The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Martin McCluskey)
Thank you, Madam Deputy Speaker. I take my responsibilities under the ministerial code very seriously and will make sure that that message is communicated.
With permission, I wish to make a statement on the action we are taking to protect British people from the soaring costs of heating oil due to events in the middle east. It is now more than two weeks since the conflict in the middle east began. My thoughts and the thoughts of the whole House will be with the millions of people affected, including the British citizens in the region and the troops serving there, but just as we saw four years ago when Putin invaded Ukraine, the impact of this conflict is being felt far beyond the battlefield. With Iran continuing to target energy infrastructure and shutting off the strait of Hormuz, the price of crude oil on the international market has rocketed, and I know that the 1.5 million UK households that use heating oil to heat their homes will be understandably concerned. Indeed, some customers have already reported prices doubling or being unable to secure a delivery at all. Let me be clear that this Government will not stand by and let British families suffer. Let me set out the direct action that we are taking today.
First, we will always stand up for the most vulnerable in our society, and I can confirm to Parliament that we are committing over £50 million to help low-income families who use heating oil. We are allocating this funding where the greatest need is, based on census data, and it will go directly to the devolved Governments with the expectation that it will be used to support vulnerable households. We know that this is a particular issue in Northern Ireland, where almost two thirds of homes rely on heating oil, and we have allocated £17 million to support them. We will continue to work closely with the Northern Ireland Executive on all our plans that I will outline in this statement, given the particular circumstances that exist there and the reliance on heating oil.
In England, funding will be distributed by local authorities via the crisis and resilience fund, which comes into effect from 1 April, and £3.8 million will be passed to the Welsh Government and £4.6 million to the Scottish Government to deliver to affected households through existing programmes. I am today calling for the Scottish Government to ensure that this money is passed to Scottish families as quickly as possible.
Secondly, as well as providing direct support for consumers, we are working with the sector to ensure that pricing is always fair, transparent and justified. This Government will not tolerate profiteering or unfair practices, so we are in daily contact with industry to understand the drivers of recent price movements and have reminded heating oil distributors of their commitments under the trade association code of practice. The Chancellor has also written to the Competition and Markets Authority to ask it to remain vigilant across heating oil prices and to tackle unjustified increases, and we urge customers to share any evidence of price manipulation with the CMA.
We also recognise that the heating oil sector is currently under-regulated. Unlike gas and electricity, the heating oil market is not regulated by Ofgem. We are going to put that right by exploring what regulations might be needed to ensure that consumers get a better deal and by exploring new ways to ensure that households are better protected. This will include: securing an agreement with industry on a strengthened code of practice to rapidly provide enhanced protections to customers; introducing stronger consumer protections in the heating oil market, which could cover dispute resolution, a greater variety of repayment options for those facing hardship, greater price transparency and enhanced protections for vulnerable groups such as the elderly; supporting the CMA’s plans to carry out a more comprehensive examination of the UK’s heating oil industry; and exploring the creation of a new ombudsman or the appointment of a regulator such as Ofgem to champion consumers.
Thirdly, this conflict is yet another reminder that we must get off the rollercoaster of global fossil fuel markets as soon as possible and on to the path of clean, secure, affordable energy that this country controls. This is the only way to protect the British people from energy price shocks and ensure that we are no longer buffeted by the headwinds of conflicts that we had no part in starting. Thanks to our mission to make the UK a clean energy superpower, we have already brought in £90 billion of investment in clean energy, but now, in the light of events in the middle east, we have set out a package of measures to help us go even further and faster in pursuit of national energy security.
We will bring forward the next renewables auction, just months after our most successful ever auction secured enough power for the equivalent of 16 million homes. We will make plug-in solar available for the first time in Britain so that families can buy a low-cost panel straight from a supermarket and set it up on their balcony or in their garden. We will speed up the delivery of our £15 billion warm homes plan—the largest home upgrade programme in British history. We will also reform nuclear regulations following the Fingleton review so that we can fast-track new nuclear power stations.
Behind every decision this Government take is a simple principle. Whatever the challenges, we will always support working people; we will always fight their corner. That is why we are directly helping those affected by the spike in heating oil costs; it is why we are cracking down on any suppliers who are cancelling orders or jacking up prices, while working at pace to ensure that the sector is properly regulated; and it is why, despite the opposition from parties on the other side of the Chamber, we are doing everything we can to take back control of our energy, ending our reliance on these unstable global fossil fuel markets and instead bringing in an era of new, clean, home-grown energy that we control in this country—an era of economic growth, new good jobs, unprecedented investment and real energy security. That is how we will ensure that ordinary working British people never pay the price for foreign conflicts and our overdependence on fossil fuels again. I commend this statement to the House.
Andrew Bowie (West Aberdeenshire and Kincardine) (Con)
I thank the Minister for giving me advance sight of the statement, although I really have to take issue with the Prime Minister’s earlier comments, taking credit for Ofgem’s decision to lower the energy price cap. That decision was taken not by the Government, but by Ofgem using a Conservative mechanism, and it was in fact taken weeks before the current crisis began. But why let the facts get in the way of this Government’s spin?
I am glad to see that the Government have today taken steps to support those households across Great Britain and Northern Ireland that rely on heating oil—steps that those of us on this side of the House called for when prices began to rise weeks ago. Those households are, as the Minister has highlighted, acutely exposed to price shocks, and the stories we have heard from consumers across the country are very concerning indeed. Just this morning, I heard from a constituent who faces a lump sum bill of over £1,000. These consumers are often served by a single local supplier, meaning that there is no realistic competition.
Let us be under no illusions: this announcement has come about only after the pressure put on the Government by the Opposition. The Leader of the Opposition and my right hon. Friend the Member for East Surrey (Claire Coutinho) called for these actions almost two weeks ago. Like everything with this Government, they end up doing the right thing only after weeks of dither, delay and inaction—but today’s announcement will be welcome news for rural households, and nowhere is that more apparent than in Northern Ireland, where over 60% of homes rely on oil for heat.
Although I welcome the announcement, I would be grateful if the Minister could provide some clarification. First, can he explain what, if any, support will be made available to those who heat their homes with liquid petroleum gas? Furthermore, it appears that the allocation of funding for Scotland, Wales and Northern Ireland is to go directly to the devolved Administrations and not directly to local authorities. Considering that the Minister represents a Scottish constituency, he understands just as well as I that handing over a cheque to the Scottish Government does not guarantee that money will be spent where it was intended to be spent. Can he therefore outline how this Government will ensure that those in Scotland, Wales and Northern Ireland get the support they need, and that this funding is not siphoned off for other priorities determined by devolved Ministers? Why was this money not awarded directly to local authorities in those nations as it is being delivered across England?
It is also my understanding that this funding is inclusive of Barnett consequentials. Could the Minister confirm whether that is the case? If it is, will he confirm that Scotland is being short-changed due to the higher proportion of households on heating oil than the Barnett formula would account for?
