Oral Answers to Questions

Debate between Shabana Mahmood and Greg Hands

Tuesday 16th November 2021 Commons Chamber

[Shabana Mahmood (Birmingham, Ladywood) (Lab)]

8. What steps he is taking to help protect (a) business and (b) consumers from rising wholesale gas prices.

[The Minister of State, Department for Business, Energy and Industrial Strategy (Greg Hands)]

The Government’s energy price cap will ensure that millions of households are protected from an instant wave of bill increases this winter. We also have well-established schemes in place for those businesses that are most exposed to energy prices.

[Greg Hands]

I assure my hon. Friend that protecting consumers is our No. 1 priority. The Secretary of State and I engage with Ofgem very often and with energy suppliers constantly, to monitor the health of the energy market. The Government’s warm homes discount, winter fuel payment and cold weather payment schemes will support low-income and vulnerable households throughout the winter.

[Shabana Mahmood]

Nothing that the Minister has said today will provide immediate relief to enough of the people who are struggling throughout the country. I have had constituents tell me that they are sitting in the cold to try to save money, yet the Government rejected Labour’s call to cut VAT on energy bills. Such a cut would have provided immediate relief to people in my constituency. What on earth does the Minister expect my constituents to do as they face a long, difficult and cold winter, with rising prices and rising energy prices in particular?

[Greg Hands]

Of course, I share the hon. Lady’s concern for vulnerable people who face potential rises in energy prices. She will know that VAT is a matter for the Treasury but, of course, a VAT cut would be very untargeted towards vulnerable people. That is why we have schemes in place, such as the warm home discount, winter fuel payments and cold weather payments, to help vulnerable and elderly people. The Government have got the policy right.