Miatta Fahnbulleh MP: speeches

Speeches

• 2 Jul 2025 · ECO4 Scheme Redress · Hansard source

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  I thank the hon. Member for raising that. We will take that away because that is unacceptable. We have been in regular touch with every part of the system since this issue came to light. We are talking to installers, certification bodies, TrustMark, the MCS and Ofgem. I will take that issue away and write to her. My final point on the reform agenda is that we clearly need a guiding mind overseeing the system. One reason we are in this bind is because we do not have that guiding mind. Let me reassure the hon. Member, who has spoken eloquently, passionately and with great insight about this issue time and again. the Government will take the decisive action that is necessary to protect the interests of consumers. It is essential to restore consumer trust, because we must take people on this journey of upgrading their homes, not just for our clean power mission but because that is the route to drive down bills and tackle the cost of living crisis. If people do not trust the system, do not trust that upgrades will be of the utmost standards and that, if things go wrong, they will be fixed, they will not come with us on that journey. I am clear that we take these issues seriously. We inherited them but they are ours to fix. We will put in place a reform agenda and, critically, for people who have been affected by ECO4, we are working hard to ensure that the system does what it needs to do—that is, when issues are identified, installers go in and certification bodies TrustMark and MCS do their job to ensure that it is remediated at no cost. In the short term, we are trying to fix the problem we inherited. Then we will draw a line and put in place a system that is fit for purpose so that we can build consumer trust. Question put and agreed to .

• 19 Jun 2025 · Warm Home Discount · Hansard source

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  With permission, I wish to make a statement on the action we are taking to cut energy bills for working families. Three years on from the Russian invasion of Ukraine which sent prices soaring, people up and down the country are still feeling the impacts. Everywhere I go in this job and from every person I speak to, I hear how the wages that used to support families are being swallowed up by sky-high energy bills month after month after month. The truth is that for as long as we remain dependent on gas and volatile global markets, British people will continue to pay the price and we will continue to be held back as a country. That is why we are finally ending our exposure and our vulnerability by sprinting to clean, affordable energy that is controlled by us. We know that in the meantime, we must do everything we can to support families who are under huge amounts of pressure with their energy bills. Today, we are setting out how we will help millions more households with their bills this winter by expanding the warm home discount. Previously, around 3 million people received the £150 rebate off their energy bills, but millions of people living in homes not classified as “hard to heat” were excluded as a result of criteria introduced by the previous Government in 2022. We believe those criteria were unnecessary and unreliable. We believe that it cannot be fair to have two families in almost exactly the same circumstances, with one receiving help and one not. That has been raised repeatedly by consumers and their advocates since the changes were made in 2022, and I absolutely understand their concerns. That is why we are abolishing this restriction. This winter, every single household where the bill payer receives a means-tested benefit will be eligible for the warm home discount, which means a further 2.7 million low-income households will get that vital support. In total, more than 6 million households—one in five families in Britain—will get the help they need this winter. This expansion will help us meet our goal of tackling fuel poverty, which is critical to the work of my Department. It will increase the number of fuel-poor households that receive support, with coverage improving from 30% under the current scheme to around 45%. In total, 1.6 million fuel-poor households will receive support. I have met people on the frontline of the energy bills crisis up and down the country, so I know for a fact that there are families out there right now breathing a sigh of relief because this measure will ease the huge amount of pressure they are under with the cost of living. One issue that is often raised with me is that families can miss out on the warm home discount because the person who receives the means-tested benefit is not named on the energy bill. To be eligible, the means-tested benefit recipient, their partner or their legal appointee needs to be named on the energy bill. I encourage all families who receive a means-tested benefit to check that and, if necessary, to contact their supplier. People need to ensure that the benefit recipient, their partner or their appointee is named on the bill before the warm home discount qualifying date, which is 24 August. At the same time, we are going further to put the energy market back in the service of working people, taking steps to restore confidence and faith in the energy market, which has been shaken. As it stands, too many complaints against energy companies go unresolved or take too long to fix—whether it is suppliers not responding quickly enough or failing to adjust direct debits when families use less energy—which leads to a situation where consumers often do not access the compensation they are entitled to due to an overly complex complaints system. This Government are absolutely committed to standing up for consumers who have had a bad experience of the energy system, and we are working hard to ensure that the system works in the interests of consumers. We have already made real strides in improving conditions for customers. Following the Secretary of State’s intervention and months of Government work with the sector, Ofgem announced £18.6 million of compensation for victims of forced prepayment meters in May, and we will continue to go further. This is a Government willing to use every tool in our arsenal to fight for working people. By moving at speed to deliver clean power, and with the spending review setting out the biggest investment in the domestic clean energy industry in history, we will take back control of our energy system and do the job of protecting consumers. That is why we have wasted absolutely no time in driving forward our clean energy mission in our first year, ending the onshore wind ban, consenting more than 4 GW of renewable energy, launching Great British Energy, funding a new golden era for nuclear, kick-starting carbon capture and hydrogen industries, and investing £1 billion already to upgrade up to 300,000 homes, with £13.2 billion committed in the spending review to upgrade millions more. This is how we will rebuild our energy network and protect families across the country: by supporting more people who need our help this winter; by restoring confidence in a reformed energy market; and by bringing bills down for good with secure, reliable, clean energy. We will ensure that every family in this country has the security of a home they can afford to heat now and in the future. I commend this statement to the House.

