Energy for All
I appreciate the issues the campaign’s proposals highlight and can assure you that I am committed to tackling fuel poverty and cutting energy bills. For too long, households have faced draughty homes, sky-high bills and an energy crisis caused by the previous administration’s failure to insulate homes and invest in clean energy. That is why I welcome the action this Government is taking to deliver cleaner, cheaper heating for households.
I believe the best way to protect billpayers in the long-term is to break our dependence on global fossil fuel markets through the mission to deliver clean power by 2030. I welcome that the creation of Great British Energy will make an important contribution towards this mission, helping the country to harness clean energy and rely less on volatile international energy markets controlled by petrostates and dictators like Putin. I also welcome other steps the Government has already taken in this area, including ending the onshore wind ban in England, giving consent for enough solar to power over two million homes and holding a record-breaking renewables auction round.
Action on renewable energy will also go hand-in-hand with the Warm Homes Plan to make millions of homes warmer and cheaper to run. I am pleased that the Government has already kickstarted delivery of this plan, confirming a total of £13.2 billion of funding for it up to 2030 in the Spending Review and setting out plans to boost minimum energy efficiency standards for renters that could save them hundreds of pounds a year on their energy bills.
I recognise that in the meantime, it is crucial that we support households struggling with bills as we transition to clean power by 2030. That is why I was pleased to see the Government announce an expansion of the Warm Home Discount to an additional 2.7 million households this coming winter, in addition to the around three million households that received it last winter. Restrictions that previously excluded many households that needed help have been removed so it will now be available for every billpayer on means-tested benefits. This means around six million low-income households will receive £150 support to help with their energy bill costs.
I can assure you I will continue to support action to protect low-income households from energy bills. Thank you once again for contacting me about this important issue.
Community Energy Fund
Thank you for contacting me about the Community Energy Fund and the recent report from the Poverty and Environment Trust. I note the report’s findings, particularly on the enthusiasm there is for community-run renewable energy generation throughout the country and how this has shown up in the level of demand for the Great British Energy Community Fund.
Local and community renewable energy has a vital role to play in delivering clean power by 2030. It will contribute to Britain’s total power capacity, deliver important local benefits and reduce network system losses by bringing electricity supply closer to demand. It can also contribute to the prosperity of local areas, driving down electricity bills and promoting skilled jobs. I therefore agree with you on the importance of this issue.
I am proud to support the action the Government has taken to support community energy so far. I welcome that in March, it announced that the GB Energy Community Fund would provide an extra £5 million in grant funding to support community energy groups to develop their own clean power supply projects. I am also pleased that the Great British Energy Act explicitly includes support for energy projects involving or benefitting local communities as part of GB Energy’s objectives.
In addition, I welcome that the Government’s statement of strategic priorities for GB Energy sets out that it should drive the sustained long-term growth of local and community energy. This includes prioritising steps that unblock the pipeline of potential local and community energy projects, which have faced cost, capacity and capability constraints. Specifically, the statement sets out that GB Energy should target support for renewable generation led by community energy groups and other local actors through offering, alongside capacity and capability support, a cohesive package of financial support. This financial support includes grants and loans for the early, riskiest stages of projects.
I know the Department for Energy Security and Net Zero and GB Energy are working on the Local Power Plan, which will set out the Government’s vision for increasing the number of locally owned renewable energy projects and for supporting efforts to unlock cleaner, cheaper and more resilient power at the community level. I look forward to the publication of the plan and can assure you that I will continue to back measures to give communities a direct stake in the transition to net zero.