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Commons ChamberThe Government are committed to strengthening collective bargaining and trade union recognition. The Employment Rights Bill and the plan to make work pay will modernise rights and improve conditions. The Office for Clean Energy Jobs engages unions to ensure that renewable energy jobs support economic growth, the net zero transition and workers moving from carbon-intensive sectors.
Many of my constituents in Halesowen work in energy-intensive industries such as forges and heavy manufacturing. The Government are rightly supporting those industries to become more energy-efficient, but workers need new skills, as well as skills in the many new jobs in the renewable energy sector. As they make this transition, how is the Department supporting workers in the west midlands to get the right skills for these new industries?
My hon. Friend is right to raise that point. Supporting workers in energy-intensive industries is essential as we transition our economy. The Government will provide over £1.2 billion per year in skills funding by 2028-29, supporting training in renewables, low-carbon construction and advanced engineering. We are also investing over £100 million over three years to develop engineering skills in England and launching new technical excellence colleges to make sure that training stays aligned with employers’ needs. We will also push forward on the clean energy workforce strategy this year.
The industrial strategy published last month set out our plans to build clean energy supply chains in the UK, including a new £1 billion fund through Great British Energy to partner with the private sector to create jobs in Britain and the new clean industry bonus, which has the potential to unleash billions of pounds of private investment in offshore wind supply chains. We are determined that the clean energy future will be made in Britain.
The power cables over the Tyne are a barrier to businesses securing work for large renewable energy structures, risking possible net GVA benefits of up to £1.2 billion. It has been proposed that the removal of the cables will be completed in 2032. Will the Secretary of State help me push for it to be brought forward so that Tyneside is not held back in the global race for green jobs?
First, I congratulate my hon. Friend on being such a brilliant champion of the port of Tyne and what it offers, and she is right to draw attention to this important issue. Approval of any works to reroute the line is a matter for Ofgem, but we stand ready to engage with her and, indeed, Ofgem to try to bring this forward. I suggest that my hon. Friend the Energy Minister meets her to discuss this important issue.
Despite the growing need for green jobs—obviously, we are all in favour of making sure we have green jobs—fewer than one in 10 employees receive any dedicated green skills training, according to an OVO Energy survey. What can we do to support businesses, and what can the Government do to accelerate that important training programme in all businesses where we need green jobs?
The hon. Lady raises an important issue. Later this year, we will publish a clean energy skills plan to address precisely this question: how do we make sure we equip workers with the skills they need to take advantage of those jobs? That is being led by my right hon. Friend the Education Secretary in the work she is doing with Skills England, but there is a whole range of things we can do. For the first time, the Government will publish what the skills needs are for clean energy jobs and how we will meet them, which will be an important step forward.
As people fly off for their summer holidays, the chances are that the steel in the aeroplane’s engine comes from the Stocksbridge Speciality Steels plant in my constituency. I am hopeful about the news that Liberty Steel, which owns the site, has attracted potential investors for this asset. The asset is essential for our national security and provides opportunities for net zero infrastructure, including wind turbines. However, uncertainty about the firm means that pension contributions have not been paid to the skilled workforce for 10 months, causing significant worry and anxiety for 600 local steelworkers. What reassurances can the Secretary of State provide to Stocksbridge steelworkers about how the outstanding pension contributions will be paid, including in any future ownership arrangements?
My hon. Friend raises an important issue about her constituency and the steel industry, and I would say two things. One is that what this Government have done, which I am afraid was not done previously, is set up a dedicated fund for steel so that we are able to make the green transition. We talked about this in opposition, and we are now delivering billions of pounds to help the steel industry transition. The other is that I will take up the specific pensions issue she raised with my right hon. Friend the Business and Trade Secretary.
The workers of Grangemouth deserved far better than they got from the Labour Government. To add insult to injury, they have had to watch them pull out all the stops for Scunthorpe and Prax Lindsey. In a written answer to me, the Energy Minister refused to confirm how much money the UK Government had spent to continue operations at Lindsey. Will the Secretary of State now come clean and tell us what price they are willing to pay to save jobs in England, which they were not willing to pay to save Grangemouth in Scotland?
The hon. Gentleman is so wide of the mark it is unbelievable. The Grangemouth closure was foreshadowed before this Government came to power. We have worked hand in glove with his colleagues in the Scottish Government—all the way along, Gillian Martin and I have been working on it—and for him to try to make party politics out of the issue is, frankly, a disgrace.
The British oil and gas industry is a resilient sector—it has had to be, given this Government’s actions over the past year—and it takes a lot to shock it, but shocked it was when, on 2 July, sadly the Energy Minister claimed to the Scottish Affairs Committee that there was no “material difference” between oil and gas imports and production from the North sea. Might the Secretary of State take this opportunity to apologise and clarify those remarks, because thousands of workers in the energy industry supply chain in Aberdeen and across the UK are very worried that the Department has such scant regard for them, their work and this world-leading industry?
First of all, Mr Speaker, let me congratulate the hon. Gentleman on his promotion to shadow Secretary of State. [Laughter.] On the specific issue he raises, we will take no lectures from the Conservatives. Some 70,000 jobs were lost in the North sea on their watch. And here is the difference: we are building the future. The Acorn project was talked about for year after year by the Conservatives but nothing was done. This Government are delivering.
The Secretary of State will not apologise. That is absolutely fine. The industry already knows that this is a Government who want nothing to do with it, and who take every opportunity to talk it down and make every effort to shut it down. In that same session last week, the Minister who is sitting to the Secretary of State’s left also claimed that
“much of the gas that is extracted from the North sea is exported”.