• 19 Jun 2025 · Warm Home Discount · Hansard source

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  I thank the right hon. Member for a very good question. We know that families are struggling with the cost of living. We know that families are in poverty, and that many are having to make the choice between heating and eating. We are trying to put in place a range of measures, and the warm home discount —this £150—is part of it. We have extended free school meals to families on means-tested benefits. We are rolling out breakfast clubs. There is a range of things that we are trying to do as a Government to ensure that people who are struggling and who have been struggling for a long time are lifted out of poverty. We are very clear about our ambition. Every time Labour comes to power, our record is that we lift people out of poverty, and we will continue to do that.

• 19 Jun 2025 · Warm Home Discount · Hansard source

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  As always, my hon. Friend puts it perfectly. I will pick up his point on data sharing, which is critical. My Department and the Department for Work and Pensions have been working over the past few months on the sharing of means-tested benefit data so that this will be automatic; come this winter, all eligible consumers will receive a letter informing them that they will be getting the warm home discount. It will be transferred on to energy bills as a credit—a direct payment for consumers—because we have done the groundwork to put that in place. On my hon. Friend’s critical second point, the relative cost of gas and electricity is incredibly high, and we know that is a problem for both households and businesses, particularly as we try to make that transition to clean energy. We are continuing to do that work. I am very clear that we need to deal with that question in order, for example, for our plans to upgrade homes to have the bite and traction they need, and we are absolutely committed to doing so.

• 29 Apr 2025 · Domestic Energy Bills: Transparency · Hansard source

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  We are very clear that every part of the country must benefit from this transition, so whether it is through our warm home scheme or the work that we are doing locally through Great British Energy, we are making sure that there is a solution for every single part of the country. In my Department, I am doing a lot of work to make sure that we have a set of propositions for households in rural areas, so that they can upgrade their homes and have bills that are cheaper and homes that are warmer, which is the central plank of our warm home scheme.

• 6 Mar 2025 · Geothermal Energy · Hansard source

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  I thank the hon. Member for Bexhill and Battle (Dr Mullan) for bringing this important issue to the attention of the House. I also thank my hon. Friends for their contributions and for the valuable way in which they have engaged in this debate. The hon. Member for Bexhill and Battle has been a great champion of deep geothermal energy in recent years, and the role he has played in the formation of the all-party parliamentary group on deep geothermal is commendable. I was very pleased to attend its meeting in December, and I am grateful for the engaged and constructive discussion that we had. I agree with the hon. Member that there is a huge opportunity here, and I echo his desire for action and pace; I will briefly say why I share that desire. He will know, as I do, that we are coming out of the worst cost of living crisis that we have seen in a generation, and energy has been at the very heart of that crisis. The reality is that energy is unaffordable for too many people and increasingly out of reach for people who absolutely rely on it as an essential good, and we as a Government are determined to fix that. That means that we need to take action to lower energy bills by breaking our reliance on international fossil fuel markets and sprinting towards clean, home-grown power. That is why the Government are so committed and why we are running at our clean power by 2030 mission, but it is also why our warm home plan is absolutely critical. I reassure the hon. Member that we see that geothermal power has a critical role to play in our energy mix, following its success in the fifth auction round of contracts for difference. I agree that geothermal energy represents an important opportunity—if the hon. Member hears nothing else I say today, I ask him to hear that. It has the potential to deliver clean and secure energy and heat, reducing our reliance on fossil fuel markets. As he mentioned, we are acutely aware that geothermal energy could also support a just transition by creating thousands of jobs that use skills from our oil, gas and coalmining sectors. The Government provide financial support for geothermal projects today, and we will continue to do so. The critical thing is ensuring that this is done at an acceptable cost to consumers and in an environmentally friendly way. As the hon. Member mentioned, the most widespread potential for deep geothermal in the UK is as a low-carbon heat source for heat networks. I am convinced that heat networks have a really important role to play as we roll out clean heat and upgrade millions of homes across the country. We have the opportunity to grow their market share from 3% today to 20% by 2050. One of my first visits as the Minister for energy consumers was to the Mersey heat network, where heat from the Leeds and Liverpool canal is being used to provide hot water and low-carbon power for thousands of people, thanks to a water source heat pump. That is a great example of how communities can benefit from local energy sources, which is what the hon. Member and my hon. Friends are advocating for in this debate. I completely commend that and support it. There are significant geothermal success stories, such as in Gateshead, where the first mine water heat network to become operational in the UK received £5.9 million from our heat networks investment project. That money enabled the council and Gateshead Energy Company to install 5 km of new heat network pipes and a 6 MW water source heat pump. Today, that network heats 350 council homes and the Baltic arts centre, with 270 more homes to be added. The hon. Member for Bexhill and Battle referred to the public sector scheme. Geothermal heat projects supplying public sector sites are eligible to apply for support provided that they meet that scheme’s eligibility criteria, and again, I agree with him that there is a big opportunity here. I would add, however, that any changes to the scheme would need to be considered once the current spending round is completed. That is what he would expect me to say, but I reassure him that I am very happy to meet him and members of the APPG to discuss their proposals.

