Cost of Energy

Helen Maguire Excerpts

Tuesday 11th February 2025 Westminster Hall

[Helen Maguire (Epsom and Ewell) (LD)]

It is a pleasure to serve under your chairmanship, Mr Western. The cost of energy is a crisis hitting every household in the country; it is not just a crisis of affordability but a crisis of national security, a crisis of climate and a crisis of social justice, but the Government have failed to act with urgency.

Russia’s assault on Ukraine has made clear the dangers of energy dependence, and we can no longer afford to be dependent on fossil fuels. Investing in home-grown renewable energy is about not just cutting bills but safeguarding our energy security to protect ourselves from geopolitical shocks. Climate change is an existential threat, with global temperatures driving wildfires, floods and droughts. With those come food and water insecurity and displacement, which in turn fuels conflict.

We need a Government willing to make tough choices to invest in clean energy and to ensure that the UK is not left behind in the global transition. Many areas require urgent reform. We need incentives that cover the real costs of installing heat pumps, as my hon. Friend the Member for Bath (Wera Hobhouse) outlined. We must also create a rooftop solar revolution by expanding incentives for households to invest in solar panels. That includes a guaranteed fair price for electricity sold back to the grid, which would tackle the twin cost of living and climate crises.

We must get the basics right and invest in insulation: cold, inefficient homes mean higher energy bills, fuel poverty and a staggering £1.4 billion NHS bill for treating cold-related illnesses. The UK has the oldest housing stock in Europe, with one fifth of homes built more than a century ago. A national strategy for retrofitting pre-1920 homes is long overdue, and the Liberal Democrats would launch an energy insulation programme, starting with free retrofits for low-income households.

We must also protect the vulnerable—now. The Government’s decision to axe the winter fuel payment was the wrong choice at the wrong time, stripping support from pensioners just as another cold winter bites. The Liberal Democrats would restore that help by introducing a social tariff for vulnerable households, raising the funds for it by imposing a proper windfall tax on oil and gas giants profiteering from this crisis.

The cost of energy is pushing people into hardship today, and without action it will do for years to come. Just in Epsom and Ewell, 6,518 people are living in fuel poverty. I welcome the work of the many community centres that provide warm hubs, but frankly they should not be needed. We must support households by restoring winter fuel payments, introducing a social tariff and driving a rooftop solar revolution. We must cut bills by investing in clean energy, making homes more efficient and ensuring that those who have done the right thing and gone green are not penalised. This is about security, sustainability and fairness. The Government must act; the cost of inaction is simply too high.