Household Energy Debt

Jim Shannon Excerpts

Tuesday 23rd April 2024 Westminster Hall

[Kenny MacAskill (East Lothian) (Alba)]

I beg to move,

That this House has considered levels of household energy debt.

It is a pleasure to serve under your chairmanship, Sir George. It may seem strange to be debating energy debt with summer fast approaching. However, although the weather has largely improved, the energy debt situation most certainly has not. Millions have not bright sunshine, but black clouds hanging over them. Growing numbers in Scotland and across the UK are struggling, and many are drowning, as debts mount but energy needs remain constant. Ofgem has found that energy debt levels now stand at a staggering £3.1 billion—billion, not million—and that the average debt has increased by about 50% over the last 12 months, with the number of households in debt increasing by about 20%.

The situation is worsening. National Energy Action, a fuel poverty charity, estimates that even with new price cap levels, about 6 million households in the UK will be in fuel poverty. The situation in Scotland, with its more northerly latitude and harsher climate, is even more bleak. Energy Action Scotland suggests, based on the Scottish Government’s house condition survey, that fuel poverty afflicted 31% of households in 2022. That is almost one third of people in an energy-rich land that powers the UK economy living in fuel poverty—and that was two years ago. In northern areas and the islands, the figure was almost, or even over, 50%. Those are the parts closest to the oil and gas fields, yet they are denied access to affordable fuel.

The new bounty of renewable energy adds to the perversity. Scotland is providing 124 billion kWh to be cabled south. That is enough to power Scotland’s homes 12 and a half times over, yet many Scots cannot afford to heat their own home. What an absurdity for a country to be energy rich, yet its people fuel poor.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Gentleman for bringing this issue forward. He is right to highlight fuel poverty. In England, the fuel poverty figure—the proportion of households where more than 10% of wages go to pay for fuel—is about 13%, and he mentioned that in Scotland it is 31%. In Northern Ireland, it stands at 22%. Does he agree that people need help? As he rightly said, just because the summer months are coming and it will get better does not mean that the problem is disappearing. We must take more effective steps right now, and we look to the Minister for the answers.

[Kenny MacAskill]

I fully accept the hon. Member’s intervention. This is an issue across the United Kingdom, including Northern Ireland. Climatic matters are worsening the situation in Scotland, but other factors affect other areas. As I will go on to say, the days of the summer months being some protection are long passing.

What does this mean for those in debt? They are real people, not statistics. Citizens Advice Scotland states that the average fuel debt for someone seeking its help is about £2,300. That is just the average—for some, it will be worse—and it is only for fuel; people may have other debts as they juggle their finances trying to manage. During 2023, the disability charity Scope received 7,422 referrals to its disability energy support service. Of those referred, 364 were in debt. Disabled households require an additional £975 per month simply to have the standard of living of a non-disabled household, yet their average debt is more than £1,100.

According to Age Scotland, older people have been massively impacted. Its research highlights that the majority of over-50s in Scotland feel financially squeezed and are cutting back on essentials, yet pensioners in Scotland have the highest rates of fuel poverty, with 36% in fuel poverty according to the most recent data. Worryingly, 24%—more than any other household group—are classified as living in extreme fuel poverty. All those statistics will have worsened as energy prices have risen and the general cost of living increased. The perversity of having to choose between heating and eating is growing, not diminishing. These are not just numbers or statistics; they are human beings, some of them even children.

While spring is usually a season for looking forward with anticipation, this spring has seen the heaviest rainfall ever recorded in many parts of Scotland, and with that rain come damp and cold. The days may be getting longer, but the need to heat homes remains as vital as when the nights were longer. Climate change is making our climate more changeable, but that simply makes it more challenging. As inclement weather straddles even supposedly moderate months, heating is often a year-round requirement, and not just for those who are unwell or housebound. The seasons turn and summer will be followed by autumn and then winter, exacerbating an already difficult situation. The thought of the colder months to come will send a shiver through many—from fear, not cold.

Energy is about access to not just heat but power. It allows the mother to power the washing machine to keep her kids clean and tidy; the parent to power the school laptop, ensuring that those children can achieve their educational potential; and individuals to charge their phones in order to access employment opportunities, benefiting not just themselves but society collectively. Rather than berating and punishing people for not being in work, maybe the Prime Minister would be better advised to assist them in achieving it.

The need for power even applies to those who need life-saving equipment. Ill health not only often keeps people housebound but makes them more susceptible to the cold. Being able to keep warm is essential for recovery. Similarly, dialysis and oxygen are not luxuries to prettify someone’s home; they are essential for their very existence. That is why the debate is urgent. The time to act is now, not when winter is upon us. By then the situation will be even worse for many, and tragically it may even be too late for some.

National Energy Action advised that not only are more people falling into debt but those already in debt are seeing their situation worsen. Only about one third of the overall debt figure of £3.1 billion consists of debt where there is an arrangement to pay. That arrangement may be manageable for many, but for some it might prove too much, as energy and other costs increase. What happens then? Two thirds of that debt—over £2 billion—consists of “arrears”, which is defined as debt without a repayment arrangement. If someone has no plan for how to repay, and is struggling to meet their current bills without even considering meeting arrears that have accrued, how will they get through spring, let alone winter? Many people see no way out of the morass facing them.

