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Question
The shadow Chancellor questioned whether the subsidies will be guaranteed under new contracts, expressing concern that companies might game the system. He asked how these changes would lead to overall bill reductions and for an estimate of the impact on bills.
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Question
The shadow Chancellor pressed for a commitment to removing carbon taxes completely, pointing out that these taxes cost both households and businesses. He also criticised the planned increase in fuel duty.
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Question
The shadow Chancellor questioned why the Government is not taking more action on North sea oil and gas extraction, urging the Prime Minister to overrule the Energy Secretary's stance on this issue. He noted that revenues from new oil and gas extraction are vital for public finances.
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Question
The UK has some of the highest energy prices in the world, which is crippling our economy and pushing up the cost of living. The Government’s reluctance to address this issue stems from their dogmatic commitment to a net zero agenda, making us poorer. While there have been some steps taken towards reducing costs, they are insufficient and slow. Proposals announced today risk locking in subsidies for renewables and without abolishing carbon taxes entirely, the impact on bills remains unclear. The Government's plan does not offer clear estimates or commitments to reduce energy bills effectively compared to the Conservative Opposition’s proposal which promises £200 off household bills. There is also no meaningful action taken on North Sea oil and gas extraction despite its importance for reducing our reliance on imported hydrocarbons.
Minister reply
The response from the shadow Chancellor exposes a lack of credible ideas and economic credibility. The Government's approach to the economy involves investing in and reforming the energy market, taking control of energy security while addressing global issues such as Russia’s invasion of Ukraine. Investments are being made in clean, home-grown energy like new solar and onshore wind power projects. The Government aims to de-escalate conflicts rather than escalating them to reduce fuel prices.
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Question
The conflict in Iran is also a matter of energy security and the cost of energy, reminding us of the dangers of being dependent on international fossil fuel markets. The Energy Security and Net Zero Committee has heard evidence about the importance of decoupling electricity prices from gas prices. May I encourage the Chancellor to bring forward measures that will reduce the amount of time that gas can continue to set the price of electricity? It is a pity that the Conservative party did not take this approach following the invasion of Ukraine in 2022 when it had the chance.
Minister reply
I thank the Chair of the Energy Security and Net Zero Committee for his question. There are two ways to reduce the number of days where gas sets electricity prices: investing more in home-grown renewables, nuclear, delinking gas and electricity prices by increasing the electricity generators levy to bring in money, incentivising companies to move from market price to contract for difference giving families, pensioners, and businesses greater certainty with their bills.
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Question
The Chancellor should use the extra £20 million daily revenue from higher VAT, energy profits levy, and other taxes to address immediate fuel crisis issues. The Liberal Democrats propose reducing prices at petrol pumps, train fares, bus fares, and electric vehicle home-charging costs as other countries are doing.
Minister reply
The idea of closing the strait of Hormuz is economically illiterate. The money that the hon. Lady wants does not exist; tax revenues will be lower due to conflict in the Middle East. Targeted support should replace untargeted approaches.
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Question
Does my right hon. Friend agree that providing targeted support during this crisis is fiscally responsible?
Minister reply
More than one-third of the £57-60 billion energy bill support went to top third of households, causing higher interest rates and inflation. The best approach is a targeted support strategy.
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Question
What measures are the Government taking to ensure kerosene supply for aviation? What consideration has she given to tax relief?
Minister reply
Government supports airports and aviation expansion. Regular contact with sector, no reported challenges yet. Best way is de-escalation of conflict to reopen strait of Hormuz.
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Question
Does the Chancellor agree that pressuring for war de-escalation is important in protecting UK households?
Minister reply
Prime Minister and French President convened meeting to work on reopening strait of Hormuz. Met Gulf countries who prioritised this.
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Question
Should the Chancellor cancel the planned 5p increase in fuel duty between September and next March?
Minister reply
Fuel duty freeze and 5p cut extended twice. Average motorist is saving £90 more than under previous plans. Cheaper fuel finder tool introduced.
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Question
Does the Chancellor agree that the warm homes plan is a major opportunity for rural housing upgrades?
Minister reply
Additional money provided to help with heating oil costs. Warm homes plan extended and increased in generosity, including boiler upgrades.
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Question
Why has the Chancellor not yet moved to the oil and gas price mechanism?
Minister reply
People in Scotland benefited from energy bill reductions. Offshore tiebacks policy announced will support jobs; SNP should back nuclear power.
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Question
Welcomes the Chancellor’s statement and asks about conversations with energy organisations regarding voluntary agreements and timing of benefits from breaking the link between gas and electricity prices.
