Solid Wall Insulation
Miatta Fahnbulleh Excerpts(1 month ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
On 23 January, I informed the House of the discovery of widespread non-compliance with industry standards specifically in relation to the installation of solid wall insulation under the energy company obligation 4 scheme and the great British insulation scheme. At that time, I confirmed that the Government had request Ofgem to oversee an expanded programme of checks, and committed to updating the House once further information on the scale and scope of the issue became available.
Since January, my Department has been working with Ofgem, TrustMark, certification bodies, and others within the oversight regime to understand the scale of these issues. The statistically representative audit programme is due to complete later in the summer, and results will be published in the autumn. However, the preliminary evidence from these audits suggests that a majority of properties that have had solid wall insulation measures under these schemes have not had these installed to the appropriate standard. Some instances of poor-quality work, including inadequate ventilation or roof-line extensions, could, over time, lead to issues like damp and mould. This scale of non-compliance is unacceptable, and consumers will understandably be concerned.
Auditors have experienced some difficulty in obtaining consent to access people’s homes to check the quality of their installation. The Government are keen to encourage everyone who is contacted for the purposes of scheduling an audit to strongly consider taking part in these checks, even if they do not think there is anything wrong with their installation. I will be writing to Members, asking them to pass on this information.
Our priority remains ensuring that poor installations are identified and remediated as quickly as possible, with no cost to the consumer. Since January, Ofgem has contacted all 60,000 consumers who have had solid wall insulation under both schemes. Thousands of households have already had on-site checks conducted, and where issues have been identified, installers have been asked to remediate these. To date, 90% of the poor-quality installations that were identified in the initial audits conducted by TrustMark have been remediated. However, there is significant work to do to provide remediation for all households that are potentially impacted. We expect all installers to continue to demonstrate their commitment to ensuring households receive timely and high-quality remediation of any non-compliance identified. Where the responsible installer has gone out of business, we encourage consumers to reach out to their guarantee provider.
Should consumers have concerns about the solid wall insulation installed in their property under ECO4 and the Great British insulation scheme, or the process for seeking remediation, they can contact the Ofgem dedicated contact centre for advice and support by email at ECOhelp@ofgem.gov.uk, or by freephone on 0808 169 444, Mondays to Fridays (excluding bank holidays) from 9:30 am to 4:30 pm.
TrustMark and certification bodies will continue to carry out spot checks on other measures and schemes as part of their wider audit activity, although internal and external wall insulation have been prioritised. The current evidence is that compliance levels are higher in other measure types under ECO4 and GBIS.
We have reviewed, at pace, measures undertaken on homes under the local authority delivery, social housing decarbonisation fund and the home upgrade grant schemes. Current data suggests there is not a widespread issue in those schemes, and where non-compliant installations have been identified, the majority of these have been resolved through swift action by the supply chain. We will continue to monitor these schemes as ongoing work continues.
The potential scale of non-compliant solid wall insulation installed under ECO4 and GBIS points to a systemic failure with these schemes. We have taken immediate action to improve the oversight of installations while we bring forward root-and-branch reforms to the wider consumer protection system. Actions to date include:
Energy suppliers carrying out enhanced desk-based and on-site checks, and increased oversight of subcontractors;
Suspension of installers, and a rigorous process for reinstatement, following remediation of all issues in identified properties;
Greater oversight of TrustMark’s operations through a memorandum of understanding, and the appointment of a departmental board observer;
An updated standard, PAS 2035/2030:2023, which came into force on 30 March 2025, has introduced a requirement for retrofit co-ordinators to conduct site visits, and raised the qualification standards for retrofit designers.
Agreement from certification bodies that installers should hold only one PAS 2030 certification per measure type, to improve accountability.
However, we are clear that we will need to go much further. We will be engaging with energy suppliers, certification bodies and installers over the coming weeks to put in place further steps to minimise the risk of further poor-quality installs, and to accelerate the ongoing remediation process, ensuring that installers meet their responsibilities to remediate any non-compliant work.
Finally, it is clear that an overhaul of the retrofit system and the consumer protection landscape is urgently required. This is being brought forward as part of the Government warm homes plan in autumn. Reforms will consider how we certify the competence of installers working to upgrade homes and provide a clear system of oversight, redress and guarantees for when work goes wrong. This will support higher quality installations and greater consumer confidence in retrofit measures.
To ensure we get this right, I am convening an expert panel to advise the Government as we develop and implement these reforms. This panel will have expertise from across consumer groups and the construction sector.
I am committed to delivering a system that is robust, transparent, and delivers high-quality outcomes for consumers. I will continue to keep the House informed as this important work progresses.
[HCWS851]
Oral Answers to Questions
Miatta Fahnbulleh Excerpts(1 month, 1 week ago)
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Shaun Davies (Telford) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that the cost of energy is a huge challenge to businesses across the country. That is why our mission to deliver clean power by 2030 is so important: that is how we will get bills down for good. While we try to get there, we are taking action to support businesses, including through the new British industrial competitiveness scheme, which will reduce electricity costs by around 20% to 25% for more than 7,000 businesses.
Shaun Davies
When the Government help businesses reduce energy costs, including by aiding their transition, businesses such as the pubs and cafés in Dawley, Madeley and Oakengates and manufacturers on Stafford Park and Halesfield can then protect and create jobs and pass on savings to customers. Will the Government back those businesses and ask the energy giants, which continue to make tens of billions of pounds of profit, to pay for it?
Miatta Fahnbulleh
My hon. Friend is completely right to stress the challenges faced by businesses. The Government are committed to backing businesses. We are working with the regulator to make sure that the system is fair for everyone and, as is set out in our industrial strategy, from 2027 the new British industrial competitiveness scheme will reduce electricity costs by up to £40 per megawatt-hour, which will benefit thousands of electricity-intensive industries, including the ones in his constituency. We are very clear that we are backing businesses, and we will do everything we can to support them in driving down bills.
Martin Vickers (Brigg and Immingham) (Con)
Energy costs are an issue that the Prax oil refinery has brought to my attention over the years as a problem it has been facing. I appreciate the calls I have had with the Minister for Energy about this. I was able to visit the plant on Friday, and there was clearly growing concern, with hundreds of jobs at risk. What assurance can the Minister offer my constituents who are affected by this situation?
Miatta Fahnbulleh
The hon. Member is right to raise this situation; we know that it is very difficult, and we have been engaging on it. There have been long-standing issues with how the plant is run. We are trying, across the piece, to support businesses to make the transition—and support them within the transition—so that we can protect jobs across the country.
Nick Timothy (West Suffolk) (Con)
When the price cap fell last month, the Labour party boasted, “£129 off your bills, delivered by Labour”. The Minister knows that energy bills fell as wholesale gas prices fell, and she knows that her policy is to take the country off gas and keep increasing policy costs on bills. That is why she refuses to repeat the claim. Will she take this opportunity to apologise for her party saying something that she knows is untrue?
Miatta Fahnbulleh
Every time the hon. Member stands up to speak, I hold my head in absolute frustration. He is gambling with fossil fuels, and quite frankly the Conservatives should hang their heads in shame. Energy bills rocketed under their watch and they did nothing about it—they were happy with that. That is not a legacy that we are willing to contend with, which is why we are taking action in the short term to drive down bills through our sprint to clean power. Their legacy is one they should be ashamed of, so they should not be lecturing us.
David Taylor (Hemel Hempstead) (Lab)
Sir John Whittingdale (Maldon) (Con)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We understand that high energy bills are a challenge for businesses, and particularly energy-intensive companies. We are clear that, in the long term, our mission to deliver clean power is the only way to bear down on that cost. But while we get there, we are providing the support needed through the British industrial competitiveness scheme and the supercharger scheme, protecting over 7,000 businesses.
Wendy Morton
The UK’s industrial electricity prices are among the highest in Europe, and it is quite clear that the Government’s current policies are failing manufacturing businesses in constituencies such as mine. Will the Minister commit to introducing support that genuinely reduces electricity costs for manufacturers, including by tackling high wholesale energy prices, rather than prolonging the uncertainty, which sadly puts local jobs at risk?
Miatta Fahnbulleh
I gently remind the right hon. Member that industrial energy prices rocketed on the Conservatives’ watch. Gas prices for non-domestic companies went up by 170%, which was catastrophic for UK plc. We are taking action to support businesses through our sprint to clean power and, critically, the measures we are providing through the British industrial competitiveness scheme. Those measures have been supported by Make UK, the British Chambers of Commerce, UK Steel and the Chemical Industries Association. The Conservatives dithered, delayed and did nothing to support businesses; we are cracking on and getting on with the job.
Sir John Whittingdale
On Friday, I visited C&M Precision Ltd, a small manufacturing company in my constituency. Electricity represents easily its biggest cost. What is the Minister doing to listen to small and medium-sized enterprises like C&M who feel that their voice is simply not being heard?
Miatta Fahnbulleh
We are listening to businesses, particularly small and medium-sized businesses. We have heard companies complain, for example, about being locked into expensive fixed-term contracts. That is why Ofgem is working to deliver blend-and-extend contracts so that businesses can benefit from lower prices. We have heard their frustration at the lack of a redress system, which is why last December we expanded the ombudsman service to 99% of businesses so that they can get redress and financial awards of up to £20,000. We have also heard their frustration about energy brokers, which is why we have consulted on introducing regulation of third-party intermediaries. We will respond in due course.
Mike Reader (Northampton South) (Lab)
Last week, the Energy Security and Net Zero Committee heard from Make UK and representatives from the chemical, petrochemical, steel and ceramics industries that closer alignment and collaboration with the EU on energy pricing is critical to reducing bills. That is also recognised in the Government’s industrial strategy. What more is the Department doing to bring that forward quickly?
Miatta Fahnbulleh
My hon. Friend makes a good point. Industry voices have been calling for that close alignment, particularly on the emissions trading scheme—we have heard that from UK Steel, the CBI, Make UK and the Energy Intensive Users Group—and we believe that those stronger linkages are the right thing to do to cut red tape at the border, to protect consumers from higher costs and, critically, to boost trade and growth, which the Government are absolutely committed to doing.
Alistair Strathern (Hitchin) (Lab)
One way to drive down energy costs, including for energy-intensive industries, could be to help cut curtailment costs by encouraging the co-location of new energy-intensive industry sectors with some of the renewable sectors that we are currently having to pay to switch off. As we start to roll out more data centres across the country, what conversations have Ministers had about how such centres could be optimally located to help reduce our energy bills at the same time?
Miatta Fahnbulleh
My hon. Friend makes a good point, as always. We in the Department are working across Government—as part of the AI Council as well as with colleagues in the Department for Business and Trade—to ensure that we have the co-ordination and collaboration to support businesses on the ground.
