The Secretary of State for Energy Security and Net Zero (Ed Miliband)
With permission, Mr Speaker, I will make a statement about the warm homes plan, which we publish today. It is a plan focused on the No. 1 issue facing our country, which is the cost of living crisis, and on the scourge of fuel poverty, which affects millions of families across Britain.
At the Budget, my right hon. Friend the Chancellor took an average of £150 off the costs of energy bills from April. This winter, we have expanded the warm home discount to a total of six million families, and today, we allocate £15 billion in our warm homes plan. That represents a more than doubling of public investment in home upgrades compared with the last Parliament—in fact, it is the biggest public investment in home upgrades in British history to cut bills and tackle fuel poverty.
In making this investment, we turn the page on the lost decade of the last Government’s failure, with home insulation levels falling by more than 90% between 2010 and 2024, the promise of minimum energy efficiency standards for renters broken, the cancellation of the zero carbon homes standard, the repeated failures of schemes such as the green deal, the green homes grant and the energy company obligation scheme, and—worst of all—our dependence on fossil fuels leaving us exposed to the worst energy bills crisis in generations. The last Government failed time after time; this Government are doing the work to put it right.
The starting point for this plan is that clean energy is the right choice, not only for energy security and reducing emissions, but for cutting people’s bills. The public agree: they are showing record demand for technologies such as solar, batteries and heat pumps that can save families hundreds of pounds a year. Heat pump sales in Britain have grown by around 50% annually—it is one of the fastest-growing markets in Europe—and last year saw a record number of rooftop solar installations. The driving purpose of this plan is to ensure those benefits are available, not just to the wealthiest, but to families throughout our country at every level of income. The driving purpose of this Labour Government is to stand up for working people and tackle the affordability crisis.
Let me set out the measures we are announcing in our plan today. First, today we announce £5 billion of public investment to directly deliver home upgrades for low-income families. This will help families living in social housing and low-income owner-occupiers to have warmer homes and lower bills. In setting out this plan, we are abolishing the failed ECO scheme and making the principled decision that we should fund support through public investment, not levies on bills. Our plan also pays heed to all the evidence that says that funding is best delivered with local authorities and mayors in the driving seat—with those representing local people delivering for local people.
At the same time, we recognise the challenges facing suppliers who used to deliver the ECO scheme, so we will ensure that this extra money is used to help support them. The Minister for Energy Consumers will convene a working group of contractors, social housing providers and local authorities to oversee this work. Overall, this allocation is the biggest public investment in tackling fuel poverty in our history.
Secondly, it is a scandal that 1.6 million children live in private accommodation are suffering from cold, damp or mould, according to Citizens Advice. We on the Government Benches believe in a simple principle: if someone rents a home, private or social, their landlord has a responsibility to ensure it is safe, warm and affordable to heat. The last Government promised higher standards, and then they ripped up that promise. Today, we deliver. By 2030, private landlords will have to upgrade their properties to meet minimum standards of energy efficiency, and we have consulted on similar rules in the social rented sector, tackling the scourge of poor-quality rented homes and cutting bills for renters. These measures alone will lift more than half a million families out of fuel poverty.
Thirdly, it is right that we target help at those most in need, but we know the affordability crisis stretches well beyond those on low incomes. We want to make it easier for all households to cut their bills by choosing a heat pump, solar or batteries. Building on the steps we took at the Budget to make electricity cheaper, we are expanding the boiler upgrade scheme, increasing investment every year out to 2030. For the first time, we have a universal offer of £2,500 for a heat battery or air-to-air heat pump, as well as £7,500 to install a conventional heat pump, but I want to go further. Currently, just one in 20 homes in Britain has solar panels installed on the roof. We are determined to unleash a rooftop revolution, helping many more families to generate their own energy in order to cut their bills. I can announce that the Government are, for the first time ever, setting aside up to £2 billion to subsidise zero and low-interest loans for solar panels, batteries and other technologies, learning from the successful experience of other countries and meeting demand for this technology. That is just a first step, with a further £3 billion available for loans and investments over the coming years through our warm homes fund.
Fourthly, as we upgrade existing homes, we will ensure that new homes are built cheaper to run, with solar and clean heating as standard. That is just common sense. People cannot understand why we are building new homes with higher bills. The reason is that the previous Government refused to act. We are putting an end to this absurd situation. We will publish the future homes standard shortly. For the first time, solar panels will be fitted as standard in new homes. Alongside the other measures I have set out, this is designed to help treble the number of homes with solar by the end of the decade.
Fifthly, to make these changes happen, we cannot go on with the old system of accountability and delivery that has failed. People have had to navigate a fragmented and confusing system of home upgrades, delivered through a bewildering number of organisations and schemes. We need to face up to the fact that, after the previous Government’s repeated failures to deliver schemes effectively, we need a specialist body with the technical expertise and focus required. By consolidating functions from Ofgem and other organisations and abolishing Salix—there will be no increase in arm’s length bodies—we will establish a new warm homes agency. It will deliver impartial advice and guidance, work with local authorities and businesses and oversee Government schemes, and it will be backed by a reformed system of consumer protection. We will put an end to the scandalous failure of accountability and regulation, and waste of public money, that we saw under the previous Government.
Finally, we are determined to ensure that this roll-out delivers not just for consumers, but for workers. We are the largest producer of gas boilers in Europe, and there is a huge opportunity to harness this expertise to produce heat pumps, too. Manufacturers are already embracing this opportunity, including Ideal Heating in Hull, Vaillant in Derbyshire, which I visited last year, and Copeland in Northern Ireland, but currently less than 40% of heat pumps sold in Britain are made in Britain. We are setting a new aim of at least 70% of heat pumps installed in the UK being made in the UK, backed by a trebling of public investment in heat pump manufacturing, with £90 million set aside today.
Overall, we expect the warm homes plan to support up to 180,000 additional jobs in energy efficiency, heat pumps and heat networks by the end of the decade. That will create opportunities for builders, electricians, plumbers and installers, as well as new workers entering the industry. We will establish a new taskforce with the TUC, working with business, to ensure that those jobs are well paid and highly skilled, with a proper role for trade unions. Because we are a Labour Government, we expect the rights of working people to be at the heart of this industry’s future.
