Future of the Gas Grid

Pippa Heylings Excerpts

Wednesday 18th June 2025 Westminster Hall

[Pippa Heylings (South Cambridgeshire) (LD)]

It is a pleasure to serve under your chairship, Dame Siobhain. I am pleased to speak in this important and timely debate on the future of the gas grid. I thank the hon. Member for Cannock Chase (Josh Newbury) for securing this increasingly urgent debate and for his expertise on the matter, and I wish him many happy returns.

Gas has long been the backbone of how we heat our homes and power our economy. However, times are changing, and so must our approach to energy. The Liberal Democrats fully support a transition away from fossil fuels towards clean, home-grown renewable energy to deal with the energy trilemma that needs to be balanced in energy policy: cutting polluting emissions, protecting people, households and businesses from future price shocks, and strengthening our energy and national security through reliable home-grown clean energy supplies.

The future of our gas grid is a real challenge. It must be defined by clarity, urgency and care, addressing the challenges we have heard today with affordability, the promotion of alternatives—whether dominant or not—their costs, and the resilience and flexibility of our grid. We have heard about the importance of securing multi-vector energy systems throughout this transition, and that is key.

Gas remains the largest source of energy in the UK, accounting for more than half of our carbon emissions and providing 39% of the energy used across electricity, heating and industry. Although it is strategically important to our economy and to people’s lives, that dependency is also a strategic vulnerability. Around half of the UK’s gas is imported, and that reliance is our Achilles’ heel. In times of geopolitical instability, we are dangerously exposed.

The illegal invasion of Ukraine by Putin and the resulting spike in global energy prices highlighted just how risky it is to depend on imported gas. The Climate Change Committee, in its seventh carbon budget, made clear that if we transition away from gas, and there were to be another spike in gas prices due to an incident like the invasion of Ukraine, then by 2040 the average household would be 15 times less sensitive to those price shocks and skyrocketing energy costs.

Not proceeding with the transition does not just undermine our national security; it hits people in their wallets. That damages our businesses and economic growth. Energy has never been so costly, and that matters particularly in a cost of living crisis. Today, 11% of households in England live in fuel poverty, including nearly 9% in my constituency of South Cambridgeshire. That means many people have to choose between eating and heating their homes every winter. That is the lived reality of our dependence on the gas grid, tied to volatile international markets. We must remember that in 2022 prices peaked at more than 20 times the 2020 average.

It is clear that ending our overreliance on gas must be a national priority if we are to strengthen energy security, unlock low-carbon alternatives and bring prices down. We need resilience and flexibility in the grid, which is currently provided by gas. The Climate Change Committee and the National Grid have confirmed that, to meet our net zero targets, the UK’s natural gas use must fall by a staggering 90% by 2050, accounting for just 6% of our energy mix—and even then, only if emissions are captured through carbon capture and storage.

There is no escaping the scale of the challenge. With over 85% of UK homes still connected to the gas grid, we face having to overhaul our national infrastructure. Our gas pipeline network spans more than 284,000 km, or nearly seven times around the Earth, so simply abandoning the infrastructure is not an option. We are talking about a massive repurposing challenge. As we have already heard today, that repurposing also needs to cover green hydrogen, low-carbon hydrogen, biomethane, district heating and many other options.

Additionally, policy needs to look at demand, including for new homes and house building. The Climate Change Committee has been clear that no new homes should be connected to the gas grid after 2026, yet we have had dither and delay since 2016. Under the Conservatives, we ditched the zero-carbon homes policy and since then we have been building homes without proper energy efficiency and without the connections through solar panels to the grid that we should have had. We are also still waiting for the future homes standard and other standards to be brought forward.

Those actions were short-sighted, which is why it is fantastic that we have seen the Government take on board the private Member’s Bill promoted my hon. Friend the Member for Cheltenham (Max Wilkinson). It is “the sunshine Bill”, mandating that there will be solar panels on every roof. That Bill will come forward with the future homes standard, which is fantastic. In addition, the future homes standard is committing to low-carbon heating. Today, we have asked whether that mandates how we get to that low-carbon heating with dominant technologies, or whether it should be left to the market to come up with innovations. I will be interested to hear from people with much more expertise than me on that. However, given the time that has already been lost, we must move forward.

Let me pick up on the comments from the hon. Member for Hexham (Joe Morris) about rural communities. While we are considering the cost of decarbonising heating through solar panels, heat pumps and induction hobs, we also have to consider the many people in rural communities who live off-grid. These households also need certainty and direction from the Government about how they can decarbonise their heating. The situation in South Cambridgeshire is similar to the situation in Hexham, with one in five communities living off-grid and relying on heating oil. They are among 4 million people and 250,000 businesses in this situation across the UK, which are often served by small, rural, family-owned firms. In addition, off-grid homes are some of the most difficult and expensive to decarbonise because of their age, rural location and construction methods.

The National Grid’s “Future Energy Scenarios” report estimates that 1 million UK homes will require alternatives to electrified heating because of the high cost of local grid upgrades. Renewable liquid fuels such as hydrotreated vegetable oil offer a drop-in replacement for heating oil. These fuels have already been trialled in rural communities, and the Governments in Scotland, Northern Ireland and Ireland have embraced them as part of their decarbonisation strategies. We now need a comprehensive UK-wide plan and I hope the Minister will confirm that the forthcoming warm homes plan and future homes standard will also acknowledge and address the specific needs of rural off-grid consumers.

However, although we are hearing about the challenges and barriers, within this transition lies opportunity. That is why the Liberal Democrats are calling for a just transition plan to protect jobs, retain skills and support communities whose economies are still built around oil and gas. That means a national retraining programme to help workers to enter the green economy, incentives for oil and gas firms to pivot towards clean technologies, ending the red tape that frustrates climate tech start-ups, many of which are in my constituency of South Cambridgeshire, and finally—as many Members have already said—investment in hydrogen innovation, where the UK can lead with world-class research in its industrial base. We have heard today about hydrogen blending, which could make hydrogen 20% of the natural gas supply, helping to reduce the carbon intensity of gas and meeting the gas demand in the medium term while we adapt our infrastructure.

We are also looking at having a resilient and flexible energy system that could be supported by green hydrogen, with storage and flexible power. We welcome the Government’s recent announcement of investment in hydrogen, but we would like to see that investment being part of a comprehensive plan to support low-carbon technology across the board. We felt that such a plan was absent from the Chancellor’s most recent spending review, so, as we have already heard today, it would be good to get clarity about the role of hydrogen and the level of investment in it.

Like other Members, I have recently had a heat pump installed, and we are now completely off gas—off the grid—with an induction hob. As many have said, it is not easy, and it can be costly up front. We have to recognise that we need a 10-year emergency insulation programme, with free upgrades for low-income households and those for whom such decarbonisation of heating is not a possibility, which is what the Liberal Democrats have called for. All new homes must be built to the future homes standard, as zero carbon-ready from day one. We need investment in heat pumps and alternatives, with full cost coverage for the most vulnerable, and investment in low-carbon, green and wild hydrogen to provide greater flexibility in the grid. Once again, I thank the hon. Member for Cannock Chase for bringing forward this debate.