Net Zero Transition: Consumer-led Flexibility

Claire Young Excerpts

Tuesday 9th December 2025 Westminster Hall

[Claire Young (Thornbury and Yate) (LD)]

I beg to move,

That this House has considered consumer-led flexibility for a just transition.

It is a pleasure to serve under your chairship, Mr Vickers. We have a problem in this country—one that is hitting all our constituents in the pocket, while wasting electricity and pushing up carbon emissions. At the root of the problem is a mismatch between supply and demand. The places where it is cheapest to generate clean electricity are not the areas that consume the most, and our current grid does not have the capacity to move the electricity from one place to the other when demand is high. It was built to transmit power being produced by a limited number of large power stations, not the dispersed renewable energy that provides so much of our electricity today.

As we make ever greater demands on the grid, as we electrify transport and move away from gas for heating, the problem grows, and those demands are not felt evenly throughout the day. In particular, there is a big peak in the evening as people return home from work and school, cook their evening meal, plug in their cars and turn on the heating. Those peak demand periods do not necessarily match the peak supply periods of intermittent weather-dependent forms of generation.

Something has to be done to balance the grid, so how do we deal with the problem currently? We have the farcical situation whereby we all pay producers to turn off wind turbines in Scotland and pay others to turn on gas-powered fire stations in south-east England. Those constraint payments have already cost us nearly £1.3 billion this year, and it is predicted that that could rise to a massive £8 billion by 2030. All of us are paying those costs through our electricity bills. Paying producers to turn off clean power while paying others to burn fossil fuels sounds like madness, but it is the reality.

What can we do to solve the problem? We could fix it by upgrading the grid infrastructure, which needs to happen, but that takes time, and time is not on our side. We could fix it by building new power generation capacity in the areas that need it most, but that cannot be done quickly either, and do we really want to locate renewable energy capacity in suboptimal locations simply to meet local demand?

Fortunately there is an alternative: consumer-led flexibility—a way for households and businesses to flatten the demand, help to stabilise the grid, increase our nation’s energy security and cut everyone’s bills. Unlocking just 10 GW of consumer-led flexibility by 2030 would be the equivalent of a third of the UK’s entire gas power station capacity. It is more sophisticated than the old Economy 7 time-based approach. Smart technology can respond to signals from the grid and to users’ needs.

Imagine someone arriving home from work in their electric car—they do not need to use it again until the next morning, but it is easiest to plug it in when they get home so they do not forget to charge it. Unfortunately, it is the peak period, so they are adding to the peak demand, but with electricity costing the home consumer the same throughout the day, where is the incentive to do otherwise?

With a smart charger and tariff, and a car that can do vehicle to grid—giving power back to the grid from its battery—things could be different. Importantly, from the consumer’s point of view, little changes—they plug in when they get home as usual, and next morning, their car is charged and ready to go. But instead of charging straight away, a smart charger recognises that the car could give back some power now. That helps to boost supply at the time of peak demand, and that supply is being provided right where it is needed, not hundreds of miles away at the other end of an inadequate grid. Then the car is recharged later, when demand is lower.

There are many other, similar scenarios involving battery storage, smart appliances, heat pumps and thermal storage in homes and workplaces, which are all ways to intelligently shift energy use to times when it is cheap, clean and abundant. The upsides are huge, not least because, by cutting constraint payments and reducing the investment needed in new and upgraded energy infrastructure, the potential is there to cut bills for everyone, not just those who can participate.

The MCS Foundation estimates that consumer-led flexibility could cut £375 from the average household electricity bill by 2040. It can be deployed more quickly than building new infrastructure. It can reduce carbon emissions by reducing the need for gas. It can increase grid resilience, enhancing our energy security, and it can create jobs and growth, with UK companies exporting their know-how abroad.

[James Naish (Rushcliffe) (Lab)]

I declare an interest: I worked on RIIO-ED2 for the Northern Powergrid and on its business plan for the current price period. The hon. Lady mentioned the pace and speed of flexibility, and the whole concept behind that plan was flexibility-first. Flexibility has been talked about for a long time in the industry. Does she agree that what we need now is real urgency to make it happen?