That is simply not true: 100% of all the gas extracted from the North sea is used in Britain. The Secretary of State knows that, so why is he so determined to talk down this industry, spout falsehoods and myths, drive investment out of the UK, rely more on imports and, crucially, cost people’s jobs and drive the skills we need out of this country? That is exactly what he and his colleagues are doing.
Here is the difference between them and us. They would keep us hooked on fossil fuels for time immemorial. They have learned not a single lesson from the disaster they inflicted on this country: family finances ruined; business finances ruined; public finances ruined. A year on, there is not a word of apology.
Since coming to office, the Government have shown how clean power can create jobs across our country, with thousands of jobs in nuclear, through our investments in Sizewell C and small modular reactors; in carbon capture and storage; in offshore wind; and in home heating through our warm homes plan. This is what it means to deliver reindustrialisation through our clean energy sprint.
I thank the Secretary of State for that answer. The north-east is uniquely placed to be the home of the green energy revolution, with the expansion of the Energy Academy in north Tyneside providing a skills pipeline. How will the clean energy industries sector plan help to provide long-term certainty for investment and deliver good quality jobs for communities across my Cramlington and Killingworth constituency and the north-east?
I see the north-east as an absolute powerhouse for the clean energy jobs we want to create. Early on in this Government, we did something which again had been talked about for years by the Conservative party in delivering the east coast carbon capture, usage and storage cluster, which is projected to create thousands of jobs, including benefits for my hon. Friend’s constituency. It is not just the direct jobs that will be created, but jobs in the supply chain. We have an opportunity—the north-east will be at the heart of this—to lead in the clean energy jobs of the future.
I declare an interest as the chair of the all-party parliamentary group on critical minerals. Building local supply chains in Cornwall is one of the primary means by which local people can benefit, if we are to dig nearly £1 billion-worth of stuff out of the ground every year or pump 95 GW of offshore wind power onshore. Therefore, what steps is the Secretary of State taking to ensure that supply chain businesses, particularly those of the size we have in Cornwall, and their workforces get the support they need, so that workers and local communities may share in the spoils of that investment?
Let me first say how much I love Cornwall. I love Cornwall for many reasons, but one reason I love it is the opportunity it offers to drive the jobs of the future. I know from my visit that, whether it is through critical minerals, geothermal or offshore wind, there are huge opportunities in Cornwall. That is what the industrial strategy is designed to superpower. That is what the huge investments my right hon. Friend the Chancellor made in the spending review will provide. As part of our clean energy workforce strategy later on this year, Cornwall will be at the heart of it.
I know that the Secretary of State loves Harlow as well. Does he agree that the historic investment in clean energy secured at the spending review will mean thousands of job opportunities for young people, including in Harlow, in renewable energies, nuclear, energy efficiency and so much more?
I love Harlow, Mr Speaker, and I love Harlow college. The visits I have made to the college have been incredibly inspiring; I have seen with my own eyes the enthusiastic young people there and spoken to them about green skills and the jobs of the future. When I think about what this Government intend to deliver, it is absolutely about my hon. Friend’s constituents in Harlow.
Will the Secretary of State join me in congratulating TK Murray Ltd—no relation, honest—an energy-saving contractor based in Kilsyth, on having already cross-trained more than half its workforce to become fully fledged installers of air source heat pump technology from gas boilers? This has been facilitated by Warmworks, which has developed a supply chain of more than 30 small and medium-sized enterprises to make more than 750 green jobs a reality.
I love Cumbernauld, Mr Speaker. My hon. Friend raises the important opportunities in heat pump technology. The growth in heat pumps that we are seeing is not just about a better deal for consumers, but about the manufacturing that we can see. My hon. Friend has given a great example of that.
If the Secretary of State loves Shropshire, and I am sure he does, I hope he will not bulldoze over all our green belt—but that is another story for another day.
The Secretary of State talks about green jobs. I am sure he does not want our fire services to be deployed more and more, but with solar energy feeding into battery energy storage systems, there is real concern at Shropshire fire service and across the country that there will be fires that are very difficult for our fire services to control. Does the Secretary of State agree that our fire services should be a statutory consultee on future planning applications for battery storage?
This is an important issue that we need to take seriously. At the moment, it comes under the health and safety regime, but we are consulting on the best arrangements to ensure that we have the highest standards of safety. There are high safety standards in place, but as we see the growth of batteries, we will endeavour to ensure that those standards are maintained.
It goes without saying that I love Burgess Hill. One brilliant business there is Steve Willis Training, which is this week celebrating 25 years in business, training the region’s future electricity, plumbing and heating engineers. Does the Secretary of State agree that such businesses are vital in delivering the skills of the future, and will he join me in congratulating Steve Willis Training on being a brilliant family business that provides key skills to the south-east?
I warmly congratulate Steve Willis Training on its 25 years in operation and on the work it is doing. The hon. Lady makes an important point: we can help to create jobs in the private sector, but the question then is whether people will have the skills to fill them. Organisations and companies like Steve Willis Training are fundamental to that. Sometimes it requires lots of training; sometimes it requires shorter amounts of training to retrain people in new technologies like heat pumps. It is vital that that training happens.
People across Basildon and Billericay, and indeed across the country, want to see more jobs in energy production and to see cheaper energy. What they do not understand is why the Government are backing some but not all forms of energy. Why are the Government insisting on shipping jobs in oil and gas abroad, rather than keeping them here while investing in green energy at the same time?
The answer is that we are not. As the right hon. Gentleman knows, the reality is that the North sea has been a basin in decline and that 70,000 jobs were lost under the previous Government. The question is: do we create the jobs of the future as well as maintaining existing fields for their lifetime? This Government are committed to doing so. If he wants to see those jobs, he should support our plans.
