Nick Timothy is the Conservative MP for West Suffolk.
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The challenge of fuel poverty affects people of all ages throughout the country. Rather than just creating new benefits and schemes to address the high cost of fuel, we need to resolve the root causes of energy costs more generally. Here, the Government are taking the country in a very worrying direction. The Energy Secretary promises to decarbonise the grid by 2030, and the Business Secretary wants to ban petrol and diesel cars by the same year. Tough standards on aviation fuel are being enforced; heat pumps are expected to replace gas boilers; expensive and intermittent renewable technologies funded by huge and hidden subsidies are favoured; and oil and gas fields in the North sea are abandoned, left for the Norwegians to profit from what we choose to ignore.
The Energy Secretary has made much of the National Energy System Operator’s report on decarbonising the grid. He says that report shows that he can do so by 2030 without increasing bills, but in fact the report does not say that—and even then, its calculations rest on a carbon price that will rise to £147 per tonne of carbon dioxide. It is no wonder that, in reply to a question I asked him last week, the Energy Secretary would not rule out having a higher carbon price in Britain than in Europe. That will be terrible for families struggling with the cost of heating their home, but it will hurt them—and indeed all of us—in other ways. As long as policy runs faster than technology and other countries do not follow our lead on climate change, decarbonisation will inevitably mean deindustrialisation. That will mean a weaker economy with lower growth, fewer jobs, and less spending power to help those who we have been discussing today—those who need support the most.
Of course, it is not just the NESO report that shows us the future consequences of the Government’s policies. The OBR says that environmental levies will reach up to £15 billion by the end of this Parliament to pay for net zero policies. As those levies will fall heavily on consumption, they will have a particularly regressive effect, as analysis from the Institute for Fiscal Studies and Cornwall Insight has confirmed. It is therefore no wonder that Labour’s election promise to cut bills by £300 by the end of the Parliament has vanished without trace, so I challenge the Minister today to do what she has not done since polling day—repeat that promise very clearly. I suspect she will not because, unlike the Secretary of State, she knows the reality of his policies. The Government are adding complexity and contradiction to our energy system and loading extra costs on to families across the country. There is still time for Ministers to think again and put the interests of decent, hard-working people ahead of the Energy Secretary’s ideological dogma.
Full debate: Fuel Poverty: England
As the current Government continue down the ideological decarbonisation route, led by the Secretary of State, we will watch carefully in order to protect the families and businesses who bear the cost of unrealistic clean energy targets. Indeed, experts expect the energy price cap to rise next month. The Manchester-based— not Aberdeen-based—head of GB Energy, Juergen Maier, says it will be
We support the regulations. We recognise their role in winding down the old schemes, but we remain vigilant about new policies that will surely make lives harder and more expensive because of the unattainable and self-harming decarbonisation goals that the Government are pursuing.
Full debate: Draft Energy Bill Relief Scheme and Energy Bills Discount Scheme (Amendment) Regulations 2024
The Government policy to decarbonise the grid by 2030 rests on the National Energy System Operator’s assumption of a £147 per tonne carbon price, but manufacturers are lining up to tell the Energy Secretary that it would destroy British industry. Will he guarantee today that for the remainder of this Parliament, we will have a lower carbon price than Europe?
Full debate: Oral Answers to Questions