[Claire Young]

I absolutely agree, and I am coming to those points.

The Government have set out a clean flexibility road map, and E.ON has found that 84% of people want more control over energy, so what is the catch? It might be said that this is all well and good for affluent consumers, who can afford the smart technology—the electric cars, battery storage and heat pumps, and the washing machines and dishwashers with timers so that they do not have to get up in the middle of the night to switch them on. It is all right for those who are digitally literate and for those who have heard of smart tariffs—let alone got their head around how they work. What about those who do not fit into those privileged categories? How does consumer-led flexibility fit with a just transition?

A report by the MCS Foundation in August found that 78% of people are unaware of schemes that reward households for reducing energy use at certain times and 41% are unlikely to switch to tariffs offering cheaper electricity outside peak times. If only a privileged few can access flexibility, will it deliver the potential benefits or simply place more of a burden on those already struggling to pay? It has the potential to lower all bills—as previously mentioned—by driving costs out of the system. That benefits even those who cannot participate. But we need to do more. To achieve the scale of change necessary, we need more action from the Government.

About three in 10 homes still do not even have smart meters, and the Government concede that, in those that do, one in 10 is faulty, while others put the figure even higher. That does not bode well for the roll-out of more advanced smart technology. What about the digitally excluded? The Government should oblige energy suppliers to engage with digitally excluded groups and those on low incomes on the benefits of flexibility. Does it not make comparing tariffs more complicated? Potentially it does, so why not support a “try it and see” approach by requiring energy suppliers to offer risk-free trial periods for time-of-use tariffs?

We have all seen, in other periods of rapid technological change, that some projects fail, so Ofgem needs to strengthen consumer protection, with clear redress powers if that happens. The Government’s own clean power action plan says that to reach clean power 2030, we need 12 GW of consumer-led flexibility—more than nuclear, hydrogen and carbon capture combined. But flexibility gets none of the coverage that those technologies do. It is all very well having a road map. What are Ministers actually doing to change the fact that nearly four in five people do not even know that they can be rewarded for changing when they use electricity?

The markets have been designed for the traditional fossil fuel generators, not for individuals and businesses that generate their own power or can offer storage. We need a presumption of openness in energy market design and rules to support them. If a rule from a market maker prevents a family with a battery, or a business with thermal storage, from participating in the market, it should be forced to justify why. The way that the network costs and final consumption levies work means that consumers cannot currently be paid to use excess renewable power when electricity prices go negative. That needs urgent reform. Imagine how much easier it would be to make the case for the clean energy transition if people could be paid for using clean, free power.

If flexibility is to be delivered, there needs to be clear accountability, without room for buck passing between the Department for Energy Security and Net Zero, Ofgem and the National Energy System Operator. The new flexibility commissioner needs to be given teeth, the ability to demand transparency and accountability from everybody involved, and the authority to call out failure. Have Ministers looked closely at the industry progress board that has been set up, and can the commissioner work with it?

It is time to give people the chance to take control and be active participants in our energy system, rather than being at its mercy. The road map, the commissioner and the technology are all in place, and we know that the public want more control over their energy and their bills. Will the Government take the extra steps needed to make this happen, or will they allow the dinosaurs of the old system to stand in the way? Let us move beyond the map to make this a reality and slash bills for everyone.

[Martin Vickers (in the Chair)]

I remind Members that they should bob if they wish to be called during the debate.

--- Later in debate ---

[Claire Young]

I will not test everyone’s patience either. I thank everyone for their contributions. Between us, we have highlighted not just the potential for lowering bills but, as the hon. Member for Washington and Gateshead South (Mrs Hodgson) explained, the benefits for local economies through the generation of good, clean energy jobs. The hon. Member for Strangford (Jim Shannon) highlighted the benefits for those in rural, off-gas areas, which many of my constituents will appreciate, and the importance of making the technology affordable.

I hope the shadow Minister, the hon. Member for Mid Buckinghamshire (Greg Smith), does not really want our constituents to continue paying for excessive fossil fuel generation when there is an alternative. It is important that consumer-led flexibility is about empowering our constituents, not forcing them to do things. It is also important that we support everyone who wants to participate, not just those for whom it is easiest. I thank the Minister for his response, which gives me some hope, but I will be keeping a close eye on this transition as it progresses.