• 25 Feb 2025 · Warm Home Discount · Hansard source

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  My hon. Friend is completely right: the previous Government failed to insulate and upgrade enough homes to protect people from energy price hikes. Conservative Members are hanging their heads in shame and rightly so. She is also right that we are committed to upgrading hundreds of thousands of homes. That is critical. The way that we ensure that households are insulated from price rises and the way that we drive down prices is to upgrade those homes. That is a central part of our plan. We are already running at it with 300,000 homes in the coming year, but we will build on that, because we want to ensure that homes across the country benefit.

• 25 Feb 2025 · Warm Home Discount · Hansard source

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  My hon. Friend is absolutely right to point out the cost of living crisis that blights constituencies across the country, with many people facing energy debt totalling £3.8 billion. She is also right, however, to point out that there are things that must be done to ensure that customers are served by the energy market. That is why we are ensuring that the regulator has the power—we are also instructing it to use the ones it has—to ensure that things such as back billing, which we know is an issue, do not happen. The rules are very clear and we need them to be enforced to ensure that when customers do not receive the best customer service from their suppliers, there are consequences. Our review of Ofgem is to ensure that it has the powers it needs to be that champion for consumers. In the end, the energy market must work in the interest of people. We agree that that is not happening at the moment and it must happen after we reform it.