Marsha De Cordova (Battersea) (Lab)
Luke Akehurst (North Durham) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We know that households are under huge pressure with the cost of living, and energy costs are a big part of that. The expansion of the warm home discount scheme will mean that nearly 3 million more families will receive vital support with their energy bills this winter. This will provide much-needed help at a time when people desperately need it.
Luke Akehurst
Will the Minister confirm how many residents in my North Durham constituency will benefit from the extension of the warm home discount to all households in receipt of means-tested benefits?
Miatta Fahnbulleh
Sadly, we do not have data at constituency level, but I can tell my hon. Friend, who is a brilliant champion for his constituency, that around 100,000 extra households in the north-east will benefit from the expansion—an increase of around 50%.
Mr Gregory Campbell (East Londonderry) (DUP)
The Minister will be aware that many homes, particularly in rural areas, are older properties that are difficult to insulate. Does she agree that we all need to concentrate on those older types of properties, many of which are the homes of elderly people who cannot afford expensive energy? We need to concentrate on ensuring that those homes are properly insulated and that the warm home discount scheme is extended to such properties.
Miatta Fahnbulleh
The hon. Member makes an important point. We are very clear that we need to make sure that we have the right solutions for every household, including those in rural communities. I have met representatives from rural communities, councils, Members and some of the companies that are trying to do work in rural communities. We are absolutely committed to getting this right as part of the warm homes plan.
Christine Jardine (Edinburgh West) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
The Government have stepped in to ensure a more controlled and carefully managed phase-out of the radio teleswitch service. I have been engaging directly on this and meeting Energy UK and Ofgem fortnightly to discuss progress and the suppliers’ phase-out plan. My focus and priority is absolutely clear: to ensure that there is no impact on consumers and that we minimise any consumer detriment.
Christine Jardine
I welcome the Government’s change in course, because the previous hard deadline would have left many people, including people in my constituency of Edinburgh West, vulnerable and, indeed, unaware that there was any need to change their meter, but there is still a big problem in Scotland, as 100,000 people are still waiting on meters, and may be unaware of this issue. On engaging with the community, will the Minister please tell us what she is doing in Scotland to ensure that rural communities are approached about this, and vulnerable people get protection?
Miatta Fahnbulleh
We have been working closely with the Scottish Government and engaging with Scottish MPs. We know that about 97,000 meters needs to be replaced in Scotland. All those households have been contacted multiple times. In addition, because we know that there are particular challenges in some rural communities, we have done a sprint, in which suppliers are working in collaboration with the local authority to bring down the number of replacements needed. I can reassure the hon. Member that no area will be switched off without us contacting consumers to inform them, without us allowing them to book in emergency appointments, and, critically, without us informing MPs and local authorities, so that we do this in the best possible way.
Peter Swallow (Bracknell) (Lab)
Max Wilkinson (Cheltenham) (LD)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We believe that the best way to protect households permanently is through our mission to deliver clean power by 2030. Combined with our warm homes plan to upgrade millions of homes across the country so that they are warmer and cheaper to run, that will drive down energy bills and make cold homes a thing of the past. We know that we need to support people while we make that transition, which is why we are extending the warm home discount.
Alex Brewer
Almost 10% of people in my North East Hampshire constituency live in fuel poverty. I agree with the Minister that investing in renewable energy would help to tackle that, so how is she working with the Ministry of Housing, Communities and Local Government to empower local authorities to develop renewable energy generation locally—by following Europe’s lead in putting solar over car parks, for example—in order to make energy cheaper and more sustainable?
Miatta Fahnbulleh
The hon. Member is right: there is a big push to work with local and regional authorities to ensure not only that we generate renewables that can impact on bills, but that we upgrade homes. Through local energy action plans, local authorities are, for the first time, working with the National Energy System Operator and other systems operators to drive that. Local and regional authorities have a crucial role to play in upgrading millions of homes across the country.
Mrs Blundell
My Heywood and Middleton North constituents live in a state of profound uncertainty as to how the unpredictability of global energy markets will affect their families. Does the Minister agree that if we want to protect those families from volatility, we must end our reliance on global fossil fuel markets, and introduce targeted interventions to bring bills down, particularly for those on the lowest incomes?
Miatta Fahnbulleh
My hon. Friend is right. It beggars belief that the Conservative party is so stuck in its ideological opposition to moving towards clean power. We are clear that we must break our dependence on global fossil fuel markets, which led to record energy bills during the energy crisis. We are making that sprint, but it is critical that we support the most vulnerable households while we make that transition, which is why I am so proud that this Government extended the warm home discount so that an extra 2.7 million households—one in five—will benefit this winter.
Max Wilkinson
I congratulate Ministers again on embracing the principles of the sunshine Bill campaign, run by me and many others to ensure that solar panels are included on the roofs of all new houses. In the heat of recent weeks, people in my constituency have been sweltering in beautiful old regency buildings, which pose a particular challenge in this respect. Do Ministers agree that if we line up heat pump technology and solar panels, we can lower our energy bills and keep cool at the same time?
Miatta Fahnbulleh
The hon. Member is right. We believe in a solar panel revolution. That is one of the key things that Great British Energy will bring about across the country. On overheating, it will be critical to ensure that as we upgrade homes, we make them fit for purpose in the context of climate change. We are including air-to-air heat pumps in the boiler upgrade scheme, and we will consider other measures to keep homes cool.
Chris Hinchliff (North East Hertfordshire) (Lab)
The Government have taken long-overdue steps to secure rooftop solar on new builds, but there is even greater untapped potential on existing commercial and domestic rooftops. Will Ministers consider introducing a scheme, similar to those in other countries, offering free installation of rooftop solar for businesses and residents? The costs could be paid back through a long-term power-purchasing agreement. That would simultaneously increase the supply of clean energy and cut bills.
Miatta Fahnbulleh
My hon. Friend is right to talk about the potential of solar on our commercial buildings. We know that solar can reduce energy bills by about £600. We are looking at all the options, because we are absolutely serious about a solar rooftop revolution, whether on our homes or commercial buildings.
Pippa Heylings (South Cambridgeshire) (LD)
We welcomed the joint agreement signed in May between the UK and the EU, in which small steps were taken to address the impacts of the Conservatives’ botched Brexit deal on energy costs and bills. What further steps will the Secretary of State take to forge energy co-operation through a recoupling of the UK and EU electricity markets and the UK’s participation in the EU’s internal electricity market, to boost trade, bring down renewable energy costs and reduce energy bills?
Miatta Fahnbulleh
We have been listening to industry voices, and they are very clear about the opportunities for stronger alignment. We will continue to engage with them, and with our partners in the EU on the opportunities as we make the sprint to clean power.
Graham Stuart (Beverley and Holderness) (Con)
Wendy Chamberlain (North East Fife) (LD)
I am already being contacted by constituents who are worried about affording their energy bills this winter, but do not feel that the service they get from the energy companies is properly supporting them. What steps are the Government taking to ensure that energy companies provide the support that they need?
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We are very clear that energy companies have strict obligations to follow. We are working with Ofgem to ensure that it adheres to those obligations, and we are doing the job of reviewing Ofgem to ensure that it is a proper consumer champion, with the mandate and powers to work on behalf of consumers and reform this market so that it works in the interests of the hon. Lady’s constituents.
Brian Leishman (Alloa and Grangemouth) (Lab)
More than 100 INEOS chemical employees are to lose their jobs at Grangemouth because the refinery has closed. The £200 million commitment to Project Willow does not help them in the here and now, and it is frankly an insult to the workers who are about to lose their livelihoods to talk about training opportunities at Forth Valley college that are not being afforded to them. What have the Government actually done and what will they do for those workers who do not have the same redundancy or training package as the refinery workers?
Draft Warm Home Discount (Amendment) Regulations 2025
Miatta Fahnbulleh Excerpts(1 month, 1 week ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I beg to move,
That the Committee has considered the draft Warm Home Discount (Amendment) Regulations 2025.
The regulations were laid before the House on 19 June 2025. In February, we consulted on expanding the warm home discount scheme, which provides vulnerable households with a rebate of £150 off their energy bills; it goes to all bill payers on means-tested benefits. Today we are discussing the regulations that will allow us to implement those changes and bring energy bill relief to 2.7 million additional households.
Let me begin with the context and why we are doing this. Since we took office, the Government have been committed to alleviating fuel poverty and addressing the cost of living crisis. When we reviewed the 2021 fuel poverty strategy, it was clear that progress had stalled under the last Government and that we needed a new plan to accelerate our progress towards tackling fuel poverty.
There are two primary ways in which such progress can be accelerated: upgrading homes, to make them warmer and cheaper to run; and making energy more affordable, through expanding direct bill support. The first will be driven through our £13.2 billion investment in the warm homes plan, which aims to upgrade homes across the country and transform our housing stock. But while we do that, some households are at risk of being left behind before they can feel the full benefits. Energy bill rebates such as the warm home discount can reach families immediately; they are easy to deliver and consumers do not need to take any action to receive them. As a result, while we tackle the underlying issues that are driving up energy bills through our warm homes plan and our sprint to Clean Power 2030, the warm home discount provides a vital short-term means of mitigating fuel poverty and providing support to the households that need it the most.
Since 2011, the warm home discount has helped around 3 million low income and vulnerable households each year by reducing their energy bills at a time of year when that is most needed. Under the current scheme, around 1 million low income pensioners in receipt of guaranteed pension credit received the £150 warm home discount as an automatic rebate on their energy bills. Over 2 million low income and vulnerable households also received the rebate.
This statutory instrument would amend the Warm Home Discount (England and Wales) Regulations 2022 to allow amendment to the eligibility criteria for this coming winter, so that more rebates are provided to households. It would also extend the period during which rebate notices can be issued to suppliers, ensuring that as many rebates as possible can be issued by suppliers before the current regulations expire on 31 March 2026. The SI also amends the Warm Home Discount (Scotland) Regulations 2022, to increase suppliers’ non-core spending obligation by an amount considered to be commensurate to the expected increase in England and Wales.
The SI is a result of a consultation in February 2025 in which we proposed to remove the “high cost to heat” threshold, which can mean that families in almost identical circumstances are treated differently, with some receiving the rebate while others miss out. The current system also excludes many households in smaller properties because the home is not classified as “high cost to heat”. Removing the “high cost to heat” threshold will make all energy bill payers who receive a qualifying means-tested benefit eligible for the warm home discount. It would bring around 2.7 million additional households into the scheme, pushing the total number of households receiving the support to around 6 million—one in five households in the UK.
Before I conclude, I must draw Members’ attention to the correction slip published on 4 July. It corrects a typo on page 3 of the draft regulations, from “Her Majesty’s” to “His Majesty’s”.
