The decision by my right hon. Friend the Chancellor to take an average £150 of costs off people’s energy bills from April is a reflection of this Government’s commitment to tackling the cost of living crisis. It will make a difference to families across the country and is estimated to reduce by over 1 million the number of people paying more than 10% of their income in energy costs.
Kensa, based in my Camborne, Redruth and Hayle constituency, is the largest manufacturer of ground source heat pumps to neighbourhoods and council flats, and I know that the Secretary of State and the Chancellor have both visited that company. This technology delivers low energy bills for family finances, but the sector requires policy certainty and a plan to grow. Ministers have been very generous with their time to date, but will the Secretary of State meet me again to discuss how we can provide the certainty and commitment to public funding that will support this technology?
I really enjoyed my visit to Kensa—I would recommend that all Members go—which is a really innovative company that is leading in heat pump manufacture. As my hon. Friend knows, we will shortly be publishing our warm homes plan, which will be really important in driving forward heat pump uptake and helping companies such as Kensa, because there is also a massive jobs story that is part of this.
Socialists do have a habit of taking money from people and then asking them to be grateful for getting some of it back, so could the Secretary of State tell us how much the £150 reduction in fees will actually cost taxpayers?
I will tell the hon. Lady. We are proud of the fact that in the Budget we raised taxes on the wealthy so that we could cut bills for millions of families across this country. I am so grateful to her for her question, because it illustrates the difference between our parties. This was not an easy thing to do; it was a decision made by this Government, because for too long this country has been run for the wealthy and powerful by the Conservative party. We are changing that and cutting bills for millions of families across Britain.
I welcome the shadow Minister to the Dispatch Box.
This Government’s promise to cut energy bills by £300 is dead in the water, as bills are now £190 higher than when they took office. Now their big idea is to pull the wool over the eyes of the British public by moving some of the costs of net zero from people’s energy bill to their tax bill. Can the Secretary of State answer a very simple question: after the Government’s supposed bill cut takes place in April, will the average energy bill be higher or lower than when Labour came to power?
I can tell the hon. Gentleman that bills are going to be lower. [Interruption.] If he just listens, I will tell him. If we compare 2025 to 2024, energy bills are lower in real terms than they were in 2024, and the price cap is also lower. Because bills are still too high, we will make that situation better by taking £150 off bills. The Conservatives opposed every measure in my right hon. Friend the Chancellor’s Budget, yet they also say that they want £150 off bills—they cannot have both. It is this Government who are delivering on the cost of living crisis.
I am intrigued, because question 6 has been transferred. It has even got on to the Order Paper. Why did the Department suddenly find out so late that it has been transferred? I do not think it is good practice, and I hope it will not happen again.