Taken together, these are the elements of a landmark plan that stands in a great reforming tradition of Labour Governments: after 1945, delivering on the promise of “homes for the people”, modernising the nation’s housing stock under Harold Wilson in the 1960s and introducing the decent homes standard for social housing in the 2000s, with each Labour Government meeting the rightful expectations of working people that the next generation can expect higher standards of living than the last. That is what this Government seek to do in our time, with a plan to cut bills for millions, help lift a million families out of fuel poverty, and create good jobs. I commend the statement to the House.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I thank the Secretary of State for the advance copy of his statement.
Today’s announcement is long overdue—overdue by an entire year, to be exact. During the general election, the Labour party claimed that it would cut household bills. This announcement should be part of that, but in that time, since the general election and on this Secretary of State’s watch, energy bills have not fallen; they have gone in the opposite direction. Energy bills are up by £200 since the election, partly as a result of the Secretary of State’s own political choices.
We believe that there is a greater role in our energy system for home batteries, we support a more technology-agnostic approach to air-to-air heat pumps, and, of course, we believe that rooftop solar is much better than carpeting the countryside in huge solar farms, but the Secretary of State is ignoring the core problem. We are in an electricity price crisis of his own making. Even if we are as charitable as possible and accept that the Government will reach the 5 million households who they say will benefit from this plan, it will do nothing to cut bills for 83% of the country. However, all those households will pay much higher taxes because of Labour’s Budget, including taxes to fund the Secretary of State’s £15 billion plan, and they are struggling with their energy bills now because of the choices of the Secretary of State.
Let me now turn to the specific measures in the plan. The Department’s own figures show that the public are becoming more sceptical about heat pumps. Between winter 2024 and spring 2025, the proportion of people saying that they were unlikely to install an air source heat pump increased from 38% to 45%, and if you ask anyone why they do not want a heat pump, they will say it is because of the high up-front costs. [Interruption.] Yes, they will—but it is also because of the high ongoing running costs, which often make heat pumps more expensive to run than gas boilers.
There is a serious risk that the Government’s legally binding targets are forcing them to push people into buying heat pumps, but all those families will be locked into sky-high running costs, because the Government have a political target that is pushing up electricity bills at the same time. This plan does nothing to address those high ongoing running costs. Indeed, last week the Government announced that they were locking the country into higher energy prices for decades through their botched wind auction. Just imagine that there was a plan on the table to cut the cost of running a heat pump by 20% instantly: a cheap power plan that would not involve raising taxes on working people to fund handouts; a plan that would axe the carbon tax, and scrap the Secretary of State’s rip-off wind subsidies to cut bills for every family in the country. Would that not be a far better approach to making make heat pumps much more attractive?
What steps will the Department take to ensure that low-interest loans will provide good value for money? How many homes will benefit from the low-interest and zero-interest loans scheme, and how will it be determined who gets a low-interest loan or a zero-interest loan?
As for the changes to the minimum energy efficiency standards for rented homes, the Secretary of State will know that the previous Government did more than any other to improve energy efficiency standards, with half of all homes having an energy performance certificate rating of C or above when we left office, compared to 14% when the Secretary of State left office in 2010. Has his Department carried out any impact assessment of what the 2030 deadline will cost landlords, and how much of the cost will be passed on to renters? His own Government’s data shows that it will cost more than £12,000 to upgrade a home from EPC E to C—£12,000 that will then be passed on to families in increased rents. We cannot ignore all the costs that this Government are imposing on the housing sector, and the impact that they will have on the cost of living for families.
The Government are going to set up a new quango, the warm homes agency, to administer these schemes. Can the Secretary of State tell us how much this quango will cost the taxpayer, how it will be held accountable, and why he decided to spend money on setting up a new quango rather than those functions being delivered by his own Department, which he controls?
The Secretary of State has already been forced, by this House, to ban Great British Energy from spending taxpayers’ money on solar panels when there is evidence of forced labour in the supply chain, and of course we welcome that, but can he assure the House that he will apply that same ban on slave labour to solar panel installations funded by the warm homes plan? When will he publish details of how that mechanism will work, so that it can be scrutinised by the House?
The Government are ignoring the fact that the affordability crisis that the Secretary State talks about is a crisis of his own making. They are ignoring the fact that they are locking the country into paying higher bills for far longer. If they truly want to encourage people to adopt green technology, like heat pumps or electric vehicles, they need to make electricity cheap. They could adopt the Conservatives’ cheap power plan to cut everyone’s electricity bills by 20% and scrap the reckless clean power 2030 target, which is locking everyone into paying higher bills for far longer.
Ed Miliband
It is always a pleasure to be opposite the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie). Let me make a few points to him, in the gentlest way I can. Let me deal first with his point about the cost of electricity. In her Budget, the Chancellor did more in one decision—namely, to transfer 75% of the renewables obligation to public spending to cut electricity costs—than the last Government did in 14 years in power.
Ed Miliband
The hon. Gentleman is shouting about bills. Let me tell him that the average bill in 2025 was lower in real terms than in 2024, and so was the price cap, as he will know from the figures. I am incredibly proud that this Government, unlike the last Government, are taking £150 of costs off bills thanks to the Chancellor’s decision, funded by taxes on the wealthy—and the Conservatives oppose all those tax measures.
The hon. Gentleman talked about renters. I think that, basically, what I heard—and perhaps it should not surprise me—was that he is actually against the higher standards for renters. He would leave private renters languishing in cold, damp homes, which is what the Conservatives did during their 14 years in power. We are proud of the decision that we are making. Thanks to the brilliant work of the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), we actually have a supportive quote from the landlords. Even the landlords want more action than the Conservative party when it comes to the renters! To amuse the House briefly, I will read out that quote. Ben Beadle, chief executive of the National Residential Landlords Association, said:
“a clear roadmap for the reform of PRS MEES is welcome.”
Even the landlords are more on the side of renters than the Conservative party.
The hon. Gentleman asked why we were setting up the warm homes agency. I will tell him why. He said, “Wouldn’t it be better to do this within Government?” The Conservatives presided over a scandalous and shocking disaster in the ECO scheme, a mess that we are having to clear up. We are going to reform the system so that we have a proper agency with proper technical expertise to ensure that nothing like what they visited on thousands of families across the country ever happens again.
