Draft Warm Home Discount (Amendment) Regulations 2025

Nick Timothy Excerpts

Monday 14th July 2025 General Committees

[Nick Timothy (West Suffolk) (Con)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I am pleased to respond to the draft regulations on behalf of His Majesty’s Opposition. Let me start by saying that if the Minister thinks that progress stalled under the last Government, this Government’s abolishing and then reinstating the winter fuel payment has been a funny way of getting around that.

By expanding the warm home discount scheme, the Government are broadening its reach to 6 million households across the UK, up from the 3.4 million households that currently receive the annual £150 energy bill rebate. We should do everything that we can to tackle fuel poverty, but we must ask ourselves what the best way is to resolve the root causes of the energy bills crisis.

Under the warm home discount scheme, the Government are funding support for people who cannot afford their bills by pushing up green levies on everyone’s bills. The impact assessment for this legislation clearly states that the scheme expansion will increase everyone’s bills by £15. The Minister did not mention that when the expansion was announced, but the Government should be honest with the public that they have deliberately take a decision that will increase everyone’s bills. Higher green levies will pay for an increase in the overall cost of the scheme from £600 million to £1 billion.

It is hard to see how this expansion will achieve the Government’s solemn manifesto pledge to cut energy bills by £300 before the end of this Parliament. We are seeing this approach play out across energy policy: the Government raise the cost of energy with their unrealistic decarbonisation policies; energy-intensive industries then suffer under the highest industrial energy prices in Europe; and the Government step in with subsidies to help them cover the cost that they created to begin with. It is madness, and we are now seeing the same thing done for families.

In public policy, the simplest solution is often the best. In the case of fuel poverty, the Government can help everyone afford their bills by delivering abundant and cheap energy, but they are piling on costs through their Clean Power 2030 plan. That will increase the price of carbon to £147 per tonne, which will, in turn, increase bills for every family in the country. We have already paid £700 million so far just this year to turn off wind farms when there has been too much wind. We now hear that we are going to pay solar farms just the same to turn off in certain circumstances. The National Energy System Operator forecasts that these constraint costs will hit £8 billion in 2030 because of Labour’s plans to build more renewables than ever before.

Instead of rushing ahead to build a system entirely dependent on unreliable and expensive renewables such as wind and solar, we should be going further and faster with nuclear and expanding oil and gas exploration in the North sea. Instead, we are importing fossil fuels from Norway, drilled from the very same seabed that we could exploit, while insisting that we are too good and too green to do that for ourselves. All of this is a choice. The Labour party chooses to increase energy costs, including for people on low incomes, with reckless targets and arbitrary mandates. We will abstain on these regulations, but the unavoidable fact remains that this Government are increasing energy bills for the poorest when we ought to be making energy as cheap as possible for everyone.

--- Later in debate ---

[Lewis Cocking (Broxbourne) (Con)]

rose—

[Nick Timothy]

rose—

[Miatta Fahnbulleh]

I give way first to the shadow Minister.

--- Later in debate ---

[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—