Polly Billington MP: speeches

Speeches

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  To be clear, we will do this while we need to. As soon as parliamentary time allows, we will change the law so that we do not need to continue to extend in this way. The regulations do not give the Secretary of State any new powers. They simply extend the period in which the existing power may be used. I assure hon. Members that the Department is working on primary legislation to provide a more permanent solution when parliamentary time allows. The position is slightly different in Northern Ireland, where energy costs are a transferred matter for the Executive, and the Northern Ireland renewables obligation forms a smaller cost on energy bills. The Department has been supporting colleagues in Northern Ireland as they develop a comparable offer to the policy in Great Britain. Following a request from the Northern Ireland Minister for the Economy, separate regulations came into force on 20 June to enable the Northern Ireland Executive to deliver their comparable offer. The regulations are a straightforward extension of an existing time-limited power. At a time when international events continue to put pressure on wholesale energy markets, it is vital that the Government can continue to deliver the bill reductions announced in the Budget while work progresses on a longer-term legislative solution. I commend the regulations to the Committee.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  I thank the hon. Gentleman for his question. I am happy to write him about the specifics of that.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  I thank the right hon. Gentleman for his intervention, and I am sure we will continue to have conversations about this. Our manifesto commitment is absolutely to make sure that we have lower energy bills in the future. We also have to be honest about how we manage external shocks to our system and make sure that we are protecting customers and consumers from those. That is one reason why we have the clean power plan, and why we are looking to reform the market over time so that we are not exposed to the kinds of global shocks that push up prices, as we have seen recently.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  I thank hon. Members for their contributions, and I will turn briefly to the points raised. The No. 1 priority of this Government is to tackle the cost of living crisis that people face. The Government acted at last year’s Budget by taking an average £150 of costs off energy bills. Those decisions are now factored into bills for the years to come. That decision was taken at the autumn Budget 2025 before the conflict in the middle east and the subsequent increase in wholesale energy prices. As a result, households are better protected from those increases than they would otherwise have been. The rise in the price cap announced by Ofgem will be deeply concerning news for families. We will continue to monitor the situation ahead of the winter and plan for all contingencies. I recognise that some would like us to go further in immediately reducing bills in response to recent events. One of the first steps that the new Prime Minister took was to cut VAT on electricity bills. Without that intervention, the price cap figure would have been around £45 higher than announced. Although the price cap will increase by 4% on 1 October, driven by ongoing wholesale price volatility as a direct consequence of the events in the middle east, it would have been considerably higher still without the ongoing effects of moving the renewables obligation to the Exchequer, which continues to suppress bills. Where impacts have been felt by those outside the energy price cap, we have acted, with £53 million of support via the crisis and resilience fund for vulnerable heating oil customers announced in March. I thank my hon. Friend the Member for South West Norfolk for his question about the crisis and resilience fund. I understand people’s concern about whether they should apply. I urge anyone who relies on heating oil who has any concerns about their ability to afford to keep their home warm this winter to apply to the fund, and I will be keen to ensure that local authorities recognise their responsibilities when it comes to disbursing funds accordingly.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  I thank the right hon. Gentleman for his intervention. It is very clear. As I said, we absolutely stand by our commitment. The previous Energy Secretary, my right hon. Friend the Member for Doncaster North (Ed Miliband), said: “Bills are too high and we stand by our promise to get bills down by up to £300 by 2030.” We have already taken £150 off bills as a consequence of the decisions made in the previous Budget. The new Prime Minister has announced a £45 reduction on average across an energy bill because of the reduction in VAT. The independent Resolution Foundation found that across 2026 as a whole, the typical energy bill is now expected to be more than £200 lower in real terms than in 2024 before the conflict in the middle east began. I understand that the right hon. Member for Beverley and Holderness knows a lot about the energy system and I respect his understanding, but when there are global shocks like there are, we have to do everything we can as a Government to protect consumers from those global shocks. That includes the short term with the efforts we are putting in now, and the long term in reforming the market. I look forward to seeing him supporting our reform of that market in order to be able to protect consumers in the future. The UK has a diverse and resilient energy system—indeed, one that the right hon. Gentleman oversaw for some time—and we will of course continue to monitor the situation in the middle east closely. I assure colleagues that contingency planning is taking place for every eventuality to ensure that the Government can be responsive and responsible. It is important to understand that we need a principled reform to shift the balance of levy costs from the bill to the Exchequer, because we need to make sure that that is a fairer way of dealing with the cost of a shift to a cleaner and more resilient energy system. The reason we have given for not abolishing the renewables obligation, which is a suggestion from the Conservatives, is that it would significantly impact on investor confidence and energy security. There is a risk of there being no certainty that 25,000 renewable energy projects would continue generating without that subsidy. I am sure that His Majesty’s Opposition would not want a set of policy proposals that would threaten the security of our energy system in that way. The draft regulations extend a time limit on essential legal powers that will enable us to take action to reduce people’s energy bills. While simple in themselves, the regulations support the reduction of energy bills, which is a key part of the Government’s focus on the cost of living. Question put and agreed to.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  indicated assent.