In conclusion, the regulations will make the necessary legislative changes to expand the warm home discount so that it reaches an extra 2.7 million households at a time when families are struggling with their energy bills and absolutely need that vital support. I commend the regulations to the Committee.
Miatta Fahnbulleh
I thank the hon. Member for his contribution to this debate. He is nothing but consistent, which is about the only upside that I can speak about. He and the Conservative party have some cheek trying to lecture the Government on energy bills being too high, given that they oversaw record energy bills and an anergy crisis. I will address his points and then talk about this important intervention that we are taking forward.
Clean power and our drive to sprint to clean power is not ideological. It is a recognition and a response to the fact that energy bills reached sky high prices because of our dependence on global fossil fuel markets. We saw that during the energy crisis that the Conservative party presided over. Families and businesses across the country have been paying the price of that. That party was happy with that reality, but it is not one that we are willing to confront.
Nick Timothy
I will go first, then, and allow my hon. Friend the Member for Broxbourne (Lewis Cocking) to ask a superior question.
The Minister is talking about fossil fuel prices and how the Government want to take us away from them. We have had an exchange in the past couple of weeks about when the price cap was lowered because of the fall in wholesale gas prices. When that happened, the Labour party put out literature saying, “£129 off your bills, delivered by Labour”. When I put that to the Minister, she disowned that language and used her own words. I understand why; she is an intelligent and principled person, and that poster from Labour was neither intelligent nor principled. Will she apologise for that and say that it was wrong?
Miatta Fahnbulleh
We have had this conversation over and over again. What I would say is that we are very clear that we are on a rollercoaster, with fossil fuel prices driving energy bills up and down. We are absolutely committed to dealing with that. We are also absolutely committed to reducing energy bills, which went up and up under the last Government. We will not allow that to happen: we have made a commitment to reduce energy bills by £300 by the end of this Parliament and we are doing the job of making that happen.
I come back to the fact that we have to wean ourselves off fossil fuels. The proposition from the Conservative side, to the extent that it is a proposition, is completely wanting and unrealistic. Families and businesses across the country would be saddled with high prices that were a function of our being on this rollercoaster. We are not willing to contend with such a reality, so we are taking measures. The shadow Minister says that he wants to see more nuclear, but there was not a single expansion of nuclear under the last Government: 14 years absolutely wasted. We are doing the job of getting to clean power in order to reduce energy bills—
The Chair
Order. We are slightly getting off the topic of the regulations, I am afraid; they are about the warm home discount, not the general issue of fossil fuels. I have given enough latitude already.
Miatta Fahnbulleh
Thank you, Mr Dowd, for bringing us back to sanity and the regulations that we are talking about today.
We all came into politics to make sure that vulnerable people were not left behind. We know that people are struggling with energy bills and that progress on fuel poverty stalled under the last Government—a complete shame. We are committed to responding to that. The regulations are an important first step. They mean that we can expand the support to 6 million people—one in five households—at a time when we know they absolutely need it. I am incredibly proud that the Labour side of the House is taking this action. I commend the regulations to the Committee.
Question put and agreed to.
Draft Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025
Miatta Fahnbulleh Excerpts(1 month, 2 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I beg to move,
That the Committee has considered the draft Electricity and Gas (Energy Company Obligation) (Amendment) Order 2025.
The draft order was laid before the House on 11 June 2025. This Government are committed to delivering warmer homes that are cheaper to heat. That is not just a slogan—although I say it quite a lot—but a necessity for millions of households across the country.
At the heart of that mission is our warm homes plan, a bold, long-term strategy to cut energy bills, tackle fuel poverty and strengthen our energy security. I am proud that the plan has been backed by £13.2 billion of investment by the Chancellor. The funding will support the roll-out of solar panels, heat pumps, batteries and insulation to reduce bills and tackle fuel poverty. To deliver that ambition, however, we must ensure that existing schemes are working as hard as they can for the people who need them most. That is why we are introducing this draft statutory instrument.
The energy company obligation, ECO4, and the great British insulation scheme, GBIS, have been a key part of the effort to upgrade homes across the country. They impose obligations on the larger energy suppliers to achieve annual bill savings for households by upgrading the energy efficiency of their homes. The draft instrument introduces important changes to improve the performance of the schemes for their duration. The legislation makes targeted, practical changes to both ECO4 and GBIS. Those changes will enable suppliers to meet their obligations, while maintaining high standards and delivering better outcomes for consumers.
The most significant change is to allow up to 75% of an energy supplier’s GBIS target to be met through reassigned ECO4 delivery. That is not just moving the goalposts; it is the most pragmatic approach to enable energy suppliers to meet their GBIS targets while maximising bill savings for households and the number of homes treated within the original GBIS cost envelope. In reassigning bill savings from ECO4 to GBIS, we will apply a conversion factor to enable GBIS to come in on time, on target and on budget.
Crucially—I stress this—the changes will not increase consumer bills. They use existing funding already accounted for under the Ofgem price cap. There is no additional cost to households. If we did not act, the GBIS scheme would severely underdeliver and thousands of households would miss out on crucial energy efficiency upgrades.
Alongside that, we are making other important improvements: updating technical standards to reflect the latest best practice; enabling more flexible combinations of insulation measures, especially for low-income households; and encouraging smart meter uptake, helping people to take control of their energy use. The changes are not just administrative; they are essential to meeting our fuel poverty target to ensure that as many fuel-poor homes as reasonably practicable reach an energy efficiency rating of band C by 2030. The changes also support the continuity of the energy efficiency supply chain, protect value for money for bill payers and ensure that the benefits of the energy transition are shared fairly.
I now turn to the critical issue of consumer protection. On 23 January, I informed the House of the discovery of widespread non-compliance with industry standards in the installation of solid-wall insulation under the ECO4 and GBIS schemes. As soon as my Department was made aware of the issues, we worked at pace to establish an expanded programme of checks, which I asked Ofgem to oversee. I am pleased to report that those checks have progressed quickly and, where issues have been identified, they are already being resolved.
Alongside the checks is a comprehensive plan to remedy any poor-quality installations. Where substandard work is identified, it is the installer’s responsibility to put it right at no cost to the consumer. I am pleased to report that, as of last month, 90% of all the issues identified as being not up to standard at the time that I was alerted to this matter had already been fully remediated. We need to do a huge amount more to reach the standards that we want across industry and to do the key job of ensuring and maintaining consumer confidence, but we are absolutely committed to doing what is necessary.
We inherited a situation in which many organisations with different roles and responsibilities are involved in assuring the quality of retrofit activity, which results in a fragmented and confusing system of protection for consumers. We are pressing ahead with large-scale reforms through our warm homes plan, which we are committed to sharing in October. Members can be assured that the draft order will enact important changes to ECO4 and GBIS so that they can continue effectively to deliver warmer homes that are cheaper to heat.
Miatta Fahnbulleh
I thank the shadow Minister for his support for these important technical standards. I will address his question and then reiterate why we believe that the proposed changes are so important.
It is incredibly important to stress that levies on bills are funding critical infrastructure. We inherited a situation of under-investment in our networks and transmission and, critically, in the energy mix that we need in order to diversify our energy supply and ensure energy security. That was the Conservative legacy. We are now fixing it, which requires investment, but we are absolutely clear that every pound of investment has to be combined with a very clear plan to get to clean power. That is important because the last five years have shown us that our dependence on fossil fuel markets has left consumers exposed; people have faced record energy bills because of it. The Conservatives were happy with that when they were in government, but it is not something that we are happy with, which is why we are committed to getting to clean power.
Nick Timothy
If it was clear for such a long time that infrastructure needed to be improved and that the right way to do that was increasing levies on bills, why was that not in the Labour manifesto? Why did the Labour manifesto instead promise that bills would be £300 a year cheaper?
The Chair
Please reply briefly, Minister. We are getting off the subject of the statutory instrument.
Miatta Fahnbulleh
It was clear to us, but sadly we were not in government. It should have been clear to the Conservatives, and they did absolutely nothing over 15 years. We are committed to getting bills down—they are coming down—and we will take action through our clean power plan to break our dependence.
Alongside energy security, we are clear that upgrading homes is the way to ensure that the benefits of clean power filter through to consumers. Taking us back to the technical change made by the draft order, we need to ensure that we are doing what we need to, with all the levers we have, from the obligation on suppliers to our capital schemes, in order that households can have the insulation, solar panels, batteries, clean heat solutions and so on that will drive their bills down.
Millions of households are in fuel poverty, people across the country are feeling the pinch of a runaway energy system that is broken and is not working for them, and we are exposed to global fossil fuel markets. We are clear about our determination to fix the mess that we inherited and drive upgrades across the country, through both the obligations that we are discussing today and a warm homes plan backed by £13.2 billion of investment, which will deliver the objective of 5 million households upgraded, with cheaper bills and warmer homes. I commend the draft order to the Committee.
Question put and agreed to.
ECO4 Scheme Redress
Miatta Fahnbulleh Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
It is a pleasure to serve under your chairmanship, Sir John. I thank the hon. Member for North East Fife (Wendy Chamberlain) for securing this important debate and shining a light on the problem, which I agree is systemic, and also for sharing the case of her constituent, Jackie, which is both worrying and heartbreaking. I want to reaffirm the Government’s unwavering commitment to driving up standards—we know we must do this—and to strengthening consumer protection and rebuilding public trust in home upgrades.
On 23 January I informed the House of the discovery of widespread non-compliance in the insulation of solid wall insulation under the ECO4 and Great British insulation scheme. I am clear that blameless families have fallen victim to work that is not up to standard and which, if untreated, could lead to chronic issues of damp and mould spoiling their homes. This, for me, was a wake-up call and clearly shows that the system needs reform. Since then, we have taken clear and co-ordinated action to address the issues and protect affected households. I will set out the steps we have taken.
As I set out in my statement to the House in January, as soon as my Department was made aware of the issues we worked at pace to establish an expanded programme of checks, which we have asked Ofgem to oversee. I am pleased to report that those checks have progressed quickly; where issues have been identified they are already being resolved. I encourage all households who are contacted to have an audit on their property to take up those checks, even if they do not think there is a problem. We are building up a comprehensive picture of the scale and size of the problem and I will update the House in due course.
Our immediate priority was to protect consumers. Alongside the ongoing checks, we are implementing a comprehensive plan to remedy poor quality installations in accordance with the required standards. Where substandard work is identified, we have been clear that it is the installer’s responsibility to put it right at no cost to the household. Some 90% of the installations identified as not being up to standard have already been remediated, I am glad to say. We will continue to apply pressure on installers to take responsibility to fix the issues and not put the burden on individual consumers. If Jackie is struggling to get the system to respond in the way that it should, I will be happy for her to meet me and for us to take up that specific case.