Action is needed to address energy debt every bit as much as the continuing crisis of energy costs. Ofgem has called for inputs on debt and affordability, with submissions closing on 13 May. However, Ofgem is a creature of statute; it can only do what it is authorised to do, and the parameters and the final decision remain with Government. That is another reason why this debate is apposite: it is not just that the situation is worsening, but that the decisions must be made now.

Those facing this crisis with the burden weighing them down are not the feckless or ne’er-do-wells who never seek to pay their way, but the poorest and most vulnerable in our society. It is not a “won’t pay” campaign, as I once ran in Scotland against Thatcher’s poll tax, but simply a “can’t pay” situation for those who just do not have the cash or wherewithal.

Another cruelty of our energy market is that those with the least pay the most, hence they face the highest risk of debt, not just difficulty in paying their bills. Energy costs have increased for all, but the proportion paid by the poorest and most vulnerable is greatest. As National Energy Action pointed out, standing charges have almost doubled over the past five years, with households now paying over £300 regardless of payment method. It is an energy poll tax that hits the poorest hardest. The billionaire with his swimming pool pays the same as the widow with her kids in a council flat. Charges vary across the country, with those in colder Scotland paying a higher rate than those here in London.

Tariff prices are also highest for those least able to pay. Standard credit is far more expensive than direct debit, but for some no other method is available. They are left paying more from a smaller budget. Prepayment has seen tariff costs belatedly reduced and is now the cheapest tariff, but it can have other issues for those forced to pay by that means. Let us recall that the moratorium on forced installation of prepayment meters has ended. Warrants are now being obtained to force them on even those who do not want them, for they obviously suit suppliers, who can monitor and even restrict consumption, even if more people will be afflicted by that perverse euphemism, “self-disconnection”—a benign phrase, but a wicked outcome. It is not a voluntary choice, but imposed by financial circumstances. Lacking the funds to buy the card or pay for more credit, people simply go without.

Let us also remember that putting people on to prepayment meters has other significant consequences. As Citizens Advice Scotland points out, it results in debt repayments being added to consumption charges—folk pay more but get less, with debt, not just standing charges, to be met before they even get a flicker—and people may not be able to switch supplier even if lower tariffs are available.

The Government will claim that energy prices have fallen and, of course, over the recent period that is most certainly true; however, the baseline is not last year, but when the energy crisis arose. Prices are far higher than they were then, and the supposed global issue of energy costs, whether due to the war in Ukraine or other international pressures, has seen prices in the UK rise far higher than in other lands. Everyone is suffering as a result—business and domestic customers—but it is the poorest and most vulnerable feeling the most pain.

Moreover, while the energy price guarantee has dropped, let us not forget that there has been sleight of hand. Not only is the guarantee predicated on average costs, hence it takes no account of differing circumstances—climatic issues in northern parts, personal needs such as ill health, and so on—but the average energy consumption used in formulating it was reduced, as it was stated that household insulation had improved. Of course, that is the case for many well-insulated new homes, but in all likelihood it will not apply to someone in an older property, whether they own it or live in a council house, are a housing association tenant or have a private landlord, yet their needs remain the same.

National Energy Action states that if it was calculated on the former assessment, the price cap would be £1,769, not £1,690, for the typical dual fuel household. That is almost an additional £100 for those in the poorest housing stock to find. Prior to the crisis, the price cap for the typical dual fuel household paying by direct debit was £1,138. It is now 56% higher, but costs have risen even more for those in harder-to-heat households or on higher tariff payment methods.

Ofgem acknowledges that there is £3 billion of debt in the energy market. The End Fuel Poverty Coalition calculates that there are allowances in the energy price cap to service that debt amounting to £1.5 billion per annum. That just pays for servicing the debt, not for reducing it. Can the Minister confirm whether that is the case? If that is happening, how is it being calculated, collected and distributed? Where is the transparency? Are consumers paying for their suppliers’ accrued debt? Surely we are entitled to know what we are paying for and what the big corporates are getting from us.

We know that there is a crisis at the moment and that the winter to come could be harsh and cruel, so what is to be done? First, a social tariff, once alluded to by Ministers and standard in many lands—even those without the exorbitant prices we face—should be introduced. That would provide solace for the poorest and most vulnerable. Secondly, we should restore the moratorium on the forced installation of prepayment meters, which is iniquitous and cruel.

Thirdly, the warm home discount scheme needs to be reviewed and enhanced. Rather than being issued arbitrarily to second home owners—never mind to those not requiring them, as was once done—payments should be centred on those most in need, addressing hardship and mitigating existing and even increasing debt. The current support of £150 is simply inadequate and too many are missing out entirely, even though they are entitled and in need. The payment was £140 before the energy crisis arose and prices rocketed; it badly needs to be increased to reflect that. The Social Market Foundation has made proposals that the Government would do well to adopt.

Finally, we need a debt write-off scheme, as suggested by National Energy Action. The amount owed and the number in debt are such that many can never make full repayment. The only way to achieve much reduction is to provide support through matching payments. The details of the scheme can be discussed, but the principle should be non-negotiable. It need not be a blank cheque for others simply to cease paying; it could be time limited to debt incurred during the fuel crisis, and other criteria could be applied. Banks were bailed out. Wastage of personal protective equipment, if not fraud, has been written off. It seems that there are unlimited funds for weapons of war, but not for a war on poverty. If assistance can be given to the few, similar support should be provided for the many.

