitehead, Minister for Energy Security and Net Zero, has today made the following statement:

This statement concerns an application for development consent made under the Planning Act 2008 by Morgan Offshore Wind Ltd and Morecambe Offshore Windfarm Ltd for the Morgan and Morecambe Offshore Wind Farms Transmission Assets in the east Irish sea off the coast of north-west England, including onshore connection to the electricity transmission network.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless exercising the power under section 107(3) of the Act to set a new deadline. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.

The statutory deadline for the decision on the Morgan and Morecambe Offshore Wind Farms Transmission Assets was 14 May 2026.

I have decided to allow an extension and to set a new deadline of 14 September 2026. This is to allow time to request further information.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS1559]

Draft Warm Home Discount (Scotland) Regulations 2026

Martin McCluskey Excerpts

Monday 27th April 2026 General Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I beg to move,

That the Committee has considered the draft Warm Home Discount (Scotland) Regulations 2026.

It is a pleasure to serve under your chairmanship, Sir Desmond. The draft regulations were laid before the House on 17 March. Since 2011, the warm home discount has supported low-income and vulnerable households by reducing energy bills during the coldest months of the year, when support is most needed. The Warm Home Discount (Scotland) Regulations 2022 ended on 31 March 2026; the draft regulations will extend the scheme in Scotland for a further five years until 2031, providing certainty for households, suppliers and delivery partners.

As the Committee will know, fuel poverty is a devolved matter in Scotland. Under the Energy Act 2010, as amended by the Scotland Act 2016, Scottish Ministers have powers to design their own fuel poverty scheme, subject to consultation with and agreement from the Secretary of State. To date, the Scottish Government have not made use of those devolved powers. They have instead requested that the UK Government prepare regulations to lay in this Parliament, on their behalf, to continue the warm home discount for the next scheme period. Scottish Government Ministers must consent to the making of such regulations before they are made; I have sought and received their formal consent.

Let me set out some of the background. In September, the Government consulted, with the agreement of the Scottish Government, on proposals for the next scheme period. Consultation responses relating to Scotland were shared with Scottish Ministers, who have determined the eligibility criteria for the next scheme period within the agreed spending limit, as set out in the draft regulations. That spending limit will be £92 million for this year, as well as for subsequent years. The draft regulations will continue to require energy suppliers with more than 1,000 domestic customer accounts across Great Britain to participate in the scheme. Suppliers with fewer than 1,000 domestic accounts will be able, as they are now, to participate on a voluntary basis.

The draft regulations will continue to provide for £150 rebates to be provided by scheme suppliers under the data-matched core group and the application-based broader group. Participating suppliers will continue to be obliged to provide a £150 rebate to eligible households in the core group, applied directly to their electricity bill. The draft regulations also set out new eligibility criteria for the core group in Scotland, aligning qualified benefits with those of the Scottish winter heating payment, as of December 2025, for the next scheme period. It is estimated that 345,000 households will receive a core group rebate each year, an increase of roughly 250,000 on 2025-26. The draft regulations will continue to oblige scheme suppliers to allocate the remaining balance of their Scottish spending obligation through non-core group support, delivered via the broader group, and optionally though industry initiatives.

The draft regulations will update the mandatory eligibility criteria for the application-based broader group, which suppliers must consider when providing support via the broader group. The number of rebates available within the broader group is finite and is dependent on the size of each supplier’s obligation in Scotland. Suppliers will continue to determine their own application processes and decide which eligible households receive the rebate within their obligation.

Suppliers will continue to have discretion, subject to Ofgem approval, to extend their eligibility criteria further to other households that are wholly or mainly in, or at risk of, fuel poverty. Under the core group and broader group, around 560,000 rebates are expected to be provided each winter to Scottish households for the rest of this decade, which is almost double the number supported in winter 2023-24, before the scheme was expanded by this Government for winter 2025-26. In addition, the draft regulations will introduce provisions for a late rebate to be issued where a household eligible for the core group did not receive support in the previous scheme year because of an administrative error by a supplier, Ofgem or the Secretary of State.

The draft regulations also include a new power to allow the Secretary of State to direct suppliers to communicate additional information about the scheme directly to successfully data-matched core group customers. Households that are not automatically matched by the Department for Work and Pensions will continue to be notified by the Government, and they will be directed to the warm home discount helpline to determine their eligibility for the core group rebate.

By continuing the warm home discount scheme, through the draft regulations, we are securing vital support for eligible Scottish households each winter—the coldest time of the year, when support is most needed. I commend the draft regulations to the Committee.

