Out-of-Turn Supplementary Estimates 2022-23

Munira Wilson Excerpts

Monday 24th October 2022 Commons Chamber

[Munira Wilson (Twickenham) (LD)]

The second package for businesses also extends to public services. Two primary schools in my constituency have been in touch, because their energy bills have gone up fivefold from £30,000 to £150,000 a year. Undoubtedly, the package put forward will help them a bit, but I am getting feedback from schools that six months is not enough to plan ahead, particularly when their budgets for next year have already been set. They are having to make terribly difficult decisions about laying off teaching assistants and cutting school trips and extracurricular activities. Will the Minister consider at least a year-long package of support for schools and other public services?

[Andrew Griffith]

The hon. Lady is absolutely right that the package extends to not just businesses but schools, hospitals, the public sector and charities—the important third sector. She articulates well the concern of her local schools; of course, it is important to have as much time and certainty as possible to plan. I am sure that the Minister for Climate, who is next to me, and the Secretary of State for Education will have heard her points.

The House will note that both these energy schemes are expensive. Indeed, they were the largest single element of the plans to which the gilt market reacted in previous weeks. Rather than an indefinite and open-ended liability, therefore, the Government will launch a Treasury-led review on how to support households and businesses after April 2023.

--- Later in debate ---

[Graham Stuart]

Grid charges need to reflect the costs involved. As the hon. Lady will be aware, we are reviewing and looking at how best to deal with the grid going forward, because the grid is fundamental to everything we want to do in this space. There is room for change, but I am not sure that I necessarily agree with her. I will wait for others more expert than me to come forward with recommendations for ministerial decision on how best to structure that. Removing price signals from the system would not be beneficial. We need price signals in there; that is right and proper.

The hon. Lady mentioned heating oil. I represent a rural constituency with many consumers on heating oil. The Government looked carefully and shared information showing that from September 2021 to September 2022, heating oil costs increased by average of about 147%. We also looked at what has happened to gas prices after the effect of the EPG, and they have increased by 130%. That is why the £100 covers that. The numbers are there—we can see what the average family spends and what the increase has been, so we can make the comparison.

Given the party that the hon. Lady represents, I understand that she will always say that we should do more. That is one thing, but what she cannot say—or she should not, and I appeal to her not to do so—is that it is not fair between those on the gas grid and those on heating oil. Some might want to do more overall, but I believe, and I think our numbers show, that we are creating something equitable between the two. It is important that people who are often in isolated rural areas and can feel hard done by are not told that they are being unfairly treated compared with others. They are not. Even if it suits a political purpose, it is important that politicians do not make such allegations unless there is a basis for them, because then they would be not serving those people well but misleading them. I know that she in particular would never want to do that.

Energy is an essential and unavoidable expense for households and businesses. The economic fallout from the pandemic and the ongoing war in Ukraine has led to unprecedented rises in energy prices. The Government will provide crucial support to families and businesses with their energy costs over the winter period.

[Munira Wilson]

rose—

[Graham Stuart]

I will give way to the hon. Lady.

[Munira Wilson]

I thank the Minister for giving way. I have finally won—he would not give way last week when I had an amendment to discuss on communal heating networks.

The Minister made a strong political point about fairness. Last week, I said that people on communal heating networks living in particular in blocks of flats in my constituency and across London and the country have faced heating price rises of more than 500%, yet the support package they were offered was not equivalent to that of other households, so there was a fundamental unfairness. Everybody is subject to the six-month review, so will the Minister guarantee from the Dispatch Box that when the Government review the package for other households, communal heat networks will get the equivalent support that they were promised all along? They were offered only six months.