Tempted as I am to wax lyrical about the beauties of Aberdeenshire, I will instead ask the Secretary of State a very simple question. By this time next year, how many jobs will GB Energy have created in Aberdeen and Aberdeenshire?
GB Energy will create thousands of jobs across the country, including in Aberdeen. Here is why GB Energy really matters: we have chosen to put its headquarters in Aberdeen, as we recognise that Aberdeen is the clean energy capital of our country—not just for oil and gas, which is important, but for the future. SNP Members are chuntering on the Front Bench, but they never did anything to create that future for people in Aberdeen.
We are working with Ofgem and the National Energy System Operator to accelerate network infrastructure through reforms to planning, supply chains and other areas, delivering the capacity needed to achieve clean power by 2030 and to drive economic growth.
In my constituency of Bicester and Woodstock, the local plan anticipates significant new employment sites to create jobs and growth. Tritax Big Box tells me that it wants to put solar panels on 100% of usable roof areas on the buildings that it intends to create. Local planning policies would support that, yet I was shocked to learn that Tritax expects to install solar panels on only 25% of usable roof space. It cannot get a permit to generate electricity or consent to export to the grid. Will the Minister or his officials meet me to discuss how we can turn this into a win-win opportunity for rooftop green solar?
That sounds like a fantastic opportunity. Our ambition is to see solar panels on as many rooftops across the country as possible. It is a win-win opportunity, as the hon. Gentleman rightly puts it. He and I have spoken about a number of these issues previously, and I am happy to discuss this one with him. If he could write to me with the specifics, we will certainly look at the matter. In the meantime, we are looking at reforming all those processes to make sure that we can get as much power as possible.
The challenges of increasing electricity grid capacity include the ability to get planning consent and to achieve grid connections, as the Minister knows. In the report that the Select Committee published last week, we referred to the problem of inconsistency in some of the guidance and energy plans over which comes first—the grid connection or the planning consent. Will the Minister please address that and ensure that the Government clear up that inconsistency, so that we can move forward with increasing electricity generation and grid capacity?
I thank my hon. Friend for the question and for the work that he and the whole Committee have been doing on this matter. His report has been my bedtime reading every night this week as it is an important piece of work. He is right about two things. First, where processes are not as well aligned as they should be, we absolutely need to look at what we can do to make sure that they work much more coherently. The second point his report made, which we are also looking at, is how we bring together things such as the strategic spatial energy plan, the holistic network design and the land use framework to make sure that we have coherent plans across the country, so that we can plan properly our energy system.
We know that the cost of energy is a huge challenge to businesses across the country. That is why our mission to deliver clean power by 2030 is so important: that is how we will get bills down for good. While we try to get there, we are taking action to support businesses, including through the new British industrial competitiveness scheme, which will reduce electricity costs by around 20% to 25% for more than 7,000 businesses.
When the Government help businesses reduce energy costs, including by aiding their transition, businesses such as the pubs and cafés in Dawley, Madeley and Oakengates and manufacturers on Stafford Park and Halesfield can then protect and create jobs and pass on savings to customers. Will the Government back those businesses and ask the energy giants, which continue to make tens of billions of pounds of profit, to pay for it?
My hon. Friend is completely right to stress the challenges faced by businesses. The Government are committed to backing businesses. We are working with the regulator to make sure that the system is fair for everyone and, as is set out in our industrial strategy, from 2027 the new British industrial competitiveness scheme will reduce electricity costs by up to £40 per megawatt-hour, which will benefit thousands of electricity-intensive industries, including the ones in his constituency. We are very clear that we are backing businesses, and we will do everything we can to support them in driving down bills.
Energy costs are an issue that the Prax oil refinery has brought to my attention over the years as a problem it has been facing. I appreciate the calls I have had with the Minister for Energy about this. I was able to visit the plant on Friday, and there was clearly growing concern, with hundreds of jobs at risk. What assurance can the Minister offer my constituents who are affected by this situation?
The hon. Member is right to raise this situation; we know that it is very difficult, and we have been engaging on it. There have been long-standing issues with how the plant is run. We are trying, across the piece, to support businesses to make the transition—and support them within the transition—so that we can protect jobs across the country.
When the price cap fell last month, the Labour party boasted, “£129 off your bills, delivered by Labour”. The Minister knows that energy bills fell as wholesale gas prices fell, and she knows that her policy is to take the country off gas and keep increasing policy costs on bills. That is why she refuses to repeat the claim. Will she take this opportunity to apologise for her party saying something that she knows is untrue?
Every time the hon. Member stands up to speak, I hold my head in absolute frustration. He is gambling with fossil fuels, and quite frankly the Conservatives should hang their heads in shame. Energy bills rocketed under their watch and they did nothing about it—they were happy with that. That is not a legacy that we are willing to contend with, which is why we are taking action in the short term to drive down bills through our sprint to clean power. Their legacy is one they should be ashamed of, so they should not be lecturing us.
The clean power 2030 action plan makes it clear that nuclear will play an important role in our future energy system, providing low-carbon baseload power to the grid. We are delivering the biggest new nuclear building programme in a generation, having committed almost £17 billion at the recent spending review.
I was grateful to the Secretary of State for showing his love for Hemel Hempstead when he came to launch a new scheme on solar panels the other month. On the question of new nuclear and clean jobs, could the Minister outline how communities like mine in Hemel Hempstead will benefit from these new jobs?