--- Later in debate ---

[Harriet Cross]

The warm home discount, as I say, moves bill payers’ and taxpayers’ money around; it does not reduce the cost, and it does not take money off bills. People are still paying it, but in a different place. People who can just manage are paying it for those who just cannot. It is an unfair mechanism that penalises those who are just above the margin. Although we recognise the importance of making sure that bills are affordable for everybody, that does not mean that those who can just pay should be penalised. That is why we brought in, and we support, the concept of a warm home discount to help make bills affordable, but there must be an alternative via the cheap power plan to ensure that we can help everyone.

I would be grateful if the Minister answered a few questions. Why have the regulations only been put before us today, when the 31 March 2026 deadline has already passed? The Minister mentioned that the measure will cost £92 million. I believe that that is for the next five years.

[Martin McCluskey]

It is per year.

[Harriet Cross]

It is per year. Does that fall completely on the Scottish Government’s budget, or is it shared between the Governments of Westminster and Holyrood? Given that there is an alternative, via the cheap power plan, that would eliminate the costs rather than moving them, and given that the Government have already addressed some of the costs by removing some of the carbon taxes, why would they not go further and implement more of the Conservatives’ cheap power plan?

--- Later in debate ---

[Martin McCluskey]

I thank hon. Members for their speeches. The hon. Member for Gordon and Buchan asked why there had been a delay in laying the draft regulations. The delay was because of continued negotiations between the UK Government and the Scottish Government. At the outset of the discussions with the Scottish Government, there was ambiguity as to what was devolved and what was reserved; that took us some time to agree with the Scottish Government. Scottish Government Ministers then took some time to determine eligibility for the scheme. The reason that we are putting the draft regulations before the Committee today, rather than having done it before the 2022 regulations came to an end, is that we had to wait for the Scottish Government to decide what the criteria for each of the groups would be.

The hon. Member asked about the cost of £92 million per year. That £92 million is set by the Secretary of State within the part of the regulations that is reserved. That is proportionate to the overall UK figure; £92 million is the amount that goes to the Scottish Government. That is where the reserve power is. There is a UK-wide figure, so UK—in this case, GB—taxpayers will bear the responsibility for the cost of those bills across the country.

The hon. Member also spoke about the Tory cheap power plan, which I have read with interest. I have to say that it is quite thin on detail, and I would argue that some of the suggestions in it would probably bring about further instability within our electricity market.

Let me talk about some things that the Government have done in just the past few months. Our £150 warm home discount is offering targeted support to the most vulnerable people. There is also universal support, in the form of the 7% price cap reduction in the current price cap period. Last week, we announced the British industrial competitiveness scheme, which provides support for industry. The Secretary of State for Energy Security and Net Zero also announced last week how we will go further and faster in our mission for clean power by 2030.

It is important to emphasise to hon. Members that the way to get our energy bills down permanently is through home-grown clean power that we control and can control the price of. It is not through continued exposure to volatile fossil fuels like oil and gas that at this very moment are leaving us exposed to volatile wholesale costs, which are still the largest part of each of our energy bills.

I can guarantee the hon. Member for Inverness, Skye and West Ross-shire that I have noticed no one in Speedos in Inverclyde. Even on the sunny banks of Gourock this weekend, there were certainly no Speedos on display, despite the warm weather. The hon. Member made an important point about the impact of rising energy bills on rural homes and businesses; he will know that provision has already been put in place for additional support for those who use heating oil, with over £50 million delivered by the UK Government and now a £10 million scheme in Scotland. We have always said that we will keep that under review. To my knowledge, the Scottish scheme is nowhere near exhausted, but we will keep under review the amount that might be required for additional support.

I also point the hon. Member towards the decisions in the Budget to remove costs from energy bills, which disproportionately reduce electricity users’ bills over those who have dual fuel, because most of the discount came from the electricity part of the bill. That will have made a difference. However, we also need to close the spark gap between electricity and gas. The action that the Secretary of State took last week, alongside the Chancellor, to move electricity generation to longer-term contracts for difference will help to close that gap. However, I agree with the hon. Member that there is still room for further measures in future.

As I mentioned, fuel poverty is a devolved matter in Scotland. The draft regulations, which we are making on behalf of the Scottish Government, will help more households in Scotland who are facing financial challenges or fuel poverty to receive support each winter, the time of year when support is most needed. This Government are ensuring that lower-income households benefit the most from energy bill reductions.