I like the hon. Gentleman, and I feel a bit of sympathy for him because he has nothing to say about this issue. Let us just be honest about this: the Conservatives failed over 14 years, and we are delivering.
Madam Deputy Speaker (Ms Nusrat Ghani)
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
I congratulate the Secretary of State—very warmly—on the warm homes plan, and not least on the universal nature of the offer: the support for people in fuel poverty, the health co-benefits in addressing cold, damp and mould, and the availability of cheap finance so that everybody can take part in the technical solutions that are available.
The ECO scheme, which failed so badly, has left a legacy. May I encourage the Secretary of State to address the concerns among consumers, industry representatives and the workforce, and also not to lose sight of the benefits in reduced bills through insulation, particularly loft insulation? On the subject of cheaper bills, the Select Committee has heard again and again that if people are to benefit to the maximum extent from the warm homes plan, we have to see reductions in the price of electricity, and a reduction in the gap between the price of electricity and the price of gas. The Secretary of State mentioned some welcome measures in his statement—the £150 off bills in April being a very good start—but can he confirm that more action will be taken to bring down the cost of electricity, so that as many people as possible can benefit from the warm homes plan to the maximum extent?
Ed Miliband
Let me address my hon. Friend’s questions; he speaks with great knowledge on these issues. On the ECO scheme, I think he refers to the installers, and it is important to emphasise the point I made in my statement: we want the extra money—the £1.5 billion allocated at the Budget—to help the installers, because they are going to face a difficult transition. He raises an important issue.
As I said in reply to the shadow Minister, the measures that my right hon. Friend the Chancellor took in the Budget are important in cutting the cost of electricity. All the evidence I have seen says that, with the right tariff, running a heat pump is cheaper than running a boiler. We continue to look at whether there are other ways we can bring down the cost of electricity, and my hon. Friend is right that we should do so.
On my hon. Friend’s point about insulation, my maxim is that the measures that will cut bills the most are what matters to me. I am not ideological about this. Whether it is insulation, heat pumps, batteries or solar, we should go for whatever can give us most bang for our buck in bringing down bills.
Madam Deputy Speaker
I call the Liberal Democrat spokesperson, who has two and a half minutes.
Madam Deputy Speaker
I welcome the hon. Lady’s thanks, but it is not down to me; it is down to the Secretary of State. We must stop using the word “you”.
Ed Miliband
I am always glad to deliver the Liberal Democrats a late Christmas present. I agree with some of the hon. Lady’s points, particularly on our dependence on fossil fuels and on why clean energy is the way to give us energy security and sovereignty in a dangerous world. I want to reassure her on insulation. As I said to my hon. Friend the Member for Sefton Central (Bill Esterson), we continue to see a really important role for insulation, but I hope that she and other Members of the House will agree that what matters when we invest public money is what will do most to tackle the affordability crisis, and that is our test. Insulation is absolutely a key part of that.
On the ECO supply chain, I will expand a little on what I said earlier to my hon. Friend. We recognise, and I know from my own personal conversations, the issues facing organisations in the supply chain. That is why we are going to make sure that the £1.5 billion, which is on top of the £13 billion or so that was previously allocated to the warm homes plan, is spent through the ECO installers to help them make the transition to the new system. My hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey) is getting to work straight away on a group representing the installers and local authorities, which are obviously going to be responsible for the procurement and the spending, because we want to do everything we can to help the supply chain.
Lizzi Collinge (Morecambe and Lunesdale) (Lab)
I am really pleased to see this warm homes plan, as a warm home for everyone was one of my key election pledges. In my constituency of Morecambe and Lunesdale, Green Rose CIC has been helping people for years with energy efficiency and making their homes warmer. Can the Secretary of State tell me how local experts such as Green Rose CIC will be used to deliver this change for our constituents?
Ed Miliband
My hon. Friend asks a really important question, and I congratulate Green Rose CIC on its work. We see organisations like that as central to this plan, and we are working with local authorities to give local people advice. I do not know whether this applies to Green Rose CIC, but we are also working on our local power plan, which will come out soon. It will provide opportunities for local community energy schemes, because community ownership is a big part of it. I see organisations like that, which really reflect the enthusiasm on the ground, as crucial to this plan.
Harriet Cross (Gordon and Buchan) (Con)
My hon. Friend the shadow Minister asked whether or not Chinese supply chains—slave labour supply chains—will be allowed in the procurement of any part of the solar panels involved in this scheme, but the Secretary of State did not manage to answer. Can he please confirm that not a single aspect of this project will come off the back of slave labour supply chains?
Ed Miliband
I have to say to the hon. Lady that we inherited from the Conservatives—
Ed Miliband
I will get to the question. We inherited the system from them, and we have raised the standards in the solar road map through the solar stewardship initiative with the solar industry, we have raised the standards through GB Energy, and my hon. Friend the Minister for Energy is working with colleagues across Government to ensure that slave labour is not used in the supply chain.
Ms Polly Billington (East Thanet) (Lab)
May I congratulate my right hon. Friend on this warm homes plan? It has been a long time coming—perhaps a little longer than Conservative Members are prepared to admit, given that he and I worked on something very similar before the Tories abandoned the warm homes ambitions that we now see fulfilled. Under the current calculation, one in six households in my constituency lives in fuel poverty, predominantly in places such as Cliftonville and Ramsgate town centre, where incomes are low and buildings are old. Incidentally, such households are predominantly in the private rented sector. Will my right hon. Friend consider revising the fuel poverty calculation to truly reflect how many people struggle to keep their homes warm in winter and cool in summer? As 28% of my residents live in private rented accommodation, will he say a bit more about the information that might be available to support landlords to make this shift? Will he confirm that he will support an energy social tariff to support the transition to a cheaper and cleaner form of energy?
Ed Miliband
My hon. Friend is right. Working with the private rented sector to raise the standards is incredibly important and, frankly, we cannot let this scandalous situation, which affects so many private tenants, carry on. She makes another important point: upgrading the nation’s housing stock is a big journey. We have been left a long and bad legacy, and we are determined to make a difference.
