Andrea Leadsom
Main Page: Andrea Leadsom (Conservative - South Northamptonshire)(8 years, 5 months ago)
Commons ChamberRead Full debate Read Hansard Text
Judith Cummins (Bradford South) (Lab)
18. What assessment she has made of the effectiveness of her Department’s spending on energy efficiency schemes in reducing fuel poverty.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
From 2013 to the end of August this year, the energy company obligation had installed about 887,000 energy efficiency measures in more than 700,000 households on low incomes or in deprived areas. We are clear that the support should go to those in the greatest need.
Tulip Siddiq
I thank the Minister for her answer, but the huge drop in the installation of energy efficiency measures over recent years gives me no confidence that the Government are taking the scandal of fuel poverty seriously. Research by the Association for the Conservation of Energy has shown that the installation of energy efficiency measures dropped by a staggering 65% between 2012-13 and 2014-15. What steps is the Minister taking to reverse that shocking trend?
Andrea Leadsom
We are proud to have achieved more than 887,000 measures on energy efficiency. As my right hon. Friend the Secretary of State said yesterday, we will redirect our ECO budget in the coming years towards those in greatest need and those who are suffering from the worst impacts of living in cold, damp or drafty homes.
Judith Cummins
With the withdrawal of Government funding for the green deal finance company, it is now even harder for overstretched families to afford energy efficiency schemes in their homes. Too often, poor quality housing stock leaves families in fuel poverty. What funding will the Minister introduce to help families to save money on their increasingly unaffordable energy bills?
Andrea Leadsom
The green deal plan was a small percentage of our measures, and it was closed to new entrants precisely because it did not have the take-up that we had hoped for. Some 96% of installed measures are delivered through ECO, and, as I have explained, we have put in a bid to focus our ECO even more on the fuel poor, which is our top priority.
Clive Lewis (Norwich South) (Lab)
Let us get to the crux of this issue. The Department’s stated goal is for as many fuel-poor homes as is reasonably practicable to be rated at least at band C for energy efficiency by 2030. However, between 2010 and 2013 that was achieved for only 70,000 fuel-poor households, leaving 95% still to be improved. Does the Minister accept that at that rate of progress, her Department will miss its 2030 target by 100 years?
Andrea Leadsom
I do not agree with that. The key point is that an enormous number of homes do not currently reach the band C efficiency level, and we are determined to improve that as far as possible. That is why my right hon. Friend the Secretary of State announced yesterday that we will focus all our energy efficiency and fuel poverty budgets on the most needy. That is vital.
Nick Thomas-Symonds (Torfaen) (Lab)
7. Whether she will support proposals for a global goal on adaptation at the Paris climate conference in December 2015.
Stephen Metcalfe (South Basildon and East Thurrock) (Con)
10. What steps she is taking to encourage the building of further new nuclear reactors.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
My hon. Friend will be aware that the Government are committed to an expansion of new nuclear power, which is a vital part of our work to build a clean, affordable, safe and reliable energy system for the future. The industry is taking forward proposals to build six new nuclear power plants, providing 18 GW of low carbon power in the UK. We are in regular contact with it.
Stephen Metcalfe
Following the recent welcome announcement that China will be involved in the provision of new nuclear, will my right hon. Friend reassure the House and my constituents that all proper safety and security measures will be taken, and that a robust mechanism for monitoring such will be in place?
Andrea Leadsom
Yes, I can absolutely reassure my hon. Friend. Safety in our nuclear plants is of paramount importance. Any operator of a UK nuclear plant must meet the UK’s stringent safety and security regulations, which are enforced by an independent regulator. They provide a whole range of controls, including safe and secure operation, consumer protection, security of UK supply and enforcement of contractual obligations.
Caroline Lucas (Brighton, Pavilion) (Green)
I wish the Government would apply their horror of subsidies to the nuclear sector. The Secretary of State’s response to the cross-party objection to the departmental minute on Hinkley fails to address concerns that rather than a £19 billion liability on the public purse, Hinkley may in reality mean an eye-watering £45 billion bill for householders and taxpayers. That is just for one new power station that will not boil a kettle for another decade. At the very least, does she agree there must be a full Commons debate on the issue and an independent examination of the costs before proceeding?
