Peter Aldous

The Government has guidance on gov.uk advising landlords on the measures and steps to comply with current non-domestic minimum energy efficiency standards. The Government recently launched a campaign to inform businesses of available support and to help reduce their energy consumption and in the West Midlands have launched an audit and grant pilot for small businesses.

For future regulation options the policy design is being reviewed to ensure it remains fair and proportionate for landlords and tenants and to help realise the benefits of energy efficiency. The Government is considering what support and guidance may be required.

As part of the 2021 Heat and Buildings Strategy, the Government committed to consider setting a new regulatory standard of EPC Band C for the social rented sector.

The Government has now made a further commitment to consult on energy efficiency in the social rented sector within 6 months of the Social Housing Regulation Act receiving Royal Assent on 20th July 2023.

Officials are working on proposals for the consultation, which will ensure that social housing providers and social housing tenants have an opportunity to give their views before any regulatory standard is set.

The Conservative Manifesto committed to a £3.8 billion Social Housing Decarbonisation Fund (SHDF) over a ten-year period to 2030.

The total committed funding for the Social Housing Decarbonisation Fund (SHDF) and associated Demonstrator is over £1 billion to date. On 2nd October 2023, my Rt. Hon. Friend the Secretary of State announced that the SHDF Wave 2.2 ‘top up’ competition will allocate up to £80 million of additional grant funding from April 2024.

We are supporting our world leading offshore wind sector through our Contract for Difference scheme and have increased the frequency of auctions.

Allocation Round 5 is currently underway and will bring forward new projects.

Up to the end of April 2023 the Boiler Upgrade Scheme received 17,001 voucher applications and paid out on 10,847 to the cost of £54.5 million.

Industry has reacted positively to the scheme during its first year, with suppliers developing competitive offers alongside the grant.

Government announced that the BUS will be extended until 2028, with an additional budget allocation for each year.

The Government notes that different industry organisations have varying estimates for the number of heat pump installers needed by 2028, with the Heat Pump Association estimating this to be 33,700. The Government is taking steps to ensure that there will be sufficient installers to meet demand through schemes such as the Heat Training Grant as well as the Low Carbon Heating Technician Apprenticeship.

The Government intends to introduce a smart mandate, which will require heat pumps, storage heaters and heat batteries to have smart functionality, from the mid 2020s. The Government is also considering whether to extend the scope of the mandate to include other appliances, such as hot water cylinders.

The Government is also seeking to improve standards regarding hot water cylinder efficiency and has sought feedback on possible options for achieving this in the recent consultation “Improving Boiler Standards and Efficiency.”

The Government has not made such an estimate, which would depend on variables such as size of heat pump, power of electric vehicle charge point and existing supply capacity. Domestic supplies can be upgraded if required and the use of smart energy management solutions such as electric vehicle smart charging can also help reduce the maximum demand of a property to facilitate the installation, and use, of low carbon technologies.

The Government is putting in place a package of measures to build a globally competitive UK heat pump manufacturing sector. This includes policies to help build demand for heat pumps, like the £450 million Boiler Upgrade Scheme, as well as those that incentivise inward investment in the supply chain, such as the Super Deduction Capital Allowance Scheme and the Heat Pump Investment Accelerator Competition. There has already been significant investment in the UK heat pump supply chain over the past 12 months from companies like Mitsubishi, Octopus Energy, Vaillant and Ideal Heating, and the Government expects this growth to continue.

The Microgeneration Certification Scheme (MCS) reports that over 1300 businesses are certified to install heat pumps under its scheme and estimates that this includes approximately 4,000 installers in the UK, up from approximately 3,500 at the end of 2021. The total number of trained installers is, however, likely to be greater than this, as MCS Certification is only required for installations receiving Government grant funding. The Government has commissioned further research into the existing heating and cooling installer workforce in England, which will be completed later this year.

The Government is working closely with industry to support gas boiler installers retraining to install heat pumps. In September 2020 the Government launched a £6 million skills competition to provide training opportunities for the energy-efficiency and low-carbon heating supply chains, including heat pump training for over 2000 heating engineers. The Government is developing plans for a further Skills Training Competition in 2022/23 and intends to continue work with industry to support retraining.

I refer my hon. Friend to the answer I gave to the hon. Member for Strangford on 1st July 2022 to Question 22437.

The Government is working to review and improve its communication to ensure that the public has access to the information and advice they need to make the right decisions. The Government has recently published a series of heat pump user case studies and heat pump user guides with Energy Systems Catapult. There is also further information and advice on heat pumps available through Simple Energy Advice service and the recently launched ‘Check if your home could be suitable for a heat pump’ calculator on GOV.UK.