Energy debt levels are rising and, with winter looming, fears for access to warmth and power, as well as for people’s ability simply to keep body and soul together, are increasing. Those are basic human needs and should be human rights. Action needs to be taken to ease the cost of energy and reduce the burden of debt for the poorest and most vulnerable. Will the Minister meet me and representatives of National Energy Action to discuss the crisis? Even more importantly, will she address the perversity of fuel poverty in an energy-rich land?

Solar Supply Chains

Jim Shannon Excerpts

Tuesday 16th April 2024 Commons Chamber

[Alicia Kearns]

I could not agree more with the hon. Gentleman—he is absolutely right. I tabled a very similar amendment to the Energy Bill last year, which I will touch on later.

In 2021, Sheffield Hallam University published a report, “In Broad Daylight: Uyghur Forced Labour and Global Solar Supply Chains”. It summarised the situation as follows:

“Many indigenous workers are unable to refuse or walk away from these jobs, and thus the programmes are tantamount to forcible transfer of populations and enslavement.”

The university’s second report, “Over-Exposed”, went further, creating a ranking system for solar companies based on exposure to Uyghur slave labour, which I will come to later in more detail. The two reports were funded by the Foreign, Commonwealth and Development Office, yet their findings do not been appear to have been enacted.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Lady for bringing forward the debate. We spoke earlier today. She always leads from the front and I congratulate her on doing that on this important issue, which hon. Members may not know much about. Does she agree that any hint of forced labour means this supply chain should not ever have Government backing and funding? We must hold ourselves to the highest standard on matters of forced labour in every supply chain that may be centrally funded.

--- Later in debate ---

[Andrew Bowie]

On my hon. Friend’s latter point, there will be more detail on exactly how the auditing process will proceed when we publish the solar road map in the next few months. On her former point, I must be absolutely clear from this Dispatch Box that if a company is engaging in buying pieces of equipment that they knowingly know have been developed using slave labour in Xinjiang, or indeed anywhere else in the world, they should be held to account and they absolutely should not be allowed to remain a part of the initiative. That is absolutely the view of the Department, this Government and, indeed, the wider industry.

The Government already encourage developers to grow sustainable supply chains through the supply chain plan process included in the contract for difference scheme for projects over 300 MW.

[Jim Shannon]

The Minister referred to 55 companies, and I presume they include companies from Northern Ireland. It is important that we have a policy that affects all of the United Kingdom of Great Britain and Northern Ireland so they are all accountable.

[Andrew Bowie]

I assure the hon. Gentleman that what we are speaking about and the industry initiatives that I am laying out cover every part of our United Kingdom of Great Britain and Northern Ireland, and if any companies are involved in Northern Ireland, they will of course be covered by the schemes and initiatives and, indeed, by the legislation we have passed to ensure that we get to the root cause and remove slave labour from the supply chain.

The UK has the scope to grow industries that produce innovative solar technology while also crystallising our position as world leaders in cutting-edge solar research and development. In doing so we can create new green jobs and provide levelling-up and significant export opportunities while building up UK capability and resilience and increasing energy security by reducing our reliance on imports. Meanwhile, we support our allies’ efforts to increase and accelerate the diversification of solar supply chains by reshoring manufacturing. We continue to work with countries including the US, Canada and Germany to ensure that access to solar supply chains remains resilient.

My hon. Friend the Member for Rutland and Melton referred to the situation of solar on agricultural land. The Government recognise that in some instances solar projects can affect the local environment. It is important that the Government can strike the right balance between such considerations and securing a clean, green energy system for the future. That is why the planning system is designed to take account of such issues. However, I am aware of the number of issues arising from deployments and planned applications, and I am engaging on the issue with many colleagues and their communities, discussing with them what we can do to ensure that community concerns are listened to.

I again thank my hon. Friend for bringing forward this important issue, and look forward to continuing to engage with her on it.

Question put and agreed to.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 16th April 2024 Commons Chamber

[Claire Coutinho]

I thank the hon. Gentleman. I have been following tidal power for many years, and he is right to point out that the UK has both a strong record in renewables and an interesting geological landscape for new renewable technologies. We have dedicated £105 million—our biggest ever budget—to the flow of emerging technologies through AR6, but I would be delighted to meet him to discuss his work further.

[Jim Shannon (Strangford) (DUP)]

I thank the Secretary of State for her response. There is always a competition. As I represent Strangford, the fishing sector is very important to me. It is important that we have floating offshore wind projects, but also to ensure that fishing can be sustainable. In these discussions, can she confirm that the interests of the fishing industry and representation from the fishing industry are given appropriate weight, taking into consideration the need for sustainable fishing to continue? Without fishing my people will lose jobs.

[Claire Coutinho]

I thank the hon. Gentleman. We are passionate supporters of the fishing industry. We continue to have conversations with the Department for Environment, Food and Rural Affairs to ensure that we share our marine bed in an equitable way, not only getting the most out of it for our clean energy needs but protecting the fishing industry.

Cavity Wall Insulation

Jim Shannon Excerpts

Tuesday 26th March 2024 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to speak in this debate and to serve under your chairmanship, Mrs Latham. I thank the hon. Member for Halifax (Holly Lynch) for leading the debate. Things are different in Northern Ireland, and it is not the Minister’s responsibility to reply for Northern Ireland, but I wanted to come along to support the hon. Lady in her request for justice. Ultimately, that is what she is looking for: justice for her constituent. Hon. Members who speak after me will be seeking justice, too. The scheme was for England, Scotland and Wales—the Northern Ireland scheme is different—but I support the hon. Lady.