Well, my right hon. Friend the Energy Secretary says that we love Hemel Hempstead; I think we agree on that. The nuclear sector is poised for significant growth. That will help deliver on our energy needs in the future, and it is how we will deliver thousands of skilled jobs across the country. The nuclear skills plan is a collaborative effort between Government, industry and academia, setting out the targeted work we need to address the skills gap and bring forward the thousands of apprentices we will need to deliver this work in the future. The regional skills hubs we have established will help to deliver training support locally to ensure that every community in the country benefits.
Rolls-Royce in Derby has recently been announced as the preferred bidder for the delivery of small modular reactors, which means that many of my Erewash constituents will become the beating heart of the workforce that delivers the reactors. Can the Minister explain how Derbyshire’s finest SMRs will help to end our reliance on foreign oil and gas?
My hon. Friend is absolutely right; the Government are committed to delivering a new golden age of nuclear, securing an abundance of clean power after 14 years of dither and delay from the Conservatives, and with that will come investment across the country. On 10 June, following a robust two-year process, Great British Energy Nuclear selected Rolls-Royce SMR as its preferred bidder to deliver the UK’s first small modular reactor, subject to final Government approvals and contract signature. The Government are making available £2.5 billion across the spending review to enable this to be one of Europe’s first SMR programmes.
I have always been a supporter of nuclear power. Unfortunately, we do not have access to nuclear power in Northern Ireland, but I know from discussions with the Minister that he is very keen to ensure that modular nuclear power opportunities are available in Northern Ireland. Business that I have spoken to want access to these opportunities, as does the Northern Ireland Assembly. I know that the Minister is always committed to trying to make things better, so has he had an opportunity to talk to the relevant Minister in the Northern Ireland Assembly about ensuring that access to modular nuclear power is available to us in Northern Ireland?
I regularly engage with Ministers in the Northern Irish Executive, including in the Department for the Economy, which has responsibility for energy policy in Northern Ireland, and we discuss a range of issues. We are happy to support the Northern Irish Executive in any way we can, either with technology or through rolling out the regulatory framework. We are really excited about the opportunities posed by SMRs and are happy to discuss that in Northern Ireland as well.
We understand that high energy bills are a challenge for businesses, and particularly energy-intensive companies. We are clear that, in the long term, our mission to deliver clean power is the only way to bear down on that cost. But while we get there, we are providing the support needed through the British industrial competitiveness scheme and the supercharger scheme, protecting over 7,000 businesses.
The UK’s industrial electricity prices are among the highest in Europe, and it is quite clear that the Government’s current policies are failing manufacturing businesses in constituencies such as mine. Will the Minister commit to introducing support that genuinely reduces electricity costs for manufacturers, including by tackling high wholesale energy prices, rather than prolonging the uncertainty, which sadly puts local jobs at risk?
I gently remind the right hon. Member that industrial energy prices rocketed on the Conservatives’ watch. Gas prices for non-domestic companies went up by 170%, which was catastrophic for UK plc. We are taking action to support businesses through our sprint to clean power and, critically, the measures we are providing through the British industrial competitiveness scheme. Those measures have been supported by Make UK, the British Chambers of Commerce, UK Steel and the Chemical Industries Association. The Conservatives dithered, delayed and did nothing to support businesses; we are cracking on and getting on with the job.
On Friday, I visited C&M Precision Ltd, a small manufacturing company in my constituency. Electricity represents easily its biggest cost. What is the Minister doing to listen to small and medium-sized enterprises like C&M who feel that their voice is simply not being heard?
We are listening to businesses, particularly small and medium-sized businesses. We have heard companies complain, for example, about being locked into expensive fixed-term contracts. That is why Ofgem is working to deliver blend-and-extend contracts so that businesses can benefit from lower prices. We have heard their frustration at the lack of a redress system, which is why last December we expanded the ombudsman service to 99% of businesses so that they can get redress and financial awards of up to £20,000. We have also heard their frustration about energy brokers, which is why we have consulted on introducing regulation of third-party intermediaries. We will respond in due course.
Last week, the Energy Security and Net Zero Committee heard from Make UK and representatives from the chemical, petrochemical, steel and ceramics industries that closer alignment and collaboration with the EU on energy pricing is critical to reducing bills. That is also recognised in the Government’s industrial strategy. What more is the Department doing to bring that forward quickly?
My hon. Friend makes a good point. Industry voices have been calling for that close alignment, particularly on the emissions trading scheme—we have heard that from UK Steel, the CBI, Make UK and the Energy Intensive Users Group—and we believe that those stronger linkages are the right thing to do to cut red tape at the border, to protect consumers from higher costs and, critically, to boost trade and growth, which the Government are absolutely committed to doing.
One way to drive down energy costs, including for energy-intensive industries, could be to help cut curtailment costs by encouraging the co-location of new energy-intensive industry sectors with some of the renewable sectors that we are currently having to pay to switch off. As we start to roll out more data centres across the country, what conversations have Ministers had about how such centres could be optimally located to help reduce our energy bills at the same time?
My hon. Friend makes a good point, as always. We in the Department are working across Government—as part of the AI Council as well as with colleagues in the Department for Business and Trade—to ensure that we have the co-ordination and collaboration to support businesses on the ground.
We will continue to support new renewables through the contracts for difference scheme in conjunction with initiatives such as the warm homes plan, the future homes standard and the boiler upgrade scheme. Great British Energy and Great British Energy Nuclear will together invest more than £8.3 billion over this Parliament in home-grown clean power.
I welcome the Government’s mission to achieve clean power by 2030. I know that the Minister will agree that it is vital that we make the transition to net zero as quickly as possible, not only to fight climate change but to lower energy bills. Does he agree that whereas previous Governments have failed to deliver for the British people, our plans are the single best way to bring down energy bills for families, including in my Battersea constituency, and to provide them with much-needed energy security?
