Energy Costs

Debate between Mike Reader and Hannah Spencer

Tuesday 9th June 2026 Westminster Hall

[Hannah Spencer]

I will continue, if that is okay.

Bills have gone up by 79% since the energy crisis began in 2020. That is an extra £5,000, when our constituents’ hard-earned wages are already stretched to breaking point. Yet, from 1 July our constituents face another increase, of £221, when the next Ofgem price cap comes into effect. That is why, on my second day in Parliament, I helped to get the all-party parliamentary group on fuel poverty back up and running, and why I will join Fuel Poverty Action and other campaigners on 1 July to demand that energy costs are brought down for good.

The scale of this crisis for families is enormous. It also perfectly captures what the Green party means when we talk about rip-off Britain. While my constituents are struggling, fossil fuel giants and privatised energy companies are cashing in, and almost a quarter of energy bills are taken as profit. In the first month after the US and Israel’s initial strikes on Iran, the share value of just five North sea oil and gas companies was boosted by £73 billion—£73 billion in one month. The family owners and chairman of the private oil and gas company Perenco are worth £8 billion and are now among the top 25 richest people in the UK.

All of that has happened in a country where a million children under five live in fuel poverty, and where one in three kids in Greater Manchester lives in poverty. Working hard used to get people a decent life; now it is more likely to line the pockets of billionaires, fossil fuel companies and energy giants.

The Green party is clear that things have to change. First, people in my constituency need support immediately, not in three months’ time. The Chancellor is apparently “monitoring the situation” and will intervene if necessary, but on behalf of families dreading the months ahead, and on behalf of disabled people who have high energy use all year round to run specialist equipment, I am telling the Government that today is the day when it is definitely necessary. Does the Minister agree that the Ofgem energy price cap should be frozen to provide universal support for households now? If not, what are the Government going to do to support bill payers with rising energy costs from July and into the winter? Will they increase the warm home discount, which has not kept pace with rising bills? Shifting some policy costs off bills is positive, as are steps to separate electricity and gas prices, but all electricity levies could be paid for more fairly by progressive taxation. We need to be taxing the wealth of multimillionaires and billionaires more fairly. Providers of frontline support, such as community warm spaces—of which there are a lot in my constituency—need immediate support too. Does the Minister agree that those vital community assets should get lower energy rates?

Secondly, it is time to stamp out profiteering. Unite the Union found that UK energy companies made £30 billion in pre-tax profits in 2024 alone. While the Government’s anti-profiteering framework announced in May is welcome, what other steps is the Minister taking to stop billions being transferred from bill payers to the pockets of international shareholders? What assessment has been made of the benefits of taking the grid, which enjoys some of Britain’s highest profit margins, back into public ownership?

Thirdly, we need a fully funded, local authority-led, national home insulation scheme that people trust to insulate homes to an energy performance certificate standard of B or above, and an EPC scheme that cannot be manipulated. Our homes leak more heat than most places in western Europe—trust me, I have seen them.

Real action demands investment and stronger regulations so that every retrofit job delivers proper savings and real improvements. Next week, I hope to meet some of the victims of the Conservatives’ failed home insulation scheme. As a plumber, if I had done a botched job, I would have been forced to fix it or pay up. Why is the Minister’s Department not ensuring that every single victim of shoddy contractors receives remediation?

[Mike Reader (Northampton South) (Lab)]

Will the hon. lady give way?

[Hannah Spencer]

I am going to continue.

Fourthly and finally, we must go further and faster on renewables. New fossil fuel extraction will not bring down bills or improve the UK’s energy security—a fact I know the Minister agrees with. Since the start of the war in Iran, wind and solar have saved the UK from gas imports worth £1.7 billion. Can the Minister provide assurance that the Government will not approve proposed drilling at Rosebank, Jackdaw or Cambo, or allow new oil and gas extraction through tiebacks to existing production facilities? How will the Department use the upcoming energy independence Bill to accelerate the roll-out of renewable energy and reduce reliance on imported fossil fuels?

I am pleased to have secured this debate on my 100th day as an MP. Last Sunday marked the 100th day of the US-Israeli war against Iran, which, as well as inflicting untold suffering and devastating in the region, has triggered the UK’s second major energy price crisis of the 2020s. I recognise all that the Government are doing to bring that international crisis to an end, and I hope the Minister will use this moment to also try to end the crisis of unaffordable energy costs for my constituents and millions of others across the country.