Andrea Leadsom
The hon. Lady can, of course, use the normal methods for encouraging a debate. There have been many already. Hinkley Point offers low carbon affordable energy that is highly cost-competitive with clean energy sources. The point is that it is base-load. The UK bill payer will not have to pay a penny until it is actually generating. That is very good value for the UK bill payer.
Rebecca Pow (Taunton Deane) (Con)
First, I would like to congratulate the Secretary of State on her masterly speech yesterday.
Does the Minister agree that we need a mix of energy, including nuclear, which I am pleased to say we have in my area of Somerset, as well as solar and wind? It has to be a balance, it has to be at the best cost and it has to be about innovation, which will, in itself, create the sorts of jobs in the energy sector that Opposition Members are worried we are losing.
Andrea Leadsom
My hon. Friend is exactly right. We need an energy mix, which is exactly what we are achieving and what my right hon. Friend the Secretary of State set out in her speech yesterday. I was delighted to visit Hinkley Point last week and see the enormous pride and excitement in the area about the prospective jobs and work in the supply chain and the huge investment in the area. It is really good news for the UK and our energy security.
Helen Goodman (Bishop Auckland) (Lab)
Will the Minister remind the House how much the Government are spending on nuclear decommissioning and explain why it is the one sector to which market discipline does not seem to apply?
Andrea Leadsom
The hon. Lady will know that the UK has an enormous nuclear legacy dating back to the 1940s and ’50s. A huge amount of work is being done at Sellafield and other sites to dispose safely of that nuclear waste. As she will know, the budget is extremely large—in the region of £3 billion—but that money is being spent to deal safely with this very long legacy. I can assure her, however, that new nuclear creates far less waste. We are planning a geological disposal facility to make sure that future taxpayers have nothing like that legacy to deal with.
Imran Hussain (Bradford East) (Lab)
11. What discussions she has had with the Secretary of State for International Development on preparations for the Paris climate conference in December 2015.
Mr Graham Allen (Nottingham North) (Lab)
12. What steps her Department has taken to encourage schools to invest in solar energy; what discussions she has had with the Chancellor of the Exchequer and the Secretary of State for Education on the effect of borrowing restrictions on investment by schools in solar energy; and if she will make a statement.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
In April 2014, my Department published a leaflet encouraging schools to invest in solar PV, which was followed up with a letter to local authorities in November 2014. We encourage deployment through the financial incentive of the feed-in tariff, but discussions are always ongoing with other Departments on what more can be done to help schools invest in solar.
Mr Allen
Thousands of schools cannot make their contribution on renewables and save thousands of pounds each year because of the Chancellor’s rules on borrowing to install solar. One school, Wilmslow High, wants to do this, and its local MP, a Mr George Osborne, has said:
“I am happy to support you wherever I can”,
but he is awaiting a reply from the Department of Energy and Climate Change. Will the Department reply to the local MP so that he can make representations to himself as Chancellor and end these ridiculous rules?
Andrea Leadsom
I would like to apologise publicly to the local MP. I shall look into the matter today. Restrictions on school borrowing are necessary, however, to protect public sector accounts. School borrowing contributes to public sector net debt and borrowing—two important fiscal measurements that we must control in order to bring down the national deficit and retain economic confidence—which is why we have no plans to lift restrictions on borrowing.
Mr Speaker
I feel sure that the Minister will have looked into the matter by lunch time.
Ruth Cadbury (Brentford and Isleworth) (Lab)
19. What assessment she has made of the effect of proposed changes to feed-in tariffs on solar power companies in the UK.
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
During consultation on the proposed changes to the feed-in tariffs, we strongly encouraged all parts of the small-scale renewables sector to provide evidence on the likely impact. The actual impact on solar companies will, of course, depend on the options taken forward when the responses to the consultation have been considered.
Alex Cunningham
The Minister will be aware of the thousands of job losses on Teesside, with steel, construction and mining all shedding people. Even the Government are contributing to the misery, sacking hundreds of employees at Her Majesty’s Revenue and Customs. Does she really want to add thousands more from the solar, energy conservation and energy-intensive industries as a direct result of her policies?