Beyond energy efficiency measures, we are also verifying the quality of installations of two microgeneration technologies—heat pumps and solar panels—that were installed under ECO4. Installers use the publicly available specification standard for energy efficiency, and a standard set by the microgeneration certification scheme for heat pumps and solar. The MCS has been carrying out additional site audits of the microgeneration installations. So far, we have not seen concerning evidence of consumer detriment, but we are completing further checks before we can be assured that there are no systemic problems in the installation of microgeneration technologies. If substandard work is found, the MCS makes installers put it right. It is very important that the people who get this wrong are not allowed to walk away. They must be the ones to remediate the problems.
We were clear that we need further oversight of the system while we bring in bigger reforms, which I will come on to. The National Audit Office is undertaking an investigation into the issues with ECO4 scheme. We welcome that investigation and the insights it will bring. We have also taken steps to strengthen oversight of the wider consumer protection system, so that in the short term, while we bring in wider reforms, we stop problems happening. That includes the UK Accreditation Service increasing rates of inspection of certification bodies, and agreement with TrustMark that a senior Department for Energy Security and Net Zero official will attend its board in an advisory capacity, so that we keep a firm grip on issues as they arise.
Certification bodies have agreed that installers will only be PAS 2030 certified for each measure by one certification body. The latest iteration of PAS 2035/2030 standards, which came into force on 30 March, introduced strengthened requirements to ensure high-quality installations. Energy suppliers have also strengthened their oversight of solid-wall insulation measures, so that there are additional audits and oversight of any measures brought forward.
Those are all important, necessary short-term steps, but it is clear to me that there is a systemic problem. We recognise that and are very clear that we need to put it right. We inherited a situation of many organisations with different roles and responsibilities involved in ensuring the quality of retrofit activity, resulting in a fragmented and confusing system of consumer protections. To address that and to create a clear, more comprehensive set of standards for consumers, we are moving forward with reforms, which we will announce in our warm homes plan to be published in October.
That plan will look at the entire of spectrum, including the training and the capacity building of installers, who are key. It will look at how installers who work in people’s homes are certified and monitored, and the quality assurance regime that we put in place. One insight we found was that capital schemes that tend to be overseen by local authorities and devolved Administrations have far fewer issues because of the level of quality assurance.
The plan will also inform people where to turn for redress when things go wrong, making that as simple as possible. The situation where consumers have to jump through multiple hoops just to get things sorted cannot be allowed to continue. Guarantees must be in place to ensure that, when things do go wrong, consumers do not foot the bill, and work is remediated by the system.
Wendy Chamberlain
I am grateful to the Minister for her response. It appears the Government do recognise the scale of the problem. Does she have anything to say about the worrying reports I received when preparing for this debate of people being forced to withdraw complaints before remedial work is carried out by companies? Is there anything we can do there?
Miatta Fahnbulleh
I thank the hon. Member for raising that. We will take that away because that is unacceptable. We have been in regular touch with every part of the system since this issue came to light. We are talking to installers, certification bodies, TrustMark, the MCS and Ofgem. I will take that issue away and write to her.
My final point on the reform agenda is that we clearly need a guiding mind overseeing the system. One reason we are in this bind is because we do not have that guiding mind. Let me reassure the hon. Member, who has spoken eloquently, passionately and with great insight about this issue time and again. the Government will take the decisive action that is necessary to protect the interests of consumers. It is essential to restore consumer trust, because we must take people on this journey of upgrading their homes, not just for our clean power mission but because that is the route to drive down bills and tackle the cost of living crisis.
If people do not trust the system, do not trust that upgrades will be of the utmost standards and that, if things go wrong, they will be fixed, they will not come with us on that journey. I am clear that we take these issues seriously. We inherited them but they are ours to fix. We will put in place a reform agenda and, critically, for people who have been affected by ECO4, we are working hard to ensure that the system does what it needs to do—that is, when issues are identified, installers go in and certification bodies TrustMark and MCS do their job to ensure that it is remediated at no cost. In the short term, we are trying to fix the problem we inherited. Then we will draw a line and put in place a system that is fit for purpose so that we can build consumer trust.
Question put and agreed to.
Business Energy Supply Billing: Regulation
Miatta Fahnbulleh Excerpts(1 month, 3 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank my hon. Friend the Member for Tamworth (Sarah Edwards) for introducing this important debate, and all hon. Members for their insightful contributions. I assure them all that the Government are taking this issue seriously, and we are working at pace to respond to it.
The experience of Roasters reflects the issues that consumers face in an energy market that, quite frankly, is not working for them. Let me be clear that reforming the energy market so that it works for consumers and is fair is a key priority for this Government. We have made progress already, which I will set out, but we must do more.
I was extremely disappointed to learn of another example of a customer receiving incorrect bills and back-billing requests. Ofgem supply licence conditions are very clear: suppliers must take all reasonable steps to reflect accurate meter readings in bills or statements where these have been provided by a customer or taken by a supplier. Suppliers must also take all reasonable steps to obtain meter readings at least twice annually. They must provide historical consumption information to all customers upon request and explain how a customer’s bill was worked out.
Sarah Edwards
I thank the Minister for giving us lots of information on challenges and things that companies should be doing. Roasters café had four different smart meters fitted, none of which worked. When my constituent raised the alarm 12 months in and said she did not feel that the final meter was working, she was told, “It’s absolutely fine—it works. There’s no problem.” As we know, there was a problem; it was not making the readings, and it was certainly not smart. Can the Minister speak about the fact that energy companies are imposing these meters, charging for the privilege of going to check them and then claiming that they still work?
Miatta Fahnbulleh
We know we have a challenge with smart meters. The majority of smart meters work, but there are far too many cases where they do not. We are working with the DCC and suppliers to make sure that we have connection across the piece and that there is a clear obligation on suppliers to respond to meters that are not working. Ofgem is reviewing this at the moment, and we will set out what we will do to introduce further obligations and ensure compliance on the specific issue of smart meters.
On the wider question about back billing, let me be clear: suppliers cannot back-bill domestic or microbusiness consumers for energy use more than 12 months ago. A company is classed as a microbusiness when it has fewer than 10 employees and turnover of less than £2 million, or where it falls under certain energy-usage thresholds. In February, the Secretary of State wrote to the chief executive officer of Ofgem, asking him to accelerate the regulator’s work on reviewing the back-billing rules as part of its ongoing consumer confidence reforms. Ofgem is in the process of doing that.
The Secretary of State and I have constant meetings with the regulator to make sure that this matter is proceeding with the pace and urgency it requires. It is very clear that suppliers can back-bill consumers only in very specific circumstances; we need to clarify what those circumstances are and ensure far tighter compliance and enforcement on this issue.
My hon. Friend raised a point about the Energy Ombudsman, and what it should do to support businesses such as those in her constituency. We announced an expansion of the ombudsman’s service in December so that small and medium-sized enterprises with fewer than 50 employees can now access it. That means that 99% of businesses in this country can now access that important service. In recognition of the impact on businesses when things go wrong, the maximum award for new business disputes that go through the ombudsman has been doubled to £20,000.
We know that much more must be done to ensure that the ombudsman and the redress service are working for all customers. We have committed to consulting on a range of issues that would strengthen the ombudsman, including introducing automatic referrals to it rather than consumers having to do that themselves. We think that will speed up the process.
We are also looking to reduce the referral waiting time from eight weeks to four weeks so that customers are not waiting in a long and frustrating process before their issue gets redress. Critically, as part of that, we are looking to increase the value of the compensation that is paid to customers when things go wrong and the ombudsman has clearly put in place a judgment that suppliers are not responding to. We also want to make compensation automatic, because that is how we can expand and drive deterrence in the system.
We will look to see how, in instances of, for example, excessively long call waiting times, which consumers find desperately frustrating, unacceptably high bills when suppliers fail to adjust their direct debits, and suppliers not responding to complaints in time or not complying with the Energy Ombudsman, there can be automatic compensation so that consumers get the redress without having to go through the hassle.
Sarah Edwards
I thank the Minister for all the additional details and information on where we are hoping to get to. One thing I learned about was the problem of deemed contracts. When a business moves into a premises, they are put on an assumptive contract, but that has caused lots of problems. The ombudsman and Ofgem have decided that they cannot make any rulings on deemed contracts and when a deemed contract becomes an actual contract, and the issues around the money that is then made. Does the Minister have anything to say about deemed contracts, which contribute to a lot of complaints?
Miatta Fahnbulleh
We will raise the issue of deemed contracts with the regulator and the ombudsman. More broadly, my hon. Friend has raised specific concerns about the ombudsman’s approach. There is a clear complaints procedure, so if constituents feel that they have not had the service that they require, there is a process to escalate their complaint up the hierarchy of the ombudsman and consumers should use it.
My hon. Friend also raised the important issue of the Ofgem review, as did other Members. I could not agree more; we need a regulator with teeth that is on the side of consumers. As part of our manifesto, we promised to strengthen Ofgem, to ensure that it can hold companies to account for wrongdoing and require higher standards of performance, and to make sure that customers receive automatic customer compensation for poor service. To address that, in December, we launched a comprehensive review of Ofgem. We are in the weeds of that review, which will conclude in the autumn. Critically for me, the review will establish Ofgem as a strong consumer regulator. It will ensure that Ofgem is equipped to address unacceptable instances of customer failing and, importantly, we want it to reset consumers’ confidence in a system that, quite frankly, they have lost confidence in.
In response to the hon. Member for Dumfries and Galloway (John Cooper), the review will specifically look at whether Ofgem has the right remit, mandate, tools and powers to do the job that consumers expect. We want to ensure that all the examples are represented, so we have done a big call for evidence. We are doing huge amounts of engagement to make sure that all the evidence informs the final conclusions of the review. Critically, it will also look at redress, because we know that we need to get that right. The point has been made over and over again that it is about setting in place the right regulatory framework, but also about making sure that there are repercussions when compliance does not happen, and that there are clear enforcement mechanisms. We want to ensure that the regulator has all that.
We know that the cost of energy is a massive issue for businesses across the country, particularly small businesses. This issue, and the question of whether we cap energy bills for non-domestic customers, was raised by my hon. Friend the Member for Stevenage (Kevin Bonavia) and the hon. Member for South Cambridgeshire (Pippa Heylings). We have taken the judgment that the way that we respond to energy bills that are too high is to sprint in order to deliver clean power and break our dependence on fossil fuel markets so that we can drive down costs and bills for consumers. The shadow Minister is wrong: this is not and never was ideological. We have seen the worst energy crisis in a generation and our dependence on fossil fuels was at the root of that. That crisis, not on our shores, meant that businesses and consumers across the country were paying the price. That is why diversifying our energy mix, whether Members believe in net zero or not, and generating home-grown clean energy that we control are the routes out of this bind and out of volatility. That will deliver energy security for families and fundamentally secure family and business finances.