In my research for this speech, I read the background information, and today I have listened to the hon. Lady’s comments about the despair that some people feel. She referred to one lady who was unable to sleep for 10 nights, such was her trauma and concern. That level of concern was financial, ultimately, and she was presented with a huge bill. We have heard about figures of £17,000, £25,000 or £35,000, which indicate just how worrying the issue can be. People do not understand why they are in that position, because that was not what they signed up for.

The hon. Member for Halifax was right to set the scene. She described the financial ruin that her constituents have faced, with unexpected legal bills running to tens of thousands of pounds. Without doubt, more needs to be done to support those families and protect people from such schemes in future. It is not only about helping people with the problems that they have today, but about ensuring that such things do not happen again. [Interruption.] I think there must be something wrong with the plumbing, Mrs Latham: there is definitely a background noise. Whatever it might be, I am sure that it will not silence me or anyone else.

It is important that all constituents have good access to thermal insulation to prevent heat loss in their home. I will give some examples about our heat loss and cavity wall insulation schemes in Northern Ireland. We were able to sort the problems out, by the way, and we did not have individual companies soliciting round the doors for no-win, no-fee representation. There is no doubt that the insulation process is expensive, and many will struggle to pay for it. The Government need to be commended for what they do: it is incredible that we have schemes to enable people to upgrade their homes and ensure that they have the levels of insulation and heating that we all need.

Schemes are offered across the United Kingdom to ensure that those on a low income can avail themselves of cavity wall insulation. The schemes are different across the United Kingdom, as I have intimated. Beginning in 2013, the Government’s energy company obligation has required large energy suppliers to pay for energy-saving measures in British households that meet certain conditions, covering wall and loft insulation. We have different schemes back home: a cavity wall insulation scheme and a roof insulation scheme. The new schemes are offered through the Housing Executive and sometimes through local councils. The ECO scheme covers England, Scotland and Wales, and it is no surprise that we have differing circumstances in Northern Ireland; we often do. We have a scheme that seems to be working well, and whenever there are indiscretions or things do not fall into place, we have been quite able—so far, anyway—to come up with solutions.

Northern Ireland has a sustainable energy programme, which was set up by the utility regulator. Some 80% of the funding has been targeted at vulnerable customers and at those who are older or on a low income. It is important that we enable those people to bring their houses up to a standard such that they can avail themselves of the same energy savings and efficiencies, as well as helpful cavity wall and roof insulation. It is great that those most in need of assistance are getting it.

In my office, I deal every week with people applying for the cavity wall insulation scheme that we have in Northern Ireland, the sustainable energy programme. We have been successful in enabling people to get on it; we just wish there were a wee bit more financial aid available. Now that the Northern Ireland Assembly is back, that responsibility will fall on the shoulders of the Assembly and of the Department that looks after these matters. In my constituency of Strangford and in my main town of Newtownards, many of the homes are of a certain age and standard, so they need the cavity wall insulation schemes. The Housing Executive is the major provider of homes, although the Housing Association provides homes now, some of which are old as well.

With some cavity wall insulation schemes, we have seen examples of insulation not even being put into the walls, although people said it was. We have also seen cavity wall insulation having a detrimental effect, as the hon. Member for Halifax noted. I am not quite sure of the reasons for that, but ultimately we have been able to sort those things out because the companies involved have an obligation to deliver what is right and what is proper.

The priority is to ensure that the Government properly back those schemes to ensure that they are being done legitimately, and that constituencies like Halifax are not being lumped with thousands of pounds of fees to pay back. There certainly must be justice for those who were victims of the scheme. I am pleased that many of them have already contacted the legal ombudsman and the financial services ombudsman to question the level of service that was provided. When it gets to the stage of contacting an ombudsman, we hope for recourse, justice, restitution and ultimately compensation for the people who have been part of that process.

I thank the hon. Member for Halifax again for leading the debate. She should know that she has my full support in this matter; she has the support of all of us in this room, and that is why we are here today. I hope that the Minister and the shadow Minister, the hon. Member for Southampton, Test (Dr Whitehead), will be in a position to offer some support and answer some of the questions that the hon. Lady posed. There is no doubt in my mind that the Government must now step in to right the wrongs and ensure that people are protected financially. I believe that that is their obligation. That is why we are here: I am here to support the hon. Lady and support her constituent. Other Members who will speak in this Chamber want the same justice.

[Mrs Pauline Latham (in the Chair)]

I am sorry for the buzzing noise that we can hear in the background. The Doorkeepers have contacted the engineers, and they are going to address the issue. Meanwhile, it is quite difficult to hear—I cannot hear from the Chair what is being said—so can people speak up so everybody can hear?

Gas-fired Power Stations

Jim Shannon Excerpts

Wednesday 13th March 2024 Commons Chamber

[Graham Stuart]

Unlike the hon. Gentleman, I am not primarily concerned with words—I am primarily concerned with action—but in fact I did use the “emergency” word. I do not know whether I broke some golden rule which says that Ministers should not use it, but I do treat this as an emergency. I see the world warming up, I see the negative impacts of climate change, and that is why I spend every single day feeling proud to be part of the Department that is decarbonising its country faster than any other in the world. The hon. Gentleman should get away from rhetoric and start to focus on action.

