Warm Homes Plan

Bill Esterson Excerpts

Wednesday 21st January 2026 Commons Chamber

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Energy Security and Net Zero Committee.

[Bill Esterson (Sefton Central) (Lab)]

I congratulate the Secretary of State—very warmly—on the warm homes plan, and not least on the universal nature of the offer: the support for people in fuel poverty, the health co-benefits in addressing cold, damp and mould, and the availability of cheap finance so that everybody can take part in the technical solutions that are available.

The ECO scheme, which failed so badly, has left a legacy. May I encourage the Secretary of State to address the concerns among consumers, industry representatives and the workforce, and also not to lose sight of the benefits in reduced bills through insulation, particularly loft insulation? On the subject of cheaper bills, the Select Committee has heard again and again that if people are to benefit to the maximum extent from the warm homes plan, we have to see reductions in the price of electricity, and a reduction in the gap between the price of electricity and the price of gas. The Secretary of State mentioned some welcome measures in his statement—the £150 off bills in April being a very good start—but can he confirm that more action will be taken to bring down the cost of electricity, so that as many people as possible can benefit from the warm homes plan to the maximum extent?

[Ed Miliband]

Let me address my hon. Friend’s questions; he speaks with great knowledge on these issues. On the ECO scheme, I think he refers to the installers, and it is important to emphasise the point I made in my statement: we want the extra money—the £1.5 billion allocated at the Budget—to help the installers, because they are going to face a difficult transition. He raises an important issue.

As I said in reply to the shadow Minister, the measures that my right hon. Friend the Chancellor took in the Budget are important in cutting the cost of electricity. All the evidence I have seen says that, with the right tariff, running a heat pump is cheaper than running a boiler. We continue to look at whether there are other ways we can bring down the cost of electricity, and my hon. Friend is right that we should do so.

On my hon. Friend’s point about insulation, my maxim is that the measures that will cut bills the most are what matters to me. I am not ideological about this. Whether it is insulation, heat pumps, batteries or solar, we should go for whatever can give us most bang for our buck in bringing down bills.