Nick Timothy
The Minister, as Ministers do, made a point about the volatility of gas prices. When wholesale gas prices fell and the price cap was lowered, the Labour party put out posters saying, “Labour have just cut your energy bills.” Will she accept that it was wrong for the Labour party to do that, when that fall was because of the reduction in wholesale prices and nothing to do with policy costs, which were actually increasing?
Miatta Fahnbulleh
My words were very clear. We welcome the reductions in energy prices, but we were very clear that we are on a rollercoaster: prices go up and prices go down. We must get off the rollercoaster so that we deliver energy security. That will deliver price stability and fundamentally secure family finances.
Miatta Fahnbulleh
I will make some progress.
I want to end by addressing the issue of energy brokers, which has been raised. We know that many energy brokers can help businesses to save money on their bills with contracts tailored to their needs. However, we have also seen evidence of opaque charging structures and unfair sales practices. We are hugely conscious of that, and last year the Government launched a consultation on introducing regulation of third party intermediaries such as energy brokers, aimed at enhancing consumer protection, particularly for non-domestic consumers, where we have recognised that there is an issue that must be addressed. The consultation has now closed, and I can assure my hon. Friend the Member for Tamworth that the Government are working through the huge volume of responses that we received and will respond in due course.
Finally, to the hon. Members—
Jim Shannon
Forgive me for pushing on this matter, but I did ask about the Utility Regulator in Northern Ireland.
Miatta Fahnbulleh
That was my concluding point, to hon. Members from Northern Ireland, who have raised a really important issue: we are working closely with the Northern Ireland Government to ensure that the improvements we make in the UK market are aligned and that lessons are learnt to ensure that, where we develop stronger and better practice, it is shared with the regulator and the Northern Irish Government. In the end, we must ensure that we have a system that works for all consumers across these isles.
Let me conclude by again saying a huge thank you to my hon. Friend the Member for Tamworth for raising this important issue, and by offering, if she wishes, to meet to talk in more detail about some of the issues she has raised. I am clear that, without a fair, functioning energy market, our clean power mission will not succeed, energy bills will not come down and consumers will not get justice or access to a system that works for them. That is an absolute imperative for us; that is the priority; that is the thing that drives everything we do. We look forward to working with all hon. Members to achieve that outcome.
Floating Solar Panels
Miatta Fahnbulleh Excerpts(1 month, 4 weeks ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
I thank the hon. and gallant Member for Spelthorne (Lincoln Jopp) for securing a debate on this important issue and for prosecuting his case for floating solar with such flourish. I also wish to put on the record that the Minister for Energy, my hon. Friend the Member for Rutherglen (Michael Shanks), was desperate to be here and is very sorry that he cannot be, but I am glad that I am able to stand here in his place. I am also glad that the hon. and gallant Gentleman was able to make his speech today, as I know he was not able to intervene in the recent solar debate.
Let me start by saying that I absolutely agree. The Government are very clear that, like the hon. and gallant Gentleman, we believe there is an exciting role for floating solar. It is a new technology, but one that we think has huge potential. Developers around the world started to come forward with utility-scale proposals in the past decade, and several large projects have been constructed in recent years, including installations with the capacity to generate hundreds of megawatts of electricity, which have mainly been in China.
The hon. and gallant Gentleman has very effectively set out the upsides of floating solar, so I will not reiterate them. However, I want to put on the record that we agree, and that we recognise many of those upsides.
I will say a little about the state of floating solar in the UK today. There has been some deployment of floating solar in the UK. Lightsource led a project on the Queen Elizabeth II reservoir, which is just outside the hon. Gentleman’s constituency, as he mentioned. The project uses 24,000 solar panels to generate around 20% of the site’s electricity needs. It was, at the time of construction, Europe’s largest floating solar installation. There are now other, smaller projects across the country, but the scale is still nascent and very limited.
Ben Obese-Jecty
We have already heard about Grafham Water, which is a large reservoir in my constituency. Just to the north of my constituency, in North East Cambridgeshire, we are about to start building the Fens reservoir, which is, as I am sure the Minister is aware, a joint project between Cambridge Water and Anglian Water. It will be 50 million cubic metres, and the development consent order is expected to go in in 2026, with actual construction starting in 2029. Does the Minister agree that this is a fantastic opportunity to try out this nascent technology on a large project, which could generate so much energy in the Cambridgeshire area?
Miatta Fahnbulleh
I thank the hon. Gentleman for his intervention. There are many schemes and huge opportunities, and the Government are working with industry to think about what the potential is across the country. New proposals are coming forward, and we are trying to engage with them.
Although we see that there is huge potential, it is also important to put that in the context of some of the challenges we face as we try to grow floating solar. We are trying to do our part to work with industry, so we want to ensure that we deal with some of the obstacles and barriers to the schemes that are coming forward—for example, planning or investment certainty. Floating solar projects can apply to the Government’s flagship contracts for difference scheme, and they do.
I know that one of the arguments in favour of floating solar, which the hon. and gallant Gentleman put forward, and which was reiterated by other hon. Members, is that it will reduce the amount of land that we need to use. Arguments have been made about agricultural land and constraining the amount of ground-mounted solar panels on them. I gently say, however, that if we look at the statistics, we see that only 0.1% of land in the UK is covered by ground-mounted solar at the moment—a minuscule amount. Even with the expansion that we are actively trying to encourage, we are still talking about a fraction of UK land that will only ever be used for ground-mounted solar, so it is important to put that in context.
John Cooper
The Minister is right to point to the figures now, but this is a growing problem. One of the difficulties with the land that goes under solar panels is that it tends to be south-facing land, which is prime agricultural land. That is where the crops would normally go, so this is a growing problem.
Miatta Fahnbulleh
I recognise that point, but even with the expansion, we are still talking about only a fraction of land. Inevitably, regional and local government will make a judgment about the land that we protect. Everyone recognises that we must have prime agricultural land, because we need it, so we are making decisions, and local government will also be making decisions in that context.
Lincoln Jopp
I just point out to the Minister that she could save herself a vast amount of political pain, because, apart from a few swans that I saw, a couple of seagulls and one man from the Royal Society for the Protection of Birds, there ain’t many people who are going to complain about putting floating solar on raised reservoirs.
Miatta Fahnbulleh
I am always in the market for less pain. Let me say a little bit about some of the constraints. Eligible bids have been submitted to our contracts for difference schemes, but unfortunately none has yet been successful. That is because the cost of floating solar is about 10% to 15% higher than those of ground-mounted projects, and the reason for that is the cost of the floating structures on which the panel sits. And we hear from the sector that these can account for nearly half of the cost of the project. Moreover, floating solar requires expensive underwater cables, which costs more than land-based systems. Therefore, although we are very keen to encourage this technology and to encourage the sector to grow, there is more that needs to be done in order to make them cost effective. From a Government perspective, it is critical that every scheme and every project that we support is cost-effective, so that, in the end, taxpayers are not footing the bill for technology that is too expensive.
John Cooper
I thank the Minister for allowing me to intervene again. She is making a powerful argument for looking again at the CfD scheme, which is notoriously complicated and very difficult. I think we need a two-pronged approach—we need some changes to CfD, but obviously technology associated with solar is moving on all the time, so perhaps the two could come together.
Miatta Fahnbulleh
We will always keep this area under review. We recognise the potential of the technology, and we will continue to work with industry to bring down costs. As the hon. Member says, there are reservoirs and waterways where there are potential problems, but there is also the potential for it to be painless. If we can help to unlock the technology, there will absolutely be appetite from the Government for this. We are trying to invest in research and development in this area, and we are putting in Government support and investment to unlock that.
Finally, the hon. and gallant Gentleman mentioned the solar taskforce. We are working at pace to deliver the taskforce’s recommendations. The taskforce has effectively brought together industry and Government to discuss the actions needed to scale up solar deployment, in line with our 2030 clean power mission. It has identified the need for a road map to address the specific barriers to floating solar and other innovative technologies, and a sub-group has been convened to focus on this specific topic.
Lincoln Jopp
I wonder whether the taskforce has engaged with the company that runs the Queen Elizabeth solar farm; it is called Bluefield—very clever name; very clever company. It wrote to the Secretary of State earlier in the year, some four months ago, but is yet to receive a reply. I would be grateful to know whether the Department is engaging with Bluefield and whether I could nudge the Secretary of State to reply to its letter?
Miatta Fahnbulleh
I thank the hon. and gallant Gentleman for that; his nudge has been taken, and I will pass that on to the Minister for Energy. As a Department, we are trying to engage extensively with industry on how we will take forward the complex and difficult challenges as we try to deliver our clean power mission. If companies and organisations can lend their insights and knowledge to help us develop better policy, we are always in the market for that, so I will pass on the nudge.
We are finishing the final touches to the solar road map, and it is due to be published very soon. While I will not disclose the detail of it, I assure hon. Members that the question of floating solar will be addressed within it. We recognise that floating solar is an exciting area, and we think it has huge potential for deployment in the UK. We are seeing the technology being deployed more broadly in other countries, and we want to be part of that. The hon. and gallant Gentleman has talked about the benefits for the grid, water quality, consumers of electricity and, ultimately, climate change.
There is much to like about floating solar. The challenge for us is to work with industry to ensure that we can unlock its potential. That means reducing the cost, ensuring that it is cost-effective, and ensuring that we can deploy the technology. The one commitment I will make on behalf of the Government is that we will always engage with industry as we do this work. We want the innovation, insight and experience of the brightest and the best as we try to build up our clean power sector, so we will work with industry to unlock the huge potential that we believe is there.
Question put and agreed to.
Warm Home Discount
Miatta Fahnbulleh Excerpts(2 months ago)
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The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
With permission, I wish to make a statement on the action we are taking to cut energy bills for working families.
Three years on from the Russian invasion of Ukraine which sent prices soaring, people up and down the country are still feeling the impacts. Everywhere I go in this job and from every person I speak to, I hear how the wages that used to support families are being swallowed up by sky-high energy bills month after month after month. The truth is that for as long as we remain dependent on gas and volatile global markets, British people will continue to pay the price and we will continue to be held back as a country. That is why we are finally ending our exposure and our vulnerability by sprinting to clean, affordable energy that is controlled by us.
We know that in the meantime, we must do everything we can to support families who are under huge amounts of pressure with their energy bills. Today, we are setting out how we will help millions more households with their bills this winter by expanding the warm home discount. Previously, around 3 million people received the £150 rebate off their energy bills, but millions of people living in homes not classified as “hard to heat” were excluded as a result of criteria introduced by the previous Government in 2022. We believe those criteria were unnecessary and unreliable. We believe that it cannot be fair to have two families in almost exactly the same circumstances, with one receiving help and one not. That has been raised repeatedly by consumers and their advocates since the changes were made in 2022, and I absolutely understand their concerns. That is why we are abolishing this restriction.