The Government could go further and heed our calls to deliver a 20% cut to everyone’s energy bills—and I mean everyone’s—through the Conservative’s cheap power plan by axing the carbon tax and the rip-off wind subsidies now. That cut would be worth around £165 to the average family. The Government should also bring about another one of their famed U-turns and cancel their planned fuel duty rise later this year—a rise that will add £156 to struggling families’ bills, because Labour’s plans always lead to more costs for families and businesses.
Let us take today’s announcement as an example. We cannot ignore that this support will be funded through Labour’s tax rises on working people. Why? Because this Government have made a choice—a political choice—to shut down the North sea and forgo £25 billion of tax receipts that an attractive, investable and successful North sea oil and gas industry would, and still could, provide. Backing the UK’s oil and gas industry is about driving the economic growth that we so desperately need, which in turn would deliver greater tax receipts than the current regime. It is about becoming more energy secure. One hundred per cent of all the gas produced in the British North sea is used in the British gas grid. The less we use from British waters, the more we have to import—at a higher cost and with a bigger carbon footprint—from Qatar, the USA and Norway, which continue to explore in the same sea in which we are prevented from exploring.
Backing the UK’s oil and gas industry would support a vitally important skilled workforce—a workforce that right now is packing up and going overseas. What will it take for this Government to change course—revenue, investment, job security? What is it that this Government do not get? Just today, the CEO of RenewableUK joined the chorus of voices calling for an overhaul of this disastrous act of economic self-harm being inflicted by this Labour Government. We read in The Times at the weekend that we are currently led by the “least intellectually curious” Prime Minister of all time, so it is no surprise that the Secretary of State has been given free rein to inflict his myopic vision of a future—[Interruption.] Those are not my words; they are the words of people in the Cabinet today! Surely at this time of such global instability, the case for a thriving oil and gas industry is clearer than ever.
We welcome the action announced today on heating oil, but there are serious questions—not just from me but from the industry, the renewables sector, the trade unions, and, frankly, everyone other than those sitting on the Labour Benches—over wider Government energy policy that need to be answered, and answered soon.
Martin McCluskey
Dear, oh dear! Where to begin? I will do my best to wade through the many points that hon. Gentleman raised.
First, the energy price cap is reducing on 1 April because of actions that this Government took to take £150 out of energy costs. That will see every bill in this country reduced. People listening should hear that their bill will go down in April, and that is protected to the end of June. The hon. Gentleman appears to be criticising us for a lack of speed. If he would like to volunteer how many days it took for the last Conservative Government to provide support for people on heating oil, I am all ears. How long did it take his party in government? It took them nearly 200 days. We are around three weeks into this conflict in the middle east, and we have come forward with support today.
LPG will be eligible in so far as the English schemes that we have funded additionally today through these actions, and we are making that clear to local authorities in a letter that has been sent from Ministry of Housing, Communities and Local Government Ministers today. It will be for the devolved Administrations—Wales, Scotland and Northern Ireland—to determine how they distribute the funds. I hope that they will work at the same speed as this Government to ensure that they are available on 1 April, but all nations already have crisis funds available that they could be deploying for this purpose, just as we will be deploying them for this purpose in England from today; if there are people in crisis now applying to the existing household support fund, they will be eligible for support from today, and the additional funding will come after 1 April.
The hon. Gentleman talked about the funds being Barnettised, but the funds are not being Barnettised; Scotland is not being, in his words, short-changed. The funds are being allocated based on census data on how many heating oil-fuelled households there are in each individual nation. That is why Northern Ireland comes out with £17 million, Scotland with £4.6 million and Wales with less. It is not a Barnett share; it is based on the number of households that use heating oil.
Finally, I do wish that the hon. Gentleman would stop coming to this Chamber and talking down the UK’s oil and gas sector. [Interruption.] No, I do wish that he would stop talking it down. He has implied from his Dispatch Box that the taps are being turned off in the North sea; they are not. The North sea is working today at full capacity and has been for some time. On Thursday, I was in Aberdeen, speaking to workers in that sector and to workers in floating offshore wind, who will benefit from our decision to invest in clean energy. If we take our eyes off the opportunities that will be available in future, it is a road to ruin. The hon. Gentleman will also know that more extraction from the North sea will not reduce the price of energy. We are a price taker, not a price maker. That is not our road to cheaper energy for households.
Madam Deputy Speaker (Caroline Nokes)
I call the Chair of the Energy Security and Net Zero Committee.
Bill Esterson (Sefton Central) (Lab)
Unlike the shadow Minister, the hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie), I give an unqualified welcome to today’s announcement, which will support some of the most vulnerable people in the United Kingdom—some of those in greatest fuel poverty. I have to say to the Minister, though, that we invited him to join us at our Committee session tomorrow afternoon to discuss the warm homes plan, following last week’s excellent evidence session. So far he has not been available. It is not too late for him to change his mind if he wants to, but for now I will ask him one question. Given that people on heating oil are at the sharp end of the impact of the spike in oil and gas prices, will he consider giving them preferential treatment when it comes to the warm homes plan so they can benefit from the range of measures, including on energy efficiency, and the reduced costs that it can deliver for them?
Martin McCluskey
I am always happy to come to the Committee; I understand that discussions are ongoing about a longer evidence session just on the warm homes plan to give it the attention that I am sure my hon. Friend agrees it is due. I agree that the warm homes plan should target some of the lowest-income people in our country. That is why we have allocated well over £1 billion for some of the low-income schemes in the warm homes plan, and why we have also focused on how we target rural households, many of whom will be affected by the heating oil situation.
Madam Deputy Speaker (Caroline Nokes)
I call the Liberal Democrat spokesperson.
Pippa Heylings (South Cambridgeshire) (LD)
We welcome the Government finally taking action to protect households from soaring energy costs due to the middle east crisis, following calls from those on the Liberal Democrat Benches and MPs of all parties. However, today’s intervention is a sticking-plaster solution, with too many households potentially falling through the cracks and not receiving support. We have heard that those families who must use oil for heating are the most exposed and defenceless, caught in the crossfire of Russia’s war in Ukraine and now the volatility in the middle east.
The heating oil market needs regulating. The Liberal Democrats are calling for the immediate introduction of a three-month VAT holiday on heating oil, as well as a proper price cap, because these households deserve the same protection as those that use gas and electricity. The real way to protect households and businesses is not by parroting Trump’s “Drill, baby, drill” mantra and buckling in for more roller-coaster rides that burn a hole in people’s pockets but by accelerating the transition to secure, home-grown clean energy that we control and extending preferential treatment to the warm homes plan, to help those homes that use heating oil to electrify and get off volatile fuel that we do not control.
Will the Government agree with the Liberal Democrats and set a price cap for heating oil to shield off-grid households? Also, if the Government want to provide targeted support, will they learn the lessons from the covid pandemic and the 2022 energy crisis and immediately enact a data-sharing scheme between Departments, including the Department for Work and Pensions and the NHS, and devolve this to local authorities to enable them to deliver targeted support to those who need it the most through, right now, the crisis and resilience fund that they want to be adopted on 1 April?
Martin McCluskey
I thank the hon. Lady for her constructive tone, for working together on some of this, and in particular for her comments on the need to move towards a transition to ensure our energy security and, ultimately, to lower bills.