Andrea Leadsom
We are huge supporters of the solar sector. The point is that there is a balance to be struck between the enormous success in deployment, which is exceeding our expectations, and the impact on the bill payer. We have to keep that balance. We have consulted on it and will issue our response in due course, but it is absolutely our intention to see the solar sector continue to thrive.
Michelle Donelan
A number of leading solar community projects and green energy companies are based in my constituency, including Good Energy, which supplies more than 50,000 UK consumers. People who work in the industry fully understand the need for it to be sustainable, but they feel that a drop of up to 87% overnight is more than the industry can cope with, in terms of local jobs and growth. Will the Minister look at what more can be done to support existing projects and for mechanisms to keep the solar industry alive until grid parity is reached?
Andrea Leadsom
I am grateful to my hon. Friend for raising this very important matter for her constituency. I can absolutely assure her that we are looking at it carefully. I had a round table meeting with a number of solar firms and heard their views at first hand before the consultation closed. We are looking carefully at the more than 55,000 responses and will come forward with our policy response as soon as we can.
Ruth Cadbury
Virginia Fassnidge is one of my constituents who installed solar panels to cut her family’s household bills and save carbon. Will the Minister explain to those who want to follow her example why they should, when the 98% cut to the feed-in tariff subsidy scheme no longer makes it attractive to consumers, risks the very viability of the domestic solar industry when it is about to become viable without subsidy and completely undermines the Secretary of State’s solar revolution?
Andrea Leadsom
I am grateful to the hon. Lady for her question. Obviously her constituent will be pleased to know that the subsidy from the bill payer that she has received will continue to be available to her—I think there has been some confusion about that point. For those who come later, the proposal in our consultation is for the return to investors to be in the region of about 4%, as opposed to the current level, which is significantly higher. We were required by the EU to look at the tariffs on a three-year basis and that is what we have done. We have put forward a proposal and we are looking carefully at the responses.
Clive Efford (Eltham) (Lab)
The Government’s decisions have had a devastating impact on our manufacturing industry in the UK. That flies in the face of exactly what the Government say they want to achieve in creating an industrial balance within our economy. Just like the steel industry, the Government have been found wanting.
Andrea Leadsom
We have a big and growing energy sector. We are bringing forward policy proposals to develop new sources of energy, which will mean a whole raft of new jobs and new opportunities for people, but there is always a balance to be struck. What we cannot do is permanently subsidise at the expense of the bill payer; many issues have already been raised about fuel poverty. In the end, industries need to stand on their own two feet.
Nigel Huddleston (Mid Worcestershire) (Con)
T1. If she will make a statement on her departmental responsibilities.
David Mowat (Warrington South) (Con)
Far and away the dominant zero-carbon technology, in the United Kingdom and globally, is nuclear power. I welcomed the earlier announcement that we were working on six new stations in the UK, but an emerging technology involving small modular reactors is causing a great deal of excitement, and could make a big difference. Does the Minister expect the UK to play a part in that?
The Minister of State, Department of Energy and Climate Change (Andrea Leadsom)
I am grateful to my hon. Friend for raising this issue. The UK gave up its ability to design and export nuclear reactors some years ago, and we are currently at the forefront of looking at new nuclear technology, including small modular reactors. I recently met representatives of the Nuclear Innovation and Research Advisory Board to discuss some of their exciting ideas, and, subject to the spending review, I think we shall be hearing more about them.
Anna Turley (Redcar) (Lab/Co-op)
T3. Community-led renewable energy schemes empower communities, tackle fuel poverty and provide jobs, so why is the Secretary of State sitting back and letting the Treasury do a U-turn on social investment tax relief, given that that will undermine new schemes? Does she support community energy schemes, and, if so, will she update the House on her plans to support this important part of the co-operative sector?
Andrea Leadsom
The hon. Gentleman will be aware of the CCS competition that is going ahead. I have had meetings with the association which promotes that area. As the hon. Gentleman will know, the spending review is coming up and decisions will be made then, but the United Kingdom has been a keen supporter of CCS here and in other countries, and we have spent a great deal of money on trying to explore the opportunities for the UK to extend the life of our fossil fuels.