Question put and agreed to.

Resolved,

That this House has considered consumer-led flexibility for a just transition.

Oral Answers to Questions

Claire Young Excerpts

Thursday 30th October 2025 Commons Chamber

[Chris McDonald]

We recognise the importance of the steel industry in Wales and of Trostre in particular, which has more than 70 years of tinplate production and is the only tinning line in the UK. I met the chief executive of Tata Steel this week to discuss this very issue. He referred to a softening in market demand, but fundamentally, this Government are committed to creating a better business environment for steel in the UK, so that it can compete with Europe, including on energy prices.

[Claire Young (Thornbury and Yate) (LD)]

T5. Small and medium-sized businesses in my constituency have told me about the impact that Trump’s trade war is having on their ability to export to the United States. What is the Secretary of State doing to support these vital job creators and ensure that British goods can continue to be sold worldwide?

[Blair McDougall]

The hon. Member raises an important point, particularly for small businesses, which rely on those schemes. I pay tribute to the Royal Mail for the speed at which it reacted to those de minimis changes to ensure that businesses were able to continue. We keep working with Royal Mail as well to ensure that that is possible.

Hydrogen Supply Chains

Claire Young Excerpts

Tuesday 9th September 2025 Westminster Hall

[Claire Young (Thornbury and Yate) (LD)]

It is an honour to serve under your chairship, Mr Betts. I thank the hon. Member for Rushcliffe (James Naish) for securing the debate, and his able substitute, the hon. Member for Worcester (Tom Collins), for opening it.

With good access to offshore wind resources, the UK is ideally placed to scale up green hydrogen production, and I can see the benefits of that locally. At IAAPs—the Institute for Advanced Automotive Propulsion Systems—which is just outside my constituency, work is being done on green hydrogen production and its uses in the aviation, marine and heavy transport sectors, and in June 2023 I attended the Western Gateway hydrogen conference.

The wider south-west and Wales could offer abundant renewable energy—the Celtic sea has huge offshore wind potential—which can anchor green hydrogen production alongside connected industries that can use the hydrogen. For example, in aviation, progress is being made by companies such as Airbus and GKN Aerospace, which employ hundreds of my constituents, and ZeroAvia, as highlighted by my hon. Friends the Members for Bath (Wera Hobhouse) and for South Cotswolds (Dr Savage).

I recognise the importance of the green hydrogen industry for growth and the high-value jobs that it brings for local people, as expanded on so well by, among others, the hon. Members for Middlesbrough South and East Cleveland (Luke Myer) and for Strangford (Jim Shannon). It brings huge decarbonisation benefits for things such as buses, as highlighted by the hon. and learned Member for North Antrim (Jim Allister), and adjacent benefits such as the production of fertiliser, as highlighted by my hon. Friend the Member for Caithness, Sutherland and Easter Ross (Jamie Stone).

However, we are not realising the potential for the UK to be a world leader for a number of reasons, as set out in the September 2024 report by Hydrogen UK on the hydrogen supply chain. The level of capital funding that the UK currently provides the hydrogen supply chain does not match the level in competitor regions. It has been slow to respond to a rapidly developing market and has not made the investment in infrastructure or skills needed to take advantage. As the Hydrogen Innovation Initiative has highlighted, the UK must act now.

[Wera Hobhouse]

Since there is a bit of a south-west mafia here, it might be worth mentioning those at the south-west hydrogen hub and to urge the Government to engage with them, because they are doing great work on the provision of hydrogen across the region and the sectors.

--- Later in debate ---

[Claire Young]

I thank my hon. Friend for her intervention, and I am grateful for the support of the wider south-west mafia.

Hydrogen UK has reported that unlocking storage infrastructure investment is urgently needed as the sector could require 3.4 TWh of large-scale hydrogen storage by 2030, which could increase to 9.8 TWh by 2035. Projects in the UK are currently smaller and lack visibility so project developers and off-takers stick with their international suppliers, and there is the ever-present problem for all small businesses of navigating the so-called valley of death as they grow.