On the hon. Lady’s point about a cap, the market for heating oil, as she will know, is very different from the market for electricity and gas. The reason that the price cap was introduced many years ago was the potential loyalty penalty that existed, whereby consumers who were with an individual company for a long time were penalised for that. Heating oil, by contrast, is supplied through a highly competitive market. That is why we have asked the CMA to look at this in more detail and we will examine its findings to establish what regulation may be required.
On the hon. Lady’s comments regarding the warm homes plan, the low income fund will target many of those people. She may also be interested to know that about 50% of the grants given out under the boiler upgrade scheme are to rural homes, many of which will be in this situation, that are transitioning from oil heating to electrified heating through a heat pump.
Ms Polly Billington (East Thanet) (Lab)
I am very grateful to my hon. Friend for his statement. Giving support to people who are off grid is vital; however, Thanet Earth, which is near my constituency and employs a number of my constituents, actually grows 20% of the tomatoes that are sold in this country. The business is profoundly energy intensive and is doing all the right things on decarbonising its energy supply, yet it is still profoundly affected by such fossil fuel spikes as those we are experiencing today. Will the Minister look at what is possible to support such energy-intensive industries through this energy crisis?
Martin McCluskey
I know that my hon. Friend has been a champion for such industries in her constituency, including Thanet Earth. The Minister for Industry, my hon. Friend the Member for Stockton North (Chris McDonald), is working through the implications of this crisis for such businesses as we speak, and will come forward with plans in due course.
Mark Garnier (Wyre Forest) (Con)
I thank the Minister for his statement. One characteristic of volatile energy markets is that when wholesale prices rise, consumer prices tend to rise like a rocket, and when the wholesale price stabilises the consumer price tends to fall like a feather. Can the Minister assure me and my constituents that in the conversations that he is having with the Competition and Markets Authority he is also looking at whether, when the market returns to normality, prices will fall as quickly as they have risen in this volatile moment?
Martin McCluskey
The hon. Member makes an important point. I know Ministers in my Department have been discussing that with the CMA and will carry on doing so. The CMA has started its work looking at the heating oil market and will, I hope, come forward soon with proposals that we can examine, to determine whether further regulation is required.
Mike Reader (Northampton South) (Lab)
I welcome the Minister’s statement, which will reassure a lot of families in Northamptonshire. Could he give us a bit more detail on the timeline under which this will be brought in, and assure people across Northamptonshire that the process will be easy to access, without bureaucracy?
Martin McCluskey
I know that my hon. Friend has been fighting hard for his constituents in Northamptonshire during this crisis. We are topping up the crisis and resilience fund with this additional funding across England that will be available from 1 April. Local authorities in affected areas have received notification today of the additional funding that will be available to them, but they can also use existing means to distribute funds to those in crisis, without waiting until 1 April. The message to my hon. Friend’s constituents would be to contact their local authority today, and that more funding is coming on 1 April.
Harriet Cross (Gordon and Buchan) (Con)
The Minister’s statement included what I am sure were some very sincere words. He said:
“Whatever the challenges, we will always support working people; we will always fight their corner. That is why we are…doing everything we can to take back control of our energy”.
I did not want to have to break this to the Government, but they are not fighting for working people or taking back control of our energy by actively closing down the North sea. Thousands of people are losing their jobs every month and our energy security is going down. The only way the Minister can remedy this is by removing the ban on new licences and scrapping the energy profits levy.
Martin McCluskey
Once again we hear a voice from the Opposition talking down the UK’s oil and gas sector. The North sea is not being shut down. [Interruption.] It is not being shut down; it is producing oil and gas today, and will play a role in this country for years to come. It is also important for Opposition Members to remember that not a single barrel of additional extraction from the North sea will reduce the price of energy in this country. It will not help any of our constituents with the cost of their energy.
Torcuil Crichton (Na h-Eileanan an Iar) (Lab)
I thank the Minister and the Government for their swift response; £4.6 million to Scotland will be very welcome in my constituency, where up to 50% of homes outside the town of Stornoway rely on heating oil. What discussions has the Minister had with the Scottish Government to ensure that the £4.6 million is distributed through local authorities through the crisis grant fund; that local authorities have maximum discretion in how they distribute that fund; that we have maximum accountability on how the money is spent; and that we have maximally swift delivery of this much needed support?
Martin McCluskey
My hon. Friend was one of the first people to come to me with concerns around the heating oil situation in his constituency. The Minister for Energy had these discussions with the Scottish Government towards the end of last week, and I will have further such discussions over the next few days. I would hope that the Scottish Government take as wide an interpretation around their crisis funding as this Government have about England, and ensure that it is made clear to local authorities that the support is available for those on heating oil and those on liquefied petroleum gas. How the devolved Governments distribute those funds is, obviously, a matter for them.
Tom Gordon (Harrogate and Knaresborough) (LD)
It is estimated that over 20,000 homes in North Yorkshire rely upon heating oil, including constituents in the rural part of my constituency in villages outside Occaney, Copgrove, Farnham, Flaxby and others. They already face what is known as a rural premium, with households paying more for everyday essentials. Given that reality, how can the Government justify offering only limited support to households that now face soaring heating oil costs?
Martin McCluskey
My priority, and that of the Government, in dealing with the situation in the middle east has been to come forward as quickly as possible with support, which today we can guarantee will be available for those on heating oil from 1 April. For constituents who do not use heating oil, electricity and gas prices will reduce on 1 April by 7%. We will keep the situation under review. It is fast moving. Three weeks ago, we would not have thought that we would be in the situation we are in today. We will keep the matter under review, but our priority has been to get this money to the people who need it as quickly as possible.
Ben Goldsborough (South Norfolk) (Lab)
With one in four households in South Norfolk relying on heating oil, the announcement today will make a huge difference to my constituents and I thank the Government for their extremely swift action. As local discretion is to be exercised by local authorities, will the Minister make it clear to local authorities up and down England that they need to ensure this addresses as many people as humanly possible, to give them the support when they need it most?
Martin McCluskey
I can give my hon. Friend that assurance, and the Minister for Local Government and Homelessness has written today to the leaders of councils in areas that are receiving additional funding to make this clear.
Dame Harriett Baldwin (West Worcestershire) (Con)
I am curious about the details as I have been raising this issue on behalf of my constituents in West Worcestershire all week, many of whom rely on heating oil and liquefied petroleum gas. How much extra money is going into the crisis and resilience fund in West Worcestershire, and how will local authorities prevent “first come, first served” and instead ensure that those with the emptiest tanks get access to the money first?
Martin McCluskey
I will write to the hon. Lady with the details around her local authority area, but we are confident that the amount going into the crisis and resilience fund—both additional and current funding—will be enough to meet the demand for this period while the heating oil prices are increased. As I said to other hon. Members, we will keep the situation under review as it progresses.
Cat Smith (Lancaster and Wyre) (Lab)
On behalf of my constituents, I thank the Minister for his speedy response to the situation, which I know from my inbox has been very welcome to those using heating oil, but can he reassure us that the correspondence from Government to Lancashire county council will make it clear that those on LPG will also be eligible for the fund?
Martin McCluskey
I can assure my hon. Friend that guidance will be provided to local authorities to ensure that LPG customers are also dealt with through the fund.
