The price cap increase announced last week as a result of the war in Iran was deeply concerning news for families in my hon. Friend’s constituency. Tackling the cost of living crisis is the Government’s top priority, which is why we have acted to take £150 of costs off bills in the coming years and expanded the warm home discount, and why we are accelerating the warm homes plan. We will do everything we can to help protect her constituents in the face of this fossil fuel price spike.
In the local elections, Reform told my constituents, who are worried about rising fuel bills, that drilling new wells in the North sea would bring down energy prices. Will the Secretary of State explain how long it would take for the oil to flow if we permitted drilling new wells tomorrow, who would benefit the most from that oil, and how that would bring down prices at the pumps or energy bills in Newcastle? Given that, I suspect, big oil companies would benefit the most, is he surprised that 70% of Reform’s funding comes from fuel investors?
My hon. Friend makes a very important point, and does so in her articulate way. The big choice that we in this House face is this: is the way out of a fossil fuel crisis to double down on fossil fuels, in a way that would make no difference to bills and prices, or is the answer to drive further and faster for clean energy, as this Government are doing? We have made our choice.
I pay tribute to the hon. Member for championing deep geothermal. This Government recognise the potential that deep geothermal represents, particularly as a source for heat networks. Our priority is building out heat network infrastructure, which can then connect to any heat source. The green heat network fund and contracts for difference offer opportunities for geothermal projects to demonstrate the potential to de-risk both heat and power.
Clean Energy Transition: Supporting People in Work
Clean energy is a huge economic opportunity for every corner of the country. Our clean energy jobs plan highlighted 860,000 high-quality jobs across the whole of our nation by 2030—jobs that young people will not need to leave their home town for.
Deep geothermal has great potential for left-behind communities in this country, and it is a first-class transition industry for our oil and gas workforce. I welcome the Minister’s comments and the positive engagement with the Minister in the other place, who is a huge champion of deep geothermal, but the message from industry is that that is not enough, and that the funds that the Minister mentions are not doing the job. A deep geothermal strategy, giving the Government’s vote of confidence in deep geothermal, could go a long way, and would not necessarily cost very much. Industry tells us that that in itself would drive growth. Will the Government consider a strategy for deep geothermal?
I thank the hon. Gentleman once again for championing this issue. I know he has been calling for it, and I welcome the engagement. It was exciting to see the first deep geothermal project being opened in February, as a result of the contracts for difference, and more projects are coming online as a result. We are prioritising the heat network, but I would welcome more conversations with him to ensure that we are making all the right choices.
West Fife has huge potential for geothermal. In particular, the Comrie colliery development, at a former mining site, is now being regenerated to create leisure facilities, housing and other mixed-use development. It has been exploring the possibility of using deep geothermal from the former mine. Will the Minister meet me to discuss this in more detail, and perhaps come to visit the site to see its huge potential?
As we face the second fossil fuel shock in half a decade, it is right that the Government are scaling up clean, home-grown renewable energy through the energy independence Bill. However, clean energy jobs are not yet being created at the pace required to replace losses in oil and gas. How will the Government guarantee secure, well-paid jobs with strong trade union rights throughout the green transition?
My hon. Friend is right to point out the vulnerability to oil price shocks—Wales has been identified as a particularly vulnerable area. Like me, he has paid close attention to the report by the former Member for Darlington, Alan Milburn, on the need to provide opportunities for young people; in fact, I believe he has invited Alan Milburn to a meeting of his all-party parliamentary group later this week. The clean energy industry is one of the industries that will provide good-quality jobs, and in the Department we are using grants and procurement to ensure that we have strong trade union engagement.
The hon. Member for Montgomeryshire and Glyndŵr (Steve Witherden) is right: those jobs are not there yet, and we risk losing the incredible talent in our energy industry as my constituents move abroad to find jobs. My constituency has historically had some of the highest numbers of patents in the UK, so we have the innovators we need for the energy transition. How will the Minister and the Government ensure that this gap is filled and that people can find jobs to power that transition, rather than leaving us because there are no jobs just now?
The hon. Lady raises an important point about managing the transition, and that is certainly what this Government are doing. I just want to challenge the point about the number of jobs being created by the number being lost. I know that the Opposition are always keen to quote the research from Robert Gordon University, but it does point to more jobs being created than lost. Actually, the recent report from the Confederation of British Industry now says that 1.1 million jobs in our economy are now dependent on net zero. But clearly, we do need to support the transition—it will not happen on its own. That is why, through our North sea transition funding and the opportunities through our clean energy technical colleges, we are providing that opportunity for people.
Twenty-five per cent of the manufacturing output of the east midlands is in the food and drink sector, but that sector feels left behind in the clean energy transition without support from Government programmes, such as the British industrial competitiveness scheme. What support can the Minister give to the food and drink sector to ensure that it continues to prosper in the east midlands and to create jobs in constituencies such as mine?