• 25 Feb 2025 · Warm Home Discount · Hansard source

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  With your permission, Madam Deputy Speaker, I would like to make a statement about the action we are taking to protect families in the face of the global spike in gas prices. In recent months, wholesale gas prices have risen to their highest level in two years. They are up nearly 15% compared with the previous price cap period. As a result, this morning Ofgem announced the energy price cap will rise by around £9 a month between April and June. We know this will be unwelcome news for families across the country that are already worried about their bills, but as Ofgem’s chief executive officer, Jonathan Brearley, said today, “our reliance on international gas markets leads to volatile wholesale prices, and continues to drive up bills”. This week marks three years since Russia’s invasion of Ukraine, and once again the British people are paying the price of our country being exposed to fossil fuel markets controlled by petrostates and dictators. The truth is that every day we remain stuck on gas is another day families, businesses and, indeed, the public finances are at risk from these kinds of price spikes. That is why sprinting to home-grown, clean energy is the only way to end our exposure and our vulnerability as a country. In the meantime, we are determined to do all that we can to protect people, and today I want to set out the measures we are taking. First, we want to provide greater help to the most vulnerable in time for next winter. The warm home discount currently gives around 3 million families a £150 rebate on their energy bills. The current system provides help to those on means-tested benefits, but excludes millions of people in homes not classified as hard to heat, as a result of criteria introduced by the last Government in 2022. These criteria are seen by many as arbitrary and unreliable, and they mean there are families in almost exactly the same circumstances with some receiving help and others not. Today, we have announced that we will consult on proposals to abolish this restriction, meaning all households receiving means-tested benefits would be eligible for bills support next winter—from 3 million families in the current system to more than 6 million with our proposals—so that one in five families in Britain would get help with their bills through this scheme, including an additional 900,000 families with children and a total of 1.8 million households in fuel poverty. This Government are determined to do everything in our power to help people struggling to pay their energy bills and support the most vulnerable in our society. Secondly, because of our exposure to fossil fuels, the cost of living crisis saw bills rocket to £2,500 and families plunged into unstable debt—debt that continues to accumulate today. In the system we have inherited, every bill payer pays for managing this debt burden. We are determined to act on behalf of those in debt and all the bill payers who are paying the costs of it. So we are working closely with Ofgem to accelerate proposals on a debt relief scheme that will support households that have built up unsustainable energy debt through the crisis and have no way of paying it. This will be an important first step to cut the costs of servicing bad energy debt, and under these plans the target would be to reduce the debt allowance paid by all bill payers to pre-crisis levels. Thirdly, we know that one of the best answers to high bills is upgrading homes so that they are cheaper to run, so we will shortly announce the details of around £0.5 billion pounds of funding under the warm homes local grant and £1.3 billion under the warm homes social housing fund to invest in home upgrades over the coming years and cut fuel poverty. In all, up to 300,000 households will benefit from upgrades in the next financial year through our warm homes plan—whether it is new insulation, double glazing, a heat pump or rooftop solar panels—which is more than double the number supported in the last financial year. We will also ensure that landlords invest in energy efficiency upgrades that will make homes warmer and bring down costs for tenants, lifting up to 1 million people out of fuel poverty, so that we are doing everything we can to ensure people have the security of a home they can afford to heat. Fourthly, we are clear that we need a regulator that fights for consumers. That is why we have called on Ofgem to use its powers to the maximum to protect consumers by challenging unlawful back billing, taking action on inaccurate bills, driving the smart meter roll-out, giving every family the option of a zero standing charge tariff so they have more choice in how they pay for their energy, and ensuring that compensation is given for wrongful installation of prepayment meters. We are moving forward on our review of Ofgem to ensure it has the powers it needs to stand up for consumers and clamp down on poor behaviour by energy companies. This set of measures shows a Government willing to use all the powers at our disposal to help protect consumers. However, important as these measures are, I must stress to the House that there is no proper solution to rising energy bills while this country remains exposed to the rollercoaster of fossil fuel markets. That is why this Government are moving at speed to deliver clean power by lifting the onshore wind ban in England, consenting nearly 3 GW of solar, setting up Great British Energy, delivering a record-breaking renewables auction, making it easier to build the next generation of new nuclear power stations, and getting on with the job of implementing the reforms to the planning system, the grid and renewables auctions set out in our clean power action plan. I have to report to the House, however, that despite the importance of this mission and the fact that we are running it, we continue to receive representations from Opposition parties not to speed up, but to slow down and to reject solar power, reject onshore wind, reject offshore wind and reject new transmission infrastructure—representations that, if accepted, would leave us more vulnerable and more insecure, with the British people paying the price. Let me tell the House that we will reject those representations. We know that every solar panel we put up, every wind turbine we build and every piece of transmission infrastructure we construct makes us more secure, and every time the Conservatives oppose those measures, they double down on their legacy of leaving this country exposed and the British people deeply vulnerable. This Government will do whatever it takes to stand up for working people now and in the future—protecting families and businesses from the consequences of global events, driving forward our plans to bring down bills for good and doing everything in our power to support those most in need. I commend this statement to the House.

• 12 Feb 2025 · Fuel Poverty: England · Hansard source

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  We know there is a challenge with the cost of living. We are coming out of the worst cost of living crisis that we have faced in a generation, and tackling it is central to what we are trying to do in my Department and across Government. It is important that we situate this debate in the context in which we find ourselves. We published a review of our fuel poverty strategy last week, and the headline was staggering: fuel poverty stagnated in this country under the previous Government. In 2023, an estimated 13% of households in England—3.17 million people—were in fuel poverty according to the low income low energy efficiency metric, which is a narrow statutory definition. We know that out there in the country a lot more people are feeling the pressure of energy bills and have the sense that they cannot cope and cannot afford to heat their homes. In 2023, about 46% of all low-income households in England lived in properties with an energy efficiency rating of band D or lower. That creates a cycle that is difficult to escape: the poorest in our country live in cold homes. Behind those statistics are lives, and I have heard the stories directly. People are scared to turn on the heat because they fear the bill at the end of the month. Parents are having to make the impossible choice between feeding their kids and heating their homes. We know that the reality is intolerable for too many people. That is the legacy of the previous Government that we inherited, but we are determined to turn it around. Every family and business in the country has paid the price of our dependence on global fossil fuel markets that we do not control. We inherited sky-high energy bills. Yes, they are down from the crisis peak, but they are still at record highs. Our clean power mission is not ideological; it is a primary solution to this problem. We are running to deliver clean power at this pace because we see that as our route to delivering home-grown energy that we have more control over, that will deliver energy security for the country and, critically, that will take us off this rollercoaster of price hikes, which are impacting families, and deliver the financial security that families across the country are desperate for. But we recognise that, while we do that, we also need to reform the electricity market. The review of electricity market arrangements, which we are working on at the moment, is looking at the very question of how we decouple gas from clean power prices. Our judgment is that, as we increase the amount of clean power in the system, we will do the job of decoupling, alongside market reforms, so that people can benefit from the big changes we are trying to make. We recognise that we also have to support struggling families while we make that transition.

