Oral Answers to Questions

Michael Shanks Excerpts

Tuesday 4th February 2025 Commons Chamber

[Jamie Stone (Caithness, Sutherland and Easter Ross) (LD)]

15. What steps he is taking to support off-grid communities with energy prices.

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

Our commitment to make Britain a clean energy superpower is the only way to protect bill payers permanently. The Government are determined to support all households with their energy costs, including those that are off grid, and eligible low-income households are being supported with the warm home discount. I urge households off the gas grid to contact their electricity supplier, if they have one, to see what support they can receive.

[Charlotte Cane]

Many of my constituents, as well as being off grid, have homes built of non-standard materials—clunch or wattle and daub—and those homes are also often listed. What support will the Minister provide to my constituents who are looking to retrofit their homes to move away from oil and improve insulation?

[Michael Shanks]

The hon. Lady is right that, particularly in rural areas, certain house types are often much more difficult to heat due to much older building materials and a lack of insulation. The Minister for Consumers, my hon. Friend the Member for Peckham (Miatta Fahnbulleh), is working to make sure our warm homes plan can reach all communities and all types of households, and I encourage the hon. Member for Ely and East Cambridgeshire (Charlotte Cane) to feed in any ideas for how we can do that for these rural and off-grid households.

[Jamie Stone]

Every winter, Altnaharra in my constituency is the coldest place in the UK. I can think of lots of pensioners who are faced with the invidious decision of whether to switch off and shiver or to run into debt. It occurs to me that the Department for Work and Pensions may well have a database of these people, so will His Majesty’s Government get the DWP to work with the Department for Energy Security and Net Zero to identify them and give a helping hand?

[Michael Shanks]

I thank the hon. Gentleman for that helpful point. Where we can co-ordinate information and data across Government to identify people who need more support, we will do so. My Department is currently working with the Department for Work and Pensions to release as much of that information as possible, and we hope that we will be able to make progress in due course.

[John Slinger (Rugby) (Lab)]

Does the Minister agree that new oil and gas developments will not give us energy security? As the fossil fuels they produce will be sold internationally, they will not lower bills and they will undermine our climate commitments.

[Michael Shanks]

My hon. Friend is, of course, right to say that, even if oil and gas are extracted from the continental shelf, they are sold on the international markets. The companies that extract the oil and gas are in the business of trying to make as much profit as possible and will sell to the highest bidder, so it does not protect prices for consumers in this country. We were clear in our manifesto that we will not issue licences for new exploration and new fields, but that we will continue to support those licences that have already been issued. Our future does not lie in more oil and gas; it lies in clean power, which is why we are moving at pace to deliver that.

[Anna Dixon (Shipley) (Lab)]

7. What steps he is taking to introduce the warm homes plan.

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[Greg Smith (Mid Buckinghamshire) (Con)]

14. What assessment he has made of the potential impact of energy-based development proposals in Mid Buckinghamshire constituency.

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

I congratulate the hon. Gentleman not just on this question, but on securing an Adjournment debate last night on exactly the same subject. As I stated last night, clean power projects in his constituency and across the country are vital to achieving our clean power mission, which will give us energy security and bring down bills for families. Of course, all proposals are assessed on their individual merit through the planning system, and where communities host infrastructure, the Government believe they should directly benefit from it.

[Greg Smith]

In answering my hon. Friend the Member for Beaconsfield (Joy Morrissey) earlier, the Secretary of State completely dismissed the legitimate concerns of rural communities and farmers who are being asked to take on energy projects. Yet last night in the Adjournment debate, the Under-Secretary found a more reasonable tone, accepting the point on cumulative impact in constituencies such as mine that are being asked to take up to 3,000 acres of projects. Will the Under-Secretary go into more detail about how the Government will put in mitigations on cumulative impact to protect communities such as mine?

[Michael Shanks]

I would be testing the patience of the Deputy Speaker if I were to go into more detail than I could in an Adjournment debate. The point I made clearly to the hon. Gentleman was that it is not a credible position for him to take that there should be absolutely no infrastructure built anywhere in his constituency. The reality is we need to build new infrastructure, not just energy infrastructure but right across the public sector. I have said clearly that the work we are taking forward on the strategic spatial energy plan and on the land use framework by colleagues in the Department for Environment, Food and Rural Affairs is about trying to ensure that we manage the best use of land, but we will have to build new infrastructure, and communities will have to host it.

