4. Statement by the Minister for Climate Change: Energy Price Cap

Part of the debate – in the Senedd at 3:45 pm on 8 February 2022.

Alert me about debates like this

Photo of Julie James Julie James Labour 3:45, 8 February 2022

Well, where to start? So, Arbed—Arbed has had some problems, absolutely, and as Janet Finch-Saunders said herself, we have taken responsibility for those both through our local authorities and as a Welsh Government. Unfortunately, there were preceding schemes to Arbed that the UK Government propagated—many of the Members here have had terrible problems with them in their constituencies. The UK Government's response to that has been to throw up their hands in horror, say there's no bond and there's nothing that can be done and the householder is entirely alone. So, Janet, before you start flinging stones, you really should have a look at where you're picking the stones up from, because you really are not in a good place as Conservatives to say that you've protected consumers from very poorly thought out schemes. 

Going on to the decarbonisation proposal, we have very much learnt from some of the difficulties we had with Arbed, and indeed from some of the small difficulties we had with the Welsh housing quality standard. One size does not fit all. So, we have an optimised retrofit programme here in Wales where we are trialling different technologies for different types of housing, making sure that we learn from the problems of the past with cavity wall installations that have gone wrong—some of them are excellent, but some of them have gone wrong—and other issues that have arisen, to make sure that we have the right programme for the right house.

Across the border, we have Prime Minister de Pfeffel going on about air source heat pumps for all houses, which you may as well install on the outside, because without addressing all of the other issues, they absolutely will not have any effect. 

A couple of other things that you mentioned: the windfall tax. I mean, I don't know where to start with that. A company that can announce record profits at the same time as putting energy prices up to the point where people really are choosing between heating and eating, and you're telling me that they're already paying enough tax—. Well, I think that says it all about the Conservatives. It's beyond satire—I won't even attempt it. If you can't see the problems you're making, I feel really sorry for you.

The £150 council tax issue is another one. So, that's a rebate on council tax; we already have a council tax relief scheme here in Wales that isn't duplicated in England. That council tax rebate cannot be claimed by anyone paying a collective rent, so anyone in a flat, anyone paying council tax as part of their rent will not be able to claim it. We've asked questions about that. It will be really interesting to see how that works. The idea that the £200 that's being given to people is a loan—I mean, even, Janet, you must be able to see the idiocy of relying on a market so volatile as this to even itself out so that people won't mind repaying a loan. I mean, it's just breathtaking. 

This Government, on the other hand, is doing what we can to help immediately with grants to people who are in immediate need. The idea that you're telling me what the cost of living is when you're the Government who took away the £20 universal credit uplift, who has frozen the local housing market allowance—. You're talking to me about rising rents at the same time as freezing the local housing allowance, having only put it up once in 15 years—absolutely outrageous behaviour, frankly, driving people into poverty—I will not be putting up with that. It's absolutely outrageous that you've done that. People living in private sector rented accommodation who can no longer claim the full cost of their rent absolutely through the welfare policies of your Government, that you support, that you've never got anything to say against—it's just extraordinary. I'm sure the people of Aberconwy have lots of questions to ask, probably along those lines.

In terms of innovative energy developments, we have worked very hard here in Wales, both with Ofgem and with everyone else to develop decentralised grid structures. However, the UK Government is in charge of the so-called national grid. The instructions to Ofgem mitigate that. You could do a great deal of good for your constituents, Janet, by asking the UK Government to devolve that to Wales, because we need upfront grid development that is not driven by consumer policies and contracts, but is driven by need and which allows a distributed grid. I would absolutely be behind you there. Closed-loop grids have caused endless problems because as soon as they go down, as we've learnt to our cost in Baglan, the UK Government will not step in, it will not legislate to make sure that the official receiver steps in to help the people there.

So, I am taking no lessons whatsoever from you on how to deal with welfare, on how to deal with poverty, on how to develop innovative energy structures or on how to deal with the UK Government. Actually, Janet, you really do need to do your research better.