• 12 Feb 2025 · Fuel Poverty: England · Hansard source

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  Let me address the points made by Members from rural constituencies. This plan has to work for every part of the country and we have to have solutions for every house. Rather than the Government dictating solutions from on high in Whitehall, we need to empower the system to figure out the best way to deliver warm homes for people across the country. That means thinking about the range and mix of solutions that go into people’s homes, so that they can have low-carbon options, but also options that work for their pockets. Alongside what we need to do through our warm homes plan, it is important to say that we must also deal with the question of supporting households on bills. That is why going into this winter, wanting to do everything we can to support the most vulnerable, I worked with energy suppliers to get them to commit to £500 million of industry support for people this winter so that we can get help to households that we know are struggling. The Government have also extended the household support fund until 31 March 2026 with an extra £752 million. We are providing the cold weather payment and our Department is providing the warm home discount to more than 3 million households. The Warm Home Discount (England and Wales) Regulations 2022 expire in 2026, so we want to consider options for the future. Members talked about a social tariff. The challenge with the social tariff, which we are hearing about across the piece, is that it means different things to different people. However, we are looking at all the options to make sure we can provide the support that people need. In conclusion, I understand Members’ passion; I share their passion and their commitment. Energy is not a luxury good. It is not a “nice to have”. It is foundational for people, but it is out of reach for some. That is a shame and a stain on us, and we are determined to turn things around.

• 12 Feb 2025 · Fuel Poverty: England · Hansard source

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  I will make progress. On the critical issue of fuel poverty, we are consulting in order to improve our strategy, looking at how to make progress on our statutory target for 2030 and asking questions about wide affordability. As we take action, we must ensure that we are dealing with our statutory obligation and the more fundamental problem of affordability across the country. Alongside our consultation on the fuel poverty strategy, we have also taken steps to try to lift half a million people out of fuel poverty by improving standards in the private rented sector. Last week we published a consultation on increasing minimum energy efficiency standards in the domestic private rented sector by 2030. Our proposals would require landlords to upgrade their homes so that tenants can benefit from warmer homes through insulation, cavity wall insulation and double glazing first, and then through other measures such as solar, batteries and smart meters. My hon. Friend the Member for Normanton and Hemsworth asked about the impact on renters. I would say two things. Our analysis suggested that if we get this right, it could save renters about £240. We know that there is a risk of landlords potentially hiking bills, but when we have upgraded homes in the past, we have found that landlords have not increased bills, so we do not expect them to do so this time. Critically, we have also been surveying landlords, and the feedback is that the majority would cover the cost of the upgrades, which they know is the right thing to do. I should add that 50% of landlords have already upgraded their homes up to EPC C, so they will pay for this through those savings. We are therefore confident that renters will not be penalised, and we believe that the measures in the Renters’ Rights Bill will provide enough safeguards to ensure that renters can benefit from £240 off their energy bills and the security of knowing that their rents will not be increased.

• 11 Feb 2025 · Draft Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2024 · Hansard source

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  I thank the hon. Member for his response. I am glad that we have consensus across the Committee about the regulations. The hon. Member is right to point out that energy bills are high. All hon. Members know that, and it is a central focus of the Government’s. I come back to the fact that we inherited a position whereby bills were at record heights. That is a result of our dependence on global fossil fuel markets over which we have no control. I have said this before and I will say it again: the Opposition were happy with that status quo, but we are not willing to put up with it. We believe that it must be changed. Our drive for green power will deliver home-grown clean energy, which will give energy security to the country and financial security to families. While we do that, our manifesto commitment to reduce bills remains central to what we are trying to achieve. It is the core of everything that the Department is trying to do. We will bear down on bills through clean power and we will ensure that we take short-term action to protect bill payers who are struggling. Critically, we will upgrade millions of homes so that we can deliver lower bills and warmer homes. We are committed to that because we understand that, throughout the country, people face a cost of living crisis, which we inherited from the Conservative Government, who did not do enough to insulate and protect people. We will not make that mistake. We are determined to do this. Again, I commend the regulations to the Committee. Question put and agreed to.

• 4 Feb 2025 · Energy Suppliers: Winter Support for Consumers · Hansard source

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  We are very alive to the issues in rural communities, and we are working to ensure that there are solutions for all types of homes. We had record applications to our boiler upgrade scheme for heat pumps, a large number of which were from rural households. We are very clear as we roll out our plan that there will be a solution for every single household, so that everyone can benefit from homes that are warmer and cheaper to run.