[Jim Shannon (Strangford) (DUP)]

I thank the Minister for all his answers. While there is certainly an urge to prioritise our net zero promises, I am grateful to the Government for taking back-up precautions into consideration. As the Minister has often recognised in responding to questions from me, Northern Ireland plays an important role in our contribution to meeting the net zero targets. Will he therefore ensure that Northern Ireland is prioritised as a leading location for any new gas-powered stations that are to be built?

[Graham Stuart]

The hon. Gentleman sometimes gives the impression that he would like me to be running the energy system in Northern Ireland, but it is devolved—and we have Ministers there again, which is a cause for celebration. I will work closely with Ministers in Northern Ireland, as I do with Ministers in other devolved Administrations, because if we are to meet our net zero targets, Northern Ireland must deliver its own targets. Scotland has to deliver its targets, as does Wales.

We must work together, in a spirit of collaboration. We can do that, and if the hon. Gentleman can persuade his right hon. Friend the Member for East Antrim (Sammy Wilson), who is sitting beside him, that it can be done in a way that strengthens our economy as well, we really will have something to celebrate.

Byers Gill Solar Farm

Jim Shannon Excerpts

Monday 4th March 2024 Commons Chamber

[Matt Vickers (Stockton South) (Con)]

My neighbour and hon. Friend, the Member for Sedgefield (Paul Howell), and I are incredibly grateful to be able to bring before the House this debate on the proposed Byers Gill solar farm. It stretches across agricultural and arable land between Stockton and Darlington. The proposed site neighbours a number of other solar farm sites that have already been approved and others that are being brought forward for approval, meaning that the cumulative impact on this beautiful rural community will be almost 2,500 acres.

The plethora of solar farms snake through and encircle some of the most beautiful rural villages in the region—and, in fact, the country. Villages, farms and even a local primary school are merely metres away from some parts of those sites, but it is not only villagers and farmers who will be impacted: the area is inhabited by a rich tapestry of wildlife and biodiversity. I have been contacted by one resident whose family had farmed locally for generations, and who will have the solar farm just feet from her boundary. She shared with me the list of species that regularly visit her plot: badgers, foxes, hares, deer, pheasants, woodcock, snipe, and grey partridge—which are, of course, a red-list species. That plot has daily visits from herons, and has seen coots, moorhens, geese, swans, various ducks, swallows, owls, buzzards, sparrowhawks and bats. A 2,500-acre scar on that countryside will undoubtedly affect those animals, their habitat and their food chain, and this resident is rightly devastated.

[Jim Shannon (Strangford) (DUP)]

I thank the hon. Member for securing this debate. He is absolutely right to highlight the wildlife impact, but also the loss of good agricultural land. Is it not time that the Minister and Government, and any potential developers, understood that good agricultural land should be retained for food production? That is what we want, not the loss of that land to solar farms.

[Matt Vickers]

I could not agree more, and I will come back to that point. There is a balance between energy security and food security, and food security is incredibly important to many of the jobs that we talked about in the previous debate.

Where now people drive along country roads and look on to beautiful rolling fields, those views will be replaced by miles of 7-foot-high fences to prevent the movements of deer. Residents, many of whom have lived in the villages and farmed the fields in that area for generations, have shared with my hon. Friend the Member for Sedgefield and me their huge concerns about the impact that a development of this scale will have on their community. They understand the need to improve our energy security and the move to renewables, but the sheer cumulative scale of the solar farms densely packed into this small rural community will change it completely. An area characterised by rurality, nature and agriculture looks set to become characterised by industry, panels and battery substations.

Aside from the aesthetics, the complete change in the character of this rural community, the damage to people’s quality of life and the huge impact on biodiversity, this decision will also be about balancing competing interests and priorities. Energy security is a huge challenge for our country, but so is food security. Ironically, this debate follows one about the challenges that our farmers face. Many of them are looking at how to improve their financial outlook; they are being approached by developers, and have to make incredibly difficult decisions for themselves and their families. Our Great British farmers are the stewards of our countryside, who care for our natural environment and put food on our plates. We must back them, so that they can carry on doing that.

We are talking about prime agricultural land. Residents and I agree with the words of the Prime Minister:

“We must also protect our best agricultural land. On my watch, we will not lose swathes of our best farmland to solar farms. Instead, we should be making sure that solar panels are installed on commercial buildings, on sheds and on properties.”

I hope that the Planning Inspectorate will ensure that a robust and independent grading of this land takes place, so that it is given fair consideration, and ultimately protected for generations of farmers to come.

At present there are more solar farms pending approval than the national grid could hope to service. Let us ensure that we develop solar farms that are proportionate and rightly placed. There are further concerns about what the scale of this industrialisation will mean for the community. There are huge concerns that moving permeable, greened land into the muddy underbelly of acres of solar panels will have real consequences for country roads already suffering from flooding problems. The dangers of battery storage systems such as those destined for the site are well known and documented, and such a battery storage system being put near residential properties and in close proximity to a school is deeply worrying to residents.

Many residents have expressed their concerns about the developer JBM failing to undertake adequate consultation; in fact many would go as far as to say that it has actively stifled it. I have heard from several residents who feel that they have been given no voice in the process. Many residents were not afforded sight of circulated consultation materials; I understand that just 12 of the 356 affected residents received them. Only 120 planning brochures were provided and, illogically, these were placed at a library 9 miles away, inaccessible to many residents. Stakeholder meetings were organised, but residents were never informed. A face-to-face consultation was held in Stockton market place, miles away from the site, and an incorrect location was given to residents. Then the representatives left early, so those who did turn up did not get to speak to them. This catalogue of failings is well documented and will be made available to the Planning Inspectorate ahead of its decisions.