Bradley Thomas (Bromsgrove) (Con)
While I welcome the Minister’s statement, my constituents and I have a few questions. How many households does the Minister project that this will be applied to? What does he foresee the average amount of support being? Is there a qualifying criterion in terms of benefits or household income? Will the fund be disbursed via the upper tier or lower-tier council, and should my constituents apply to Bromsgrove district council or Wiltshire council for support?
Martin McCluskey
As the hon. Gentleman will know, the current household support fund and the future crisis resilience fund are discretionary and it will be for the local authorities to determine, under the guidelines, what they will be able to provide. On the support available and the number of households affected, we are confident that this can meet demand over this period of time. As I said in response to other hon. Members, the important thing is ensuring that this money reaches people as quickly as possible, and we did not wait around, as the previous Government did, to provide support to these households.
Lizzi Collinge (Morecambe and Lunesdale) (Lab)
I thank the Minister for his statement and the swift response to the need of my rural constituents who are reliant on heating oil and LPG. This crisis has shown that our strategic approach of getting off the reliance on global fossil fuel markets is absolutely the right one, but it has also exposed the under-regulation of the heating oil market domestically, so can the Minister tell me what this Labour Government will do to tackle that under-regulation?
Martin McCluskey
I thank my hon. Friend for her comments on the need to transition as quickly as possible. Through this crisis we have seen the volatility that this country is exposed to because of our reliance on fossil fuels. For the sake of people across the country, we cannot allow that to continue. On regulation, we have had discussions with the Competition and Markets Authority, which has set out what it is looking at in terms of the heating oil market. It will come forward with recommendations and a report, which we will study carefully to determine the need for regulation.
Claire Young (Thornbury and Yate) (LD)
With prices doubling or tripling, a 97-year-old constituent cannot afford her next bill and another family has no hot water. Reporting price gouging to the CMA will not help them now, so what support will the Government give those above the lowest income thresholds who cannot afford the next delivery, and what will Ministers do to stop public money allocated now simply filling the pockets of profiteering suppliers?
Martin McCluskey
No one should have to face the kind of situation that the hon. Lady has just described, which is why we are coming forward today with support. That additional funding will be available through the crisis and resilience fund from 1 April. However, as I said in response to an earlier question, constituents can already go to their local authority, and we are giving clear guidance to local authorities on the support that they can offer today, and we are expanding some of the guidelines for the existing funds to make it clear that they can provide support for people on heating oil and LPG. On the hon. Lady’s latter point on regulation, as I have said, the CMA is investigating this. There are clearly issues in the heating oil market, as we can see in what has happened over the past couple of weeks. That is why we have asked the CMA to look at that. It has agreed and we will study its conclusions and come forward if necessary with regulation.
Graeme Downie (Dunfermline and Dollar) (Lab)
I thank the Minister for his statement and for the very quick action taken by this Government. He mentioned his hope that the Scottish Government will act as quickly as this Government have to pass on these savings to people who use heating oil. Will he ensure that we get more than just hope, as we want an assurance that the SNP Government will not fail my constituents, as they have done so many times before? Will he keep up the pressure on the SNP to deliver what it should be delivering for my constituents and others?
Martin McCluskey
I know that my hon. Friend would possibly share some of my concerns, which is why I have been so clear today that the Scottish Government should move at pace to ensure they can provide the same level of assurance to people across the country today that we are, and that support is on the way and that from 1 April people will be able to apply to those funds. Some £4.6 million is being provided to the Scottish Government for this action, and we would want to ensure that every single penny of that reaches the people who need it.
Simon Hoare (North Dorset) (Con)
On behalf of the low-income families of North Dorset, I very much welcome the Minister’s statement, but what help can he give to those who are not classified as low income but who are, in the old parlance, just about managing? Surely a VAT holiday for all customers would be of benefit right across the piece. May I urge the Minister to consider that for those families? There will also be a number of rural buildings—doctor surgeries, community halls, parish halls, village halls—that use heating oil, and for which the costs will be very high. They operate on very limited budgets and give a lot of support to elderly and vulnerable people in our communities. Will the funds available also be open to them?
Martin McCluskey
I thank the hon. Member for his comments. On the point about regulation, it is important to remember that we have already taken action, and not for heating oil but for people on traditional electricity and gas, whose bills will reduce by 7% in April—that is a universal offer, available to everyone. Obviously, alongside the universal offers there are targeted offers, such as ours today on heating oil. On non-domestic premises, the Minister for Industry, my hon. Friend the Member for Stockton North, is looking in detail at the situation and will come forward with more proposals later. Today’s announcement is for domestic premises, but we will come forward with details for non-domestic.
John Whitby (Derbyshire Dales) (Lab)
I very much welcome the Government listening and acting so quickly on this subject. On 5 March, one of my constituents had an order of 500 litres of heating oil cancelled and was invited to remake the order, but he was then told that it would cost around twice as much as the previous order. Rob, who is on the state pension and is a wheelchair-user, could not afford to remake the order and therefore has had no central heating from 5 March. Does the Minister agree that all providers should be honouring contracts previously made?
Martin McCluskey
I thank my hon. Friend for bringing that case to my attention, and I ask him to write to me with more details. From conversations about this case and others that have been mentioned across the House, it is clear why we need regulation in this market and why we need to investigate it. I am glad that the CMA is taking that forward.
Robert Jenrick (Newark) (Reform)
The Treasury is raking in tens of millions in increased tax revenues from rising fuel and energy prices on the one hand; on the other, it is providing some mild relief to a chosen few. The Chancellor is robbing Peter to pay Paul, and then expects the country to give her a pat on the back. Will the Minister do what could be done now: cancel the proposed increase in fuel duty for September and provide some genuine relief to everyone who is feeling hard pressed right now?
Martin McCluskey
The right hon. Gentleman will know that fuel duty is frozen and, as the Prime Minister set out last week, we will keep that under review. It is important that people who are listening to these discussions hear that fuel duty is frozen, and that just as we are taking action with electricity and gas in April, we have taken action today. The right hon. Gentleman calls them the chosen few. I would say we are targeting support at those who need help now to make sure that people can heat their homes sufficiently. This is the Government taking action today to make sure that people are better off and that they see the effects through this period.
Jenny Riddell-Carpenter (Suffolk Coastal) (Lab)
I thank the Government for acting so swiftly—the previous Government took 200 days to act when we faced a similar crisis after the start of the Ukrainian war. I want to ask a couple of questions. First, can the Minister confirm that LPG is included in the package? Many of my constituents are on LPG, not just heating oil. Secondly, will he set out how the package will help those who are financially vulnerable and also medically vulnerable, including disabled constituents, many of whom are at greatest risk and have shared concerns that they have to have their heating on 24 hours a day?
Martin McCluskey
I can confirm that LPG is included in the package, and guidance will be provided to local authorities to make it clear that it is for LPG as well as for heating oil. My hon. Friend referred to medically vulnerable people. They are eligible under the existing household support fund and the crisis and resilience fund if they fall into crisis. There is still a lot more that we have to do for people who are medically vulnerable. That is why the Government are taking action to look at how data can be better shared in order to ensure that medically vulnerable people can receive the support they need.