The modernised Energy Charter Treaty recognises the urgent need to address climate change and align with the UNFCCC and Paris Agreement. The Treaty removes the protection for new fossil fuel investments in the UK, in line with the UK’s Net Zero Strategy.

Funding for Motor Neurone Disease (MND) research is available now through applications to the National Institute for Health and Care Research (NIHR) and UK Research and Innovation (UKRI). The NIHR and UKRI are undertaking new activities to support the MND research community in effectively accessing funding. This includes a new £4.25 million MND partnership, which the government is delivering alongside charity partners, to pool expertise and resources across the research community to coordinate access to the committed funding.

Industry representative body Offshore Energies UK estimates that 178,500 jobs were supported by the UK oil and gas industry in 2021, including 25,700 direct and 91,700 indirect jobs in the supply chain.

These estimates are set out in the Workforce Insight Report 2021, which is published at oeuk.org.uk/product/workforce-insight-report-2021.

The Government invited contributions on the design of the checkpoint, with a public consultation which closed at the end of February.

The Government is considering the responses to the consultation, including consideration of whether to put the checkpoint on a statutory footing, and will respond to the consultation in due course.

The Government recognises that biofuels such as hydrotreated vegetable oil biodiesel may play a role in future off-gas-grid decarbonisation, particularly for properties that are not suitable for a heat pump.

However, further evidence is needed to consider what role these biofuels could play and to develop the policy framework which would support such a role.

The forthcoming Biomass Strategy will consider evidence on the likely supply and sustainability of mass feedstocks, including those used to produce biofuels, available to the UK, the total lifecycle emissions for different biomass uses, and the best uses of biomass across the economy to achieve the Government’s net zero target.

Due to high levels of interest in the Electrification of Heat Demonstration Project, the majority of applicants did not progress through to installation, because they either did not meet the project requirements - including a target of 85% of homes to be on the gas grid - or withdrew from the project. Further findings and data from the project will be published in due course.

As set out in the Heat and Buildings Strategy, the Government is taking action now to decarbonise heat in buildings and to stay on track to meet net zero. Extensive evidence suggests that heat pumps are a cost-effective means of decarbonising heat in homes and businesses. The Government will soon launch the Boiler Upgrade Scheme to support the installation of heat pumps. The Electrification of the Heat Demonstration Project will provide further insights into enabling heat pump deployment. Findings and data from the project will be published in due course.

The Employment Bill will support the Government’s aim to build a high skilled, high productivity, high wage economy that delivers on our ambition to make the UK the best place in the world to work and grow a business. COVID-19 is having a profound impact on the labour market, so it is right that we introduce the Employment Bill when we are sure it will address the needs of businesses and workers in the post-Covid economy. We will bring forward the Employment Bill when the Parliamentary time allows it. In the meantime, we will continue to take necessary action to support businesses and protect jobs.

We have already made significant progress in bringing forward legislation to protect workers’ rights, including:

• Giving all workers the right to receive a statement of their rights from day one;
• Introducing new rights to workers to receive a payslip and for payslips for hourly paid workers to include the numbers of hours worked;
• Quadrupling the maximum additional penalty fine that Employment Tribunals can use for employers who treat their workers badly;
• Closing a loophole which sees agency workers employed on cheaper rates than permanent workers;
• Extending the holiday pay reference period from 12 to 52 weeks, ensuring those in seasonal or atypical roles get fair holiday pay; and

Announcing a new naming scheme for employers who fail to pay Employment Tribunal awards.

We are making the UK a Science Superpower and the Spending Review confirmed we will be funding the fastest increase in R&D spending ever. We are increasing core science funding, doubling Innovate UK’s budget, giving £800m for ARIA and putting £1.7bn into Net Zero R&D.

The right to local energy supply already exists under the Electricity Act 1989. As the independent regulator, Ofgem has powers to award supply licenses that are restricted to specified geographical areas or premise types. In some circumstances, electricity suppliers can also apply to Ofgem for a derogation from a particular provision of their supply licence. If granted, those provisions of the supply licence will not apply.

In July 2020 Ofgem consulted on proposed changes to their approach to granting supply licences for specific geographical areas or premise types and to supply licence conditions relating to derogations, to support innovation in the retail energy market. The consultation closed on 12 October 2020, and we await Ofgem’s announcement on any next steps.