[Mr Bayo Alaba (Southend East and Rochford) (Lab)]

17. Whether he has made an assessment of the potential merits of establishing a Great British Energy office in every region.

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

We announced that Great British Energy’s headquarters will be in Aberdeen, recognising the decades of experience in that city as the energy capital of Europe and our determination to invest in good, well-paid jobs in the city. With £8.3 billion-worth of investment behind Great British Energy, it will deliver economic value and jobs right across the supply chain across all parts of the country, including in my hon. Friend’s constituency. Great British Energy is the right idea for our time: public ownership, investment in supply chains and the reindustrialisation of our nation.

[Mr Alaba]

I commend the Minister on the progress he has made on setting up Great British Energy. Can he outline to the House what opportunities our publicly owned champion will bring to Southend East and Rochford and the wider south-east region?

[Michael Shanks]

My hon. Friend is right. Of course, the Great British Energy legislation is still going through Parliament at the moment; we hope that process will conclude soon, but in the meantime, hard work has been taking place to identify all the opportunities for Great British Energy to invest. Both Opposition parties—the SNP and the Conservatives—seem to oppose Great British Energy. Every single investment that it makes, every job that it creates, and every part of the supply chain that it incentivises will be delivered by Great British Energy against the SNP and the Conservatives, who have opposed it at every single stage. I ask them to rethink their position on what is a publicly owned champion to deliver for communities, create good, well-paid jobs, and deliver the clean power future that we need as a country.

[Graham Stuart (Beverley and Holderness) (Con)]

We heard from the chief executive officer of Great British Energy the other day. He said that it was not in his brief to cut bills by £300. What is Great British Energy for, then? It turned out that the jobs were not going to materialise either, so how will the Government make sure that we do not have some bureaucrat job-creation scheme in every region of the country, as the Minister’s Back Benchers are calling for, but actually have a company that invests in things that otherwise would not be invested in? Technologies such as wind and solar are already investable, so will Great British Energy focus on those things that need to be brought closer to market?

[Michael Shanks]

The right hon. Gentleman strongly makes the case for the importance of a publicly owned energy champion investing in parts of the energy system that are not currently getting that investment; I appreciate his recognition of that. What the interim chair of Great British Energy said very clearly—of course, it has not appointed a CEO yet—and what we have said consistently is that Great British Energy’s headquarters in Aberdeen will of course create jobs, but the majority of the jobs that will be created by that investment will come from the investment that Great British Energy makes in supply chains, in projects, and in developing the clean power that we need. Great British Energy will champion the industries that the right hon. Gentleman speaks about and deliver jobs in this country to reindustrialise communities, and Conservative Members will have to explain why they are against those jobs when they are created, including if they are created in the right hon. Gentleman’s constituency.

[Madam Deputy Speaker (Caroline Nokes)]

I call the shadow Secretary of State.

[Andrew Bowie (West Aberdeenshire and Kincardine) (Con)]

It was refreshing yesterday to have some clarity on Great British Energy’s plans, not from the Secretary of State or from Ministers—that would be asking far too much—but from the Manchester-based chairman of the Aberdeen-based company, Juergen Maier. He stated that cutting energy bills is a “very long-term project”—not £300 by the next election, then—and that the Aberdeen headquarters, if we can call it that, will employ only 200 to 300 people, far from the 1,000 initially promised, although that may come in 20 years’ time. On behalf of the tens of thousands of energy workers worried for their future, and indeed the millions watching their energy bills rise yet again, can I ask the Minister whether he agrees with the now very interim chairman?

[Michael Shanks]

The shadow Minister must be the only Member of Parliament representing Aberdeenshire who is against investment in Aberdeenshire. He will have to explain to his constituents and businesses right across his community why he stands up and opposes investment in his constituency. Of course, in doing so, he misunderstands the role that Great British Energy will play; the key point of it is that it will invest £8.3 billion over the lifetime of this Parliament in clean power projects right across the country, helping to unlock private sector investment and create supply chains in this country. The shadow Minister has now turned his face against all of those jobs that will be created in Aberdeen, which is a question he will have to answer for his constituents.

[Andrew Bowie]

The Minister has a right cheek to come to this Chamber and talk about protecting jobs in Aberdeenshire, when tens of thousands of energy workers are going to lose their jobs because of this Government’s decisions on the North sea. The British people were promised lower bills by the next election; now, they have been given a vague assurance that in the very long term bills might come down, and they are meant to be grateful for that.