I completely agree. My hon. Friend makes the point that this is not just about action on the climate—as important as that is—and creating thousands of new jobs, but about bringing down bills and, crucially, delivering on that energy security point. The truth is that even though our clean power mission is about doing all four of those things at the same time, the Conservative party opposes all of that action, would leave us much more vulnerable to the volatility of the fossil fuel markets, and would turn its face against the economic opportunity of the 21st century.
The Minister will recognise that one way to increase the supply of clean energy is to enable community energy projects to supply local energy markets. When Ministers are asked about that, as he knows they have been many times, they generally say that there is no technical obstacle to it happening, but will the Minister recognise that there is world of difference between, on the one hand, something being technically possible and, on the other, that same thing being facilitated and encouraged so it really happens? Will he focus on the latter as the Government develop their energy market reforms?
I completely agree. The right hon. and learned Gentleman is absolutely right: there are no technical barriers to doing it, but that does not mean that it is a straightforward process. To be honest, things that I thought would have been much more straightforward, like how we define “community”, are more difficult to get right, but we are absolutely determined to do it. He is right to make the point about delivering clean power that benefits local communities, so that they can buy it locally and really see the benefit of hosting it. That is exactly what we are determined to do and we will continue to work to make it happen.
We know that households are under huge pressure with the cost of living, and energy costs are a big part of that. The expansion of the warm home discount scheme will mean that nearly 3 million more families will receive vital support with their energy bills this winter. This will provide much-needed help at a time when people desperately need it.
Will the Minister confirm how many residents in my North Durham constituency will benefit from the extension of the warm home discount to all households in receipt of means-tested benefits?
Sadly, we do not have data at constituency level, but I can tell my hon. Friend, who is a brilliant champion for his constituency, that around 100,000 extra households in the north-east will benefit from the expansion—an increase of around 50%.
The Minister will be aware that many homes, particularly in rural areas, are older properties that are difficult to insulate. Does she agree that we all need to concentrate on those older types of properties, many of which are the homes of elderly people who cannot afford expensive energy? We need to concentrate on ensuring that those homes are properly insulated and that the warm home discount scheme is extended to such properties.
The hon. Member makes an important point. We are very clear that we need to make sure that we have the right solutions for every household, including those in rural communities. I have met representatives from rural communities, councils, Members and some of the companies that are trying to do work in rural communities. We are absolutely committed to getting this right as part of the warm homes plan.
Since the election last year, we have secured over £50 billion of investment into the UK’s clean energy industries. Last year’s renewables auction for allocation round 6 was the most successful in our history, and we will shortly open the AR7 auction. This is the way to deliver energy security, lower bills and good jobs for our communities.
Private sector investment via community energy schemes is a popular way of engaging people to get behind renewable energy projects in their area. A great example is Meadow Blue Community Energy in my constituency of Chichester, which puts money back into the community with a grant scheme and is now funding solar panels on local school roofs. Does the Secretary of State agree that community energy projects would attract more private sector investment if grid access costs were reduced and the delivery of local supply was made easier?
The hon. Lady raises an important issue, which was also raised by the right hon. and learned Member for Kenilworth and Southam (Sir Jeremy Wright). She is right about the virtues of community energy. Great British Energy is going to partner with local communities to deliver community energy up and down the country, because sometimes public capital—it could be loans, it could be grants—can help lever in the private capital that we need. She is also right about some of the barriers, as the Energy Minister mentioned. I want to assure her that we are going through the different barriers in granular, nerdy detail to see how we can break them down.
I must declare an interest as a crofting tenant of Knock and Swordale common grazing, as good a definition of a community as you can ever get, but Knock and Swordale, along with several other community power schemes in my constituency, cannot get grid connections except through active network management connections, which basically means that the communities can supply power to the grid only when the big boys—the commercial companies—are not doing so. These connection offers are next to useless, and the National Energy System Operator, Ofgem and the transmission companies have to be told from this Dispatch Box that they cannot be agnostic about what kind of grid connection they offer and to whom. They must put communities first if communities are going to support this transition.
My hon. Friend, who I have talked to on a number of occasions about these wider issues, raises a really important point. I was just talking to the Energy Minister about it. Let me take away my hon. Friend’s point about access. We are committed to driving forward community energy, and we will talk to NESO and Ofgem to get it right and make sure it happens.
Yesterday, the Secretary of State made an incredibly important statement to this House outlining the crises we face when it comes to climate change and the decline of nature. Tackling this starts with being honest about the science and what the experts are telling us. We know that we can only have climate security for future generations by acting at scale today.
I thank the Minister for her answer. Energy security is important not just to help bring bills down now. Does the Minister agree that it is also vital for the future and for protecting future generations, including in my constituency of eminently lovable Watford, because those young people are the ones who will face the climate change consequences in the years to come?
As someone who grew up in Luton, I am not sure I am allowed to say that I love Watford, because there is an age-old rivalry there—but yes, we know that acting now with our clean energy superpower mission, scaling up renewables, reinforcing the grid and reducing our reliance on volatile fossil fuel markets will mean a cleaner, more secure future for generations to come. That is why, unlike the Conservatives, we are following the science and showing the leadership that is needed at home and abroad.
Around Beverley, there are proposals for five solar farms, totalling 465 MW. Can the Minister assure my constituents that the scientific evidence that will be used to assess this will include the cumulative impact of these projects on the area around Beverley?
Yes, of course we look at the cumulative impact of these developments. Having been in the Department, the right hon. Gentleman will know that we have an excellent team of scientists led by Professor Paul Monks, who I want to pay tribute to because he is standing down later this year. I am sure the right hon. Gentleman would want to do so too.
I call the shadow Secretary of State—and congratulations on your marriage!