I pay tribute to residents from the affected villages, and those who have taken a role in bringing together the Bishopton Villages Action Group, which stands up for local residents. They have shown how amazing the power of community can be and what it can achieve. They have shown exceptional professionalism. They have mustered and used all the expertise in their community, and raised a huge amount of money to oppose these plans. They have produced professional submissions at every level, and I hope that the Planning Inspectorate will carefully read the report they have issued on JBM’s failure to consult in line with its duties under the Planning Act 2008.

I thank the Minister for her time. I hope that today we have allowed residents’ concerns to be thoroughly aired, and I look forward to this proposal, with its cumulative overwhelmingly negative impact on this community, being roundly rejected.

Oral Answers to Questions

Jim Shannon Excerpts

Tuesday 27th February 2024 Commons Chamber

[Andrew Bowie]

Yes, of course I agree. That is one of the huge benefits, along with many others, of small modular reactors, which is why we are running our down selection programme, and supporting exports from this country to across the world so that other countries can join us on our nuclear journey, investing in small modular, advanced modular and gigawatt-scale projects over the next few years.

[Jim Shannon (Strangford) (DUP)]

The delivery of nuclear power stations for Northern Ireland is something that I would welcome, but other parties in Northern Ireland might have concerns about it. The one thing that we in Northern Ireland can all agree on is that, as part of this great United Kingdom of Great Britain and Northern Ireland, we must be part of the manufacturing base and procurement process. Can the Minister confirm that the people of Northern Ireland will have that opportunity?

[Andrew Bowie]

Not only can I confirm that, but I put on record my support to all the companies in Northern Ireland that are already integral to the supply chain for our nuclear sector. Our nuclear revival not only will deliver a more secure, robust and clean energy baseload, but has the potential to create thousands of new manufacturing and supply chain jobs across the country, and I want that to impact positively on every corner of our United Kingdom of Great Britain and Northern Ireland.

Offshore Petroleum Licensing Bill

Jim Shannon Excerpts

Committee of the whole House
Tuesday 20th February 2024 Commons Chamber

[Graham Stuart]

The hon. Lady may not have been present for the previous stage of this Bill, but as she has been present for other debates in this House, I cannot claim that she is an absentee Member, so it is extraordinary that she is unaware of the amazing transformation in insulation in this country since 2010. Is she not aware that, in 2010, just 14% of homes were decently insulated? Today, the figure is well over 50%. We are spending £6.5 billion in this Parliament, and will commit another £6 billion between 2025 and 2028, precisely to deliver the transformation that she calls for. On top of that, we have the eco schemes, and obligations on industry. That is how we have taken ourselves from the parlous, shameful situation left behind by the Labour party in 2010 to one where, although there is still much more to do, 50% of homes are decently insulated.

[Jim Shannon (Strangford) (DUP)]

The Minister was very kind to come to my constituency in Northern Ireland to look at the potential schemes for sea turbines and the contract for difference arrangements. At the time, he indicated that, whenever the Assembly was up and running, the contract for difference scheme would be the responsibility of the Northern Ireland Assembly. He was very keen and eager to assist the Assembly. Is it his intention to contact the Northern Ireland Assembly to ensure that the CfD scheme can be promoted? His input into that will make a big difference.

[Graham Stuart]

I thank the hon. Gentleman, who is a consistent champion not only for his constituents but for the clean transition. I look forward to meeting and working with the new Minister for the Economy, who I believe has the energy portfolio in Northern Ireland.

The Bill will give industry the certainty that it needs to continue investing in the North sea, to strengthen our energy security, and to support the transition to net zero. The Government’s position is clear: we should, as far as possible, seek to meet continued UK demand for oil and gas from the UK’s own sources. That means continuing to use the North sea—a UK success story that has contributed billions of pounds in tax revenue and supports an industry of around 200,000 workers. The oil and gas industry, with its strong supply chains, expertise and skills, is vital to driving forward the net zero transition and the investment in clean technologies that we need to meet our net zero targets.

We all want the energy transition delivered in an orderly way that does not risk thousands of those jobs. Artificially reducing our production from the North sea or banning new licensing would do just that and jeopardise the energy transition, our progress towards net zero and our climate leadership, not to mention the billions of pounds in lost tax revenue. The Bill is about ensuring a smooth and orderly transition. New licences awarded under the Bill will manage the decline in domestic oil and gas production, rather than increase production above current levels, and they will give industry certainty by sending a strong signal of support for continued investment in the sector—investment that is necessary both for our energy security and to help deliver the energy transition. I commend the Bill to the House.

Civil Nuclear Road Map and Wylfa

Jim Shannon Excerpts

Tuesday 23rd January 2024 Westminster Hall

[Virginia Crosbie (Ynys Môn) (Con)]

I beg to move,

That this House has considered the civil nuclear roadmap and Wylfa.

It is an absolute privilege to speak in this debate on the civil nuclear road map and Wylfa. I secured this debate to highlight the simple truth that large-scale nuclear development at Wylfa in my constituency of Ynys Môn would be a transformational opportunity for the people I represent. It would be the largest inward investment in the history of Wales, and potentially the greatest single action the UK could take in the fight against climate change and in the race for energy security.