This winter, every single household where the bill payer receives a means-tested benefit will be eligible for the warm home discount, which means a further 2.7 million low-income households will get that vital support. In total, more than 6 million households—one in five families in Britain—will get the help they need this winter. This expansion will help us meet our goal of tackling fuel poverty, which is critical to the work of my Department. It will increase the number of fuel-poor households that receive support, with coverage improving from 30% under the current scheme to around 45%. In total, 1.6 million fuel-poor households will receive support. I have met people on the frontline of the energy bills crisis up and down the country, so I know for a fact that there are families out there right now breathing a sigh of relief because this measure will ease the huge amount of pressure they are under with the cost of living.
One issue that is often raised with me is that families can miss out on the warm home discount because the person who receives the means-tested benefit is not named on the energy bill. To be eligible, the means-tested benefit recipient, their partner or their legal appointee needs to be named on the energy bill. I encourage all families who receive a means-tested benefit to check that and, if necessary, to contact their supplier. People need to ensure that the benefit recipient, their partner or their appointee is named on the bill before the warm home discount qualifying date, which is 24 August.
At the same time, we are going further to put the energy market back in the service of working people, taking steps to restore confidence and faith in the energy market, which has been shaken. As it stands, too many complaints against energy companies go unresolved or take too long to fix—whether it is suppliers not responding quickly enough or failing to adjust direct debits when families use less energy—which leads to a situation where consumers often do not access the compensation they are entitled to due to an overly complex complaints system.
This Government are absolutely committed to standing up for consumers who have had a bad experience of the energy system, and we are working hard to ensure that the system works in the interests of consumers. We have already made real strides in improving conditions for customers. Following the Secretary of State’s intervention and months of Government work with the sector, Ofgem announced £18.6 million of compensation for victims of forced prepayment meters in May, and we will continue to go further.
This is a Government willing to use every tool in our arsenal to fight for working people. By moving at speed to deliver clean power, and with the spending review setting out the biggest investment in the domestic clean energy industry in history, we will take back control of our energy system and do the job of protecting consumers. That is why we have wasted absolutely no time in driving forward our clean energy mission in our first year, ending the onshore wind ban, consenting more than 4 GW of renewable energy, launching Great British Energy, funding a new golden era for nuclear, kick-starting carbon capture and hydrogen industries, and investing £1 billion already to upgrade up to 300,000 homes, with £13.2 billion committed in the spending review to upgrade millions more.
This is how we will rebuild our energy network and protect families across the country: by supporting more people who need our help this winter; by restoring confidence in a reformed energy market; and by bringing bills down for good with secure, reliable, clean energy. We will ensure that every family in this country has the security of a home they can afford to heat now and in the future. I commend this statement to the House.
Joy Morrissey (Beaconsfield) (Con)
I thank the Minister for advance sight of her statement—what a delight it was to receive an update on the warm home discount on this, the warmest day of the year. I know that the Minister is a tireless champion for the people of Peckham and for the most vulnerable, and I thank her for all the work that she does behind the scenes for those causes.
Exactly one year ago today, the Chancellor said:
“Great British Energy, a publicly owned energy company, will cut energy bills by up to £300.”
What has happened since? Bills have not fallen by £300, as was promised so many times by the Prime Minister, the Chancellor, the Energy Secretary and Labour MPs. In fact, bills have gone up by almost £300—the opposite of what they all promised just a year ago. On top of that, this Government took the winter fuel payment away from millions of pensioners through a cold winter. This announcement will provide support for some, but it is nothing more than a sticking plaster—the fact is, this Government’s energy policy is making people colder and poorer.
The Minister has not said a single word about how this expansion will be paid for. It is a £400 million commitment, but there was no detail in either the Government’s press release or the Minister’s statement about how it will be funded. Will the warm home discount still be funded by levies on everyone’s energy bills? If so, this policy means that energy bills will increase for the majority of bill payers, yet the Minister did not say so in her statement. Will she therefore inform the House whether she has asked her Department to calculate by how much levies on everyone’s bills will increase to pay for the £400 million of extra spending? If so, will she inform the House so that our constituents know how much their bills will increase by under this Labour Government?
The Government’s press release said that the expansion of the scheme will be offset by efficiency savings across the energy system, but we have no detail about what those efficiencies are, or how much money will be saved. In fact, the system is becoming less efficient. The National Energy System Operator recently said that the cost of balancing the grid by paying wind farms to switch off when it is too windy increased by 10% to £2.7 billion a year, warning that this will triple to £8 billion a year by 2030 as this Government rush to build more wind farms and solar farms on agricultural land than ever before. That is what this Government are delivering: more subsidies, more levies, more payments for wind farms to switch off, more tech imported from China, and more costs added to everyone’s bills.
Will the Minister share some proper detail with the House on exactly how much this will cost the British people? I suspect the answer will be a resounding no. This is a statement devoid of detail because it is designed simply to distract from the fact that this Government’s energy policy is in chaos and driving bills higher and higher. This is a Government driven by the ideology of net zero, not by making energy bills lower for families across Britain. It is a Government of broken promises.
Miatta Fahnbulleh
I think the hon. Lady has some cheek, given the previous Government’s record on energy bills. When, under their watch, families across the country were paying sky-high energy bills—with people still paying the price of that today—the idea that the Conservatives would try to lecture us on energy bills is pretty rich.
Let me take the hon. Lady’s questions directly. Yes, we are committed to reducing energy bills by £300. We have passed the legislation on Great British Energy and the institution is up and running. We are doing the job of driving down bills—we stand by that commitment, and the way we will deliver it is through investment in clean power. It is very clear that our reliance and dependence on global fossil fuel markets under the Conservatives’ watch was ultimately what led to bills rising. Labour will not make that mistake, which is why we are investing record levels in renewables. That is the way we will drive down costs in the system and drive down bills.
This policy is not about ideology; it is about families across the country. The status quo is not tenable. We do not think it is acceptable to have bills at the current levels and to leave families exposed, which is why we are taking action.
The hon. Lady asked specifically how this policy will be paid for. The warm home discount is paid for under the price cap. We are very clear that we do not want other families’ bills to increase in order to pay for this change. We have worked with Ofgem to look for savings within supplier operating costs, for instance. Given that debt spiked under the energy crisis, meaning that all households are currently paying a bit on the debt allowance, we are also working with Ofgem to get that debt burden down. We will use the savings there to cover the cost of this policy. We are very clear: support for those who need it; protection for all households.
Luke Murphy (Basingstoke) (Lab)
I welcome the Minister’s statement. I think the shadow Minister was right to highlight this statement being made on the warmest day of the year—this is a Government announcing a warm home plan to literally fix the roof while the sun shines, which the Conservatives failed to do. This announcement will benefit nearly 3 million families, no doubt helping thousands in Hampshire, including many in my constituency.
First, on data sharing, one reason it is tough for many families and households to access these benefits is the inability to access data between the suppliers and the Government. Secondly, given that the legacy of the previous Government was to leave us with the highest electricity prices in Europe, can the Minister confirm that the Government are continuing to look at ways to bring down electricity costs for both consumers and businesses?
Miatta Fahnbulleh
As always, my hon. Friend puts it perfectly. I will pick up his point on data sharing, which is critical. My Department and the Department for Work and Pensions have been working over the past few months on the sharing of means-tested benefit data so that this will be automatic; come this winter, all eligible consumers will receive a letter informing them that they will be getting the warm home discount. It will be transferred on to energy bills as a credit—a direct payment for consumers—because we have done the groundwork to put that in place.
On my hon. Friend’s critical second point, the relative cost of gas and electricity is incredibly high, and we know that is a problem for both households and businesses, particularly as we try to make that transition to clean energy. We are continuing to do that work. I am very clear that we need to deal with that question in order, for example, for our plans to upgrade homes to have the bite and traction they need, and we are absolutely committed to doing so.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Liberal Democrat spokesperson.
Claire Young (Thornbury and Yate) (LD)
We welcome investment in warm homes following a winter in which millions of households were living in fuel poverty. The crisis was exacerbated by the Government’s cut to winter fuel payments— and we welcome the U-turn on that, too. The former Conservative Government’s stop-starts on home insulation policies left thousands of vulnerable people in damp, cold and unsafe homes, with lower energy-efficiency standards and higher bills during an energy crisis.
Given that homes in this country are among the oldest and least energy-efficient in Europe, will the Government commit to an ambitious 10-year plan for home insulation, for which the Liberal Democrats have long called? Will they ensure that households on lower incomes will be eligible for free insulation as part of that plan? And, following the Government accepting the campaign of my hon. Friend the Member for Cheltenham (Max Wilkinson) for solar panels to be mandated for all new homes, will they now look to introduce a full zero carbon standard for all new homes and solar for car parks, as put forward by the Liberal Democrats in amendments to the Planning and Infra- structure Bill?
Miatta Fahnbulleh
I could not agree more. The record of stops and starts on home upgrades and home insulation is one reason that we failed to insulate as many households as we should have done from the energy price spike. We are committed to a long-term plan to upgrade millions of homes across the country. That is what the warm homes plan will do. We are delighted that this has been backed by the Chancellor with £13.2 billion of investment, and we are now working on how we draw that out across the country. We will make sure that we have the right solution for every household, using a combination of insulation, solar, and heat pumps. We want every household that gets an upgrade to have a home that is warm and much, much cheaper to run. That is our absolute focus and priority.
On the future homes standard, we have been working very closely with colleagues in the Ministry of Housing, Communities and Local Government and consulting with developers. We are absolutely committed to driving forward standards. We have set out our ambition to make sure that future homes are fit for the future, using solar and clean heat solutions. We cannot have the situation that we have had in the past, where we built homes that needed retrofitting a few years later. We are committed to our ambition and we will be setting out more details in the warm homes plan.
Dr Zubir Ahmed (Glasgow South West) (Lab)
I warmly welcome my hon. Friend’s announcement, which will mean that 240,000 people in Scotland will benefit to the tune of £150 directly from the UK Government. I know that she will be having conversations with our Scottish counterparts—and I am sure that if SNP Members were here today, they would also welcome this announcement. As she is having those conversations, may I encourage her to talk about what she is doing and how it differs from the SNP’s approach, which involves independence thermometers and housing dashboards? What this Labour Government are doing down here is a practical, tangible example of how we can directly impact the lives of working people.
Miatta Fahnbulleh
My hon. Friend is absolutely right. We are engaging with the Scottish Government. Today’s expansion creates more resources for the Scottish Government to ensure that direct bill support is provided to more households. Alongside that, there has to be a plan to upgrade homes and to make sure that we are delivering homes that are warmer and cheaper to run. We will have a plan here, and we expect that, with the additional funding and the example that we have set, the Scottish Government will follow suit, but we are long past the stage of warm words and light action. We need to get on with it, because there are people across the country, including in Scotland, who are struggling. It is the responsibility of Government to get a grip and start to act.