I should also address the point that the hon. Member for Gordon and Buchan made about redistribution. This is where we will probably find an ideological difference in our approach to support for the most vulnerable. The Labour party supports redistribution. We support the fact that those with the broadest shoulders are being asked to pay a little more on their energy bills for support—

[Harriet Cross]

Does the Minister think it fair that someone who is £1 or £10 over the limit will have to pay for someone who is £1 or £10 under the limit? This redistribution is penalising people near the limit to such an extent that those who are just outside it will end up worse off than those who are just inside.

[Martin McCluskey]

That is why we need a balance of universal and targeted support. Currently, through the price cap, those on dual fuel bills will be receiving an average reduction of 7%. Alongside that, we have targeted support for the most vulnerable people in society. I think that that provides us with the right balance to ensure that widespread support is targeted at those who most need it.

We acted in last year’s Budget by taking money off energy bills to tackle the cost of living. These significant changes to how energy is priced have ensured that energy bills have fallen by 7% for an average dual fuel customer paying by direct debit. Once again, I commend the draft regulations to the Committee.

Question put and agreed to.

Ofgem Review: Final Report

Martin McCluskey Excerpts

Wednesday 22nd April 2026 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

Today I am publishing the Government’s final report of the review of Ofgem, the energy regulator for Great Britain. This review delivers on our commitment to ensure that consumers remain well protected from bad practice and that Ofgem is equipped to regulate a rapidly changing energy system. The current situation in the middle east has once again highlighted the need to protect consumers, particularly during times of volatility, and Ofgem’s ability to respond in times of crisis. The review has examined whether Ofgem’s remit, duties and capabilities remain fit for purpose in an energy landscape shaped by rising demand for clean power, new technologies, and the need for greater resilience and fairness for households and businesses.

In particular, I am pleased to highlight that we will equip Ofgem with stronger powers to take action where needed and to deter bad practice across the sector. The review will also bring enhanced protection for energy consumers, not only by reinforcing its commitment to the protection of consumer interests, but by granting it a stronger mandate to support delivery of clean home-grown power and support investment and growth in the UK.

The review gathered extensive evidence, including over 20,000 responses to the public call for evidence, alongside detailed engagement with consumer groups, suppliers, networks, generators and investors. In addition, the review drew upon the knowledge of an advisory panel comprised of specialists appointed in their individual capacity to ensure independence and diversity of thought, bringing a wide range of experience and perspectives to challenge and guide the review.

The conclusions are clear: Ofgem plays an essential role in our energy system and its statutory duties, regulatory boundaries, and organisational capabilities must be modernised to meet the challenges now, and in the years ahead.

The review also considered Ofgem’s role across the energy system as a whole, recognising the significant interdependencies between generation, networks, system operation, retail markets and emerging flexibility services. Stakeholders highlighted that the energy system is evolving rapidly with decentralised generation, electrification, digitalisation and new business models reshaping how power is produced, transported and consumed, but regulatory frameworks have not consistently kept pace. Evidence indicated that Ofgem must be equipped to oversee the system in a more coherent, end-to-end way, ensuring that decisions taken in one part of the system do not create unintended consequences elsewhere. This includes ensuring efficient network investment, enabling integration of low-carbon technologies, and supporting the development of retail and flexibility markets that deliver genuine consumer value.

To address these challenges, the Government will strengthen Ofgem’s system-wide mandate and capabilities so that it can take whole-system, forward-looking decisions that reflect the interactions between different segments of the value chain. This will help Ofgem to anticipate pressures, drive innovation and competition, and support a more dynamic, efficient and consumer-centric energy system. By ensuring that Ofgem can regulate the energy system as an integrated whole, these reforms will promote efficient investment, enable the scaling of new technologies, and ensure that consumers benefit from a system that is resilient, fair and aligned with the UK’s long-term energy security and net zero commitments. The Government are therefore bringing forward a package of reforms to strengthen Ofgem’s mandate, improve regulatory clarity and reduce duplication, and ensure that the regulator can act more proactively in the interests of consumers. Key measures include:

Strengthening enforcement and redress mechanisms so that Ofgem can act quickly and decisively when consumers face harm, including stronger powers to address poor service and hold senior energy company leaders to account.

Modernising Ofgem’s statutory duties, streamlining them into three clear pillars of consumer protection, economic growth and delivery of net zero. This will ensure that Ofgem can take clearer, more strategic decisions that directly benefit households and support long-term national priorities. Establishing an Ofgem-specific strategy and policy statement, providing clarity on the Government’s strategic expectations while preserving Ofgem’s operational independence.