Mr Alistair Carmichael (Orkney and Shetland) (LD)
Orkney and Shetland are home to some of the worst levels of fuel poverty in the United Kingdom, as well as some of the largest onshore wind farms in the country. Solar panels are of limited usefulness to us, because it is coldest in the winter and we might have as little as five hours of daylight in the depths of winter. What would make a difference to us is meaningful support for community benefit from or even for community ownership of some of the installed wind farms that we have in the isles, or an isles tariff for communities such as ours and the Western Isles. When will we hear something from the Secretary of State on those ideas?
Ed Miliband
I thank the right hon. Member for his really important question. We will shortly publish our local power plan, which is precisely about the community ownership he mentions. We see that as having a central role. It plays much more of a role in countries such as Germany and Denmark than it does here. We want to expand it, and we want his constituents to benefit.
Tom Hayes (Bournemouth East) (Lab)
It was interesting to hear the Liberal Democrats really struggle to say that they admire this policy, given that they seem to be getting everything they want from it, and it is disappointing to see the deserted Conservative Benches for this statement. [Interruption.] Oh, I offer my apologies to the shadow Minister, who is not with allies.
It is disappointing to hear the Conservatives move from being climate change converts to sustainability sceptics yet again. They left our country vulnerable to the energy price spikes that meant the last Government had to spend at least £78 billion to deal with the cost of living crisis, whereas this Government are investing big. We announced Europe’s biggest ever wind auction last week. Now we are seeing clean power from day one—new builds, new power. Does the Secretary of State agree that a major motive for this plan is to cut hundreds of pounds off bills in Bournemouth East by going solar as standard, and that a rooftop revolution will not only bring down bills, but keep bills down in the long term?
Ed Miliband
I thank my hon. Friend for his question. I guess the shadow Minister will be wondering where his hon. Friends have gone, and whether they are going to another political party. Let me say to my hon. Friend that this is absolutely about his constituents and absolutely about cutting bills. We have a long-term affordability crisis, and this is a long-term plan to help tackle it.
Graham Leadbitter (Moray West, Nairn and Strathspey) (SNP)
I welcome the additional investment in energy efficiency measures, which is a good thing. I certainly welcome the simplification of the energy efficiency systems that people can bid into, which can only be a good thing for consumers because that has been a veritable maze. However, the biggest barrier for many of my constituents and people across Scotland is price. They cannot invest in their home if they cannot get a decent price for their energy and deal with the cost of living that is affecting them right now, with the bills they are getting on their doorstep right now. The north of Scotland has the highest energy prices in the UK, and the SNP has put forward proposals for a social tariff. Will the Secretary of State seriously consider those measures, and put in place a social tariff to enable people to take advantage of such schemes?
Ed Miliband
I thank the hon. Gentleman for his question. It is because we recognise the immediacy of the affordability crisis that we took the action we did in the Budget to take £150 of costs off bills. It is because we recognise the affordability crisis that we significantly increased the numbers eligible for the warm home discount, for which I think hundreds of thousands more people in Scotland are now eligible. I would point out that the Scottish Government have some responsibility here, having cut some of their own schemes, but we want to work with the Scottish Government and do all we can to help his constituents.
Mr Toby Perkins (Chesterfield) (Lab)
My right hon. Friend has once again pulled quite a rabbit out of the Chancellor’s hat, so I congratulate him on that. He is clearly her favourite Secretary of State.
Does my right hon. Friend agree that we know what happens when we do not rely on renewables? The previous Government had to pay £44 billion to subsidise bills, at the same time that our constituents were struggling to pay them. I agree with the Chair of the Energy Security and Net Zero Committee, my hon. Friend the Member for Sefton Central (Bill Esterson), that we still need to be driving down electricity costs. What does the Secretary of State think are the key things we can do to address the skills shortages in the heat pump installation sector, and how many heat pumps should we expect to be installed by 2030?
Ed Miliband
The target we are setting in this plan for 2030 is 450,000. Our skills taskforce is designed to do what my hon. Friend set out, which is to meet the skills needs—the very significant skills needs—we are going to have.
On the first part of my hon. Friend’s question, I do think that the Chancellor deserves real credit for this plan, because she has recognised the importance of long-term public investment, which the last Government singularly did not. The easy thing in difficult times is to cut public investment, but she did not do that. She has increased it, and she is investing very significantly in this area.
Luke Taylor (Sutton and Cheam) (LD)
I warmly welcome this plan and the ambition that the Government are showing, and I will try to dispel some of the official Opposition’s misconceptions. I am sure we have all been out knocking on doors in our constituency. When I was doing so in Worcester Park last week, a lady came to the door in a big jacket, and I moved to let her pass, because I thought she was on her way out. However, she was not going out; she was in her home in a jacket because she did not have the heating on. I am sure we have all experienced that.
We know how the cost of living crisis is hitting our residents, whether through their grocery bills, their rent or their energy costs. Can the Secretary of State give a bit more detail on how we will address energy costs and insulation issues in the short term? Are there programmes in the plan that can fund easy wins, so that we get fewer energy leaks from existing gas boilers, while the industry spools up by getting those with the right skills to install heat pumps, and while we are getting production lines ready?
Ed Miliband
What the hon. Gentleman said at the beginning of his question will resonate with every Member of this House, because so many people are facing a chronic and acute cost of living crisis. This has been going on for a very long time, which is what makes it really hard for people.
The hon. Gentleman asked what difference we can make in the short term. That is why the £150 is important: because it is immediate relief. It is also why the warm home discount and its expansion is important. I encourage people watching this—and I ask Members to encourage their constituents—to go to the gov.uk website to see what schemes are available. People can also get that information from their local authority. There is money available, and we want to get as much help to people as possible, as quickly as possible. This money is sometimes underspent by local authorities, but we want them to get this money out to help people.
Peter Swallow (Bracknell) (Lab)
I wonder where the Tory MPs are. They cannot all be having cosy chats with Robert Jenrick—
Peter Swallow
Of course, Madam Deputy Speaker. I do apologise.
I welcome the warm homes plan for the support that it will give, not only to the constituents most in need in Bracknell Forest, but to everyone who is making important upgrades to their home, including through low and no-interest loans for solar panel upgrades. What thought has my right hon. Friend given to supporting leaseholders in making these changes, and to ensuring that they are not held back by freeholders turning down common-sense requests?
Ed Miliband
We absolutely see leaseholders as being eligible for this help, and it is very important that they are. My hon. Friend, with his constituency experience, speaks compellingly about this issue. We want as many people as possible to be helped as quickly as possible through this plan.