Minister reply
Investment in nuclear and renewables can ensure security of supply and price stability, while fossil fuels cannot secure stable prices due to market volatility. The Government is working on getting more power onto contracts for difference to stabilise prices and avoid spikes caused by volatile fossil fuel markets.
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Question
Critiques the Chancellor's statements, mentioning tax raids and business closures due to tax rises.
Minister reply
The economy grew by 0.5% in February; unemployment has decreased; deficit reduction is faster than any G7 country, and wages have risen more than prices every month since taking office.
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Question
Inquires about plans to put economic pressure on Iran's leadership to de-escalate the situation.
Minister reply
The best economic policy is diplomatic; the Prime Minister hosted a coalition meeting and committed to increasing sanctions with the US Treasury Secretary. Work has been done to increase economic pressure on Iran.
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Question
Discusses agricultural inflation and lack of food security due to Britain's farming policies.
Minister reply
The Government is working with industry to support sectors facing challenges, particularly the agricultural sector. Efforts are being made to de-escalate conflicts and reopen straits like Hormuz to improve diesel and fertiliser supply.
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Question
Congratulates the Chancellor on decoupling electricity prices from international gas prices.
Minister reply
The higher electricity generator levy will bring in money to relieve pressure on families and businesses, while negotiations for contracts for difference aim to reduce volatility. Long-term benefits include more secure supply.
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Question
Welcomes references to civil nuclear power and asks about plans to support the small modular reactor sector.
Minister reply
The Government signed a contract with Rolls-Royce for the first fleet of small modular reactors in the UK, creating jobs across Britain. They are also working on securing overseas contracts.
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Question
Concerned about incomplete applications by Norfolk county council for heating oil support.
Minister reply
The Government made £50 million available to target areas in need, and the Chancellor is willing to follow up with the council to ensure constituents receive necessary support.
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Question
Commits to lower prices and secure supply but criticises opposition from her party.
Minister reply
The Government is working on decoupling gas and electricity prices through an increased generator levy, providing incentives for companies to move onto contracts for difference. This will help avoid price volatility.
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Question
Thanks the Chancellor for focusing on renewables and asks about curtailment fees in 2030.
Minister reply
The Planning and Infrastructure Act will enable building of necessary infrastructure, investment in battery technology, and differential pricing at different times to balance demand and supply. Will meet with MP to discuss technological options.
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Question
Is the Chancellor aware that gas prices in the US are 10% lower than at the start of the war, while UK prices are 30% higher? Will she urge the Secretary of State to approve licences for fracking at Jackdaw and beyond?
Minister reply
The Minister responded by stating that Richard Tice is advocating for fracking and indicated that she would campaign against him on this issue.
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Question
Will the Chancellor reassure Portsmouth residents, businesses, and families about today's actions to protect them from rising costs, support jobs, and ensure a sustainable future?
Minister reply
The Minister assured Amanda Martin that decoupling gas and electricity prices will reduce volatility and provide greater certainty for households and businesses. She also mentioned the Government’s plans for more contracts for difference to further stabilize energy prices.
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Question
How high do petrol, red diesel, and fertiliser prices have to go before the Chancellor takes action to address the cost of living crisis?
Minister reply
The Minister highlighted that energy bills fell in April due to measures taken last year. She also mentioned extending fuel duty cuts and stated that de-escalating the conflict is crucial for lowering energy costs.
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Question
Will the Chancellor keep vulnerable individuals under active consideration and take immediate action if necessary?
Minister reply
The Minister noted that previous Government interventions benefited higher-income earners disproportionately. She highlighted the increase in state pensions and removal of the two-child limit on universal credit to lift children out of poverty.
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Question
Will the Chancellor commit to cutting fuel duty, scrapping carbon taxes, and supporting key industries affected by rising costs?
Minister reply
The Minister mentioned £150 off energy bills in April for Northern Ireland and support for heating oil. She also highlighted plans for the British industrial competitiveness scheme and decoupling electricity prices.
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Question
Can the Chancellor reassure about developing and renewing energy networks to reduce reliance on imported fuels?
Minister reply
The Minister noted that her Government passed laws enabling construction of energy infrastructure, approved Sizewell C nuclear plant, gave planning permission for solar farms, and lifted the moratorium on onshore wind.
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Question
What immediate action will the Chancellor take to help small businesses in her constituency who are struggling with rising energy and food prices?
Minister reply
The Minister highlighted efforts to keep inflation and interest rates down, wage increases outpacing price rises, six cuts to interest rates, and measures like the British industrial competitiveness scheme and decoupling electricity prices.
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Question
What conversations is the Chancellor having with energy companies on how they can support businesses with rising costs?
Minister reply
The Minister stated that her focus includes de-escalating conflicts, supporting those struggling with energy debt, and ensuring people are not taken off contracts.