Boosting Ofgem’s organisational capability, including digital, technical, financial and analytical expertise, to enable a more agile, confident and evidence-driven regulator.

Introducing new transparency and accountability requirements, including regular public progress updates and a five-yearly independent review of Ofgem’s performance.

These reforms will create a regulator that not only protects consumers but supports an energy sector that can innovate, invest and improve the customer experience. They will help build a more resilient, fair and modem energy system as we accelerate towards clean power and strengthen the UK’s energy security.

A copy of the Ofgem review final report will be placed in the Libraries of both Houses. The Government will now work closely with Ofgem, industry and consumer groups to take forward the implementation of these reforms.

[HCWS1533]

Cost of Heating Oil

Martin McCluskey Excerpts

Wednesday 15th April 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I thought we were about to end up in an “I am Spartacus” moment. [Laughter.] It is a pleasure to serve under your chairmanship, Dr Allin-Khan. I thank the hon. Member for North Norfolk (Steff Aquarone) for raising this vital issue and giving us the opportunity to discuss it at length, since it is an important area that is dominating much thinking among Members and in my Department.

It is important at the outset to put this in the wider context of what is happening in the middle east. It is clear from what we have heard over the past few weeks that the conflict in the middle east is not Britain’s war. The Prime Minister made the right judgment in not taking the country into offensive action, but how we emerge from this crisis will define us for a generation in how we respond. It is clear that we need to de-escalate the situation in the middle east. We need a negotiated settlement that allows the free passage of traffic through the strait of Hormuz. That will ultimately determine the fate of energy prices and our constituents’ cost of living.

Let me do three things. First, I want to respond to issues raised around the immediate support the Government have offered. Secondly, I will talk a little more about market reform and regulation, and the process going on with the CMA. Finally, I will talk about some of the wider structural issues discussed this morning.

As hon. Members have mentioned, 1.5 million households in the UK use heating oil to keep their homes warm. We know from what has been said this morning, and also from looking at what has been happening in the market, that the price of a litre of heating oil has increased significantly—doubled, in fact—since the war in the middle east began. Even before the situation in the middle east developed, the cost of living crisis was a priority for the Government. Hon. Members know that we have till the end of June. This does not apply to those on heating oil, as we will discuss, but energy prices have been reduced under the price cap by 7% until the end of June, and the Government were taking other measures to alleviate the cost of living even before the middle east situation started.

I want to be candid with people about the choices that we had to make. Under the last Government, it took around 200 days for support to come to heating oil customers. We have rolled out support within two and a half weeks, but there is a trade-off when we make such decisions, and the decision that we made was to prioritise speed at this point, which meant deploying funding through local authorities in England and through devolved Governments elsewhere in the UK. That does, however, limit our ability to stipulate what the criteria are, but that is the trade-off we had to make. Listening to hon. Members this morning, I think we have made the right choice in prioritising speed because the need is clearly great right now. Had we been sitting here saying that the Government were coming up with a far more extensive scheme that might take months to deliver, I think we would have had a very different sort of debate this morning.

[Dr Mullan]

The Minister has made the point about wanting a simple scheme that he could get into place rapidly, but he did not put enough money into it, and there was no reason in terms of speed why he could not do that.

[Martin McCluskey]

No one has said that this is the extent of all the support that will be on offer: I have been very clear about that, both in the Chamber and whenever I have been asked the question. The point of immediate support now was to provide people with relief from an immediate crisis. We have been very clear—the Chancellor was and the Secretary of State was—that it was never intended to provide discretionary support for every single heating oil user to fill up their tank. It was to provide immediate relief quickly from a pressing crisis that we were facing across the country. We are keeping everything under review. Were we in a situation later in the year where we need to look at providing further support, we will make decisions then, but right now that support is on offer to people.

Different local authorities are taking different approaches. That is in the nature of the trade-off that we had to make. North Norfolk is taking an approach that looks at means-tested benefits, but North Northamptonshire is not taking an approach that relies on means-tested benefits. It is asking for evidence that people are not able to afford a payment, which involves, for example, giving over bank statements to enable people to make an assessment based on income rather than on means-testing. So different authorities are taking different approaches. That is what we have to accept if we are deploying this through the crisis and resilience fund and not having a centralised scheme as we did before. But as I said, this is about doing things at speed to make sure that people have the support they need.