The December 2020 Energy White Paper committed the Government to review the overall retail market regulatory framework, including for energy supply, to make sure that it is fit for purpose in the future, and accommodates emerging and innovative business models that can best meet consumer needs and contribute to our net-zero ambitions. The Government will engage with industry and consumer groups this year to assess what market framework changes may be required, in advance of a formal consultation.

As set out in the Energy White Paper, the Government will consult on an energy sector Strategy and Policy Statement (SPS) for Ofgem during the course of 2021. The consultation will be a chance to engage with stakeholders from across the energy sector.

The SPS will reflect the strategic priorities and policy outcomes of the Government’s energy policy and the roles of Government, Ofgem and other parties which are collectively responsible for delivering these outcomes.

The current electricity licence exemptions regime already provides a framework for small scale electricity supply without the need for a licence. For example, there is an exemption for those who do not at any time supply more electrical power than 5 megawatts of which not more than 2.5 megawatts is supplied to domestic consumers.

The recent call for evidence is part of a wider review of the exemptions regime. We are currently considering responses to the call for evidence and will issue a response in due course.

The Government has ongoing discussions with Community Energy England and other community and local energy groups, and the views and evidence provided are being taken into account as we consider future plans for community energy in the Net Zero Strategy.

Ofgem are required to publish a report on the SEG each calendar year, starting in 2021. Ofgem are currently in the process of collecting data from suppliers, with plans to publish the first report later this year. This will include information regarding available SEG tariffs, the size and technology of installations, the electricity exported, and the payments provided. BEIS will review the findings and consider whether any changes to the SEG are required in the future.

On route to market for community energy generators, our recent call for evidence, as part of a wider review of the licence exemptions regime for supply and generation, is designed to ensure licence exemptions are fit for purpose in the changing landscape. BEIS are currently considering responses and will issue a response in due course.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The Government welcomes the nuclear industry’s ambition to support low-carbon hydrogen production. BEIS funded EdF’s ‘Hydrogen to Heysham’ feasibility study[1] showing that current nuclear technologies are technically capable of producing low-carbon hydrogen in the 2020s. Recognising planned decommissioning and the time required to build new nuclear, we assess that the amount of hydrogen produced from nuclear in this period will be determined by the availability of nuclear power for this purpose.

The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We intend to support a range of low carbon production methods but will be guided by timing, volumes and other considerations to meet our 5GW ambition. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.

[1] https://www.gov.uk/government/publications/hydrogen-supply-competition

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The Government welcomes the nuclear industry’s ambition to support low-carbon hydrogen production. BEIS funded EdF’s ‘Hydrogen to Heysham’ feasibility study[1] showing that current nuclear technologies are technically capable of producing low-carbon hydrogen in the 2020s. Recognising planned decommissioning and the time required to build new nuclear, we assess that the amount of hydrogen produced from nuclear in this period will be determined by the availability of nuclear power for this purpose.

The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We intend to support a range of low carbon production methods but will be guided by timing, volumes and other considerations to meet our 5GW ambition. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.

[1] https://www.gov.uk/government/publications/hydrogen-supply-competition

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The UK has abundant sources of renewable electricity, and the Prime Minister has made a further commitment to deploying 40 gigawatts of offshore wind by 2030, alongside further deployment of onshore wind.

Our ongoing work with stakeholders suggests there is a strong pipeline of electrolytic hydrogen projects ready to deploy in the 2020s, building on our existing investment in research and innovation to ensure we can achieve the scale up in low carbon hydrogen production necessary to meet our future energy needs.

The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition, including electrolytic projects using offshore and onshore wind as a primary electricity input. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.

My Rt. Hon. Friend the Prime Minister’s 10 Point Plan confirmed our aim, working with industry, for 5GW of low carbon hydrogen production capacity by 2030 for use across the economy.

The UK has abundant sources of renewable electricity, and the Prime Minister has made a further commitment to deploying 40 gigawatts of offshore wind by 2030, alongside further deployment of onshore wind.

Our ongoing work with stakeholders suggests there is a strong pipeline of electrolytic hydrogen projects ready to deploy in the 2020s, building on our existing investment in research and innovation to ensure we can achieve the scale up in low carbon hydrogen production necessary to meet our future energy needs.

The forthcoming UK Hydrogen Strategy will set out further detail on the role of hydrogen production technologies in meeting our 5GW ambition, including electrolytic projects using offshore and onshore wind as a primary electricity input. This ambition will be supported by a range of measures, including a £240 million Net Zero Hydrogen Fund, and our preferred long term, sustainable business model, which we will finalise in 2022. We will be consulting shortly on these measures, alongside the publication of the UK Hydrogen Strategy.