Kevin Hollinrake (Thirsk and Malton) (Con)
There is an application to explore for shale gas in the beautiful area of Ryedale in my constituency. Assuming the application and the exploration are successful, what assurances can the Minister offer that an expansion of the industry will not lead to an industrialisation of that beautiful area?
Andrea Leadsom
I can absolutely assure my hon. Friend that all onshore oil and gas projects, including shale gas projects, are subject to scrutiny through the planning system, which addresses impacts on residents such as traffic movements, noise and working hours, and that national planning guidance says that, in respect of minerals such as shale oil and gas, new developments should not just be appropriate for their location but take into account the effects of pollution, including the cumulative effects, on health, the natural environment or general amenity, and the potential sensitivity of the area. I am well aware of what a beautiful area he lives in and I assure him we are absolutely focused on that.
Sue Hayman (Workington) (Lab)
T7. May I urge the Minister to look carefully at the impact that any spending reductions in the nuclear sector would have on our supply chain in West Cumbria? Ahead of the spending review, will she press the Chancellor on the need to support our local supply chain through the ongoing decommissioning at Sellafield, alongside the nuclear new build at Moorside?
Andrea Leadsom
I am delighted to tell the hon. Lady that there are huge opportunities for West Cumbria from new nuclear. I have visited Sellafield and the new plant at Moorside. There are enormous opportunities. People are already being recruited. It is believed that, across the UK, we will need to recruit about 8,000 people a year. There are lots of new apprenticeship opportunities. Having met local councillors in the area, I know that they are very excited and positive about the opportunity.
Alan Brown (Kilmarnock and Loudoun) (SNP)
At present, the National Grid pays out £1 billion a year in balancing charges, which is passed on to electricity users. Transmission charges are not fit for purpose. The Government have removed onshore renewable subsidies, and community energy schemes are under attack too. We have a regulation system that was designed 30 years ago. So instead of the rush for new nuclear and ad hoc ministerial announcements, is it not time the Government took a step back and had a proper strategy on energy policy?
Ian Lavery (Wansbeck) (Lab)
If the Government are serious about meeting the targets on emission levels, instead of yesterday announcing the closure of the coal-fired power stations, would it not have been eminently sensible to come forward with a serious attempt at carbon capture and storage, which would enable us to burn the fossil fuels, coal and shale gas with near-zero emissions, providing secure, affordable energy for generations to come?
Andrea Leadsom
I agree with the hon. Gentleman in part, in that there is the opportunity for CCS to enable us to use fossil fuels for longer, but the reality is that the UK coal fleet is extremely old. All of those coal plants are due to come off in the next few years and we would not want to be building new coal-fired power stations now when there is the lower-carbon alternative of gas and the whole prospect of a clean low-carbon future.
Caroline Lucas (Brighton, Pavilion) (Green)
Recent analysis shows that UK power could be almost 90% renewable by 2030, while electrifying 25% of all heating demand and putting around 12.7 million electric cars on the road, but that would require cutting demand for space heating by over 50%. That means much smaller bills, too. The Secretary of State has clearly been spending a lot of time with the Chancellor recently; can she tell us whether energy efficiency will be a Treasury infrastructure priority in the future?
Clive Efford (Eltham) (Lab)
I am grateful, Mr Speaker.
The Minister said in earlier answers that she wants the renewable energy industry to be sustainable financially and commercially successful, but at the same time the Government have taken the subsidies away at a rate that has damaged the industry, and they have not applied that policy to nuclear. Surely she can see the damage being done and the inconsistency in the Government’s approach.
Andrea Leadsom
The hon. Gentleman will realise that there is a balance to be struck. We have seen enormous bill payer-led subsidies for onshore wind, solar and other clean carbon technologies, and there is a balance to be struck: the bill payer cannot be expected to foot the bill for an unlimited period. On nuclear, private investment is going into Hinkley C. The taxpayer will not be paying anything until that produces, and the cost per megawatt hour generated of electricity will be very competitive with present clean carbon costs.