I warmly welcome the civil nuclear road map that the UK Government published recently, in which they committed to exploring a third gigawatt-scale project after Sizewell C, and to developing further large-scale nuclear in parallel with small module reactors. I urge the Government to take that commitment further by naming Wylfa as the site for such a large-scale project, and to move forward at speed in announcing a partner to deliver that project in Ynys Môn. I am in no doubt, and neither is the nuclear industry, that Wylfa is the best site in the UK—and indeed all of Europe—for new large-scale nuclear.

I was recently visited by a delegation from Korea. That country has 24 GW of nuclear capacity, and the delegation said that Wylfa was a better site for new nuclear then any site they have. Why is that? Well, we have an existing strong connection to the national grid, we have solid bedrock—ideal for pouring the foundations of a nuclear power station—and we have plentiful cooling water that is deep, cold and close, which is exactly what the engineers need. We also have a site that has been substantially cleared and prepared for large-scale construction by Horizon Nuclear Power, under Hitachi. The industry opinion is unanimous: a third large-scale project must be at Wylfa, and I hope the Government will listen to that advice. Will the Minister commit today, or in the coming weeks, to naming Wylfa as the site for a further large-scale project?

There is one more factor that makes Wylfa ideal for new nuclear, and that is the strong support of the local community. Wylfa means hope—the community remembers what the island was like when the original Wylfa was up and running. To them, nuclear means jobs, investment and opportunity for them, their children, and their Welsh language—for all the young people who otherwise leave the island to find good work.

[Jim Shannon (Strangford) (DUP)]

I am very impressed by the hon. Lady’s bringing forward this debate. From the beginning, she has been very assiduous in the House on this issue. My knowledge of her dates from her first debate in this House, which I think had a similar focus and title. I envy her for having a nuclear site where she wants it. We wish to have the same in Northern Ireland, but it is not possible. Does the hon. Lady agree that jobs should be created right across the United Kingdom of Great Britain and Northern Ireland, and that we should all benefit from manufacturing, jobs and apprenticeships?

[Virginia Crosbie]

I thank the hon. Gentleman for his kind words. He is absolutely correct. This is a UK-wide endeavour, and it means jobs not only on Anglesey but across north Wales and the whole of the UK. If we do not work together on this, we cannot work to deliver net zero by 2050.

The support of my constituents is indispensable, but it cannot be taken for granted. They have had their hopes raised and dashed again and again. They have endured so much heartbreak and disappointment as successive attempts to get the project off the ground have failed. The civil nuclear road map will have raised their hopes one more time, and I beg the Minister and the Government to do everything they can to ensure that those hopes at last begin to be fulfilled. What can the Minister do to fulfil them? As I have said, we can start by naming Wylfa as the site for a further large-scale project. We should also get the land off Hitachi, and the intellectual property from the Horizon project and into the hands of Great British Nuclear. I will put it simply: the land is designated for new nuclear development. If Hitachi will not use it, it should lose it.

I urge the Minister and the Government to think creatively about what we can do. As I understand it, EDF in the last year has paid £200 million from its nuclear fleet to the Government through the electricity windfall tax. Urenco usually pays an annual dividend to the Government of around £100 million from its uranium enrichment activities. Could that money not be used to buy out Hitachi, get the Horizon intellectual property and get on with the project at Wylfa?

As the Minister will know, I met, invited and personally showed around the leading contenders for a large-scale project at Wylfa: Westinghouse, KEPCO and hopefully EDF. All have said that the work Horizon has done to prepare the site and design a plant would cut the deployment time for a large-scale project at the site. We know that time is money, so getting the land and intellectual property into UK ownership is critical. The next thing is to design and start a process this year to pick up one of those prospective partners to execute a project at Wylfa in conjunction with Great British Nuclear. That can and should be done very quickly.

Westinghouse, KEPCO and EDF are all very well known internationally. They all have large-scale designs in commercial operation that the Government and our regulators can visit. The companies’ records are out there for people to see and scrutinise. Indeed, our friends in Poland have just gone through an extensive process to choose from those three for their first large-scale plant. The Czech Republic has done the same and the Dutch have started the same process. Can the Minister therefore set out how he and the Government can work with our allies?

Offshore Petroleum Licensing Bill

Jim Shannon Excerpts

2nd reading
Monday 22nd January 2024 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to follow the hon. Member for Brighton, Pavilion (Caroline Lucas). While we do not always agree on everything, there are many things that we do agree on. I, too, would like to see the mass scale-up of renewables, but I also want to be pragmatic about where we are, some of things that we need to do, and what the Bill does.

The issue of energy is one that impacts every person in the UK, from the one-bed flat owner to the 200-bed hotel owner. The ability to secure safe and reliable energy is essential, and spiralling costs are having an effect on the day-to-day lives of people throughout the UK.

I think it is important that I make this point and perhaps explain where I am personally on the matter. I grew up, and others in the House are probably the same, in an age of throwing another jumper on. My children used to laugh at the stories I told them of how cold it had to be before the heating was turned on. For us today, it is no longer a laughing matter for many people. My researcher, who owns a modest home, had to put more than £250 of gas into her home in December. She was at home during term-time with the children. She tells me that the gas was not even running constantly; it was turned off whenever she went to visit her parents or her husband’s parents or went out. I thought of how much more a wee—I use that word often in the House as a descriptor—widowed pensioner would be paying in their home when they are there almost all day, every day. That figure is not one that their pension and a single winter fuel payment could cover. There are only so many jumpers that someone can put on, and a jumper does not help with a damp wall.