• 4 Feb 2025 · Warm Homes Plan · Hansard source

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  I will say to the right hon. Gentleman that at the moment, families are not insulated from fossil fuel markets. We have seen one of the worst energy crises, which has had a huge impact on the cost of living. The status quo is not tenable. We already have record-high energy prices and the only way that we are going to bear down on that is through clean power. The alternative is to do nothing—but we have seen the impact of doing nothing over the last 14 years and consumers and constituents across the country are the ones being impacted. We will absolutely drive forward with clean power by 2030 because that is our route to providing an energy system that delivers energy security and that can deliver financial security.

• 4 Feb 2025 · Warm Homes Plan · Hansard source

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  Cold, damp homes that are hard to heat are the reality for too many households in this country. That is the legacy of the party opposite and a legacy that we are absolutely determined to turn around. We are committed to upgrading homes in the rental sectors with our minimum energy efficiency standard so that we can make cold, draughty homes a thing of the past. We will ramp up our warm homes plan so that my hon. Friend’s constituents and constituents across the country will benefit from homes that are warmer and bills that are lower.

• 4 Feb 2025 · Home Insulation Schemes · Hansard source

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  I thank the hon. Member for pointing out the inheritance and the legacy. That is material, because it is the backdrop to everything we are trying to do. We are clear that we need to drive forward with momentum and pace. That is why we are already upgrading up to 300,000 homes this year alone. It is also why we are working with local authorities and social housing providers to deliver warm homes that are cheaper to run for communities across the country. We are absolutely moving at pace with our warm homes plan. We will be setting out that plan, and at its heart is an ambition to ramp up the number of upgrades massively, so that more families across the country can benefit from what we know works: warm homes and lower bills.

• 22 Jan 2025 · Draft Heat Networks (Market Framework) (Great Britain) Regulations 2025 · Hansard source

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  I beg to move, That the Committee has considered the draft Heat Networks (Market Framework) (Great Britain) Regulations 2025. The draft regulations were laid before the House on 28 November 2024. As heat networks have not yet been debated in this Parliament, I want to say a few words about the context for the draft regulations. Some 23% of the United Kingdom’s carbon emissions come from heating buildings, so decarbonising heat is key to reaching our net zero commitments and to reducing our reliance on international fossil fuels as we sprint to clean power by 2030. Heat pumps and heat networks are the two principal technologies that we believe will achieve that. We believe that heat networks will be key to reducing bills for the next generation. Their energy can be drawn from large, efficient heat pumps or even from heat that would otherwise be dumped into the air, such as from data centres and waste incinerators. Heat networks, which have been proven internationally to provide affordable low-carbon heat, are especially suited to dense urban areas. The Government therefore expect that about 20% of the UK’s heat demand will be met by heat networks by 2050, up from 3% today. I have visited Mersey Heat in Liverpool and seen at first hand the huge potential of heat networks, not just to benefit consumers but, critically, to regenerate our urban centres. Alongside growing the market for heat networks, we need to ensure that the 470,000 households supplied by heat networks today, as well as the many households that will be connected in future, can receive a fair deal as the market grows. One of the biggest barriers is that heat networks are inconsistently regulated. As people on heat networks cannot change their supplier, heat networks are effectively a monopoly with a captive market, which makes it harder to ensure that consumers are treated fairly. Through lots of conversations with consumer groups and through Government-commissioned research, we can identify gaps where the current market is not providing consumers with a fair service, heating is less reliable, suppliers are less transparent and it is harder for consumers to represent themselves or make complaints. The current situation is clearly intolerable. These are not just consumers, but people trying to keep themselves healthy and warm and trying to live their life. I spoke to the Association for Decentralised Energy in October about the need to ensure that these people are at the very heart of the energy market transition that we need to make and at the very heart of how we think about heat networks. The Energy Act 2023 provides powers for the Secretary of State to introduce regulations across Great Britain that will protect heat network consumers comparably to consumers of other regulated utilities. The draft regulations are the first step in introducing this regulatory framework. They will introduce an authorisation regime to be implemented by Ofgem, which will work in a similar way to the gas and electricity licensing regimes that Ofgem already regulates. They take an outcomes-based approach to reflect heat networks’ diversity of scale and their nascent market position. The draft regulations will ban running a heat network without an authorisation. To phase in market regulation, existing heat networks will automatically be given an authorisation. The conditions for authorisation are set by either the Secretary of State or Ofgem and apply rules for running a heat network. Ofgem will be able to monitor compliance with the regulations and act where appropriate. Actions that Ofgem can take include issuing information notices for compliance data, investigating suspected non- compliance, inspecting commercial premises and issuing a range of orders to require remedial action. Consumer redress orders can also be issued to require that affected consumers be given compensation. The draft regulations will require Ofgem to publish statements of policy on how powers are used. Penalties will be proportionate to the authorised person’s size and the scale of harm that their non-compliance has caused. Additionally, the draft regulations will give Ofgem powers to set standards of performance for heat networks, determining minimum performance levels of service provision to consumers.

