19:31 The First Deputy Chairman of Ways and Means (Dame Rosie Winterton)

New clause 6— Impact assessment of a housing decarbonisation scheme —

‘(1) Within six months of the date of Royal Assent to this Act, the Secretary of State must work with the devolved authorities to carry out an assessment of the potential impact of a housing decarbonisation scheme.

(3) The assessment must consider the impact of a housing decarbonisation scheme under the different scenarios outlined in subsection (2) on—

(c) the Welsh Government’s climate targets;

(d) the UK Government’s climate targets;

(e) the Scottish Government’s Climate Targets;

(f) the Northern Ireland Executive’s Climate Targets.

This new clause would require the Government to work with the devolved authorities to assess the impact of a UK-wide housing decarbonisation scheme.

(c) increases in renewable energy sources, and

New clause 15— Report into the impact of provisions in the Act on the long term viability of the green energy industry —

‘(1) The Government must review the impact of provisions in the Act on the long term viability of the green energy industry.

(a) the likelihood of achieving net zero by 2050, and

(b) creating allowances for investment in green energy.’

This new clause would require the Secretary of State to report on the long term viability of the green energy industry.

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20:00 David Linden (Mr Nigel Evans)

I am largely supportive of the Bill, as there is an urgent need for assistance to be delivered at speed to hard-pressed families and businesses, but it is important to avoid any unintended negative consequences for other key Government objectives, in particular energy security, the transition to net zero and the full deployment of renewables and low-carbon forms of energy production.

Clause 16, along with schedule 6, introduces the cost-plus revenue limit, which is a cap on the revenue of low-carbon energy generation. There is a worry that this mechanism could penalise investment in clean, cheap and low-carbon generation. To avoid that, there is a need for a reinvestment allowance to channel investment into low-carbon projects, which are needed to meet our net zero and energy security targets, and which will also provide the long-term route map out of the cost of living crisis.

In conclusion, I hope the Minister can allay these concerns. I urge the Government to liaise and consult with all relevant stakeholders, including energy companies and civil society organisations, to avoid these unintended consequences, which could imperil energy security, decarbonisation and economic regeneration in coastal communities such as Waveney.

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20:30 Barry Gardiner (Labour)

While failure to address the demand side shows that the Government should have been investing in a comprehensive retrofit scheme over the past 12 years, it also highlights their failure, until Russia’s illegal war in Ukraine, to understand just how essential energy security is to our national security. Energy efficiency and renewable energy were regarded, in the words of our Prime Minister—that is, three Prime Ministers ago—as “green crap”. The truth is that, if we had rolled out a comprehensive programme of renewables and energy efficiency measures over the past 12 years, that stuff would now be regarded as green gold and there would be scant need for the provisions of this Bill.

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20:45 Liz Saville Roberts (Plaid Cymru)

If the Chancellor wants to reduce the cost of the energy support package, the answer is not to break promises made to millions of households, but—and on this surely we can all agree—to focus on reducing energy demand. The inefficiency of our housing stock means that households are wasting hundreds of pounds a year on energy that immediately escapes through draughty walls, windows and ceilings. New clause 6 would require the UK Government to work with the Welsh Government, the Scottish Government and the Northern Ireland Executive to assess the benefits of a housing decarbonisation scheme in terms of the impact it would have on energy bills, the number of households living in fuel poverty and climate targets.

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