The Liberal Democrats want to see investment in research and development of new green energy sources, which will be vital for developing new green hydrogen technologies and breaking our dependence on fossil fuels. We support a transition to clean, home-grown renewable energy sources to reinstate the UK as a world leader in renewable energy, to improve energy security and to bring down consumer energy bills: the importance of long-term storage to achieve that was highlighted in the introduction. Disappointingly, the previous Conservative Government failed to act with anything close to the speed or ambition that this challenge demands, and Putin’s barbaric and illegal invasion of Ukraine has exposed the risks of relying on countries that may seek to exploit dependence on fossil fuels and use it to their advantage.

Britan can lead the way on hydrogen innovation with our history of expertise, pioneering businesses and research institutions, but the Government have been criticised for failing to invest comparable amounts of capital funding in hydrogen to the level that other regions do. Hydrogen UK has called on the Government to support business-led innovation programmes, which would anchor supply chain growth into the UK and support collaboration with private business investment into key areas of the hydrogen supply chain. It has also called for a nationwide supply chain programme to leverage private investment into UK supply chains and key supply chain technologies, and to support both existing companies to pivot and new companies to enter the hydrogen market.

We want the Government to commit to winding down the oil and gas industry, but that must come hand in hand with a detailed plan for the redeployment of skills and local jobs. The economic impact assessment done by Hydrogen UK estimates that hydrogen can deliver significant economic benefits, including 30,000 jobs annually and £7 billion of gross value added by 2030. Trade unions in the industry are united in calling for substantial funding to build domestic renewable manufacturing but, disappointingly, the Chancellor did not commit to that in her most recent spending review. We urge the Government to invest in upskilling the existing workforce in adjacent sectors such as oil and gas, and to secure the investment that is needed to realise the job-creating potential of the green just transition.

Another key mechanism would be to link the UK emissions trading scheme with the EU’s, implementing a UK carbon border adjustment mechanism, making the business case stronger for low-carbon hydrogen in domestic supply chains, and adopt green procurement policies that support clean supply chain development. Finally, my right hon. Friend the Member for Kingston and Surbiton (Ed Davey) has repeatedly called for a sovereign green wealth fund to reinvest wind-generated revenues into green industries including hydrogen, promoting decarbonisation and manufacturing job creation across the UK.

To conclude, we urge the Government to put in place a comprehensive plan to support low-carbon technology for industries and homes, in particular to make the UK a world leader in hydrogen.

[Mr Clive Betts (in the Chair)]

I have had a note from the hon. Member for Strangford (Jim Shannon) explaining why he had to leave the debate. I fully accept his explanation and apology, and thank him for giving it to me.

Future of the Post Office

Claire Young Excerpts

Monday 14th July 2025 Commons Chamber

[Gareth Thomas]

I commend my hon. Friend for championing the post office in Cumbernauld and the communities around her constituency that depend on it and on the Post Office more generally. The most significant thing that we can do to help small businesses to access and deposit cash close to where they operate is to continue to try to improve the banking services provided through the Post Office. I hope that the banking industry will seize the opportunity of the Green Paper to work with the Post Office and with the Government to explore what more we can do collectively in that regard.

[Claire Young (Thornbury and Yate) (LD)]

In rural areas such as my Thornbury and Yate constituency, it can be difficult to travel to post offices in towns because of the lack of buses. If the Government are considering relaxing the distance and access criteria for post office provision, will they take that issue into account in setting new criteria?

[Gareth Thomas]

As I hope I made clear in my opening statement, and as the Green Paper certainly makes clear, our preference remains keeping the current size of the network and maintaining the access criteria. I say gently that there are strong views on that question, including some within the sub-postmaster community, but our preference at the moment is to maintain the current size of the network and the existing access criteria, because of the significance of the post office to every rural and urban community.

North Sea Energy

Claire Young Excerpts

Thursday 6th March 2025 Commons Chamber

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Claire Young (Thornbury and Yate) (LD)]

I thank the Minister for advance sight of her statement, much of which we can agree with.

