Warm Home Discount (Scotland) Regulations 2026

Lord Fuller Excerpts

Monday 27th April 2026 Grand Committee

[Lord Whitehead (Lab)]

I thank noble Lords for their valuable contributions to this debate; I will attempt to address them in the best way I can.

I have got to know the noble Lord, Lord Moynihan, well during my time as a Minister in this House. I say to him, with respect, that, although he is unfailingly constructive and courteous and makes important points, I fear that he has today given us a tour d’horizon of all the things we have been discussing over the past few months, wrapped within the carapace of the SI before us, which relates only to the specific Scottish circumstances of the warm home discount scheme. I hope he will forgive me if I do not give a detailed reply to some of his points because they have been discussed on other occasions; perhaps we could, over a drink at the end of the Session, tease out some of these issues between ourselves as we prepare for the proroguing of Parliament.

On the contributions concerning this specific SI, I thank the noble Lord, Lord McNicol, for his contribution. His concerns relate to the enormous increase in coverage that has been achieved by these new arrangements. Because the Scottish Government asked the UK Government to set up an SI for a scheme similar, but not identical, to that in the rest of the UK, the benefits of the substantial increase in coverage now relate to Scotland and England just the same. However, there are of course questions relating to the fact that there are, and have been since 2011, considerable differences between some of the detail of the Scottish scheme and the English one. That is partly because of the identification of virtually everybody who is taking part in the expanded scheme in England, but it is not quite so as far as the Scottish scheme is concerned.

In the Scottish scheme, there is a core group and there is a broader group. The broader group is subject to identification by application and is then put into the assistance system by the energy suppliers, but there is a question about whether those energy suppliers are going to do that properly. How will it be ensured that they do, and, if they fall short, how can that be rectified by things such as making sure that industry initiatives are brought up so that the broader group does not suffer in the way that it might otherwise do? It is down to the Scottish Government and Ofgem to make sure it happens, but it is clearly something that we need to keep a close eye on as the scheme develops.

I say to the noble Lord, Lord Moynihan, that the Government are taking action on energy prices and bearing down on them. As he will know, we have the energy price cap, which has made sure that prices go down by about 7% over the next few months. We have had the transfer of renewables obligation levies and the ending of eco-levy costs to reduce bills. We have an ambition to take considerably more off energy bills in the future using those sorts of devices.

The noble Lord talked about domestically produced fuel. We completely agree on the need to have domestically sourced power in the UK. That is exactly what the Government are doing with increased offshore wind and solar. I have already talked to the noble Lord about how we can increase the amount of domestically produced onshore gas by increasing the biomethane that is injected into the grid—a completely domestic source of gas. The Government are acting on these things.

The noble Lord quoted Dieter Helm, saying that we are only moving the deckchairs. Sometimes moving deckchairs is a good thing, particularly if the deckchairs were previously in the shade and you can bring them out into the sun by the things you are doing. For example, one of the things that we are doing here is to move the effect of the funding from standing charges to individual markers related to the amount of power that is being consumed by particular customers. Instead of that money being taken for these warm home discount schemes from standing charges, they will be a combination of matters now, which will save people something like £39 on standing charges. So yes, we can move the deckchairs. I am conscious that we need to move further and faster—to move more deckchairs more rapidly—and transcending that. If this measure is about moving deckchairs, the deckchairs have been moved very efficiently and we have a good scheme as a result.

[Lord Fuller (Con)]

I listened careful to all the deckchairs moving around, but the Minister’s analogy is incomplete, because the deckchairs that are referred to in the famous aphorism relate to the deckchairs on a sinking ship. That is the pointlessness of some of the things we are looking at. It is important that, rather than rearranging the deckchairs on a sinking ship, where everybody goes down with the vessel, we look at keeping energy prices as low as we can. The high energy prices that this nation is labouring under are de-industrialising our nation, killing our chemical industry and giving everybody the highest energy costs in the industrialised world. That is something we need to bear down upon.

[Lord Whitehead (Lab)]

As I was just saying to the noble Lord, Lord Moynihan, moving the deckchairs depends on the fact that the ship is not sinking. Of course, this ship is not sinking. That is why we have been able to double the eligibility for people to take part in the scheme and are further doubling down on energy price reductions through the devices that I set out and the further development of clean, domestically produced power to make sure those prices stay low for the future. We are doing other measures, such as de-linking the arrangements between gas-based electricity and renewables-based electricity. The purpose of a number of things might seem to be moving the deckchairs, but certainly not on a sinking ship. The ship has all its deckchairs in the sun now and is steaming forward to a bright energy future.

Motion agreed.