It is clear that the cost of energy dictates what steps we take to secure the current energy supply, while also striding for new alternative renewable energy sources. As many in this place will have heard me say on numerous occasions, tidal energy in Strangford lough and other such areas needs a great deal of funding. The pilot scheme worked, but it was at the wrong time because the cost of the energy that it produced was not financially feasible, but it would be now. If we can harness that power, which is as reliable as the sun rising in the morning, we are on to a winner. However, I understand that that is not the point of today’s debate and will leave it at that.

The Secretary of State for Energy Security and Net Zero is in her place, and I know the Government have taken giant steps to meet the net zero targets and have committed themselves to green energy. I wish to put on the record that I am committed to the same targets as well, but we need to strike a balance. The balance that I put forward to the House—and I wish to make a declaration—is from my point of view as a farmer. We own land. My neighbours are all dairy men or farmers of beef, cattle and sheep. They are willing to commit themselves to the net zero targets because they see that net zero is something that must be done. As part of that target, they must reduce the number of their animals. That is not possible to do while continuing to have a feasible and financially viable farm. There are other things that the farmers wish to do.

In the countryside where I live there are not enough electric vehicle points, so people do not buy an electric or hybrid car, probably because all the EV points are up in Newtownards. I drive a diesel vehicle—have done all my days and, if I am spared, will probably continue to do so because I believe that it is a choice. It is a choice we may not wish to make every time, but is one that we have to make because electric cars are just not feasible because the EV points are just not there.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

Does the hon. Gentleman agree that the National Farmers Union has been positive on many of these issues? Does he agree with what it says about hydrogen being a source of sustainable power in the future, and that it is coming soon?

[Jim Shannon]

I thank my hon. Friend—I call him that because I have great respect for him—and agree wholeheartedly with what he has just said. The farming community, the NFU and the Ulster Farmers’ Union are clearly committed to the targets. They are committed to looking at the alternatives, but the alternatives have to be practical. The point I am trying to make is that it is about where things are practical.

There is no doubt that to meet not just our net zero target but, more importantly, our environmental obligations, we need to do a better job of accessing and using renewable energy fuels. However, the fact is we will simply not be there any time soon and, in the meantime, it is vital that we secure safety and security for our constituents. I support the aims of the Bill, which would enhance the procedures currently in place, and note that no financial hardship should be passed on through the Bill. That is vital as I know that households are struggling with the current pressures. No longer is it a matter simply for households in poverty, working families with decent wages are being affected.

It is a transition. It is about meeting our net zero targets and increasing green energy and renewables, which my hon. Friend the Member for Brighton, Pavilion (Caroline Lucas) referred to. At the same time, the Bill gives us the opportunity to progress those renewables in a way that is positive in the short term.

The Library briefing makes it clear that licensing rounds are run when the NSTA decides they are necessary. However, it should be highlighted that they have been held broadly on an annual basis up to the 32nd licensing round, which opened in 2019. The latest—33rd—licensing round was launched in October 2022, following the introduction of a climate compatibility checkpoint in September 2022. In October 2023, 27 new licences were awarded as part of that licensing round. That is not onerous, but it is necessary not just to safeguard our industry by enhancing investor and industry confidence, as the Government have highlighted, but to ensure that we do not see families scraping pennies together to afford heat.

My contribution to the debate is clearly for those who are in energy difficulties. Today, the papers referred to food bank referrals being up some 30%. The food bank in my constituency of Strangford in my major town of Newtownards saw a 30% increase in referrals over December and early January from people who are middle class who are finding it difficult to deal with energy prices.

I know of several young families who usually enjoy a few days away when the kids are off at Christmas, and they told me that they were just not able to do it this year. People may say, “For goodness sake, they can’t go on holiday…” I am not saying that because it is their right to have that break, but I am highlighting the knock-on effect for families of increased prices is that they cannot afford to sow into the local economy in the way they used to. That means the little 20-bed hotel they usually visit does not get their business. The knock-on effect is that they do not hire the cleaner for as many hours. Her income drops, and she cannot spend the way she usually does, so the knock-on effects continue.

We need the people who spend locally to do so, and for them to do that, energy bills need to be manageable. We are failing when it comes to energy provision. If the Bill helps safeguard our provision as we continue to find better ways to source reliable renewable energy, I support that. When the Minister or Secretary of State sums up, if they could give us that reassurance, I would be a whole lot happier about this debate. Of course, we need to explore tidal energy, but safeguarding domestic production can go hand in hand with that. Indeed, it must do so. I am committed to renewables, green energy possibilities and net zero targets because the farming community that I live in want to commit themselves to that as well.

I support our families, our vulnerable, ill and elderly, and those living in cold, damp homes because they cannot afford to do otherwise. Therefore, at this stage, I support the Bill on behalf of all those struggling to heat their homes and keep their families warm. We must commit ourselves to more renewables and ensure that the renewables percentage rises. If it rises, we can reduce gas and petroleum usage. By doing so, we can balance the process. That is what I am hoping for from the Minister’s reply; I hope we can deliver that.

[Madam Deputy Speaker (Dame Rosie Winterton)]

Before I call the shadow Minister, I want to emphasise again, and I will do so when he has finished, how important it is for those who have contributed to the debate to be here for the wind-ups. I call the shadow Minister.