On the situation in Northern Ireland, the hon. Member for Strangford (Jim Shannon) highlighted that almost two thirds of homes rely on heating oil. We have allocated £17 million to support them. Again, we will keep that under review. We have heard complaints from the Northern Ireland Executive, as we have heard from others this morning, that it is not enough. But as I understand it—the hon. Member might want to correct me—there is not currently a scheme through the Northern Ireland Executive to deploy that money, so we do not yet know what the demand actually is in Northern Ireland for the take-up of that funding.

[Jim Shannon]

I do not want to be churlish—when we get something that is helpful, we accept it—but our indications are that those moneys will be disbursed across Northern Ireland shortly and that it will be £35 per household. As I asked in my contribution about pensioners, who are really feeling the pinch, what can be done for them specifically?

[Martin McCluskey]

As I said, once the funds are disbursed in Northern Ireland, just as across the whole of the United Kingdom, we will make an assessment as to what further work might need to take place. I will have further discussions with the Northern Ireland Executive. We are obviously keeping every option under review, especially as we start to think about later in the year and into the winter. In Northern Ireland, we are still to see what happens when the funds are disbursed.

In Scotland, we have heard from my hon. Friend the Member for Na h-Eileanan an Iar (Torcuil Crichton) about how Advice Direct Scotland is disbursing those funds. However, we cannot know at the moment how much is being given out, because the Scottish Government will not let Advice Direct Scotland provide us with that data, so there is no way for us to know what the situation in Scotland looks like.

In England, we are having weekly stocktakes with the DWP, which is the Department responsible for the crisis and resilience fund. It is providing us with assurance on the disbursal of those funds, and we hope to have a dataset available in May that looks at how many applications and payments have been made, and what those payments look like across the country.

[Torcuil Crichton]

If officials from Advice Direct Scotland can tell me, as a constituency MP, the number of applicants they have, and the estimated number they will have—16,000, with 5,000 applications already last week—surely they can provide that information to the UK Government as well.

[Martin McCluskey]

Unfortunately, the Scottish Government are not allowing the data to be shared because of the pre-election period. I would argue that that is not what the pre-election period is meant for, and I will continue to have those discussions with the Scottish Government. I know that other hon. Members in Scottish constituencies have faced a similar problem in getting any data about their constituencies from Advice Direct Scotland because of this prohibition from the Scottish Government.

I am conscious of time, so I turn to the issue of wider market reform. There is obviously evidence that the market as it exists at the moment is not working. I find it difficult to listen to the hon. Member for Mid Buckinghamshire (Greg Smith), who was a Minister in the Department for Business and Trade under the last Government—

[Greg Smith]

Was I? I was never a Minister.

[Martin McCluskey]

Well, the hon. Member was a Member of the party that was last in government, let me say that, and I find it difficult to listen to him tell us about the lessons that we should have learned. We should never have been in this position, and we should not be in a position again where we are facing higher energy prices because of an international situation, and where we are having to deal with an unregulated market in heating oil. I argue that the then Government should have looked at this in 2022 and determined what action needed to be taken.

I will explain what we have done so far. The CMA is conducting an investigation at speed. These investigations normally take around a year, but it is going to conduct this one within 12 weeks. It has already completed the evidence-gathering stage, and it is now in the process of examining that evidence. I hope that it will come forward with the report in June. The Prime Minister has been clear that we will look at what comes forward from the CMA and examine the case for regulation.

Hon. Members across the Chamber have spoken about a price cap, but I do not want to prejudge the work of the CMA. There have also been suggestions about minimum orders and price guarantees—there a number of different proposals on the table—but we have to ensure that we make the right decision, and do not end up with unintended consequences that could make the situation worse. In a market with a large number of players, many of which are quite small rural businesses, it is especially important that we do not make the situation any worse. We are looking at a range of options.

The Chancellor has written to the CMA to ask that it remains vigilant across heating oil prices and tackles any unjustified increases that it might find. The Government are also in daily contact with industry to understand the drivers of recent price movements. We have reminded heating oil distributors of their commitments under the trade association code of practice.

[Pippa Heylings]

Does the Minister have a timescale for when he expects the review of the market and any recommendations to come back from the CMA? When will the Government enact them? Will they be part of the energy independence Bill, or is there another way in which they could come into effect quite quickly?