The arrogance of this Government is staggering, if not surprising. They are so driven by ideology that they will not even allow Government lawyers to defend licences issued for Rosebank and Jackdaw, and are willing to see imports of fracked gas increase as long as they go down in history as the Government who shut down the North sea. While pensioners freeze as the Minister’s Government strip them of the winter fuel allowance, and as people are made unemployed due to his Government’s position on the North sea, can the Minister see why people across this country are quite miffed that the Government get to waste £8 billion of their money on the GB Energy white elephant?

[Michael Shanks]

First, let us be absolutely clear that Great British Energy will invest in clean power projects right across the country, including in the shadow Minister’s constituency. Secondly, he has an absolute cheek to come to this Chamber and talk about jobs in oil and gas, when more than 70,000 jobs were lost in North sea industries over the past decade—the shadow Minister was in the Energy Department for at least a chunk of that time. The truth is that a transition is under way in the North sea. Conservative Members were quite happy to bury their heads in the sand and pretend that it was not happening as thousands of people lost their jobs. This Government are determined to build what comes next; the shadow Minister stands opposed to that, and he will have to explain to his constituents and the people of Scotland why he does not support that investment.

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[Ruth Jones (Newport West and Islwyn) (Lab)]

T4.   In my constituency of Newport West and Islwyn, we have ever-expanding semiconductor facilities and data centres. The primary mission of this Government is growth, but that growth could be stifled if there is not sufficient grid capacity alongside these exciting innovations. What is the Minister doing to make sure that south Wales has sufficient grid capacity to support these advances and facilitate much-needed growth?

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

My hon. Friend makes a very important point. Although we are clearly on the sprint to deliver clean power by 2030, demand for electricity in this country is likely to double by 2050. Our reforms around connection to the grid are important —they will make sure that there is space for demand projects, such as data centres, to connect—but so is building the grid for the future, so that we have capacity in our network to deliver on our growth aspirations.

[Bradley Thomas (Bromsgrove) (Con)]

T5. Can the Minister assure the House that as the Government push to decarbonise the electricity grid, the vast majority of new electricity generation and transmission infrastructure will be built in the UK, not imported from foreign countries, including China?

[Peter Prinsley (Bury St Edmunds and Stowmarket) (Lab)]

T8.   Looking around the car park in Parliament, I noticed that we had only two charging ports, both occupied. By supporting the installation of more charging ports in Parliament and other workplaces across the country, we can encourage more people to make the environmentally friendly switch to electric vehicles. What measures are the Government taking to promote the installation of charging ports in workplaces?

[Michael Shanks]

I cannot speak on behalf of the House of Commons authorities, but under the building regulations of 2021, all new non-residential buildings and those undergoing major renovations must install charging infrastructure. In government, along with colleagues in the Department for Transport, I hosted roundtables yesterday, and I will host another today, on how we can unlock much more investment in charging infrastructure, because that is critical in supporting the transition to electric vehicles.

[David Mundell (Dumfriesshire, Clydesdale and Tweeddale) (Con)]

T6. I took part in last week’s very successful Nuclear Week in Parliament, and was pleased to see so many officials from the Department for Energy Security and Net Zero engaging in it, but the dark cloud on the horizon for me and my constituents is that the Scottish National party Government in Scotland still use the planning system to block new nuclear development, and the jobs and economic opportunities that it brings. What can the UK Government do to promote new nuclear development in Scotland?

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[Kirsteen Sullivan (Bathgate and Linlithgow) (Lab/Co-op)]

What engagement has the Minister had with the Convention of Scottish Local Authorities council leaders on local power plans? Does he agree that a partnership approach by Government, councils and community organisations, such as the West Lothian Climate Action Network, is key to the success of local power plans?

[Michael Shanks]

I agree with my hon. Friend. The local power plan is a key part of what Great British Energy will deliver. It will give communities the power to develop local power projects wherever possible, and to achieve the social and economic benefits of doing so. We are engaging with a number of stakeholders across the UK. Because of the devolution settlement, our main contact will be with the Scottish Government, who have their relationship with COSLA, but we are determined that local government across the UK will help drive this forward, and will have the capacity to support communities in doing so.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

T10. I thank the Minister with responsibility for energy consumers for agreeing to convene a roundtable tomorrow on the subject of radio teleswitching switch-off at the end of June. The problem will be particularly acute in communities like mine; we are well behind the rest of the country when it comes to smart meter roll-out. When she comes to the meeting, will she have a target for getting us the number of smart meters that we need?