Thank you, Mr Speaker.
The Secretary of State tried to argue yesterday that he is a climate change believer and everybody else who disagrees with him is a denier, because he does not want to engage with any legitimate criticism of his policies. He is offshoring British industries—in other words, replacing British goods with dirtier imports with higher emissions. Can the Minister confirm what the scientific evidence is that doing so will help to tackle climate change?
Perhaps if the right hon. Member had been here yesterday, she would have been able to engage with the Secretary of State on this. The science is absolutely clear: every avoided fraction of a degree of warming makes a difference to the severity of climate impacts. That is why the Prime Minister went to the global leaders summit at COP29 last year to announce a new 1.5°C-aligned nationally determined contribution, and we will continue to show international leadership.
The Government have stepped in to ensure a more controlled and carefully managed phase-out of the radio teleswitch service. I have been engaging directly on this and meeting Energy UK and Ofgem fortnightly to discuss progress and the suppliers’ phase-out plan. My focus and priority is absolutely clear: to ensure that there is no impact on consumers and that we minimise any consumer detriment.
I welcome the Government’s change in course, because the previous hard deadline would have left many people, including people in my constituency of Edinburgh West, vulnerable and, indeed, unaware that there was any need to change their meter, but there is still a big problem in Scotland, as 100,000 people are still waiting on meters, and may be unaware of this issue. On engaging with the community, will the Minister please tell us what she is doing in Scotland to ensure that rural communities are approached about this, and vulnerable people get protection?
We have been working closely with the Scottish Government and engaging with Scottish MPs. We know that about 97,000 meters needs to be replaced in Scotland. All those households have been contacted multiple times. In addition, because we know that there are particular challenges in some rural communities, we have done a sprint, in which suppliers are working in collaboration with the local authority to bring down the number of replacements needed. I can reassure the hon. Member that no area will be switched off without us contacting consumers to inform them, without us allowing them to book in emergency appointments, and, critically, without us informing MPs and local authorities, so that we do this in the best possible way.
The Climate Change Committee report made clear the progress we have made in the past 12 months on overturning the terrible legacy of the Conservatives, who turned their back on climate action. We know that clean power is the route to energy security, lower bills and good jobs. It is a shame that the Tories and Reform are still stuck in the past.
The Climate Change Committee says that the UK should be proud of its approach to consistent and sustained decarbonisation, but there is much more to do. This week, Bracknell Forest Community Climate Action is hosting a summit to discuss what can be done locally to address climate change and support nature. Does the Minister agree that local initiatives like this demonstrate the strong public support for action on climate change?
We know that there is strong public support, and we are keen to engage more at a local level with groups like Bracknell Forest Community Climate Action. That is why we have set up the local net zero delivery group to work with councils and mayors, and why we will produce a public participation strategy later this year. I very much hope that my hon. Friend’s constituents will get involved in that.
Will the Minister join me in congratulating the fantastic Lib Dem-run Winchester city council on being rated the greenest council in the UK by Climate Action UK? That is a lot of work by politicians, and it shows what politicians who dearly believe in this issue can achieve if they crack on and deal with it, rather than weaponising it in some kind of culture war.
I am happy to join the hon. Member in congratulating his local council. I visited the Local Government Association the week before last, I think, with the local net zero delivery group, on which we have representation from all areas of local government. I am keen to learn from the best and translate that into action for others who need a bit more encouragement.
Our clean power 2030 action plan sets out our pathway to delivering clean power. To support that plan, we recently launched the solar road map, which confirms plans to increase domestic solar installations through the future homes standard and warm homes plan.
Over 50% of our food and £2.7 billion in lifesaving medicines depend on the cold chain, but operators face soaring energy costs and growing grid instability. In Epsom and Ewell, Sunswap is pioneering battery and solar-powered refrigeration, which cuts emissions while protecting vital supply chains. Will the Minister commit to targeted support for renewable energy innovators like Sunswap, whose technology can strengthen both sustainability and national resilience?
The hon. Lady is right that we have an enormous amount of innovation in this space and real potential to meet our future needs, not just as a result of the pathway that we have outlined, but through innovative solutions like the one she mentioned, which provide specific support to targeted industries. I am happy to look further into her proposals, and at the funding available for innovation. If she wants to write to me with any details, I will happily follow up.
A business in the village of Fradley in my constituency has a plan to put millions of watts of solar on the roof of its businesses. Unfortunately, it cannot proceed with that application, because there is not sufficient export capacity on the site. It would never export a watt of that electricity, which would meet only a fraction of its energy needs. Will the Minister meet me, so that we can discuss how we can make regulatory changes to support projects like this one?
My hon. Friend makes a point that others have raised. We are looking in granular detail at how the system works to ensure that the regulatory landscape allows such opportunities to be taken. I am very happy to meet him to discuss this further. We are taking a detailed look at every single aspect of the system, so that communities, businesses and others can benefit from being able to export power to the grid. That will help the country with its energy needs and deliver a benefit for local communities.
We believe that the best way to protect households permanently is through our mission to deliver clean power by 2030. Combined with our warm homes plan to upgrade millions of homes across the country so that they are warmer and cheaper to run, that will drive down energy bills and make cold homes a thing of the past. We know that we need to support people while we make that transition, which is why we are extending the warm home discount.
Almost 10% of people in my North East Hampshire constituency live in fuel poverty. I agree with the Minister that investing in renewable energy would help to tackle that, so how is she working with the Ministry of Housing, Communities and Local Government to empower local authorities to develop renewable energy generation locally—by following Europe’s lead in putting solar over car parks, for example—in order to make energy cheaper and more sustainable?