[Martin McCluskey]

I hope the report will come back to us some time in June, and then we will examine it to determine what may be required in terms of further action. I want us to move as quickly as possible. I have another meeting with the chief executive of the CMA tomorrow to discuss progress on the market investigation and ensure that work is carrying on at the pace that we want. We are not moving slowly. We have already accelerated this process—it was a year, and it is now 12 weeks. That is significant, but we obviously want it to move as quickly as possible.

Let me turn to the wider structural issues that we face in the energy sector. We recognise that the heating oil sector is under-regulated. Unlike gas and electricity, heating oil is not regulated by Ofgem, and we will put that right by exploring what regulations are needed to protect consumers and get them a better deal.

Taking a step back, ongoing events provide us with yet another clear reminder that we must get off the rollercoaster of global fossil fuel markets and on to the path of clean, home-grown energy that we control. We will learn the correct lessons from the crisis, unlike the previous Government, who went through the situation in 2022 and did not. In our mission to make the UK a clean energy superpower, we have already brought in £90 billion of investment in clean British energy. In the light of spiking oil and gas prices, we intend to go further and faster in the pursuit of national energy security.

We are bringing forward the next renewables auction, just months after the most successful auction that we have ever had, which secured enough power for the equivalent of 16 million homes. We are making plug-in solar available for the first time in Britain so that families can buy a low-cost panel straight from a supermarket and set it up on their balcony or in their garden.

We are speeding up delivery of the £15 billion warm homes plan. I heard what many Members said about the fabric of housing. There is obviously support within the £5 billion that we have set aside for low-income schemes, but there is also work going on about low interest and no interest consumer loans. I am trying to accelerate that work so that we can get that to people as soon as possible.

[Pippa Heylings]

We welcome the publication of the warm homes plan, but we have not received details of what will replace the energy company obligation 4 programme, which was run through local authorities. Can the Minister tell us when he expects that detail to be available? Will it be published ahead of the winter so that it can be applied and homes can be upgraded?

[Martin McCluskey]

As the hon. Lady knows, the Department runs a range of programmes. We took the decision to abolish ECO4 because it was not working effectively. In some cases, it was costing more to find people who needed the measures than it was to deploy the measures. The Department has been provided with an additional £1.5 billion, which took the total up to £15 billion for this financial year. That money is being deployed through the local government schemes—the warm homes social housing fund and the warm homes local grant. That is enhancing what has already been provided to low-income households through the Department.

As I say, £2.7 billion of capital is being deployed to provide low interest or no interest consumer loans. We need to accelerate that. At the moment, we are probably looking at early next year, but I would like to see that come forward so that we can use those consumer loans as a response to the current situation. We know that there is significant demand for home upgrades, including solar, battery and heat pumps, but we have to give people the support they need to take up those options.

We will speed up the delivery of the £15 billion warm homes plan—the largest home upgrade programme in British history—and we are reforming nuclear regulations following the Fingleton review so that we can fast-track new nuclear power stations.

[Greg Smith]

The Minister seems to have pivoted towards electricity and away from heating oil, which this debate is about. On the wind auctions, I am not sure consumers will thank him for the price that has just been paid. However, we are talking predominantly about the many rural homes that are off the gas grid. Many are built out of stone—I declare an interest, as mine is built out of witchert, which is a form of cob—and heat pumps do not touch the sides. Will he at least acknowledge that for those rural homes, we need to look at things such as alternative fuels? Boilers can be converted to run on hydrotreated vegetable oil and, in the future, synthetic fuels. We must not just keep talking about electricity.

[Martin McCluskey]

Fifty per cent of grants provided through the boiler upgrade scheme, which is our primary vehicle for providing people with grants for heat pumps to replace—

[Greg Smith]

rose—

[Martin McCluskey]

If the hon. Gentleman will let me finish the point, I was going to say that 50% of those are to rural homes. I am not trying to dismiss the fact that there are some properties where it would not be appropriate to fit a heat pump because of the fabric, although adaptations can be made. However, we are seeing from consumer behaviour that most boiler upgrade scheme grants are going to rural homes, so there is clearly demand within rural areas for heat pumps, whether the traditional air-to-air or air-to-water heat pumps or ground source heat pumps, which are increasingly popular in rural homes.

I go back to the point about learning the lessons. We are in a situation where this country is significantly exposed to fossil fuels, whether through gas or oil. The long-term solution—to remove that risk and exposure—is to move to electrification, because we would not be having this debate if homes were electrified. We need to find solutions for rural homes, and we need to move to technology that means people have more control over their energy and the system.

