The affordability crisis is the No. 1 issue facing families across our country. That is why we have acted to take £150 of costs off bills for all families, with an additional £150 through the warm home discount for 6 million households this winter. Thanks to our decisions, last year was a record year for wind and solar power, and we have embarked on the biggest nuclear building programme for half a century. That is what it means to deliver on lower bills, good jobs and energy security.
Climate change made 2025 the UK’s hottest year on record and fuelled deadly extreme weather events across the globe. We know that every drop of oil and gas used makes those events more likely, so will the Secretary of State confirm how much more new oil and gas could be extracted via the tiebacks that the Government have decided to allow, despite the new oil and gas ban? When developers apply for permission for those tiebacks, will they be required to include scope 3 emissions in their environmental impact assessments?
I wish the hon. Lady a happy new year, but I find that question a bit churlish. We have produced a world-leading plan for the North sea, which combines the just transition—the just and prosperous transition—with environmental leadership, while keeping to our manifesto commitment not to issue new licences to explore new fields. It is absolutely right that we have tiebacks to ensure that existing oil and gas fields are kept open for their lifetime. Obviously, the North Sea Transition Authority will consult on the details of how that will work, but it is absolutely the right thing to do for jobs and the environment.
T2. Banister House in Homerton in my constituency was the first community energy scheme in Hackney with solar panels on the roof, and it is the UK’s largest such scheme on social housing. The forthcoming local power plan will provide an opportunity for others to follow where Hackney has led. Could the Secretary of State give some detail about its roll-out, so we all know how we can prepare to bid for it?
I congratulate Hackney council—Labour-led Hackney council—on the brilliant job it is doing on green energy. Unlike some who just talk about it, the council is actually delivering, and I congratulate it. I see Hackney as being at the forefront of our local power plan, which will be coming out in the coming months.
It is freezing cold outside, and people are worried about their energy bills, yet on top of all the other costs the Secretary of State has lumped on to people’s bills, it is reported that he is about to tax people with gas boilers to pay for people having heat pumps. Can he definitively rule this out for the rest of this Parliament: no new taxes on people heating their homes?
I can absolutely rule out that we are going to introduce new levies to the energy system in the warm homes plan. Those reports are complete nonsense. I can tell the shadow Secretary of State that the warm homes plan is going to turn the page on a decade of the Conservatives’ failure, because we are going to invest where they did not, we have a plan where they did not, we will have proper oversight and regulation where they did not, and we will tackle the cost of living crisis they caused—
The rumours are that the Secretary of State is pitching himself to be the next Chancellor. He did not rule out taxes on people heating their homes for this Parliament, he is shutting down the North sea, there is a disastrous EU energy deal and a secret deal with China, the industry is fleeing in its droves and energy bills have risen five times on his watch. Does this not show that he has to be the only person in the country who could do a worse job than the current Chancellor?
I want to briefly make one point. In the warm homes plan, which will come soon, we will be making £15 billion of public investment to help people cut their bills. The Conservatives can oppose that if they like, but I think it will be supported across the country, because they were an absolute failure on energy efficiency and all of that, and we are going to succeed.
T3. Since 2021, energy network firms have pocketed £4 billion in excess profits under the previous price control regime, known as RIIO-2, set under the previous Government. Those costs are borne by all our households through inflated energy bills. With Ofgem’s new price control regime, RIIO-3, now published, can the Minister confirm that robust safeguards are in place to both secure vital investment, but also protect from profiteering and deliver value for money for bill payers?
Network companies have benefited in the past, but Ofgem has moved to correct that in the RIIO-3 price control period so that it cannot happen again. We are working with Ofgem every single day to ensure that we bear down on the costs of energy and that consumers benefit from cheaper bills as quickly as possible.
Brexit excluded us from the EU’s internal energy market, costing the UK a huge £350 million annually. Will the Secretary of State confirm how he will accelerate progress towards the UK-EU internal electricity trading agreement to bring down costs and ensure energy security in these volatile times?