Graham Stuart (Beverley and Holderness) (Con)
I welcome the Government coming forward with a proposal, but many of my constituents are facing £600 or £700 increases on bills that are coming immediately at them. The Minister cannot tell us today who exactly will be eligible for help—perhaps he can answer that. He cannot tell us how much they will actually get when they are looking at an increase of £600 or £700 on one bill just to fill up. He did not even seem to know which particular council is going to administer this help. Can he please give some clarity? Otherwise, we are getting the appearance of action and no real relief for most of my constituents.
Martin McCluskey
We are providing action quickly, while the previous Government waited nearly 200 days to provide action. The funding will be available from 1 April, as I said. The Minister for Local Government has today written to local authorities to inform them of the additional funding that will be available to them, but, as the right hon. Member will know, the funds are administered by local government. We are providing clear guidance to people and to local authorities that those funds should be available to people using heating oil and LPG.
Joe Morris (Hexham) (Lab)
I represent about 13,500 households that are off the grid. I welcome the recognition of the scale of the problem in these communities and getting them proper support. I urge the Minister to ensure that regulation for the heating oil sector is brought forward as quickly and effectively as possible, so that constituents are not ripped off far into the future, and to continue to monitor the situation as it progresses so that further action may be taken if required.
Martin McCluskey
I pay tribute to my hon. Friend for all his work to stand up not just for his constituents, but for rural communities more generally. The CMA is investigating heating oil and will come forward with proposals, which we will study to determine whether we need to regulate in this area. But it is clear from what we have heard across the House this evening and in other reports that this market is not working in the way it should.
Seamus Logan (Aberdeenshire North and Moray East) (SNP)
More than 130,000 homes in Scotland now face deeper anxiety and financial uncertainty with this paltry intervention from the Government. The reality of this cold winter and spring in the north of Scotland and in the highlands and islands, not least in my constituency, is that there was snow last night. The gritters were out, and some people now face hypothermia as they struggle with the massive increase in costs. With more price increases in the supermarkets, higher fuel costs, rising inflation and growing extreme fuel poverty in Scottish households as this illegal war continues, I ask the Minister whether the Government will now commit to a more robust plan, including further interventions later this year.
Martin McCluskey
This is from a representative of a governing party in Scotland that has ditched its fuel poverty targets and, just a few months ago, ditched its heat in buildings Bill, which would have provided support and help to people with leaky buildings.
Martin McCluskey
I will answer the hon. Gentleman. We have supplied £4.6 million of funding today. He rolls his eyes, but his constituents and many others across Scotland will look at him askance for doing so. This is support for people, and it is now for the Scottish Government to come forward with how they are going to ensure that the money reaches the pockets of people across Scotland.
Jayne Kirkham (Truro and Falmouth) (Lab/Co-op)
It is really good to see the Government prioritising people in distress in rural and coastal areas. My question is slightly separate. It is about listed buildings and conservation area properties, and how those people struggle to insulate their homes because of planning rules. Does the Department have any plans to do something about that?
Martin McCluskey
The recent warm homes plan talks about listed buildings. We are working with many heritage organisations to assist with retrofit. I recently visited Saltaire in the constituency of my hon. Friend the Member for Shipley (Anna Dixon) and viewed some excellent examples of historic buildings, which demonstrated that they can be retrofitted to just as high a standard as modern buildings.
Sir Geoffrey Clifton-Brown (North Cotswolds) (Con)
Although I thank the Minister for the limited amount of support that he has announced today, may I represent to him two of the most vulnerable groups in this regard: the very old and the very young? I ask him to consider them. I have elderly constituents who hardly dare turn on their heating because they do not know whether they can afford it. Will he consider including those groups in the regulations, and if not, will he give local authorities greater discretion to pay out hardship payments in the scheme?
Martin McCluskey
First, we should communicate loud and clear today that the energy price cap is going down in April. People’s bills will be reduced by 7%, and it is important that people across the country who are anxious about their bills hear that message. On the hon. Gentleman’s about older and younger constituents, the discretionary element of the crisis and resilience fund allows local authorities to make those choices. It is a person-centred approach to allow them to make choices that are applicable to their local area. I encourage him to have that discussion with his local authority. The guidance would allow it to do that.
Sam Rushworth (Bishop Auckland) (Lab)
I thank the Government for their engagement with Back Benchers who represent rural constituencies, and for bringing forward this support so swiftly—in marked contrast to the 200 days it took the Conservatives. However, I share some of the concerns that have echoed around the Chamber about the people who are just about managing, who might not find themselves eligible. If the crisis prolongs, the Government have said that they will keep the situation under review. Will the Minister consider everything being on the table, including, for example, looking at VAT?
Martin McCluskey
I pay tribute to my hon. Friend for his advocacy for his constituents in Bishop Auckland. This is a fast-moving situation. We have come forward today with support because we wanted to assure people that there would be support available as quickly as possible, and that is what we have done. As I have said, we will keep the situation under review.
Dr Danny Chambers (Winchester) (LD)
We appreciate the Minister’s statement and the fact that the Government have moved so quickly to provide support. I have received many messages from people in the Meon valley who use heating oil and other types of energy as their main sources of heating. They understand that we cannot control international events, but they are worried that companies are profiteering, with the average price going up from £300 to £640 a tank, or from 63p to £1.40 a litre. Are the Government working at pace to ensure that Ofgem and other regulatory authorities, which do not currently regulate heating oil, will prevent companies from taking advantage of the international situation and making money off older people in particular?
Martin McCluskey
The market is clearly not working as it should and needs attention. My hon. Friend the Minister for Energy met the Competition and Markets Authority last week. The CMA took quick action to respond on Saturday in areas that it planned to investigate. I hope that it will come forward with that work quickly, and then we will be able to make a decision about further action.
Ms Julie Minns (Carlisle) (Lab)
Carlisle and north Cumbria has around 7,000 off-grid households, so I thank the Minister for his statement, which I know will be welcomed by heating oil and LPG households in my constituency. Will he reassure us that, in tackling the under-regulation left by the previous Government, this Government’s action will regulate the heating oil and LPG markets?
Martin McCluskey
The CMA is considering these issues, and we will examine its conclusions carefully. I will write to my hon. Friend about LPG and the CMA’s examination of it, which I hope will provide her with the reassurance that she needs.
Damian Hinds (East Hampshire) (Con)
Thousands of households in East Hampshire are off grid. They face much bigger swings in energy prices, and of course when their tank happens to run out is a matter of chance. For them, the statement will be good news, but how will the Government ensure that take-up is maximised among vulnerable and low-income customers, as is done for pension credit? How will the support be communicated to them? For all the questions about how the scheme will be administered, what message should we take back to constituents about what the criteria will be and how much money will be available? It is right that local authorities have discretion, but there has to be some sort of consistency so that people know what to expect. The Minister has talked about guidance being sent to local authorities. Will it include that?