Sammy Wilson (East Antrim) (DUP)
Despite the fact that the plan will not apply to Northern Ireland, I welcome the aspect that applies to rented accommodation. Could the Secretary of State confirm whether there will be a Barnett consequential for Northern Ireland? Does he recognise that, even with this plan, there will still be an up-front cost, so low-income families will have to borrow, which will be an impediment? Does he also recognise that despite what he has done on electricity prices, running costs will still be higher, because that is offset by the cost of his net zero policies, which cause electricity to be dearer than gas?
Ed Miliband
I thought that for the first time in 20 years, we were going to agree completely, and we nearly got there. However, three-quarters agreement is better than we have done in 20 years. On the first part of what the right hon. Member said, Barnett consequentials have already been allocated for this. It is obviously for the Executive in Northern Ireland to make their own decisions about how they spend the money. We want the warm homes agency to work with the devolved Governments as well. We also want to look at how a zero or low-interest loan scheme could work across the United Kingdom. We want to work as much as possible with the devolved Governments to help people across the UK.
Callum Anderson (Buckingham and Bletchley) (Lab)
I thank the Secretary of State for his statement. I particularly welcome the new requirements placed on private landlords, which will be a huge boost to tenants in the Buckingham and Bletchley constituency. My question concerns rural communities, which often face high energy costs and other practical barriers, such as the limited availability of those who install things like heat pumps. Can he set out in a bit more detail how his Department will work with relevant local authorities and suppliers to ensure that rural communities, such as those in north Buckinghamshire, are not left behind?
Ed Miliband
My hon. Friend asks a really important question, and I want to tell him a nerdy fact. I like nerdy facts; it is in character. Nearly half the people on the boiler upgrade scheme are in rural areas, and I think am I right in saying that a third are off the gas grid. That tells you something about the appetite, particularly in rural communities and among those who are off the gas grid, to find alternatives. Hopefully, the continuation and expansion of such schemes will help my hon. Friend’s constituents.
Dr Ellie Chowns (North Herefordshire) (Green)
I warmly welcome the publication of the long-awaited warm homes plan. The Green party has tirelessly campaigned for many of the things in it: a more consistent, clearer, straightforward, nationwide system for people to access support; better inspection and accountability of installers; and of course solar panels on roofs as default. However, I have two questions for the Secretary of State. First, this is supposed to be a warm homes plan, but there is a lot of focus on energy supply improvements, and less than I would expect on energy demand management and insulation, which is crucial to reducing bills. Why is that? Secondly, the scale of this plan is still nowhere close to matching the scale of the need. According to the Government’s statistics, there are 2.7 million households in fuel poverty; it is 6 million households, according to other statistics. This plan aims to address only 1 million of those households, and it represents a 25% cut to the amount previously promised for this work. Why is that, and what will the Government do to reach the millions of additional households that will not be covered?
Ed Miliband
I half thank the hon. Lady for her questions. On the second question, by anyone’s reckoning, this is a very substantial investment. It is multiple times more than was invested in the last Parliament, and there needs to be recognition of that. I recognise that there is further to go. This will help 5 million homes; there are a lot more homes that we want to help, but this is, by any measure, making a difference. On her first point, I reassure the hon. Lady that we absolutely see the value of making fabric and insulation part of this agenda, but the focus has to be on what works to cut bills. That is what our constituents want us to focus on.
Rachel Hopkins (Luton South and South Bedfordshire) (Lab)
I, too, warmly welcome the warm homes plan, which will benefit families in Luton South and South Bedfordshire, and especially the measures targeted at helping low-income families out of fuel poverty. Does the Secretary of State agree that, after a decade of failure from the Conservative party, the Labour Government recognise the cost of living crisis, and are taking definitive action, through this record public investment in home upgrades, to help reduce bills for good?
Ed Miliband
My hon. Friend puts it very well. We are turning the page on a decade of failure. It is really important that the public know that we get the scale of the crisis that they are facing—the long-term crisis that this Government were determined to deal with when we came into office. We are not over-claiming for this plan, but it will make a difference. We are about making a difference to the costs that people face, so that we can help tackle the cost of living crisis.
Helen Morgan (North Shropshire) (LD)
As the Secretary of State has pointed out, in rural areas, we tend to have older housing stock and lots of people off-grid. They are very keen to see upgrades made to their home, and we welcome this announcement. In my constituency, a number of people engaged with the energy company obligation 4 scheme. Unfortunately, they have been let down badly by rogue installers, who have left their bills higher and their homes damaged, and who have taken money from the taxpayer. What is the Secretary of State doing to ensure that does not happen this time, and what remedy might be available for those who have been let down by rogue actors in ECO4?
Ed Miliband
Any cases should be brought to the attention of the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey). I feel a deep sense of sympathy for the people who have been badly affected by ECO4 and its problems. It was brought to our attention when we came into office, and we are determined to have remediation for all the people affected. The fundamental principle must be that those who, through no fault of their own, were badly let down by the system deserve to have that made good.
On the hon. Lady’s point about how we stop the same thing happening in the future, I would say a couple of things. First, our experience is that local authority schemes had many fewer problems and much higher standards of safeguards. Secondly, the point of the warm homes agency is to have a proper system of regulation that Government oversee. That is the fundamental principle here. We had a piecemeal, privatised, fragmented system, and that is partly what led to the problems. We cannot allow that to continue.
Matt Rodda (Reading Central) (Lab)
I wholeheartedly welcome this announcement from the Secretary of State, and his work over many years in this important policy area. This is an enormous issue in my constituency, where there are many older houses, and many people struggling to pay their bills, so I wholeheartedly welcome the plan. Might he say a little bit about the important work that many local authorities are doing? In my area, Labour-run Reading borough council has invested heavily in new council houses, and it will shortly open 300 new council houses, built to a very high standard. Those houses will ensure that people live in warm homes and have secure family finances and lower heating bills.
Ed Miliband
My hon. Friend makes a really important point. I was with all the mayors on Monday, talking to them about their role in the warm homes plan. Local authorities and regional mayors have the best sense about what their area needs, and they are the people to help co-ordinate this and make it happen. Lots of people have rightly said that we need to do more—that this is good, but could we go further? This will be a 15 or 20-year project for the country. That is the way to think about it. This is a national mission to transform our housing stock. It is long overdue. We are making a really important start, and there is further to go.