• 1 Sept 2026 · Draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026 · Hansard source

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  I beg to move, That the Committee has considered the draft Energy Prices Act 2022 (Extension of Time Limit) (No. 2) Regulations 2026. It is a pleasure to serve under your chairmanship, Sir Desmond. In the autumn Budget, the Government acted to reduce energy costs to benefit all households with a domestic energy contract. We did that by closing the energy company obligation scheme to new costs on bills and by moving 75% of the domestic cost of the renewables obligation to the Exchequer. Those decisions are already making a real difference. From April 2026, they took an average of £150 in costs off household energy bills, and they continue to keep bills lower than they would otherwise be. The renewables obligation exists to support renewable electricity generation through a system of tradeable certificates. The scheme is closed to new applications, and the first generators will come off the scheme from April 2027; the scheme will close finally in 2037. The scheme has been instrumental in building the UK’s renewable energy sector. It supports about 35 GW of generation capacity and about 30% of total UK electricity generation. The core of the renewables obligation scheme is a process in which electricity suppliers purchase certificates from renewables generators. Previously, suppliers recovered all the costs of complying with the obligations from consumers via their electricity bills, with Ofgem reflecting those costs through the price cap. From 1 April, the Government have instead provided grant funding to electricity suppliers to cover 75% of the domestic share of the costs in Great Britain. We have also taken steps to ensure that those savings are passed on: for customers on standard variable tariffs, Ofgem has factored the lower policy costs into the price cap; and for customers on other domestic tariffs, including fixed tariffs, the Government issued a legally binding direction requiring suppliers to pass through the savings in full. The latest price cap illustrates why that action matters. On 26 August, Ofgem announced that the cap for 1 October to 31 December will increase by 4% to £1,723 for a typical household, driven by ongoing wholesale price volatility as a result of the war in the middle east. Ofgem has been clear that the increase is likely to be felt primarily in gas bills, with electricity bills remaining broadly flat. Without the action we took at the Budget, the cap would be significantly higher still. The draft regulations are concerned with the legal basis for continuing to deliver the bill reduction measures. Section 13 of the Energy Prices Act 2022 provides the power we are using to take such steps to reduce people’s bills, but the power in section 13 is time-limited and may be extended only by six months at a time. Earlier this year, Parliament approved regulations extending the power from 25 April to 25 October 2026. The regulations before the Committee extend that time limit again, from 25 October to 25 April 2027, so that the policy can continue without interruption.

• 15 Jul 2026 · National Energy System Operator: Blackout Risk · Hansard source

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  I am grateful to my hon. Friend for coming to the House and providing clarity and reassurance that the allegations will be taken seriously, but does he agree that alongside the transparency of this process comes the need for responsible reporting and a responsible Opposition? The electricity margin notices are a standard tool that NESO has used for many years, and that includes the time when the Opposition were in government.

• 9 Jul 2026 · Israeli Settlements: Trade Ban · Hansard source

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  I refer the House to my entry in the Register of Members’ Financial Interests. I am honoured to follow my hon. Friend the Member for Cowdenbeath and Kirkcaldy (Melanie Ward), and I congratulate my hon. Friend the Member for Sheffield Central (Abtisam Mohamed) on securing the debate. Earlier this year, I travelled to Israel and the occupied west bank as part of a cross-party delegation organised by Yachad. I met survivors of the 7 October attack and Palestinian families driven from their homes and living under daily intimidation from settlers. Let us be clear: illegal settlements are not simply an obstacle to peace; they are a deliberate strategy to make a viable Palestinian state impossible. I welcome the Government’s decision to recognise the state of Palestine, but recognition must not be simply symbolic. We have a responsibility to make that state viable, and that starts with banning trade with illegal settlements. The UK should not allow goods produced on occupied land to enter our markets, and nor should British businesses profit from activity that our own Government say is illegal. We should also suspend trade concessions and sanction any company bidding for contracts to design, finance or construct illegal settlements, such as those in E1. There needs to be far greater scrutiny of British money flowing into settlements. No UK charities should retain charitable status while facilitating settlements, and no British financial institutions should be investing in companies sustaining settlement expansion. There must be accountability when British-funded infrastructure is destroyed. In Khirbet Zanuta, I saw the remains of a school partly funded by UK aid. It was destroyed by sustained settler attacks, which forced the community to flee. The British Government should seek compensation from the Israeli Government for the destruction of infrastructure funded by UK taxpayers. Finally, we must support the institutions of the Palestinian state. Representatives of the Palestinian Authority described to me the financial crisis caused by Israel’s withholding of Palestinian tax and tariff revenues. Its continued withholding weakens the institutions that any future Palestinian state will depend on. If we are serious about nation building, the UK must apply renewed pressure for the release of those revenues in full, without delay. None of these measures are anti-Israel; they are pro-peace. They are about defending international law, supporting those on both sides working for co-existence, and preserving any realistic prospect of a negotiated two-state solution. My hon. Friend the Minister is a man of principle, and of strong values and determination, and he will resist excuses for not acting. I urge him to apply those principles and that determination to this problem. The world watches us, and we must act.

• 9 Jul 2026 · Israeli Settlements: Trade Ban · Hansard source

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  Will the Minister give way?