• 13 Jan 2025 · Draft Clean Heat Market Mechanism Regulations 2024 · Hansard source

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  When the Conservative party was in government, it was willing to see sky-high energy bills. The reality in this country today is that, quite frankly, many people cannot afford the cost of energy. That is the reality that the Conservatives were happy to deal with, but it is not a reality that we believe is either tenable or acceptable, and it is one that we are determined to change. That is why we are making the sprint to clean power and are determined to deliver a warm home plan that can deliver cheaper and warmer homes for consumers across the country. I will address some points that are quite frankly wrong. First, there will be no compulsion to impose heat pumps. Our job as a Government is to work with industry to make them as attractive a proposition for consumers as we can. We will not force people to adopt them, but we believe that heat pumps are three times more efficient than gas boilers and will be an attractive proposition for consumers. We saw demand for our boiler upgrade scheme reach record levels in 2024, because consumers are starting to realise what we know from the evidence base: that this proposition absolutely works for their pocket and for their homes. Our job is to ensure that not just wealthy households but every single household across the country can benefit from it. To debunk the second point made by the hon. Member for West Aberdeenshire and Kincardine, this is absolutely not a tax. There is no requirement for industry to impose costs on consumers. We have worked very hard with industry to reform the proposal put forward by the Conservative party, which industry absolutely hated, to get to a proposition that we believe will do the job of incentivising the market for heat pumps, as everyone recognises we need to do, while protecting consumers. Finally, we have to get to the right solution for every household in the end. We are not ideological about this. We care about getting consumers warmer homes and lower energy bills, and we will find a range of solutions that mean that where heat pumps work—we think that they will work in the majority of households, including in rural households—we will make it as easy as possible for consumers to adopt them. Where there is a need for alternative technologies, we are keeping those technologies under review so we can ensure the right solution for every single household. The status quo is not tenable, nor should the Conservative party be proud of it. Quite frankly, it is a status quo that we are absolutely disgusted to have inherited. Our job is to take the country on the journey that we need, which is why we will not resile from driving forward with our clean power mission. In the end, we have to take ourselves off the rollercoaster of international fossil fuel markets over which we have no control. That is why we will drive forward our warm home plan. Heat pumps and the clean heat market mechanism will be a key part of that. I commend the draft regulations to the Committee.

• 8 Jan 2025 · Heat Batteries: Decarbonising Homes · Hansard source

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  I thank everyone for their insightful contributions, and I thank my hon. Friend the Member for Ealing Southall (Deirdre Costigan), who I know works hard for her constituents, for bringing this issue to our attention. My hon. Friend is absolutely right to point to the inheritance that we are grappling with. The reality is that for too many people, energy is simply unaffordable. That is a reality that the last Government were willing to accept; it is not one that we think is tenable or that we are willing to accept. Every voice, every piece of new technology and every benefit must be considered as we try to reduce our reliance on gas and make our way forwards towards clean power by 2030, so I thank my hon. Friend for her research and work on heat batteries. Heating our homes via low-carbon means is key to our efforts to tackle not just emissions but fuel poverty and the high cost of living that is biting across the country. As we enter the colder months of 2025, we are acutely aware of the financial pressures that families are under when heating their homes, which is why it is critical that we continue to move quickly towards cheaper, cleaner and more secure methods of heating homes for everyone across the country. The Government were elected on an energy promise: to deliver warmer homes with lower energy bills for families across the country. Decent homes are the foundation of decent lives, and our warm homes plan is driven by the simple principle that every household deserves the security of a home that they can afford to heat.

• 17 Dec 2024 · Topical Questions · Hansard source

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  We are rolling out our warm homes plan, which we want every household to benefit from, and we will ensure that we have the right solution for the right homes. I will work with my hon. Friend and with Members from across the House on solutions that every household can benefit from, to ensure that we have warmer homes that are cheaper to run.

• 17 Dec 2024 · Topical Questions · Hansard source

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  We recognise that not enough was done to upgrade homes over the last 15 years, which is why we are absolutely running at this. We will upgrade up to 300,000 homes this year, and we are putting in place our plan to drive up standards in the private rented sector, and to ensure that as many households as possible benefit from homes that are warmer and much, much cheaper to run.