Liz Saville Roberts (Dwyfor Meirionnydd) (PC)
There is much to welcome in the warm homes plan. Wales has the oldest housing stock in Europe, with around a third of houses built before 1919. Because of that, Wales is rightly a net beneficiary of ECO schemes; it accounts for 6% of all ECO measures and 12% of ECO4. The Secretary of State will recognise that that is higher than the Barnett consequential funding, based on population share. Can he explain how the warm homes funding for Wales will be sufficient to meet the extreme challenges facing Welsh homeowners?
Ed Miliband
This scheme is really important for Wales. It will have a great impact, even if we take just the boiler upgrade scheme. We are determined to work with the Welsh Government to make sure that the scheme makes a difference for people in Wales. That is the work that my hon. Friend the Under-Secretary is doing.
James Naish (Rushcliffe) (Lab)
I welcome this £15 billion investment, which will tackle energy security issues and make sure that family finances are protected from fossil fuel price spikes. In my constituency, there is a fantastic organisation, co-founded by a lady named Jane, called Women in Retrofit, which focuses on getting more women and girls into the retrofit industry. We simply will not be able to meet our targets without using that part of the workforce. What has the Secretary of State considered, when it comes to getting more women and girls into this work?
Ed Miliband
I congratulate Jane and Women in Retrofit. They sound like ideal people for the taskforce led by my hon. Friend the Under-Secretary to talk to. My hon. Friend the Member for Rushcliffe (James Naish) makes such a powerful point about the diversity of opportunities here, and we want as many people as possible to take advantage of them.
Edward Morello (West Dorset) (LD)
As co-chair of the net zero all-party parliamentary group, I welcome the expansion of the funding for solar and heat pumps. Prior to coming to this place, I spent the better part of a decade riding the solarcoaster, so I know for a fact that the biggest drag on solar expansion is the skills shortage. Would the Secretary of State fill us in on what the Government and other Departments plan to do to ensure that the skills are there for installations to go ahead?
Ed Miliband
The hon. Gentleman makes a really important point. The solar road map set out some of the work that we are doing, but the whole point of the taskforce—this is a much more intentional way of thinking about the workforce challenges than the previous Government’s way—is to make sure that we have the workforce in place. There were more than 200,000 installations last year; that shows the demand for rooftop solar. Some of the eco organisations that are struggling with the transition could be part of this. We want to make sure that happens.
Kevin McKenna (Sittingbourne and Sheppey) (Lab)
I am really pleased to see this plan. It is such a welcome change from the lukewarm gusts of air that came from the Opposition when they were in government. It is practical, pragmatic and deliverable. Lots of people in my constituency will welcome how fair it is, particularly for people on lower incomes, but also for those on middle incomes, houseowners and renters—everyone. The worry for people in my constituency is that we have a local authority in Kent county council that is committed to climate denialism. It is obsessed with it. How can people in my constituency get the advantages for their houses, jobs and employment, including the tradespeople who really want to be part of this?
Ed Miliband
My hon. Friend makes a really important point. I would say to the council that he talks about, “Leave your dogma at the door and help local people. Work with us to help local people.”
Iqbal Mohamed (Dewsbury and Batley) (Ind)
The Labour-run Kirklees council failed to apply for the first round of Government warm homes local grants last year. In a cost of living crisis, that is an unforgiveable abdication of duty and a total failure by Labour councillors, resulting in a loss of between £1.5 million and £7 million that was secured by neighbouring authorities. I welcome the Government’s warm homes plan, but will the Secretary of State confirm that the cost of the plan will not be added to monthly household bills? Under the previous Government, my constituents were left with incomplete, dangerous and ineffective installations that they had to pay thousands to remove. Will he ensure that they will not be faced with the same issue?
Ed Miliband
First, that sounds like negative propaganda against Kirklees council, which I am sceptical about. Secondly, on the wider issue, the whole point of the plan is that we are doing it through public investment. That is the decision the Chancellor took and I think it is the right decision.
Gareth Snell (Stoke-on-Trent Central) (Lab/Co-op)
I really welcome today’s announcement. Stoke-on-Trent is routinely ranked at No. 1 in the country for fuel poverty. We have old, terraced housing, often with single glazing and small yards, so space for heat pumps and so on is a concern, but I am sure we will work that out. We are very fortunate that Fiona Miller and the Beat the Cold team, who recently met the Minister for energy consumers, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), do a lot of work on the ground. The Secretary of State says that the plan will be run through local authorities. How can good partnerships in localities already doing the work be involved in the programme?
My right hon. Friend also says that he is aware of the challenges that suppliers of the ECO scheme face, having lost contracts. In my constituency, that is lots of jobs that have now been lost. How soon will the information be available to them, so they can start workforce planning for the delivery of the programme and get people back into work delivering the upgrades we need?
Ed Miliband
On my hon. Friend’s first point, we want to use local partnerships that are already in place. On ECO installers, that is the work that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West will be cracking on with. We did not want just to say that we will allocate the money and that it needs to go through the ECO installers. We want to make sure that happens and we will work urgently on that.
Several hon. Members rose—
Shockat Adam (Leicester South) (Ind)
I thank the Secretary of State for his statement and welcome much of it, including the fact that it recognises the challenge facing suppliers and that it will support 80,000 jobs. Will the Government commit to working with small local businesses to deliver the scheme, which will help the local economy, or will it just be for the big boys?
Ed Miliband
Small and medium-sized enterprises will be crucial to the scheme.
Luke Murphy (Basingstoke) (Lab)
The cost of living is the No. 1 issue for my constituents, so I welcome this record investment in warmer homes and lower bills. Measures such as zero-interest and low-interest loans for solar batteries and heat pumps, greater protections for renters, and solar on new homes will all make a huge amount of difference. When will my constituents be able to begin applying for those low and zero-interest loans? For many, there is no time to wait.
Ed Miliband
My hon. Friend raises an important point. We will be working urgently with the banks and others—indeed, I think a roundtable is being convened next week—to work out how quickly we can get on with this process. We want to do this as soon as possible. It will take time, and if there is one lesson from the past it is that we need to get this right. We do not want a green deal and all of that malarkey happening. We want to get it right, but we want to do it as quickly as we can.