Behind every decision this Government take is a simple principle: whatever the challenges, we will support working people. We will always fight their corner through this crisis. That is why we are directly helping those affected by the spike in heating oil costs, cracking down on energy suppliers who are cancelling orders or jacking up prices, and working at pace to ensure the sector is properly regulated. That is why we are doing everything we can to end our reliance on unstable fossil fuel markets and take back control of our energy.

That will mean an era of economic growth, good new jobs and unprecedented investment—an era of real energy security. That is how we will ensure that ordinary working British people, including those in rural areas, never again pay the price for foreign conflicts and our overdependence on fossil fuels.

Draft Energy Prices Act 2022 (Extension of Time Limit) Regulations 2026

Martin McCluskey Excerpts

Tuesday 14th April 2026 General Committees

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

I beg to move,

That the Committee has considered the draft Energy Prices Act 2022 (Extension of Time Limit) Regulations 2026.

It is a pleasure to serve under your chairmanship, Ms Vaz.

This Government are fully committed to fighting people’s corner to tackle the cost of living crisis. Across the energy system and more widely, we are acting on this as a matter of priority. A number of steps were taken in last year’s Budget, and we have since gone further. At the Budget, alongside several positive changes to help working people with the cost of living, the Chancellor announced that we would remove costs from energy bills from this month. I want to be clear what those costs are. First, we are closing the Energy Company Obligation scheme, removing its costs from bills and instead funding home upgrades for energy efficiency via the warm homes plan. Members may recall that recent regulations extended ECO4 by nine months, but only to enable an orderly closure, with no costs on bills, from this month.

Secondly, we transferred 75% of the renewables obligation scheme costs attributable to domestic energy supply to instead be funded by the Exchequer. The core renewables obligation incentive for relevant generators. These were principled decisions to fund more of the investment we need from public spending rather than bills, which is the right and progressive thing to do. It is thanks to those decisions that typical household energy bills fell by 7% or more than £100 from 1 April.

Let me briefly set out how we delivered the removal of the RO costs from bills, before I come on to how the regulations will enable that to continue. Under the RO, energy suppliers purchase certificates from relevant renewables generators, and previously recovered the full cost of those purchases from consumers. From 1 April, suppliers have been required to recover only 25% of those costs from domestic consumers. For domestic consumers on standard variable tariffs, Ofgem’s energy price cap, published on 25 February, factored in reduced policy costs reflecting the RO changes that we are considering this morning. As a result, the price cap has fallen by 7% or £117, to £1,641 per year for a typical dual-fuel customer paying by direct debit. It will remain held down at that level until the end of June.

In addition, the Government issued a legally binding direction to suppliers on 18 March requiring them to also pass on the full savings to domestic consumers on fixed tariffs. With suppliers no longer recovering 75% of the cost of the RO from household energy bills, we are instead providing equivalent monthly grant funding. We acted quickly to deliver this funding and the associated consumer savings, using an existing power in the Energy Prices Act. That power needs to be extended via regulations to avoid its expiry. It is those regulations that we are discussing today.

The regulations do not give the Secretary of State any new powers, but they ensure the spending power we are using to enable the consumer savings remains available. Legally we can extend the time limit on this power only by six months at a time, so the regulations extend them from 25 April to 25 October. While I expect to need to seek a further extension, I can assure members that the Department is working on primary legislation to provide a more permanent solution when parliamentary time allows.

I would like to note that the position is slightly different in relation to Northern Ireland, where the Executive are delivering a comparable policy. I have been working with the Minister for the Economy in Northern Ireland, and at her request we have laid separate regulations to support delivery there.

Before I close, I will say that we are in a different international environment to when the energy bill reduction was planned in the Budget in November. That was noted by the Secondary Legislation Scrutiny Committee in the other place. It is now even more important that we have acted to reduce energy bills by more than £100, and that bills will stay capped down at a lower level until the end of June.

Whatever the challenges that lie ahead, 75% of RO costs will remain off domestic energy bills for the next three years. We have already gone further in supporting vulnerable heating oil consumers in response to events in the middle east, and we continue to monitor those events closely to ensure we are ready to be both responsive and responsible. The regulations are a simple time limit extension, but are essential to the ongoing removal of 75% of RO costs from domestic energy bills and I commend the draft regulations to the Committee.

--- Later in debate ---

[Martin McCluskey]

I will turn first to the comments made by the official Opposition, and the call to scrap the renewables obligation scheme. I want to put it on the record that it is simply not realistic to scrap that scheme. We took a deliberate decision to remove 75% of the RO from bills and to move that on to general taxation. The shadow Minister may oppose that move, but it is a principled decision that we have taken in order to spread the burden of those renewables obligations more widely, to make sure that those with the broadest shoulders are paying more, rather than it falling just on bill payers, and to maintain the incentive for renewable generators in the scheme at the same time.

