Consumer Energy Debt

Energy Security and Net Zero – in the House of Commons am 11:45 am ar 16 Ionawr 2024.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Martin Docherty Martin Docherty Shadow SNP Spokesperson (Defence) 11:45, 16 Ionawr 2024

What recent discussions she has had with Ofgem on trends in the level of consumer energy debt.

Photo of Douglas Chapman Douglas Chapman Scottish National Party, Dunfermline and West Fife

What recent discussions she has had with Ofgem on trends in the level of consumer energy debt.

Photo of Graham Stuart Graham Stuart Minister of State (Department for Energy Security and Net Zero)

The Secretary of State is unwell and sends her apologies both to you, Madam Deputy Speaker, and to the House.

Ministers in the Department regularly meet Ofgem to discuss a range of issues. The Secretary of State met suppliers, alongside Ofgem, in November to discuss consumer energy debt and the protection of vulnerable customers. I know that many families are struggling with their energy bills this winter, which is why we are providing cost of living support worth £104 billion between 2022 and 2025.

Photo of Martin Docherty Martin Docherty Shadow SNP Spokesperson (Defence)

I am grateful for that answer. Just a few days ago, the Office for National Statistics showed that the number of households who had been unable to pay their energy bills has increased by nearly 40%. Does the Minister, on behalf of the Secretary of State, who I hope gets better soon, accept that the UK Government’s failure to listen to stakeholders such as Citizens Advice, which is calling for the £400 energy bill discount to be reinstated, has led to soaring energy debt among those who can least afford it, such as my constituents?

Photo of Graham Stuart Graham Stuart Minister of State (Department for Energy Security and Net Zero)

I thank the hon. Gentleman for his question; he is right to highlight the issue of debt and families who are struggling. This is why we are providing £104 billion—or, on average, £3,700 per household—between 2022 and 2025, which is one of the most generous packages in Europe. In the autumn statement, we increased the national living wage, which is worth £1,800 to a full-time worker, and increased benefits by 6.7%—that is worth £470. Just last week, we also delivered a tax cut for 27 million people, which is worth £450 for the average worker. So we are taking steps, but we recognise the reality for many people that he set out.

Photo of Douglas Chapman Douglas Chapman Scottish National Party, Dunfermline and West Fife

In my country, energy debt is rising, as Scottish consumers pay a premium on their energy bill—it is a high price to pay to keep the lights on in England. In the light of that imbalance, has the Minister discussed abolishing the not-fit-for-purpose Ofgem? If not, should his Government not give full responsibility for energy pricing in Scotland to the Scottish Parliament?

Photo of Graham Stuart Graham Stuart Minister of State (Department for Energy Security and Net Zero)

We have moved decisively to support families in Scotland and across the rest of the UK. I am pleased that the price cap has fallen by half since its peak last year, and we are making sure that our support is targeted at the most vulnerable. I have already laid out many of the measures we are taking precisely to ensure that people in Scotland and elsewhere are supported in what has been a tough time. Overall, we are, of course, looking to power up Britain. We have set out a plan to do that, precisely in order to have more of our power coming from Britain and to remove our dependence on foreign fossil fuels. I hope that the hon. Gentleman and his party will support us in our efforts to deliver that.

Photo of Dave Doogan Dave Doogan Shadow SNP Spokesperson (Energy Security and Net Zero)

The situation for bill payers this winter is even worse than it was last winter, which is why the SNP has called for the reinstatement of the £400 energy support scheme. However, the Government have stubbornly refused to sufficiently stand by householders, who are freezing all over these islands, despite reports of increased hospitalisations and the doubling of burns from hot water bottles in Scotland. How will the Tories extend just a fraction of the interest they have shown in exploiting Scotland’s natural energy resources to the people of Scotland, who are freezing yet again this winter?

Photo of Graham Stuart Graham Stuart Minister of State (Department for Energy Security and Net Zero)

As I set out in response to the hon. Gentleman’s colleagues, we have acted decisively, offering among the most generous support of any nation in Europe. We can be proud of the efforts we have made and I am pleased to see that the energy price cap is down so significantly.