The North sea gives the UK the opportunity to become a powerhouse in renewable energy generation, and it is time that we seized it. We urge the Government to make good their commitment to consult on a new regime to boost investment in jobs. We want to ensure that the oil and gas industry is wound down in a way that supports the redeployment of skills and jobs, and provides the right incentives to encourage fossil fuel industries to invest in green technologies. What details can the Minister give us of the support that the Government will provide to upskill and redeploy those who were formerly working in the fossil fuel industry?

We believe that much bolder action is urgently needed to ensure energy security, to cut bills and, with Donald Trump threatening to pull the United States out of the Paris agreement once again, to resume the UK�s global leadership role on climate action, which was abandoned by the previous Conservative Government. We urge this Government to introduce an emergency 10-year plan to insulate homes, starting with free insulation for the most vulnerable residents, and to introduce an energy social tariff to tackle fuel poverty and health inequalities caused by cold, damp homes.

We are deeply concerned about the cost of heating bills following Ofgem�s decision to increase the energy price cap by 6.4% this April�the third increase since October 2024. The Government must decouple electricity prices from the wholesale gas price and toughen up their windfall tax on the profits of oil and gas giants, including by increasing the tax by another two percentage points to a headline rate of 80%. Time and again, we have been disappointed by the decisions that the Government have taken this winter to delay energy bills support for households. For example, the Government�s warm homes scheme, designed to insulate homes, will not benefit households until�

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. There is always a maximum of two minutes, and you have exceeded it. Please be seated.

Closure of High Street Services: Rural Areas

Claire Young Excerpts

Wednesday 5th February 2025 Westminster Hall

[Jamie Stone]

I agree with my hon. Friend, and I will touch on that matter later in my contribution.

I want to go back to when I was a boy—some time ago, I might say. My hometown of Tain in the highlands was a vibrant and bustling place. It was a short walk up Shore Road from where I lived, where my father had a small farm, to the high street, where we got everything we needed, from lavatory paper in piles and pyramids in Ross the chemists, via Lesley the grocer, where we could buy broken biscuits in brown paper bags, to Hamilton Cormack, the local solicitor, who played the piano beautifully but, happily, never seemed to send out a bill. We had everything. Tain was a totally self-contained, prosperous community—but, oh my goodness, how very different today.

My constituency in the far north has long faced unique challenges. We have higher living costs, limited transport options and poor broadband connectivity. Rural areas such as mine have to contend with significant disadvantages compared with urban centres. We are all here today to talk about not just the loss of shops, banks and post offices, but the erosion of a way of life and a sense of connection, and a loss of public services and access to essential services that rural communities rely on.

Over recent years, our rural communities have faced unprecedented challenges. Once bustling with activity, like my hometown, they are now marked by shuttered windows and “for sale” signs. The causes are many. We know that they include the rise of online shopping, changing consumer habits, economic pressures and, of course, the rise of large out-of-town centre supermarkets. In my home in the highlands, those trends are compounded by rural isolation and limited access to alternative services. The closure of shops, banks, post offices and other essential services has left many residents in town centres feeling abandoned.

[Claire Young (Thornbury and Yate) (LD)]

In my constituency, we have thriving community shops offering a range of services beyond selling goods. For example, Tytherington has an outreach post office, and people can pick up their prescriptions at Hawkesbury Stores in Hawkesbury Upton. Does my hon. Friend agree that for many villages, volunteer-run shops are vital, and the Government need to do more to ensure they remain part of our rural high streets?

[Jamie Stone]

My hon. Friend is right on the money, and I will return to that point shortly.

Local businesses that once thrived now struggle to compete with online giants offering convenience and lower prices. This shift has not only impacted our economy but deprived our communities of vital gathering spaces—places where people can get together, where relationships are built and strengthened, and where we can have a good natter on the street corner.

Local Post Offices

Claire Young Excerpts

Thursday 30th January 2025 Commons Chamber

[Claire Young (Thornbury and Yate) (LD)]

I congratulate my hon. Friend the Member for Taunton and Wellington (Gideon Amos) on securing the debate. Having asked for a post office debate at business questions only two weeks ago, I was delighted when he secured this one.