Sir Julian Lewis (New Forest East) (Con)
Yesterday, as the Minister probably knows, food bank groups associated with the Trussell Trust lobbied—very effectively —Members on both sides of the House. My local group, the Waterside food bank, impressed on me the gap between the £92, which the Government believe a single person is estimated to need to survive, and the £120 that the food bank believes is necessary for a single person to be able to survive alone. Can the Minister give an indication as to what extent the gap between those two figures will be closed as a result of this initiative?
Miatta Fahnbulleh
I thank the right hon. Member for a very good question. We know that families are struggling with the cost of living. We know that families are in poverty, and that many are having to make the choice between heating and eating. We are trying to put in place a range of measures, and the warm home discount —this £150—is part of it. We have extended free school meals to families on means-tested benefits. We are rolling out breakfast clubs. There is a range of things that we are trying to do as a Government to ensure that people who are struggling and who have been struggling for a long time are lifted out of poverty. We are very clear about our ambition. Every time Labour comes to power, our record is that we lift people out of poverty, and we will continue to do that.
Pamela Nash (Motherwell, Wishaw and Carluke) (Lab)
I welcome the Minister’s statement, as will nearly a quarter of a million people across Scotland who will benefit from this £150 warm home discount for the first time. We always appreciate these measures a little bit more in Scotland, because our weather is a bit colder. We have to keep reminding people of that, even today. Does the Minister share my pride in this Government expanding support for more people who need it most because we are turning the tide on failure and building a strong economy on the back of clean energy?
Miatta Fahnbulleh
I could not agree more with my hon. Friend. The legacy—the inheritance—was woeful. I do not need to say that, because people feel it across the country. We, as the incoming Government, have a responsibility to ensure that we are doing everything that we can to lift living standards—everything that we can to support families who we know are struggling. I share my hon. Friend’s pride in our being able to expand the support, because we know just how much it is needed. None the less, there is more that we need to do. We will not stop here. If we get the roll-out of the warm homes plan right, and if we are upgrading homes, we will be taking up to £600 off bills. The bigger plan that we must take forward will help us to deliver clean power, so that we can reduce bills for everyone. This Government are clear about the task of improving living standards. It is core to what we need to do and to what we need to achieve as a Government, and we are getting on and delivering it.
James Wild (North West Norfolk) (Con)
Will the Minister confirm that park home residents in North West Norfolk and across the country, who pay their bills directly to the site owner, will also benefit from the extended £150 discount, and that when they apply, funding will not be limited, so that everyone who is entitled to this payment will receive it?
Miatta Fahnbulleh
I thank the hon. Member for a really good question. Park homes are currently supported through industry initiatives and the warm home discount. We will continue to make sure that park homes are supported. There is obviously work that we need to do, because we are conscious that there are some customers who are not receiving the discount, and we are working with industry to resolve that.
Johanna Baxter (Paisley and Renfrewshire South) (Lab)
I warmly welcome my hon. Friend’s statement today on the expansion of the warm home discount. It will mean that 240,000 people across Scotland, including many thousands in Paisley and Renfrewshire South, will receive £150 directly off their energy bills from this UK Government. Will my hon. Friend say a little more about the work being done to accelerate proposals to introduce a debt relief scheme, which would target unsustainable debt built up during the energy crisis?
Miatta Fahnbulleh
My hon. Friend is right to mention debt relief and the huge burden of debt that we have seen. Over the course of the energy crisis, we saw debt increase to more than £3 billion. For many of those households in debt, there is no route to paying it off. We have been working with Ofgem to put in place a debt relief scheme, using a combination of write-offs of debt and repayment plans, so that we can ensure that more people are lifted out of energy debt and are in a position to afford their energy.
Tom Gordon (Harrogate and Knaresborough) (LD)
The Minister knows that I have a lot of time for her, and I welcome her announcement today, but it will be of little relief to those who are living with spray-foam insulation that was inadequately installed, and there has been no support from the Government to fix that. Putting that aside, I wondered what Government support is available for off-grid households in rural areas, to ensure that they do not miss out and are included in these plans?
Miatta Fahnbulleh
Rural consumers who are on means-tested benefits and linked to an energy supplier should be supported in the right way. We know that there are some off-grid rural households that are not with a particular energy supplier and that that is more difficult. This is why we are working with industry. There is a discretionary amount within the warm home discount that allows industry to find and target those people to provide support.
Gregor Poynton (Livingston) (Lab)
I think all Labour Members warmly welcome today’s statement, particularly those in Scotland, where 240,000 families will benefit from £150 off their bills this winter. That includes thousands of working families across my constituency. Does the Minister agree that this is another case of the UK Labour Government making a manifesto commitment and delivering on it?
Miatta Fahnbulleh
My hon. Friend is completely right—a promise made, a promise delivered. That is what a Labour Government do. We are very clear about the change we need to deliver in the country. Unlike the Conservatives and the Scottish Government, there are no warm words or faffing around; we are getting on with the job of delivering change.
Josh MacAlister (Whitehaven and Workington) (Lab)
Today’s announcement of the expansion of the warm home discount is extremely welcome and will benefit many people across west Cumbria. One of the first meetings I had with Ministers after the election was with my hon. Friend. Could she set out more detail about how the really welcome warm homes plan will build on this discount to create a permanent, lasting solution for families in my constituency, who face some of the draughtiest homes in the country, to give them real financial benefit?
Miatta Fahnbulleh
Fuel poverty is an absolute scourge that we must work hard to eliminate. There are two things we must do to achieve that. On the one hand, we must deliver bills support. The expansion of the warm home discount is so important, because more households in fuel poverty will receive it. On the other hand, we must make sure that we are doing the job of upgrading homes. This year we have invested £1 billion to deliver 300,000 upgrades, but that is not enough. We have to massively increase the number of upgrades so that we are delivering millions over the course of this Parliament. We have committed to £13.2 billion, and we are now doing the work of setting out how we will drive the shift and change that we need to see across the country. We must ensure that the households that need it have insulation, solar panels, batteries and heat pumps so that their homes are warmer, and ultimately so that we can lower bills by up to £600.
Ellie Chowns (North Herefordshire) (Green)
Today’s announcement is very welcome and will make a real difference to many of our constituents. I am glad to hear the Minister reaffirm today that in addition to support with bills, the Government recognise the urgent need to ensure that every home is well-insulated and affordable to heat—a genuinely warm home—and are doing that through both hugely increasing standards for new homes and insulating existing homes. She has referenced the £13.2 billion Government commitment to the warm homes plan, which is welcome, though not enough, but why do the spending review documents show that more than a third of that money—£5 billion of the £13.2 billion—is money that the Government expect to get back, presumably to be repaid by households?
Miatta Fahnbulleh
I think the hon. Member is referring to some of the financial transaction mechanisms. We will deliver the warm homes strand through Government support to some households as well as by working with energy companies, whether it be suppliers or distribution network operators, in order to ensure that we are driving upgrades. Part of that will involve the Government providing loans to suppliers, which they will pay back over time. I think that is what the hon. Member is referring to. We are very clear that we need up-front investment as a catalyst, and we are clear that we need to upgrade millions of homes and crack on with the job.
Deirdre Costigan (Ealing Southall) (Lab)
I welcome the Minister’s statement. This announcement will mean that over half a million more Londoners will benefit from a £150 discount on their energy bills this winter. Does she agree that along with our free breakfast clubs, the £1,400 per year increase in the minimum wage and free childcare in schools, today’s announcement shows that Labour is putting money back into the pockets of working people in Ealing Southall and across the country?
Miatta Fahnbulleh
My hon. Friend is spot on. Members on the Conservative Front Bench are chuckling away in front of me, but it is no joke. We inherited an absolutely atrocious set of circumstances. Families across the country are paying for their failure, with the cost of living at a record high level. I go across the country to speak to people, and I see the impact of the Conservatives’ failure on people’s lives. We were not willing to accept that what we inherited was the status quo. That is why we are taking decisive action. Whether it is the expansions to the warm home discount and free school meals, the increase in the national minimum wage or our record investment in social housing, this Government are getting on with the job of lifting living standards in order to fix the mess we inherited from that lot.
Jim Shannon (Strangford) (DUP)
I thank the Minister for her statement and her answers. In the short time she has been in her role, she has always delivered good news, and that is quite a talent, so I say well done and I thank the Government for that. Double the number of households in the United Kingdom will get £150 off their energy bills, and that is very welcome for those on means-tested benefits. However, with one in four children living in poverty in Northern Ireland, it is essential that this announcement applies in Northern Ireland too. Will the Minister confirm that Northern Ireland is included in this help for the vulnerable and those in poverty? Will it come through Barnett consequentials or another way?
Miatta Fahnbulleh
Northern Ireland runs its own separate scheme. We are in very close contact with the Northern Irish Government—in fact, I was in Northern Ireland yesterday. We are making sure that our work to deliver clean power, which is our route to lowering bills, and, critically, our work through the warm homes plan is co-ordinated. The hon. Member is right that there are people across the country who are struggling at the moment, and it is absolutely our responsibility to take action to support them.
Sam Rushworth (Bishop Auckland) (Lab)
I thank the Minister for this announcement. As she will recall, we met back in September to discuss my concerns about fuel poverty in my constituency, including the number of children living in cold homes. We specifically talked about this measure. She has taken it away, done the hard graft and delivered, so I thank her for that. As she said in her statement, there are people who may not get the discount because they do not know that they are entitled to it. The Government will know which people are receiving the warm home discount and which people are on a means-tested benefit and are not receiving it. Will she consider writing to those families to make sure that everybody knows the good news that this Government are putting more money into their pockets?
Miatta Fahnbulleh
I thank my hon. Friend for the work he has been doing to champion this agenda. I can confirm that we will be writing to all households in receipt of means-tested benefits to let them know that they are eligible for the discount. For the vast majority, it will be automatic; they will not have to do anything, and the discount will turn up as a credit on their bills. There is a bit of action to take for people who are not the bill payer. We will get the message out that they must ensure that they are included as the bill payer in order to get the automatic support.
Gordon McKee (Glasgow South) (Lab)
Thousands more of my constituents in Glasgow will have money off their energy bills this winter as a result of this Labour Government’s decision. I welcome the Minister’s statement and ask her to assure me that the Government will continue to work hard to deliver lower energy bills for families in Glasgow.
Miatta Fahnbulleh
I can commit to that. The Conservatives tell us that our fight to deliver clean power and our work to upgrade people’s homes is ideological. It is not ideological; it is down to bread and butter issues. We know that there are families struggling across the country. We were not willing to accept what we inherited as the status quo, so we are getting on with the job of reducing energy bills, because improving living standards and delivering the change we were elected to deliver is a core priority for this Government.