• 3 Dec 2024 · Draft Contracts for Difference (Miscellaneous Amendments) Regulations 2024 · Hansard source

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  I beg to move, That the Committee has considered the draft Contracts for Difference (Miscellaneous Amendment) Regulations 2024. These draft regulations were laid before the House on 20 October 2024. Last week, the Secretary of State updated the House on COP29 and reiterated what we already knew—that speeding up our transition to clean power is in our national interest. It is the best way to bolster our energy security, getting us off the rollercoaster of fossil fuels, which we do not control. It is the best way to spark economic growth across the country, with hundreds of thousands of new jobs, particularly in our industrial heartlands, and to tackle the climate crisis for today’s and future generations. That is why this Government are running at our clean power by 2030 mission, and this instrument will contribute towards that march. The contracts for difference scheme is the Government’s main mechanism for supporting new low-carbon electricity generation. CfDs are awarded through annual competitive auctions, with the lowest-priced bids successful. The sixth CfD allocation round, which ran earlier this year, was the largest round ever—more than double the size of last year’s round under the last Government. It awarded contracts to 128 clean energy projects across Great Britain, capturing 9.6 GW of renewable capacity and generating enough electricity to power the equivalent of 11 million homes. However, we must continue to build on that success, which means continually evolving the contracts for difference scheme to ensure that it reflects the global challenges and opportunities in the renewables sector. Building on AR6, we plan to update the scheme using this instrument to continue our march to clean power by 2030. First, we propose to extend the option of phased CfDs to floating offshore wind projects and, secondly, to enable repowered onshore wind projects to apply for CfDs. On the first point, the Government have committed to radically increase the UK’s offshore wind capacity, including floating offshore wind. As an emerging technology with less than 250 MW of capacity deployed worldwide, the floating offshore wind construction process is yet to be industrialised. Floating wind projects are likely to have a slower buildout rate, in part because of things such as capacity in ports and weather conditions. Phasing in the CfD allows projects to build in multiple stages. It allows for greater flexibility in the construction phase, enabling delivery to more realistic timelines and providing more certainty and confidence to investors. In turn, the reduction in project costs increases investor confidence in the UK’s growing floating offshore wind sector, unlocking the potential for us to massively expand. On the second point, of enabling repowering for onshore wind, our analysis shows that approximately 1 GW of onshore wind is coming to the end of its operating life between 2027 and 2030. Repowering can help ensure that renewable generation capacity is not lost from older projects. It also provides an opportunity to increase the renewable generation capacity of existing sites through improvements in technology and more efficient use of sites. Enabling access to CfDs for repowered onshore wind projects offers revenue certainty for those projects in order to maintain and boost our capacity. The CfD scheme did not previously have a policy on repowering built into it; these regulations will ensure that we do, to ensure that eligible generation capacity can apply for CfDs. In designing this policy, we are ensuring that we balance our objectives around decarbonisation, consumer value for money and security of supply by enabling repowering only for projects that both align with the fundamental aims of our CfD programme and, critically, have reached the end of their life and their operating life. Our approach, and the approach that we are taking to everything we do as we make our march to clean power by 2030, will always ensure that we are protecting consumers, by intervening only when and where needed and where it is cost-effective to do so. Before I conclude, let me say a word about the consultation process through which we sought views and evidence around the changes proposed for allocation round 7. We received a range of responses from across industry, including from developers, electricity traders and suppliers, businesses operating in the offshore wind sector, and consumer environmental groups. Most respondents agreed with implementing the phasing of floating offshore and repowering for onshore wind. Respondents also provided input into how we can implement these policies in the best way. The Department, as would be expected, will continue to engage with stakeholders in industry. Let me end here. The instrument today is another important step towards delivering our clean power mission, shielding families from volatile fossil fuel prices that we know have been a result of the cost of living crisis that we face and establishing the UK as a clean energy superpower. It builds on the existing success of the CfD programme, but allows it to evolve to reflect the realities of the global market. Critically, we believe this is a step in ensuring that we can protect consumers and reduce bills.

• 12 Nov 2024 · Topical Questions · Hansard source

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  We are doing everything we can to help the households that will struggle with bills this winter. We have had a big push to increase the uptake of pension credit and we are working with energy suppliers to provide additional support this winter, alongside our warm home discount, which will provide a rebate of £150 to households in fuel poverty. We have also extended the household support fund.

• 12 Nov 2024 · Warm Homes Plan · Hansard source

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  It is a national scandal that so many homes across the country have an EPC rating that is below C—a failure of the last Government to deliver the scale of home upgrades that we need. We are determined to end the injustice of people living in cold and draughty homes. I completely agree that we must do everything we can to support vulnerable households with their energy bills this winter. That is why we are providing 3.3 million households with the warm home discount, why we are working with energy suppliers to provide additional support, including through charities, and why we have extended the household support fund.