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Question
Where is the £8 billion support for communities in light of rising diesel prices and the UK's war costs?
Minister reply
The Minister mentioned up to 25% off energy bills for manufacturers, plans for exploiting more North Sea resources, an increase in electricity generator levy, and noted that she has cut interest rates six times since becoming Chancellor.
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Question
I thank the Chancellor for her statement and her nimble response to the energy shock, including support for heating oil consumers. The future of energy security is not an either/or; we must pursue renewables with a community share in wind wealth and use tiebacks to exploit existing licences fully. Will the Chancellor encourage other Ministers to hasten the review of Jackdaw and Rosebank?
Minister reply
My hon. Friend, while some parties oppose renewables or nuclear or oil and gas, this Government invest in all three: new nuclear (small modular reactors and Sizewell C), renewables (solar, onshore, offshore wind), and North sea oil and gas through tiebacks. The Energy Secretary will review Jackdaw and Rosebank soon.
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Question
We welcome the Government’s announcement on cutting the link between wholesale gas and electricity prices to shield families from volatile fossil fuel prices. Will the Chancellor meet me to discuss our proposals for accelerating reforms, bringing down energy bills, and securing supply?
Minister reply
I agree with decoupling. We are using an increase in the electricity generator levy to bring money immediately and incentivise companies to move on contracts for difference. This will enable building necessary infrastructure that will lower people’s bills and give us energy security.
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Question
The Chancellor knows AutoTrader announced that the average cost of a new electric vehicle has fallen below the average for petrol vehicles. How will today’s announcements support the switch to EVs?
Minister reply
First, decoupling gas and electricity prices will mean cheaper electricity costs for filling up EVs. We are also making it easier to install electric vehicle charge points and solar panels in homes and on streets.
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Question
Kevin Brewer is a domiciliary care worker from Northern Ireland who loves his job but drives 70 miles every day. In the end, he put fuel costs on credit cards because of financial strain. Will the Chancellor meet those at the national fuel tax protest to discuss VAT cuts and no increase in September?
Minister reply
Fuel duty was never lower than now; we are keeping it under review. The best way to reduce costs is to de-escalate this conflict by reopening Hormuz strait, which our diplomatic policy aims for.
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Question
It’s important that we look at long-term measures such as decoupling gas and electricity prices because previous temporary measures did not stop exposure to shocks, leading to insecurity. How quickly will households and businesses in Huddersfield benefit from this new pricing model? Can she say more about accelerating grid infrastructure?
Minister reply
We are helping 10,000 manufacturing businesses with the cost of electricity, reducing it by up to 25%. We have increased the electricity generator levy to bring money into the Exchequer and help people with conflict costs.
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Question
Members of the Chancellor’s Treasury team say that the small amount of funding for heating oil was just a first step. When will the next step come to support houses dependent on heating oil?
Minister reply
We were pleased to announce tens of millions in funding to help people with heating oil costs, like we did last year for gas and electricity bills. Local authorities need to ensure this money reaches those who need it now.
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Question
According to modelling from the National Energy System Operator, despite most energy being produced from renewables by 2030, gas will still set the price of electricity 30% of the time. What steps is she taking to decouple the price of renewables from gas and drive down energy prices for homes in Derbyshire Dales?
Minister reply
We need more home-grown energy investment for security of supply and price. We are increasing the electricity generator levy and using this money to help people now, incentivising providers to get on contracts for difference.
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Question
The Chancellor said we did not start or join the war and it is illegal. What imminent steps will she take to help shield vulnerable families?
Minister reply
We agree with Pakistan for their work in de-escalating conflict, hosting peace talks. We are reducing household energy bills through help with heating oil costs and other measures like BIC scheme last week.
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Question
Does the Chancellor agree that economic security, energy security and national security all go hand in hand? How will small modular reactors deliver power, security, good British jobs?
Minister reply
Great to meet Rolls-Royce apprentices; this Government’s investment in small modular reactors through National Wealth Fund is creating good jobs with decent wages, export opportunities, and energy security.
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Question
My constituents in Lagan Valley did not receive £150 off their electricity bills. As Northern Ireland is not part of the UK's main electricity market, this benefit does not apply to them and the Barnett consequentials do not amount to £150 per household. I ask whether the Chancellor will meet with members of the Northern Ireland Executive to discuss how to address the cost of living crisis in our region.
Minister reply
Northern Ireland received funding through the Barnett consequentials, allocated to the Northern Ireland Executive. Additionally, given the higher dependence on heating oil in Northern Ireland compared to other regions, we provided support through local authorities and tailored measures specific to the area.