The hon. Member is right: there is a big push to work with local and regional authorities to ensure not only that we generate renewables that can impact on bills, but that we upgrade homes. Through local energy action plans, local authorities are, for the first time, working with the National Energy System Operator and other systems operators to drive that. Local and regional authorities have a crucial role to play in upgrading millions of homes across the country.
My Heywood and Middleton North constituents live in a state of profound uncertainty as to how the unpredictability of global energy markets will affect their families. Does the Minister agree that if we want to protect those families from volatility, we must end our reliance on global fossil fuel markets, and introduce targeted interventions to bring bills down, particularly for those on the lowest incomes?
My hon. Friend is right. It beggars belief that the Conservative party is so stuck in its ideological opposition to moving towards clean power. We are clear that we must break our dependence on global fossil fuel markets, which led to record energy bills during the energy crisis. We are making that sprint, but it is critical that we support the most vulnerable households while we make that transition, which is why I am so proud that this Government extended the warm home discount so that an extra 2.7 million households—one in five—will benefit this winter.
I congratulate Ministers again on embracing the principles of the sunshine Bill campaign, run by me and many others to ensure that solar panels are included on the roofs of all new houses. In the heat of recent weeks, people in my constituency have been sweltering in beautiful old regency buildings, which pose a particular challenge in this respect. Do Ministers agree that if we line up heat pump technology and solar panels, we can lower our energy bills and keep cool at the same time?
The hon. Member is right. We believe in a solar panel revolution. That is one of the key things that Great British Energy will bring about across the country. On overheating, it will be critical to ensure that as we upgrade homes, we make them fit for purpose in the context of climate change. We are including air-to-air heat pumps in the boiler upgrade scheme, and we will consider other measures to keep homes cool.
The Government have taken long-overdue steps to secure rooftop solar on new builds, but there is even greater untapped potential on existing commercial and domestic rooftops. Will Ministers consider introducing a scheme, similar to those in other countries, offering free installation of rooftop solar for businesses and residents? The costs could be paid back through a long-term power-purchasing agreement. That would simultaneously increase the supply of clean energy and cut bills.
My hon. Friend is right to talk about the potential of solar on our commercial buildings. We know that solar can reduce energy bills by about £600. We are looking at all the options, because we are absolutely serious about a solar rooftop revolution, whether on our homes or commercial buildings.
We welcomed the joint agreement signed in May between the UK and the EU, in which small steps were taken to address the impacts of the Conservatives’ botched Brexit deal on energy costs and bills. What further steps will the Secretary of State take to forge energy co-operation through a recoupling of the UK and EU electricity markets and the UK’s participation in the EU’s internal electricity market, to boost trade, bring down renewable energy costs and reduce energy bills?
We have been listening to industry voices, and they are very clear about the opportunities for stronger alignment. We will continue to engage with them, and with our partners in the EU on the opportunities as we make the sprint to clean power.
Since the last oral question time for the Department, the spending review announced the largest investment in clean energy in our country’s history—investment in new nuclear; in carbon, capture and storage; and in hydrogen transport and storage. We are investing £8.3 billion through Great British Energy and £13.2 billion in our warm homes plan for energy security, lower bills and good jobs.
Evidence from the National Grid, Ofgem and Imperial College London shows that locational or zonal pricing would save billions of pounds a year, lower bills and reduce the need for expensive and often unpopular grid infrastructure. Why has the Secretary of State ruled it out?
I made a comprehensive statement to the House on this last Thursday, and the grounds for the decision are these: first, there is the question of fairness, and secondly, there is the question of the cost of the transition and what would happen in the meantime. We need investment in our clean energy infrastructure, and we need investment in growth. I believe that our way—reformed national pricing—is the right way forward.
My hon. Friend makes an important point. That is why the strategic spatial energy plan will set out where we need our energy infrastructure, so that we can have a planned system that matches power needs and infrastructure at least cost to bill payers and taxpayers.
Yesterday, the Secretary of State said I was hiding when I was, in fact, with my six-month-old baby, who I know he is aware of. On behalf of all young mums who face those kinds of comments in their first few weeks back at work, may I gently suggest he reflects on those remarks?
I want to ask the Secretary of State a very simple question: is £82 higher or lower than £72?
On the first point, I completely respect the right hon. Lady’s decision to be with her young baby, and there was no offence intended. I think it is very important that we understand the needs of new parents and, indeed, parents across the country. On the question she asked, I do not know what she is getting at, frankly.
I do not know whether the Secretary of State does not know or does not want to say, but £72 a megawatt-hour is what electricity cost last year, and £82 is the price he has paid for offshore wind, and he is set to do the same this year—and that is before the extra costs for the grid for wasted wind and back-up, which are going through the roof, thanks to his policies. Yesterday, he committed to radical honesty. In that spirit, will he admit either that he cannot add up, or that his policies cannot bring down bills?
I am going to be radically honest and tell the right hon. Lady the truth: she is gambling on fossil fuels—the same thing she did that led us to the worst cost of living crisis in our country’s history, with family finances, businesses’ finances and public finances wrecked. The only way to bring down bills for good is through cheap, home-grown power that we control. We have an energy security plan. The Conservatives have an energy surrender plan.
GB Energy will prioritise a whole range of projects, and that is a matter for GB Energy, as a publicly owned energy company at arm’s length from Government, but there are huge opportunities right across our country, whether in floating wind, tidal, hydrogen or offshore wind and supply chains. GB Energy is owned by the public and will benefit people right across Britain.
Across Europe, we have already seen 2,300 heatwave-related deaths—avoidable deaths—and the Met Office report says that things will just get worse. The Lib Dems and I have a really cool idea. Will the Secretary of State work with local authorities to open up public spaces with air conditioning, such as leisure centres and libraries, so that they can provide relief from extreme heat for the elderly and vulnerable?