Tom Hayes (Bournemouth East) (Lab)
The Minister is right that because the Conservatives left our country exposed to fossil fuel prices, people’s wages are being swallowed up by energy costs. It is right that we are sprinting towards clean, home-grown energy as a long-term solution, and the tensions in the middle east demonstrate why that is so important. We must also get support to people right now in Bournemouth East. I welcome the fact that 220,000 families across the south-west, including my constituents, will benefit from help this winter, but my constituents want to feel a bit of breathing room—to live, not merely survive. Will the Minister confirm that tackling the cost of living is our No. 1 priority as a Government, and set out the ways in which the Government are targeting the cost of living crisis?
Miatta Fahnbulleh
My hon. Friend is absolutely right to talk about the cost of living. He is also right to point out that we have huge exposure to global fossil fuel markets, and at a point where we are seeing tensions and conflict in the middle east, energy security becomes so critical. So we will continue, despite the naysayers on the Opposition Benches, to sprint to deliver clean power, but while we do that we are taking action to reduce the cost of living. So, whether it is the expansion of the warm home discount, or the expansion of free school meals, or increasing the national living wage, or the action that we are taking to roll out breakfast clubs, or the action that we are taking to build record amounts of social housing, the Labour Government are committed to bettering living standards—not talking about it, but getting on and delivering the change that we were elected to deliver.
Amanda Martin (Portsmouth North) (Lab)
Many families in Portsmouth North continue to face pressure from energy bills and the cost of living, so I congratulate my hon. Friend and the Government on supporting those on the lowest incomes this winter, particularly through the change in the warm home discount, the £150 credit, the warm homes plan and the additional funds that we have given to the household support fund, helping people like Portsmouth North resident Amee, who I met yesterday and who lost out under the last Government’s unnecessary, unreliable and unfair criteria. Will the Minister join me in urging that—alongside our Government—energy providers and councils, including Portsmouth city council, do more to promote and advertise what residents must do to access these vital supports to raise their living standards, so that families who are entitled to it get the help that they need?
Miatta Fahnbulleh
My hon. Friend is absolutely right. There is a clear obligation on energy suppliers to do everything that they can to support vulnerable households. I meet with suppliers regularly to emphasise that people are under pressure and that they absolutely must discharge their obligations. My hon. Friend is also right to point out that we have to work with local government, regional government and partners on the ground to ensure that the support that is available—we will continue building on that support—gets to the people that absolutely need it.
Chris Vince (Harlow) (Lab/Co-op)
I thank the Minister for her statement, which will help a quarter of a million households in the east of England. May I say, from a personal point of view, it is so encouraging to hear a Government focused on green energy solutions? Believe it or not, Madam Deputy Speaker, it is over 30 years since I was at school, learning about the importance of green energy—[Interruption.] I know. Will she reflect on the decisions that this Government are making, including removing the ban on onshore wind, and how they will continue to benefit residents in my constituency of Harlow?
Miatta Fahnbulleh
I cannot believe it was 30 years ago that my hon. Friend was learning about green energy. We have been sprinting to deliver clean power. When we came into government we set a mission to do it by 2030. There were naysayers, and there continues to be naysayers, but we were not deterred by that. So whether it is removing the ban on onshore wind, whether it is record investment in nuclear, or whether it is a record renewables auction, we are very clear that we are putting in the investment—we are putting in the hard yards, the hard graft—to deliver clean power. Why are we doing that? Not because of ideology, but because we recognise that we inherited an energy system that was not working on behalf of consumers. We recognise that people were under huge pressure—a status quo that we were not willing to accept. We will deliver clean power, so that we can bear down on bills and ensure that we drive down energy bills for good.
Madam Deputy Speaker (Ms Nusrat Ghani)
That is the end of the statement, so I will allow the Front Benches a few moments to shuffle over as we continue the business for the rest of the afternoon.
Radio Teleswitch Service Switch-off
Miatta Fahnbulleh Excerpts(2 months ago)
Written StatementsRead Full debate Read Hansard Text Read Debate Ministerial Extracts
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
Today I can confirm that my Department has stepped in to ensure that there will be a managed and more controlled start of the radio teleswitch service phase-out from 30 June. People with an RTS meter will not face any unexpected disruption to their heating or hot water at the end of the month.
The radio teleswitch service uses radio signals to switch older electricity meters between different tariffs such as peak and off-peak, and can also be used to turn heating and hot water systems on and off at specific times of the day.
The technology behind RTS is reliant on infrastructure that was introduced in the 1980s that is due to be switched off as it is reaching the end of its operational life. The phased approach to switch-off was agreed with relevant industry parties on behalf of energy suppliers.
For years the pace of RTS replacements by industry has been too slow—leaving 314,935 RTS meters still in premises as of 30 May 2025.
My Department has worked to ensure that industry will pursue a more controlled approach to the phase-out, beginning with a very small number of homes and businesses in carefully targeted local areas. During this process, the Government and Ofgem will closely monitor supplier that readiness to ensure the process is smooth and vulnerable consumers are identified and protected.
These steps will help to ensure that suppliers are ready to respond quickly in case of any issues and that working families and the elderly are protected throughout the phase-out process.
The Government are working closely with the industry and Ofgem to ensure this next period is planned effectively and that consumers, particularly those who are vulnerable, are protected. The Government are clear that suppliers must fulfil all their legal obligations to their customers, and will work with Ofgem to hold suppliers to account.
I will continue to meet Ofgem and Energy UK on a fortnightly basis to review how the gradual and targeted phase-out is progressing, with a particular focus on Scotland—where over 100,000 RTS meters are installed—as well as remote and rural areas, to ensure that all efforts are made to reach these households.
To provide additional protection to consumers, Ofgem has recently consulted on plans to introduce new RTS-specific licence conditions for energy suppliers. These will include a provision that suppliers must take all reasonable steps to provide a tariff that leaves their consumers “no worse off” than under their existing arrangement as a result of an RTS meter replacement. Ofgem will publish its response to the consultation shortly.
Suppliers will continue contacting consumers to book replacement appointments and consumers are urged to respond as soon as possible. In most cases, this will involve replacing the RTS meter with a smart meter—which can work in the same way as RTS meters, with automatic peak and off-peak rates, and the ability to turn heating and hot water systems on and off—ensuring minimal disruption to households.
In advance of any phase-out activity in their area, households and businesses will be contacted by their energy supplier to inform them well ahead of time if their meters will be affected.
The Government have also made it clear to industry that suppliers must fulfil all their obligations to consumers and drive up the rate of RTS meter replacements. In recent months, suppliers have taken various steps to speed up their replacement rates, and this must continue. The Department continues to impress upon suppliers the importance of resourcing themselves effectively to ensure that they can reach all their RTS consumers in good time, including those in rural areas.
Although the RTS and the work to replace it is industry-owned and led, this Government are doing everything we can to ensure that all consumers, particularly those who are vulnerable, are protected from any negative impacts.
[HCWS711]
Oral Answers to Questions
Miatta Fahnbulleh Excerpts(2 months, 1 week ago)
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Nesil Caliskan (Barking) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
Happy birthday, Mr Speaker. We are extending the warm home discount to more than 6 million households, doubling the number of families that will get support this winter. That is the difference that a Labour Government make. We are providing support for those who need it while we sprint to clean power by 2030, so that we can get off the energy rollercoaster and bear down on bills for good.
Mrs Brackenridge
A very happy birthday to you, Mr Speaker. I welcome the extension of the warm home discount to all households on means-tested benefits from this winter. Many low-income households were excluded because their homes were not classed as having a high cost to heat. In Wolverhampton North East, only 18% of households benefited from the discount in 2023-24. Can the Minister confirm that the new scheme is simple, fair and focused on those who are most in need?
Miatta Fahnbulleh
I thank my hon. Friend for raising that really important point. I can confirm that we will remove the hard-to-heat criterion, which means that support will go to low-income households that we know need help with their energy bills.
Nesil Caliskan
I thank the Minister for outlining the support available to households with high energy bills. Some 6,000 households in my constituency benefit from the warm home discount, but many in Barking and Dagenham, alongside almost 2 million other households in this country, are dealing with high energy debt. What plans are under way for energy debt relief schemes, or a scheme to help those who built up debt under the previous Government, so that we can support them now? Unlike the Conservatives, we do not abandon those households suffering from debt that arose as a result of the legacy of past Governments.
Miatta Fahnbulleh
We are working with Ofgem to put in place a debt support scheme to deal with the huge rise in energy debt that we saw during the energy crisis, which the Conservatives failed to deal with. That will provide much-needed support, whether through debt write-offs or debt repayment plans. It will mean that households that cannot afford their energy bills, are struggling, and will never pay that debt are provided with support.
Mr Gregory Campbell (East Londonderry) (DUP)
Happy birthday to you, Mr Speaker. The Government are targeting measures based on people’s income, but will they look at the issue of rural homes? Many thousands of people live in poorly insulated homes in isolated areas; families there are left in the cold in the winter.
Miatta Fahnbulleh
We know there are parts of the country where homes are not up to standard and families are struggling with bills. That is why our warm homes plan is so important. We will target homes across the country and ensure that we provide a range of measures, from insulation through to solar and heat pumps, so we can ensure that homes are warmer and cheaper to run.
Jim Shannon (Strangford) (DUP)
Happy birthday, Mr Speaker! Like me, you don’t count the years; you make the years count. You are doing very well at that.
I welcome the Minister’s answer. She has in the past been keen to ensure that Northern Ireland does not lose out on schemes. Yesterday, the decision on the winter fuel payment was announced to the House, which we all welcome. The Under-Secretary of State for Work and Pensions, the hon. Member for Swansea West (Torsten Bell), was clear that the legislation starts here, but help for Northern Ireland will come from here as well. Will there be the same help for those in Northern Ireland, who need it as much as people here?
Miatta Fahnbulleh
We are working across all nations to ensure that households get the support that they need. I will be in Northern Ireland next week, where I will talk to the devolved Administration about how we can work together to ensure that homes across the country are supported.
Edward Morello (West Dorset) (LD)
Nesil Caliskan (Barking) (Lab)
The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
We have had challenges with heat networks across the country. That is why we are bringing forward regulations to make sure both that there is a fair price for people on heat networks and that technical standards drive up the quality of heat networks, so that people can have cheaper bills.
Alex Brewer (North East Hampshire) (LD)
Rachael Maskell (York Central) (Lab/Co-op)
Happy birthday, Mr Speaker.
The York Central development site at the heart of my constituency has been found to be a rich source of deep geothermal energy. Will the Minister meet me to look at how we can bring this on stream to heat the 2,500 homes and support the 12,500 jobs there will be on that site?