Energy Bills 2026-01-27

2026-01-27

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Questions & Answers

Q1 Direct Answer
Sally Jameson Lab/Co-op
Doncaster Central
Context
The Government has pledged to reduce energy bills, with an average reduction of £150 from April this year. Sally Jameson wants further progress on the cost of living.
I am pleased that the Government are sticking to their pledge on reducing energy bills, as the Minister rightly points out, with an average of £150 coming off annual bills this April. Does he agree that that is a good start, but that we must continue to work across Departments to ensure that we make further progress on the cost of living in this Parliament?
My hon. Friend is absolutely right: people need to see inflation come down, and that is what the Office for Budget Responsibility and the Bank of England forecast to happen. As she said, from April our plans for energy bills will save households £150 on average, which is something she has campaigned for over the past 18 months. I am pleased energy companies have confirmed that those savings will be passed on to those with fixed tariffs. She asks that we go further, and I should add that we have extended the £150 warm home discount to a further 2.7 million of the poorest households.
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Q2 Direct Answer
Anna Dixon Lab
Shipley
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The Chancellor announced in the Budget that they will scrap the energy company obligation scheme, which brings down average energy bills by £150. Anna Dixon asks for further action to reduce energy bills and ensure that companies prioritize people over profit.
I warmly welcome the Chancellor’s announcement in the Budget on scrapping the energy company obligation scheme, which will bring down energy bills by £150 on average and support some 5,000 households living in fuel poverty in my constituency of Shipley. The disastrous Tory-designed scheme, ECO4, cost £1 billion per year, yet 98% of the external wall cavity installations were faulty. What further action are the Minister and Chancellor taking to reduce energy bills and ensure that energy companies put people over profit?
My hon. Friend is entirely right. The Conservatives did not just leave Britain dependent on the rollercoaster of gas prices; they left families paying almost £2 billion on their bills for their failed energy efficiency ECO scheme. The Chair of the Public Accounts Committee described the scheme’s failings as the “worst” he had ever seen. That fuel poverty scheme cost 97% of those in fuel poverty more than it saved them, and it damaged thousands of homes. We are scrapping the ECO scheme, and cutting families’ bills.
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Q3 Partial Answer
Peter Bedford Con
Mid Leicestershire
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A new report by the Prosperity Institute criticizes the Government's net zero policies, stating they negatively impact fuel bills. Mr Bedford is concerned about his constituents' energy costs due to reliance on traditional fuel sources.
A new report by the Prosperity Institute is highly critical of the Government’s net zero policies and their adverse impact on the broader economy, and my constituents’ fuel bills continue to soar because of the Government’s reluctance to use more traditional sources of fuel. Will the Minister commit to raising that with the Secretary of State for Energy Security and Net Zero, because such ideologically driven polices are having an adverse impact on the bills of my constituents?
Energy bills are too high because the Tory party left us dependent on the rollercoaster of gas prices. Wholesale gas prices today remain more than double what they were at the start of 2020. If Conservative Members think that is some kind of advert for staying on gas forever, they are living in cloud cuckoo land.
Assessment & feedback
Net zero policies and their impact on energy costs
Living In Cloud Cuckoo Land
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Q4 Partial Answer
Mark Garnier Con
Wyre Forest
Context
Small businesses are experiencing significant increases in energy bills, with some non-energy intensive industries seeing up to a 10% increase. Mark Garnier suggests the Conservative Party's cheap power plan which could save small businesses £5,000 annually.
We have already heard this morning that businesses are suffering harm from business rates and national insurance contributions going up, but on top of that, according to the Office for National Statistics, the energy bills of non-energy intensive industries such as hospitality and retail have increased under this Government by up to 10% in the last year. The Conservative are proposing our cheap power plan, which would save small businesses up to £5,000 a year on their energy bills. What is the Minister doing to help small businesses with their energy bills?
What this Government are doing is getting on with building the energy infrastructure that this country needs, and we are not going back to the 11% inflation seen under the Conservative party. This Government are supporting small businesses, because the hon. Gentleman is right on one thing, which is that high energy bills are not in the interests of British industry. That is why we are getting on with fixing the energy system that we inherited.
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Specific measures for small businesses
Getting On With Building Energy Infrastructure Not Going Back To 11% Inflation
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