Martin McCluskey
I thank the right hon. Member for the constructive way in which he has approached the matter. We need to maximise take-up to ensure that we reach all the people who need support. Local authorities have an important role to play in that; the communications that they provide to their residents will be important. We will also need to work closely with the trade body. With heating oil—more than in many other sectors—there is a relationship between the people who come and fill up the tank and the householder. Those people have a role to play in ensuring that people understand what support is available. The crisis and resilience fund, which this money is topping up, is available from 1 April, and there will be guidelines, as I said. We have been clear that heating oil and LPG are in scope. I take the right hon. Gentleman’s point about consistency, but we must remember that this fund is discretionary for local authorities, so there needs to be some flexibility—largely because local authorities will know how best to serve their local areas.
Catherine Fookes (Monmouthshire) (Lab)
I welcome the £3.8 million commitment, which will help Welsh households with rising costs. A 70-year-old woman in my constituency saw a quote for 500 litres of oil rise by £250 in less than a week. Farmers will also be hit hard: they will face increased red diesel prices and an exponential rise in fertiliser costs. Will the Minister share what support may be given to farmers?
Martin McCluskey
I welcome my hon. Friend’s comments and her advocacy for her constituents. The £3.8 million being provided to Wales reflects the fact that Wales—especially west Wales—has significant numbers of heating oil-fuelled homes. I will write to her on support for farmers more generally. This is obviously a very fast-moving situation. Our priority at the moment is to ensure that householders get the support that they need for heating oil. As I said, the Minister for Industry is considering issues in the non-domestic sector, which will be relevant to my hon. Friend’s farming constituents.
Sammy Wilson (East Antrim) (DUP)
I suppose it was inevitable that the Minister would take the opportunity to bang the drum for his disastrous net zero policy, which has been responsible for giving people in the United Kingdom the highest electricity prices in the whole of Europe. Of course, he talks about the need for energy supply and security. We have our own gas and oil and, as far as I know, it does not have to go through the strait of Hormuz or through a Putin-controlled pipeline, yet we have turned our back on it. I welcome the support for Northern Ireland, even though it amounts to about £34 per household, but I noticed that the Minister said he is working closely with the Minister for the Economy in Northern Ireland. Given that she is still to bring forward a plan to spend the £81 million granted in the Budget last year, will he ensure that he keeps her feet to the fire so that people in Northern Ireland can receive the support that they need now, not next winter?
Martin McCluskey
I had a constructive conversation with Minister Archibald this afternoon about the support on offer, and I am confident that the Northern Ireland Executive will work at pace to ensure that it is delivered to people across Northern Ireland. The right hon. Gentleman mentions net zero. It is important to remember two things: first, more North sea extraction would not affect energy prices for people in this country, and secondly, the long-term route to lower prices is not through exposing us further to fossil fuels. That exposure—not net zero—is why we have some of the higher prices in Europe. More exposure, which is his suggestion, would just increase our prices and our vulnerability, including for people in Northern Ireland.
Alistair Strathern (Hitchin) (Lab)
Having grown up in a household that relied on heating oil, I know how overlooked off-grid rural communities can feel. They were overlooked by the previous Government, who did not include them in energy price support for 200 days, and they have been overlooked by a regulatory framework that does not give them the same protections offered to other homeowners. I welcome this announcement of support, in which the Government have acknowledged that those households deserve far better. However, I have seen quite exploitative practices from oil companies in my constituency recently, so can we ensure that we are not shying away from the regulatory reforms that are needed for the longer term?
Martin McCluskey
Many hon. Members have highlighted such cases. The heating oil market is clearly not working in the way that it is meant to, which is why we are focusing on what we need to do in terms of regulation. As I have said, the CMA is considering particular aspects of the market. We will study its conclusions and come forward with proposals.
Dr Andrew Murrison (South West Wiltshire) (Con)
How was the sum of money that the Minister announced arrived at? Was there any reference to the increased tax receipts that the Treasury will see as a result of hikes in oil prices? Will he lay out the criteria on which the money will be awarded? Without such criteria, he cannot possibly approach rationally the amount of money that he will be giving people in order to help them. Finally, how are my constituents to spot the price manipulation that he has asked them to report?
Martin McCluskey
On the right hon. Gentleman’s final question, his constituents should send any cases of potential price manipulation through the CMA, which will investigate such cases. As for how allocations have been arrived at, that is a combination of the number of heating oil households in individual areas and deprivation figures. It will be for local authorities to determine how the scheme works. As I have said, we have provided guidance to local authorities to ensure that households that use heating oil and LPG receive the support that they need.
Leigh Ingham (Stafford) (Lab)
I thank the Minister for his statement and for the rapid action he has outlined. About 7% of households in my constituency are oil fuelled. Families in Gnosall, Norton and Haughton have told me that they had agreements with an oil contractor for deliveries, which were supposed to take place last week but were cancelled as the conflict escalated. Now, the price has more than doubled. Will the Minister tell me what rapid action is being taken to stop companies price gouging in such a way?
Martin McCluskey
I will say a couple of things in response to that. We have been in constant dialogue with industry bodies to communicate clearly to them what we would see as inappropriate action and pricing. We are moving at pace with the CMA and have asked it to look at this market because it is clearly not functioning. Absolutely none of our constituents should have to face the kind of situation that my hon. Friend describes.
Manuela Perteghella (Stratford-on-Avon) (LD)
Nearly 13,000 households are off-grid in my constituency, including my home. It is a wild west out there; prices have doubled in just a few weeks, and many of my constituents are not even able to pay for the minimum 500-litre orders required by the providers. Does the Minister agree it would be far quicker and simpler for the Government to provide relief through a VAT holiday on heating oil and LPG? That would ensure that support reaches every household immediately, rather than relying on councils to distribute limited discretionary funds.
Martin McCluskey
Our priority has been to ensure that support reaches people as quickly as possible. That is why we have come forward with this proposal today. As I said in response to previous questions, we will keep the situation under review as the situation in the middle east progresses. The CMA is looking at a number of areas before it makes recommendations that might lead to regulation, and we will study those carefully. One of those is whether the issue of minimum orders needs to be examined more closely. The hon. Lady has my reassurance that we are looking at this issue, and the CMA will come forward with proposals.
Terry Jermy (South West Norfolk) (Lab)
More than 22,000 households in my constituency rely on heating oil. Dozens of constituents have contacted me over the last week, and they are worried sick, so I very much welcome this announcement and the speed with which the Government have made it. This situation has exposed the fact that rural communities are uniquely vulnerable to global energy shocks. May I urge the Minister to do all he can to prioritise better regulation and to look at how rural communities can benefit from the warm homes plan and transition to better insulation and renewable technology in a way that they were not able to do under the previous Government?
Martin McCluskey
I thank my hon. Friend for his comments and for everything that he is doing to advocate for the many constituents he has who use heating oil. As he said, we need to move forward with the CMA to examine what regulation might be required. He will have seen that the warm homes plan highlights rural households and low-income households as an area of priority. He may be interested to know that around 50% of grants from the boiler upgrade scheme are going to rural homes, showing the demand that exists in constituencies such as his.