The shadow Minister will know that the RO supports 25,000 generation stations, which accounts for approximately 30% of UK electricity generation. Abandoning the RO would not just send a signal to industry that we are not a reliable partner for investment but potentially put at risk our electricity generation, which would be deeply irresponsible. We will take responsible action to move this on to general taxation, while at the same time reducing the burden on bill payers, as people would expect the Government to do, not just because of the situation in the middle east but because of the situation that we faced before that with the rising cost of living.

I deeply admire the work that my hon. Friend the Member for Stoke-on-Trent Central does to advocate for his constituents. I am not aware of him having requested a meeting with me. He may have requested a meeting with either the Minister for Industry or the Minister for Energy. My brief covers only domestic consumers, not industry, but I will happily ask my hon. Friends the Minister for Energy and the Minister for Industry to meet with him to discuss the issues that he has raised in Committee this morning. He made a number of points about the increasing costs on industry, which as Members would expect are being actively discussed in the Department as we establish what support we may be able to offer, not just to domestic consumers, which is what we are dealing with this morning, but to non-domestic consumers.

The Government were taking significant action to reduce bills prior to the situation that has arisen in the middle east, but as hon. Members have mentioned, the rising cost of energy due to what is happening in Iran continues to dominate thinking in the Department. As hon. Members have mentioned, we have already come forward with proposals and help for those using heating oil, and all other contingencies are being kept under review to ensure that we support people through this situation as they face rising energy prices.

Question put and agreed to.

Energy Infrastructure: Development Consent Application Deadlines

Martin McCluskey Excerpts

Thursday 26th March 2026 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

This statement concerns three separate applications for development consent made under the Planning Act 2008 by:

North Falls Offshore Wind Ltd for offshore wind turbines approximately 24.5 km from the port of Lowestoft, including onshore connection to the electricity transmission network. The current statutory deadline for the decision is 28 April 2026.

Morgan Offshore Wind Ltd and Morecambe Offshore Windfarm Ltd for the Morgan and Morecambe offshore wind farms transmission assets in the east Irish sea off the coast of north-west England, including onshore connection to the electricity transmission network. The current statutory deadline for the decision is 29 April 2026.

RWE Renewables UK Dogger Bank South (West) Ltd and RWE Renewables UK Dogger Bank South (East) Ltd for the Dogger Bank south offshore wind farms in the north sea approximately 100km for the east coast, including onshore connection to the electricity transmission network. The current statutory deadline for the decision is 30 April 2026.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless a new deadline is set using the power under section 107(3) of the Planning Act 2008. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it.

Having consulted the relevant guidance and under advice from officials, I have agreed to set a new deadline of no later than 14 May 2026 for deciding these applications. This is because the current statutory dates for these three cases are within the pre-election period for local elections in England. This period commences on Thursday 16 April and the guidance advises that particular care should be taken where there is a specific local or geographical dimension to an announcement; where an announcement could have a particular impact on an area or areas where elections are being held; and where an announcement relates to matters which are likely to be raised in election campaigns. For that reason, I am moving the decision dates to 14 May.

The decision to set the new deadline for these applications is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS1472]

Energy Infrastructure Planning: Botley West Solar Farm

Martin McCluskey Excerpts

Thursday 26th March 2026 Written Statements

[The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)]

This statement concerns an application for development consent made under the Planning Act 2008 by Photovolt Development Partners on behalf of SolarFive Ltd for the construction and operation of a solar farm on land in West Oxfordshire, Cherwell and Vale of White Horse districts, across approximately 1,400 hectares.

Under section 107(1) of the Planning Act 2008, the Secretary of State must make a decision on an application within three months of the receipt of the examining authority’s report unless a new deadline is set using the power under section 107(3) of the Planning Act 2008. Where a new deadline is set, the Secretary of State must make a statement to Parliament to announce it. The current statutory deadline for the decision on the Botley West solar farm application is 10 May 2026.

I have decided to set a new deadline of no later than 10 September 2026 for deciding this application. This is to enable my Department to seek further information from the applicant with sufficient time to allow for consideration of this information by other interested parties.

The decision to set the new deadline for this application is without prejudice to the decision on whether to grant or refuse development consent.

[HCWS1471]