There is no monopoly on good ideas, and the hon. Lady raises the important issue of how we adapt as a country to the climate crisis. We know we have a lot more to do, and we will listen to all good ideas.
My hon. Friend raises a great example, and I will take a risk and say yes, I will come to Stourbridge. I love Stourbridge, and I look forward to seeing that project.
Of course the Government follow the regulations that we have put in place quickly, and applications must be considered on a case-by-case basis—that is the way anyone would expect them to be dealt with. I will not say on the Floor of the House any more about those applications, as they are live decisions that will be made in due course by the Department.
I will repeat what I have said before: we are obviously hugely disappointed by the way that the owners have dealt with the company. I repeat the ask that I have made in the House a number of times, and in writing to the chief executive, that he should put his hands in his pockets and do the right thing by the workforce. We are doing everything we can as part of the insolvency process safely to manage the refinery, and to look at whether there are buyers interested in taking it on.
The most significant thing about the OBR report is that it says there is an 8% threat to our GDP by 2070 in a 3°C world, and a 56% rise in the debt to GDP ratio if we do not act on climate change. That is the most important thing from that report, which I recommend all hon. Members read over the summer.
I appreciate my hon. Friend’s concerns. This is a matter for the Department for Environment, Food and Rural Affairs, but I am happy to talk to colleagues as they bring forward their land use framework. Nature-based solutions to climate change are important, so we very much engage with our colleagues in DEFRA on these issues.
Solar developers are not playing by the rules when it comes to accessing the land of people on Ynys Môn. Government guidance states that developers must act reasonably when trying to obtain permission to access the land, but my constituents have received threatening emails and there have even been cases of developers trespassing on land. Does the Minister condone such behaviour, and does he believe that current guidance is strong enough to protect constituents such as mine?
I do not know the specifics of the case that the hon. Lady raises—if she wants to send any details to me, I will certainly look at them. We clearly want to see and expect in every single case a partnership between developers delivering projects that we think are important, the planning system responsible for putting the processes in place and the communities who should have their local area protected and be able to access it. I am happy to follow up with her if she wants to raise specifics with me.
That is not the position of the Government, because report after report and the evidence points to the fact that undergrounding cables is significantly more expensive than putting them above ground. Individual applications will clearly look at the individual circumstances and make a decision on that. We have said as a Government that communities that host network infrastructure should benefit through community benefits and direct money off bills, and that is what we will deliver.
It was recently announced that the surplus Ministry of Defence land at RAF Wyton in my constituency has been designated as an MOD trailblazer site. The Housing Minister confirmed to me last week that no assessment has yet been made of the energy infrastructure currently in place. The Prime Minister recently confirmed to me here in the Chamber that my proposal to develop a defence technology cluster on the site would be supported. To that end, is the Minister prepared to look into the available energy infrastructure and substation connectivity at the site and write to me with his assessment?
The hon. Gentleman is assiduous in raising these sorts of questions with me. I am very happy to look at the possibilities. He is right to outline the potential of sites such as that, and we will look at it.
Nova Innovation in my constituency is pioneering floating solar, which is generating clean energy. Will my right hon. Friend outline what steps the Government are taking to support the development of floating solar?
That sounds incredibly exciting, and I look forward to finding out more.
We have been using floating solar technology in this country since 2016. Last month, the French started the largest plant in Europe, producing 74.3 MW. The Chinese have single plants that produce 350 MW. Given the scale of its use across the world, bar Britain, why did the Secretary of State refer to floating solar as a nascent technology? What is nascent about it?
It sounds like I am being educated about floating solar. I am happy to share the hon. Gentleman’s enthusiasm for it; if he has proposals about how we can take it forward, I am all ears.
In France, Germany, Croatia and elsewhere on mainland Europe, geothermal energy is being taken very seriously. I was disappointed that geothermal energy got little mention in the industrial strategy, particularly as there is estimated to be 30 GW of energy in the Cornish granite batholith. Will the Secretary of State meet me to discuss how we clear the barriers to unleash the potential of the Cornish granite batholith?
My hon. Friend always raises the huge potential of Cornwall in this House and in the energy space. He is right to talk about the potential for geothermal; we are hugely excited about the opportunities that it presents. I am very happy to meet him and others to discuss further how we can take it forward.
I am already being contacted by constituents who are worried about affording their energy bills this winter, but do not feel that the service they get from the energy companies is properly supporting them. What steps are the Government taking to ensure that energy companies provide the support that they need?
We are very clear that energy companies have strict obligations to follow. We are working with Ofgem to ensure that it adheres to those obligations, and we are doing the job of reviewing Ofgem to ensure that it is a proper consumer champion, with the mandate and powers to work on behalf of consumers and reform this market so that it works in the interests of the hon. Lady’s constituents.
More than 100 INEOS chemical employees are to lose their jobs at Grangemouth because the refinery has closed. The £200 million commitment to Project Willow does not help them in the here and now, and it is frankly an insult to the workers who are about to lose their livelihoods to talk about training opportunities at Forth Valley college that are not being afforded to them. What have the Government actually done and what will they do for those workers who do not have the same redundancy or training package as the refinery workers?
We are looking in the round at how we can deliver jobs and opportunities on the Grangemouth site. The National Wealth Fund made an unprecedented commitment of £200 million, and I have been meeting companies that are potentially interested in developing projects, to make sure we get them over the line. We have delivered on the training guarantee and delivered support beyond that provided by the Falkirk and Grangemouth growth deal. We are doing everything we can to support the workforce there, and we will continue to do so.