Ben Obese-Jecty (Huntingdon) (Con)
Daisy in Old Weston has seen her quote for 500 litres of heating oil leap from £324 to £868. Lee has a 1,400 litre tank; her quote from before Christmas was £600, and it is now nearly £2,000. Those are huge price spikes, and they are having a massive impact. Will the Minister outline how the crisis and resilience fund will be allocated to Cambridgeshire county council? What is the total amount that it is likely to receive? Is there any cap on how much can be given out to individual households? Is there any cap on how much Cambridgeshire county council can give out in total, or will this be done on a first come, first served basis?
Martin McCluskey
The situation that the hon. Gentleman describes for his constituents is clearly intolerable. That is why we are looking with the CMA at the case for regulation in this market—it is clearly not working in the way that it should. On the crisis and resilience fund, more than £800 million has already been allocated through the spending review, and today we have added just over £50 million to the fund. This funding will be made at the discretion of local authorities, and we have written today to leaders of local authorities detailing the additional funding that will be available to them.
Rebecca Long Bailey (Salford) (Lab)
I very much welcome the Minister’s comments today, but he will understand the huge level of concern regarding the prospect of profiteering in not just the heating sector, but the wider energy sector, and its impact on the grocery sector at large. Indeed, the National Farmers Union has reported in recent days that it is concerned about potential profiteering in the fuel sector and the fertiliser sector. Will the Minister outline what action the Government are taking beyond instigating reviews at the level of the CMA to ensure that our constituents are protected from any profiteering?
Martin McCluskey
This Government will not stand for any profiteering in the system. That is why the Chancellor and the Secretary of State brought the petrol retailers in last week, for example, to make that abundantly clear to them. We have also made it abundantly clear to the representatives of the heating oil industry. When it comes to the electricity and gas suppliers, we took action through the Budget last year to remove costs from energy bills and reduce energy costs by 7% from April. We will cut no corners in holding companies to account where we think there is any sense of profiteering or manipulation of price. That is what the CMA is examining for us, and that is why we will examine what it comes forward with for the heating oil industry and decide whether there is a need for regulation.
Several hon. Members rose—
Ben Lake (Ceredigion Preseli) (PC)
I welcome today’s announcement and the proposals. They potentially offer a relief of 20% or so to the households in Wales that are off-grid, including 72% of households in my constituency. The Minister will appreciate that households will be anxious to understand what level of support they stand to receive. Was there a per-household level of payment in mind when the Government came up with these calculations? Given that LPG households will be entitled to support, can I also ask why heating oil data was used to calculate the £3.8 million allocation for Wales?
Martin McCluskey
As the hon. Gentleman said, £3.8 million has been allocated to Wales. It will be for the Welsh Government to design the scheme that they will use to roll that out; it may be through existing schemes or through something different, but that is a decision for them. In all this, our priority has been to work at speed. We do not want to leave people in a situation without any support, which is why we have come forward with this proposal, just a few weeks after the initial stages of this conflict in the middle east. That is our priority. As I said, we will keep this issue under review, and we will come forward with more proposals if necessary.
Katrina Murray (Cumbernauld and Kirkintilloch) (Lab)
I welcome the Minister’s statement. Some of the most vulnerable people in my constituency live in the village of Banton, which is not on the gas grid. However, the rest of my constituency would be considered urban. Will the Minister make representations to the Scottish Government so that they do not just look at rurality when deciding how they are going to allocate this funding?
Martin McCluskey
My hon. Friend makes an important point, which I will be sure to raise in future discussions with Scottish Government Ministers.
Gideon Amos (Taunton and Wellington) (LD)
Residents of Curland and Hatch Beauchamp are among the 9,000 off-grid households in my constituency, and they have contacted me about the heating oil question. Given that prices have gone up so greatly, they will welcome the Government’s move, however small, against the soaring prices caused by Trump’s illegal and unprincipled war. However, given that the help works out at only £35 per house, would it not be better to have a VAT holiday and a permanent price cap so that these customers are not second-class energy consumers?
Martin McCluskey
Not every household will decide to fill up now, at the point when the prices are so high. In addition, we have made it clear that this money is going through the crisis and resilience fund, which means that it is focused on low-income people, so we need to be careful not to imply that the funding is at the level that the hon. Gentleman describes. We are making sure that support is getting to people quickly, and that is the absolutely priority.
Melanie Ward (Cowdenbeath and Kirkcaldy) (Lab)
I warmly welcome the Minister’s confirmation that the UK Government have provided the Scottish Government with £4.6 million to ensure that the most vulnerable households in parts of my constituency, like Auchtertool and Kingseat, are shielded against the increases in the price of heating oil caused by war in the middle east. Does he agree that it is up to the Scottish Government to act very rapidly to ensure that the most vulnerable households in my constituency get the support that they need?
Martin McCluskey
I completely agree with my hon. Friend. We must ensure that support is available in all parts of the UK as quickly as possible. In England, it will be available through the crisis and resilience fund from 1 April.
Jim Allister (North Antrim) (TUV)
In my constituency, an oil refill that was costing less than £500 costs well over £1,000 today, so I am rather underwhelmed by a package that offers a household £35 pro rata. How does the £53 million for the whole package compare with the increased VAT tax take from the rise in the price of heating oil? I suspect that it does not compare favourably. Would not the fairer—
Jim Allister
Would the fairer approach not have been to suspend the 5% VAT on home heating oil? Would that not have been fairer to everyone?
Martin McCluskey
My priority and the priority of the Government has been to ensure that support gets to people as quickly as possible, which is what we are doing today. The pro rata suggestion that the hon. and learned Gentleman has just made misses the fact that not everyone will fill up their tank during this period when prices are high. We do not know where the situation in the middle east is going, and we do not know what prices are going to be like two, three, four or five weeks from now. However, as I have said in response to other hon. Members, we will review the situation as it progresses.
Jon Pearce (High Peak) (Lab)
The Minister’s statement will be hugely welcome in High Peak, where thousands of households are reliant on heating oil. Many have told me that the prices they are being charged have more than doubled. These households have been overlooked for too long. Will the Minister set out how the sector can be better regulated, to make sure that these households get a better deal going forwards?
Martin McCluskey
I thank my hon. Friend for his continued advocacy for his constituents in High Peak. The CMA is investigating areas of policy around the heating oil market and will come forward with suggestions. We will examine those suggestions in detail to determine whether or not regulation is required in the sector. However, it is clear from points that my hon. Friend and others have made that this market is not operating in the way that it should.
Jim Shannon (Strangford) (DUP)
I thank the Minister very much for his announcement—the £17 million for Northern Ireland, as part of the £53 million package, is welcome. That recognition and funding is important, given the price of home heating oil. Some 62% of people across Northern Ireland have heating oil, including almost 80% of people in my part of the Ards peninsula—in my constituency, where I live—so it is very important that we get this right. Will the Minister commit to urgently engaging with his counterparts in Northern Ireland? My people want to see the money sooner rather than later.
Martin McCluskey
This funding has to work for people in Northern Ireland, including in the hon. Gentleman’s constituency of Strangford. That is why today, I have had another call—the second over the past few days—with Minister Archibald in the Northern Ireland Executive, and it is why I will continue to engage with the Northern Ireland Executive over the next few weeks.
