22:00 Caroline Flint (Don Valley) (Lab)

I am a member of the Public Accounts Committee and we recently revisited the coalition Government’s household efficiency schemes. The Department of Energy and Climate Change’s financial model depended on large numbers of households taking out a green deal loan. The Government projected around 3.5 million green deals, yet a tiny 14,000 households signed up. That was bad policy making and, sadly, it wasted taxpayers’ money.

“There are still some 5 million cavity walls, 7 million solid walls and 7 million lofts that need insulating and therefore we welcome this proposal. Insulating these homes will combat fuel poverty and climate change as well as reducing energy bills and creating jobs.”

IGas has decided to focus its community fund awards this year on local renewable energy generation and long-term conservation. In its submission, INEOS argued:

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22:17 The Financial Secretary to the Treasury (Jane Ellison)

Of course, natural gas will continue to play an important role in our energy system as we move towards a low-carbon economy. We are absolutely committed to reducing our carbon emissions by at least 80% by 2050, compared with 1990 levels. Members on both sides of the House will recognise the fundamental importance of our doing so as part of the collective— indeed, global—efforts to stop climate change in its tracks. We are the first country to propose a phase-out of unabated coal, with gas and nuclear forming the secure base of our future energy mix as we continue to develop renewables and improve energy efficiency. I could not agree more that that is a really important part of the mix.

The shale wealth fund will be the latest in a line of local benefits schemes designed to support communities. For example, a number of renewable energy firms have made a voluntary commitment to provide community benefits of £5,000 per MW of installed capacity.

In answer to the right hon. Lady’s query about the purpose of the shale wealth fund, the main purpose is clear. The fund is a way of ensuring that, as this country develops our shale gas resources in a safe and sustainable way, local communities and areas that hold the resources and therefore support the industry’s development should directly benefit from doing so. As I have said, this could amount to as much as £1 billion of extra funding across these regions. We believe that local people should have a say over how best to use any such funding—for example, about whether it should be used to support new job opportunities, develop or enhance community assets, be invested in skills or be invested in green energy.

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