In rural areas, such as my Thornbury and Yate constituency, post offices provide vital services that enable people to live their life. Since 2015, over 6,000 bank branches have closed across the country, making it harder for people to access their cash and use banking services. Many have been reassured that they can still access those core services through their post office, but now even that is at risk.

I agree with the hon. Member for Dunstable and Leighton Buzzard (Alex Mayer) on the importance of post offices to e-commerce. When I made my recent visit to my local sorting office, I was told that the Royal Mail is now a parcel delivery service with a sideline in delivering mail. Obviously, post offices play an important role in e-commerce and, in doing so, support local businesses.

The recent news that the Post Office was looking to close 115 Crown post offices was a huge blow; one of those post offices is in Yate. Residents tell me that it feels like a done deal, not a proposal open for discussion. When I met the area manager, although she said that no decisions had been made, there seemed to be a strong leaning towards moving all post offices to the franchising model, with all the risks that hon. Members have already mentioned.

[Mr Paul Kohler (Wimbledon) (LD)]

Raynes Park has an important high street in my constituency. There are no banks in Raynes Park, so our solitary post office is a vital lifeline, allowing residents and businesses alike to access banking, bill payments and traditional postal services. However, it is one of 115 Crown branches at risk, and my constituents are very concerned about the uncertainty. Does my hon. Friend agree that the Government should be giving assurances now, to provide communities with peace of mind, particularly the old and digitally excluded?

[Claire Young]

I absolutely agree with my hon. Friend, having seen the anxiety that the threat of closure is provoking in my constituents.

Yate post office is very busy; there are often significant queues of people waiting to access services. It is rather unusual, because it shares its space with the local sorting office, which operates from the second floor of the building. The quality of service would be negatively impacted if it were squeezed into another existing business. Yate and Chipping Sodbury have also lost several banks on the high street, with many people being told, as I said earlier, that they could rely on the post office instead. Now, even that is at risk, with Yate listed by the Post Office as one branch it is seeking to close. Residents are rightly angry about that, with more than a thousand signing my petition to keep the post office open.

Sadly, it is not just the Crown post offices that are threatened with closure. We recently had confirmation that the post office in Cromhall is set to close, due to the closure of the village shop in which it is based. That means that the neighbouring outreach branch in Tytherington, which is overseen by the same sub-postmaster, is also at risk. The sub-postmaster told me how the post office at Tytherington is busier than the one in Cromhall, fuelled by the fact that nearly all the banks in nearby Thornbury have closed. Indeed, Lloyds has added itself to the list today. Tytherington post office also has strong support from customers using Royal Mail services for businesses, as it has a sizeable free car park, making it convenient for them to bring their parcels, letters and banking to the post office counter. Despite that, the Post Office refuses to allow the Tytherington branch to become a stand-alone site, and that is causing huge concern for residents.

The Tytherington branch is well supported and is an essential service for residents, many of whom do not have private cars. There is no public transport in the village, meaning that the loss of the post office would leave some people utterly cut off. The post office is based in the thriving community shop, which is run by volunteers and also provides a vital service to the local community. In the wake of the news, a grassroots petition supporting the post office in Tytherington has gained more than 800 signatures in just over a week. However, the Post Office said to me that it would not review its decision because,

“In the area there is a Main Post Office at Thornbury and a Local branch at Alveston—both are within 3 miles of Tytherington.”

That is completely tone deaf and ignores the lack of public transport. What are those without cars meant to do?

The Post Office has said it is keen to explore a new outreach service and the possibility of a new branch, but all that will take time, especially as it is contingent upon finding a new sub-postmaster to do it. It even admits that it is likely the branch will close before an alternative can be found. That means that in just a few weeks’ time, no immediate service will be available in the village. I will do all I can to make sure we secure a post office service at Tytherington and in Yate.

In closing, I ask the Minister: does he agree that relying solely on the franchising model of post offices carries risk and that there are benefits to preserving the stand-alone offices? Will he also commit to supporting community outreach post offices based in thriving community shops?