Energy Company Obligation Schemes

Steven Bonnar Excerpts

Tuesday 27th June 2023 Westminster Hall

[Steven Bonnar (Coatbridge, Chryston and Bellshill) (SNP)]

It is nice to see you in the Chair, Mr Paisley. I commend the hon. Member for Ceredigion (Ben Lake) for securing and leading the debate.

There are two issues that require immediate attention and decisive action: the soaring cost of living crisis and the importance of energy efficiency support. In the light of that, it is deeply concerning that, while we face those crises, the Government choose to cut taxes on bankers. Such a decision is abhorrent, especially when it is ordinary citizens who bear the brunt of an escalating cost of living crisis, much of that due to rising energy costs.

Inflation continues to hit those on the lowest incomes most severely, exacerbating their ongoing struggle to make ends meet. The Prime Minister pledged to cut inflation by half. However, it is evident that the Government are struggling to meet that pledge, and now aim to reduce public sector pay to compensate. We learned today that the leader of the Labour party, the right hon. and learned Member for Holborn and St Pancras (Keir Starmer), also refused to back public sector pay rises. That is a misguided approach, in our opinion, that will only further burden those who are already struggling.

Research by the Joseph Rowntree Foundation paints a distressing picture, revealing that 7 million households have gone without essentials, such as food, heating or basic toiletries, due to the cost of living crisis. It is our responsibility to provide support and relief to those individuals and families who are enduring such hardships. Considering all those other parts that play into the crisis, it is vital that we do not withdraw or cancel energy efficiency support for those in need.

Energy efficiency measures such as ECO4 and ECO+ play a crucial role in achieving our net zero targets and combating climate change. In 2019, a report from the Business, Energy and Industrial Strategy Committee praised the Scottish Government for being leagues ahead of the UK Government on energy efficiency, and we continue to deliver on that front. Our planet is facing unprecedented challenges, with soaring sea temperatures, and action is urgent. It was disheartening that a previous BEIS Secretary and disgraced former Prime Minister Boris Johnson blocked plans for a public information campaign on energy efficiency. How much could consumers have saved if they had received the necessary information and support? Many of our constituents do not know that help and support is out there in the form of these schemes.

The Scottish Government have taken proactive steps towards energy efficiency and are committed to investing at least £1.8 billion in heat and energy efficiency over the course of this Scottish Parliament. Through existing programmes, we have already supported over 150,000 households in or at risk of fuel poverty, including those in rural and island communities. Our Home Energy Scotland grant and loan scheme offers grant funding of up to £7,500 for heat pumps, with an additional £7,500 made available as an optional interest-free loan. Moreover, we have provided an uplift of £1,500 to both the heat pump and energy efficiency grants for rural and island homes, recognising the specific challenges faced by those communities.

Beyond immediate measures, we must recognise the urgent need to change the way we use our energy. As oil and gas production naturally declines, there is a tremendous opportunity for growth in low-carbon energy production. It is projected that low-carbon energy jobs could increase to 77,000 by 2050, delivering an increase of 7,000 jobs across the energy production sector. The Scottish Government’s draft energy strategy and just transition plan outlines the actions necessary for the UK Government to collaborate with us to achieve Scotland’s full energy potential. To facilitate that transition, the Scottish Government, led by the SNP, are already investing in the sector’s net zero transformation.

Our expanded £75 million energy transition fund and £100 million green jobs fund, alongside the £500 million just transition fund, will support regions such as the north-east and Moray in becoming centres of excellence for a just transition to a net zero economy. That stands in stark contrast to other parties, which have historically bled the north-east of Scotland dry and left the region on the proverbial scrap heap.

Renewable energy presents a significant economic opportunity for Scotland. The just energy transition will deliver a net gain in jobs across the energy production sector. The Scottish Government have taken decisive action, but we are constrained by the limitations imposed by Westminster’s grip on the purse strings. It is time for the UK Government to recognise that and the importance of energy efficiency, collaborate with us and our colleagues in the Scottish Government, and provide the necessary support to achieve our shared goals.