Vikki Slade (Mid Dorset and North Poole) (LD)
I particularly welcome the investment in low-cost loans for solar panels, which will really boost jobs. However, the grid is not currently resilient enough to cope when our electric vehicle cars are providing microgeneration and, as the rays become more efficient, hit the target for distribution network operator approval. What assurances will the warm homes plan provide on investment in the grid and the capacity of DNOs, so that the revolution is successful and not a failed bright idea?
Ed Miliband
We are making big investment in the transmission infrastructure and I urge all hon. Members locally to support, not oppose, that. We are also doing a big reordering of the grid queue, which is crucial because we then get the projects in the places where we need them.
Harpreet Uppal (Huddersfield) (Lab)
I welcome this significant investment. My constituents were badly let down by the previous faulty cavity wall insulation scheme. They were then chased for adverse legal costs. Ensuring confidence in future schemes will be really important. How are we supporting the really good suppliers under the ECO scheme and how quickly will the transition be in place to support them?
Ed Miliband
My hon. Friend makes a really important point about the fragility of consumer confidence. We have to support it. The point of the oversight group that the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West will chair is to make sure that we do as much as we can to support good ECO suppliers.
Carla Denyer (Bristol Central) (Green)
I warmly welcome the new minimum energy efficiency standards for privately rented homes in the long-awaited warm homes plan, but will the Secretary of State lay out how he will ensure that landlords do not simply pass on to renters the costs of meeting those standards? Will he perhaps ask his colleague the Housing Secretary to introduce rent controls to ensure that renters can actually afford to rent these new warm homes?
Ed Miliband
I am not going to do that, but what I will say to the hon. Lady is that lots of landlords already meet the standards. Secondly, we want to provide some help for landlords to make that happen. This is an important point. Some of the schemes we have been talking about will be available to landlords. Through a combination of some landlords already meeting the standards and that help, we are confident that costs will be reduced and it will not lead to higher rents.
Mr Clive Betts (Sheffield South East) (Lab)
I am sure the Secretary of State will agree that it is not just about having the right policy, which I am sure this is; it is also about the right implementation. My constituents Mr and Mrs Henley-Smith had a heat pump installed under a previous Government scheme. The heat pump was so badly installed by Greener Living that the installer had to offer a back-up gas boiler to get their home hot enough. Greener Living went bust. Will the Secretary of State give an assurance that under his schemes any installations will be by competent companies, and that if the installation goes wrong the Government will stand behind people and ensure rectification work is done to a proper standard?
Ed Miliband
Absolutely, yes. I am so sorry to hear about the experience of my hon. Friend’s constituents. We must ensure that we do not let that kind of thing happen.
Manuela Perteghella (Stratford-on-Avon) (LD)
In my constituency, there are hundreds of residential park homes occupied by elderly residents. They are very energy-inefficient homes and very complex to retrofit. Previous home upgrade grants were ineffective and bureaucratic, because of the batching application process to retrofit homes, so they did not reach many park homes. Will the Secretary of State ensure that the warm homes plan will effectively deliver for park home residents?
Ed Miliband
As an MP with park homes in my constituency, I am very sympathetic to the issues facing people who live in park homes. To give the hon. Lady a proper answer, I will take that away and pass it on to the Under-Secretary of State for Energy Security and Net Zero, my hon. Friend the Member for Inverclyde and Renfrewshire West.
Abtisam Mohamed (Sheffield Central) (Lab)
I, too, warmly welcome the plan and the investment that is coming with it, and I strongly commend the leadership of the Secretary of State in this area. It is great news that small businesses are the vehicle that will drive home the upgrades in our local communities, but they too have struggled. I have over 5,000 small businesses in Sheffield Central. Will he outline how those small businesses will benefit from this plan?
Ed Miliband
My hon. Friend is right. Small businesses are eligible for the boiler upgrade scheme and there is a substantial investment in that. We want them to benefit from the solar loans, too. We also want to help them through local authority procurement. She is right that this is a massive job creation opportunity, but we need the SME sector to get its fair share.
Amanda Martin (Portsmouth North) (Lab)
I, too, congratulate my right hon. Friend on a deliverable warm homes plan. On Friday, I am hosting a utility cost of living event with energy and water suppliers and banks, because Portsmouth North residents were let down dramatically by the previous Government. Does the Secretary of State agree that home upgrades are one of the most effective ways to bring down energy bills, particularly for families? In Portsmouth North, we have 5,000 households officially living in fuel poverty, and more struggling with energy costs because prefabs and Victorian and other older buildings are less efficient to heat.
Ed Miliband
I congratulate my hon. Friend on convening people locally on the crucial issue of the cost of living crisis. I am sure that that will be a really effective and important event. She is absolutely right that home upgrades for her constituents in Portsmouth North and elsewhere are absolutely the long-term answer to the cost of living crisis.
Ayoub Khan (Birmingham Perry Barr) (Ind)
I welcome the Secretary of State’s statement. I especially welcome the fact that the plan will now ensure a degree of localisation and devolution when it comes to decision making, and hopefully it will get rid of the problems we saw with the previous Government’s scheme. Thousands of residents in my constituency have fallen victim to substandard work. The Secretary of State mentioned that there will be remediation. Will that remediation allow them to apply for the new scheme?
Ed Miliband
I think that remediation of the previous works should happen whatever, and residents should not be required to apply. There should be a process with TrustMark, which I think is the overseer in the case that the hon. Member is talking about. This is an issue that my Department is very focused on. It would have been much better if the mess had not been created in the first place, but we are determined to clean it up. If he knows of areas where it has not been cleaned up, he should draw them to the attention of my hon. Friend the Minister for energy consumers.
Mr Jonathan Brash (Hartlepool) (Lab)
Some 15% of my constituents live in fuel poverty, and many more go without in order to pay the outrageous energy bills they face. Many vulnerable people, children and elderly people are living in properties that are too cold and too damp. That is not acceptable to me, and I know that it is not acceptable to the Secretary of State. How will we ensure that the welcome measures in this plan reach the most vulnerable people in communities in Hartlepool and beyond?
