Energy Costs

Mike Reader Excerpts

Tuesday 9th June 2026 Westminster Hall

[Hannah Spencer]

I will continue, if that is okay.

Bills have gone up by 79% since the energy crisis began in 2020. That is an extra £5,000, when our constituents’ hard-earned wages are already stretched to breaking point. Yet, from 1 July our constituents face another increase, of £221, when the next Ofgem price cap comes into effect. That is why, on my second day in Parliament, I helped to get the all-party parliamentary group on fuel poverty back up and running, and why I will join Fuel Poverty Action and other campaigners on 1 July to demand that energy costs are brought down for good.

The scale of this crisis for families is enormous. It also perfectly captures what the Green party means when we talk about rip-off Britain. While my constituents are struggling, fossil fuel giants and privatised energy companies are cashing in, and almost a quarter of energy bills are taken as profit. In the first month after the US and Israel’s initial strikes on Iran, the share value of just five North sea oil and gas companies was boosted by £73 billion—£73 billion in one month. The family owners and chairman of the private oil and gas company Perenco are worth £8 billion and are now among the top 25 richest people in the UK.

All of that has happened in a country where a million children under five live in fuel poverty, and where one in three kids in Greater Manchester lives in poverty. Working hard used to get people a decent life; now it is more likely to line the pockets of billionaires, fossil fuel companies and energy giants.

The Green party is clear that things have to change. First, people in my constituency need support immediately, not in three months’ time. The Chancellor is apparently “monitoring the situation” and will intervene if necessary, but on behalf of families dreading the months ahead, and on behalf of disabled people who have high energy use all year round to run specialist equipment, I am telling the Government that today is the day when it is definitely necessary. Does the Minister agree that the Ofgem energy price cap should be frozen to provide universal support for households now? If not, what are the Government going to do to support bill payers with rising energy costs from July and into the winter? Will they increase the warm home discount, which has not kept pace with rising bills? Shifting some policy costs off bills is positive, as are steps to separate electricity and gas prices, but all electricity levies could be paid for more fairly by progressive taxation. We need to be taxing the wealth of multimillionaires and billionaires more fairly. Providers of frontline support, such as community warm spaces—of which there are a lot in my constituency—need immediate support too. Does the Minister agree that those vital community assets should get lower energy rates?

Secondly, it is time to stamp out profiteering. Unite the Union found that UK energy companies made £30 billion in pre-tax profits in 2024 alone. While the Government’s anti-profiteering framework announced in May is welcome, what other steps is the Minister taking to stop billions being transferred from bill payers to the pockets of international shareholders? What assessment has been made of the benefits of taking the grid, which enjoys some of Britain’s highest profit margins, back into public ownership?

Thirdly, we need a fully funded, local authority-led, national home insulation scheme that people trust to insulate homes to an energy performance certificate standard of B or above, and an EPC scheme that cannot be manipulated. Our homes leak more heat than most places in western Europe—trust me, I have seen them.

Real action demands investment and stronger regulations so that every retrofit job delivers proper savings and real improvements. Next week, I hope to meet some of the victims of the Conservatives’ failed home insulation scheme. As a plumber, if I had done a botched job, I would have been forced to fix it or pay up. Why is the Minister’s Department not ensuring that every single victim of shoddy contractors receives remediation?

[Mike Reader (Northampton South) (Lab)]

Will the hon. lady give way?

[Hannah Spencer]

I am going to continue.

Fourthly and finally, we must go further and faster on renewables. New fossil fuel extraction will not bring down bills or improve the UK’s energy security—a fact I know the Minister agrees with. Since the start of the war in Iran, wind and solar have saved the UK from gas imports worth £1.7 billion. Can the Minister provide assurance that the Government will not approve proposed drilling at Rosebank, Jackdaw or Cambo, or allow new oil and gas extraction through tiebacks to existing production facilities? How will the Department use the upcoming energy independence Bill to accelerate the roll-out of renewable energy and reduce reliance on imported fossil fuels?

I am pleased to have secured this debate on my 100th day as an MP. Last Sunday marked the 100th day of the US-Israeli war against Iran, which, as well as inflicting untold suffering and devastating in the region, has triggered the UK’s second major energy price crisis of the 2020s. I recognise all that the Government are doing to bring that international crisis to an end, and I hope the Minister will use this moment to also try to end the crisis of unaffordable energy costs for my constituents and millions of others across the country.

--- Later in debate ---

[Martin McCluskey]

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

[Mike Reader (Northampton South) (Lab)]

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

[Martin McCluskey]

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

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

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

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

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

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

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

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

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

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

Question put and agreed to.