Mary Kelly Foy (City of Durham) (Lab)
In villages like Waterhouses and Quebec in Durham, many people use heating oil to heat their homes and their water. I have been contacted by very distressed constituents who tried to order their usual supply of heating oil, only to find that prices had soared so irrationally that they cancelled their order. This profiteering is completely unacceptable, so can the Minister restate the actions that the Government are taking to stop these heating oil companies blatantly ripping off my constituents, and can he tell me the best mechanism for reporting such behaviour?
Martin McCluskey
Again, the points that my hon. Friend makes and the cases she brings to the attention of the House demonstrate that this market is clearly not working in the way that it should. I encourage her to send any of these cases to the CMA, so that it can consider them as part of its work.
Amanda Hack (North West Leicestershire) (Lab)
I welcome the speed with which this Government have listened and responded to those households whose homes are heated by heating oil. I also thank the ministerial team for their engagement with MPs across the House. As many people on heating oil in North West Leicestershire may not previously have accessed support via the household support fund, how will the Minister ensure that the support gets to the individuals who need it?
Martin McCluskey
The local authorities have a role to play—as do all of us in this House—in communicating clearly that support is available. We need to make sure our constituents know that support for heating oil and LPG is now part of the crisis and resilience fund, and that it will be available from 1 April.
Steve Witherden (Montgomeryshire and Glyndŵr) (Lab)
We have seen oil prices surge over the past two weeks, and the targeted Government support announced today for low-income rural households that are reliant on heating oil, including many of my constituents, will help. Can I ask specifically about the distribution of the support? What are the criteria for a vulnerable heating oil customer, and what support will there be for those who do not need to fill up now, but will in the medium to near term?
Martin McCluskey
On my hon. Friend’s final point about the medium term, we are keeping this issue under constant review, because the situation is moving so quickly. In his case, it will be for the Welsh Government to set out how they will distribute these funds; that may be through existing schemes, or through a new scheme.
Perran Moon (Camborne and Redruth) (Lab)
Although I warmly welcome this support for the poorest rural homes, hydrotreated vegetable oil prices have remained relatively stable throughout the fortnight, so as well as securing ample production of HVO through sustainable aviation fuel refining, can I once again urge the Minister to ensure that the barriers and disincentives that prevent tens of thousands of rural residents from switching from kerosene to HVO are cleared as a matter of urgency?
Martin McCluskey
As my hon. Friend knows, a consultation has recently concluded, and we will come forward with a response in due course.
Markus Campbell-Savours (Penrith and Solway) (Lab)
I appreciate the speed at which the Government are working, and understand that local authorities will have a role in how the money is distributed. However, in the absence of detail, many people are doing a back-of-a-fag-packet calculation. Can the Minister reassure them that we are committing enough money to make a real difference, and will he commit to meeting me to discuss how we support the 14,715 households in Penwith and Solway who do not benefit from being on the mains gas grid?
Martin McCluskey
The Government believe that this funding should be sufficient for those low-income households that are at acute risk of imminently losing access to their heating and hot water. As I have said in response to other questions, we will keep this issue under review and come forward with responses in the House at a later stage.
Julia Buckley (Shrewsbury) (Lab)
The 6,700 households in my constituency that are wholly reliant on heating oil have been very anxious following the impact of the war. They tell me that the impact on oil supplies has doubled and—in one case—trebled the price of heating oil, and some suppliers are no longer offering delivery dates. Elderly residents are wearing coats and gloves indoors to ration their supply. Over the past week, Ministers have taken the time to listen to rural MPs and have set out the scale of the issues we face, so let me place on record my gratitude for the additional £758,000 that will go to the worst-affected households across Shropshire. Can the Minister confirm that this money will be available from as early as 1 April?
Martin McCluskey
I thank my hon. Friend for the constructive way in which she and other MPs representing rural constituencies have engaged with this process. I can confirm that the money will be available from 1 April.
Sean Woodcock (Banbury) (Lab)
I am grateful to the Minister for his statement. With over 5,000 properties off the grid in the Banbury constituency, I welcome this announcement. Can I add my voice to the others we have heard from around the Chamber in asking that this Government to do what the previous Government failed to do: finally tackle the lack of regulation and proper accountability in the sector?
Martin McCluskey
We inherited a number of areas in the energy sector that were unregulated. This is one of them, which is why we are putting focusing so much on it, and we will study the CMA’s conclusions when they come forward.
Euan Stainbank (Falkirk) (Lab)
It is imperative that this support reaches the most vulnerable heating oil households, such as those in the Braes villages in my constituency, who have seen astronomical price spikes. Can the Minister confirm whether the Scottish Government have yet signalled that they will administer this Government’s funding for Scotland’s vulnerable heating oil households nationally or via local authorities—and if they have not, will he ask John Swinney to get a move on?
Martin McCluskey
I commend my hon. Friend for the work he is doing for his constituents in Falkirk. As I mentioned earlier, the Minister for Energy met the Scottish Government last week. I will be having further discussions, and will pass on those sentiments to Scottish Government Ministers.
Paul Waugh (Rochdale) (Lab/Co-op)
My constituents, Barrie and Gill Fulton, live in a rural part of Littleborough, and therefore rely on LPG. Both Barrie and Gill have cancer, and they are worried sick about the price spike that they are seeing at the moment. Can my hon. Friend reassure me that the scheme will be flexible enough to take into account the needs of families like the Fultons? Does he also think there is a certain irony in Opposition Members complaining about the pain felt by their constituents as a result of a war that they directly support?
Martin McCluskey
I thank my hon. Friend for bringing the case of Barrie and Gill Fulton to the attention of the House. I can confirm that the guidelines stipulate heating oil and LPG, so they will be covered; determining who is eligible will be at the discretion of local authorities, but I hope my hon. Friend’s constituents can find some relief in that information.
Chris Kane (Stirling and Strathallan) (Lab)
Many households in the rural part of my constituency—including in Carron valley, whose community council I met on Friday—rely on heating oil and live in older housing stock that can be difficult to make energy-efficient. Many of those communities also have an older population. Does the Minister recognise the particular challenges this creates, and will the Government consider future measures that better reflect the nature of rural housing?
Martin McCluskey
In our warm homes plan, we came forward with proposals for England. The Scottish Government, unfortunately, have ditched their heat in buildings Bill, which would have provided some relief to my hon. Friend’s constituents. I hope that the Scottish Government come forward with an alternative soon.
Josh Fenton-Glynn (Calder Valley) (Lab)
In the rural parts of my constituency, one in 20 houses relies on heating oil. One of my constituents told me that his bill had gone up by 270%, while other constituents have had their deliveries cancelled. I welcome the £53 million of investment. I know it will be targeted through local authorities, but can the Minister give my constituents an indication of when that money will filter through to their bank accounts?
Martin McCluskey
The additional top-up funds will be available through the crisis and resilience fund from 1 April. What I say to my hon. Friend’s constituents and those of all other hon. Members is that they should contact their local authorities today if there is an issue so that, either now or after 1 April, they will be able to take advantage of that support.
Madam Deputy Speaker (Caroline Nokes)
I thank the Minister for his answers this evening.