Ed Miliband
My hon. Friend speaks eloquently, and I am sure that what he said will resonate with Members across the House when they think of constituents who are poor and vulnerable and face a choice between heating and eating. The key priority is to get the money out to local and combined authorities. They are the best people to deliver the plan. Looking back over previous years, it is the experience of those authorities that means they are the best way to get help to people most urgently.
Jim Shannon (Strangford) (DUP)
I thank the Secretary of State for his statement. It really is good news, and we all welcome the warm homes plan and help for families. However, I have some concerns. I know that the Barnett consequential for the devolved nations has been confirmed, and that is good news, but the Executive will be the administrative body for the plan in Northern Ireland. Can the Secretary of State outline how they will ensure access to and deliver the scheme, and—I ask this gently—how will the so-called squeezed middle-income families obtain help for insulation? Those squeezed middle-income families are highly taxed due to fiscal drag and struggle to heat their homes and pay their mortgage.
Ed Miliband
I thank the hon. Gentleman for his important question. The Minister for energy consumers met the Minister for Communities yesterday to talk about how we can work together—for example on the Warm Homes Agency, which is UK-wide, and hopefully on the solar loans as well. We want to do everything we can to work with the Northern Ireland Executive to help serve the people of Northern Ireland.
Jonathan Davies (Mid Derbyshire) (Lab)
I very much welcome the publication of this £15 billion warm homes plan, which will get people’s bills down and reduce our impact on the environment. I was particularly interested to hear of the £90 million that has been set aside for the development of heat pumps, because Vaillant—one of the world’s leading manufacturers of heat pumps—is based in Belper in my constituency. What steps is the Secretary of State taking to ensure that the £90 million will be spent well? Will he engage with Vaillant to make sure that we can draw on its experience, and can we use that money to create more good jobs in this very important sector in Derbyshire?
Ed Miliband
We love Vaillant and what it does. The Minister for climate, my hon. Friend the Member for Leeds North West (Katie White), loves it so much that she is going to visit tomorrow. It is part of the £90 million heat pump investment accelerator programme. This plan is about working with companies such as Vaillant so that we can get domestic manufacturing in this country, which I am sure is what Members across the House would like to see.
Chris Vince (Harlow) (Lab/Co-op)
I warmly welcome the statement from the Secretary of State. I had a visit from Citizens Advice Harlow yesterday, and it told me what we probably already know: the No. 1 issue facing residents in Harlow is damp, mould and fuel poverty. The homes in Harlow were not built in 1919, because Harlow did not exist in 1919, but new towns have a unique problem in that they were all built at the same time, sometimes quickly after the war, so they are suffering from these problems at the same time. Will the Secretary of State take the new towns challenge into consideration, and can he detail how this plan will make a huge difference for residents in my constituency?
Ed Miliband
My hon. Friend speaks about a really important issue, which I am aware of from my experiences of visiting such areas. The Minister for Energy Consumers, my hon. Friend the Member for Inverclyde and Renfrewshire West (Martin McCluskey), has heard his statement, and we do need to think about this, because there are areas such as Harlow and elsewhere that have particular challenges.
Rachael Maskell (York Central) (Lab/Co-op)
There are 44,000 homes in York that are energy-insecure, so we really welcome today’s announcement. However, scaling the skills is really important. How is the Secretary of State working with the Education Secretary to ensure that further education has the resources it needs to scale the workforce for the future?
Ed Miliband
My hon. Friend speaks with typical eloquence on this issue, which came up at the mayors meeting on Monday, when we discussed how we will ensure that the FE sector in particular is geared up to train people for these opportunities. We will work on this with Skills England and mayors, and Ministers will be taking it forward.
Baggy Shanker (Derby South) (Lab/Co-op)
The Secretary of State will recall a visit to Derby where he officially opened Vaillant’s heat source cylinder facility. Will he outline what today’s announcement will mean for such facilities and how it will create more clean energy jobs in Derby and across the UK?
Ed Miliband
I very much enjoyed the visit to Vaillant and was incredibly impressed by what it is doing. Programmes such as the heat pump investment accelerator are designed to help companies such as Vaillant capitalise on this growing market.
Mrs Sureena Brackenridge (Wolverhampton North East) (Lab)
I, too, welcome the warm homes plan, which will lower constituents’ heating bills and provide for the biggest home upgrade in British history. How will the Secretary of State ensure that clean energy is the right choice not only for clean emissions but for cutting bills, while avoiding past Conservative failures on insulation that left tens of thousands of homes with severe damp, mould and structural damage?
Ed Miliband
My hon. Friend speaks with very good sense on this issue. This plan is a huge opportunity for people. We are seeing record demand, and the question for this House and for all of us is whether we want that to be just for the wealthiest or for everyone. The point of the public investment is to bring opportunities within the reach of ordinary families. That is what is at the heart of this plan.
Amanda Hack (North West Leicestershire) (Lab)
I thank the Secretary of State for his statement and his commitment to improve energy efficiency in people’s homes and reduce bills for constituents like mine. As the chair of the future homes, skills and innovations all-party parliamentary group, I would welcome more details on the taskforce identified in the plan, to ensure that we have the skills and innovation to meet the ambition, so that my constituents can benefit from warmer homes as well as the good jobs that the sector can provide.
Ed Miliband
My hon. Friend puts it very well. I am sure that the Minister for Energy Consumers will be happy to talk to her about how we can make sure that the taskforce does what she thinks is necessary to get the workforce we need.
Anna Dixon (Shipley) (Lab)
I would like to thank the Secretary of State on behalf of the over 5,000 households in my constituency that experience fuel poverty. Constituents have also benefited from Saltaire Retrofit Reimagined, a community initiative focused on improving energy efficiency within the Saltaire world heritage site. Will the Secretary of State assure residents of listed properties, such as those in Saltaire, that they too can benefit from the upgrades?
Ed Miliband
Absolutely, and I pay tribute to my hon. Friend for her work on this issue. We want the benefits to be spread as widely as possible. The Minister for Energy Consumers tells me that he will shortly visit that project with my hon. Friend.
As this is the final question, Madam Deputy Speaker, I would like to say one final thing. I want to thank the civil service team that have worked on this plan. They have worked on it tirelessly over many months, so I really want to put on record my thanks and the thanks of other Members. We look forward to engaging with Members across the House on implementing the plan.