Martin McCluskey
MP for Inverclyde and Renfrewshire West · Labour · United Kingdom
“I am disappointed at the hon. Gentleman’s statement. We are making the case strongly and our pledge to reduce energy bills still stands. He will know that renewables are the quickest way to reduce our energy bills. He will also know that the warm home discount is providing significant support to people in his constituency right now.”
“We are preparing for every contingency and looking at the support that may be required in the autumn and winter. The significant increase in the warm home discount has obviously benefited households right across the country, not least in my hon. Friend’s constituency.”
“The hon. Gentleman will know that tackling the cost of living is this Government’s priority. We have already taken action at the Budget, and we have also expanded the warm home discount to nearly 6 million households.”
“My hon. Friend makes a really important point. If we are to reach our clean power targets, we need heat networks on the system to be providing significant levels of clean heat.”
“This is nonsense. That was set up by an arm’s length organisation set up by the previous Government. It is not something that the Government are funding.”
“I pay tribute to the work my hon. Friend is doing for her constituents on this issue. The most effective way to decouple our electricity prices from gas is to expand our renewable generation. Every wind turbine we turn on and every solar panel that we deploy helps to push gas off as the price-setter. We will continue to work in this way.”
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Every one of 511 lines we hold for Martin McCluskey, in date order, each linked to its source. Free to read, in full, without an account. Page 6 of 11.
“I was struck by the sheer scale of what she was facing every day, such as sending energy workers into the field to repair broken transmission lines and substations—not just facing the risks that any worker faces in situations with high voltage cables, but also facing the risk of Russian drone attacks and bombs. I could not be clearer in condemning the actions of the Russian regime and what they are doing in targeting infrastructure at this time. As I draw this debate to a close, I want to reaffirm that tackling the affordability crisis is this Government’s No. 1 priority. The main reason that bills are so high, as the hon. Member for Sutton and Cheam alluded to, is the wholesale cost of gas and our exposure to price shocks caused by our dependence on fossil fuel markets.”
“It is a pleasure to serve under your chairship, Ms Jardine, I think for the first time. We could probably have done with a longer debate given how many people intervened at the start, but I thank the hon. Member for Sutton and Cheam (Luke Taylor) for securing this debate and for giving us the opportunity to debate an important issue, which I know lots of Members across the House have an interest in. I associate myself with the hon. Member’s remarks about the situation in Ukraine. Last year, when I attended the G7 Energy and Environment Ministers meeting, I met the then Ukrainian Energy Minister.”
“We are working with Ofgem to future-proof how costs are managed, and are taking action to fund a cleaner, more secure energy system. We will achieve bill savings while taking back control with home-grown clean power. That is the route to cheaper energy in the long run. Every wind turbine that we turn on and every piece of new technology that we adopt helps us reduce our reliance on fossil fuels, including gas, and ensures that we get costs down in the long run. That is the only way to protect the British people and bring down bills for good. That is what the Government’s clean energy mission is all about. Question put and agreed to.”
“We have just launched a kick-starter project with the Department for Science, Innovation and Technology and the Department for Energy Security and Net Zero, which is about accurately finding reliable household income data and properly targeting energy interventions—I would be happy to discuss that in more detail with the hon. Gentleman. It is vital to ensuring that energy costs and bills reflect the changing market. We are bringing energy bills down for everyone with the actions that we will be taking in April, and we will continue to search for other ways to do so. We are lowering bills through the delivery of the Budget’s bill reduction measures. We have expanded the warm home discount, and are delivering the record-breaking warm homes plan.”
“We have more clean power and innovative tariffs, such as time of use tariffs, and the use of technologies such as heat pumps and electric vehicles has grown. That means that we need solutions fit for 2030 and beyond. Ofgem is currently conducting a cost allocation and recovery review to look at how costs on energy bills can be recovered in the future, and it is considering factors such as efficiency, fairness, meeting our net zero commitments, ensuring growth, and how we pay for our energy system. I am keen that that ensures that progressivity is at the heart of the way people pay for their energy. The hon. Member for Sutton and Cheam spoke about a social tariff, which I know a lot of hon. Members would welcome, but I am always thoughtful about how we make sure that is properly targeted. For that, we need reliable data.”
“Friend the Member for Portsmouth North (Amanda Martin) for arranging the coffee morning and the energy support event. I believe that many Members are doing similar things; they have received a lot of support from energy suppliers and other organisations. She said that she has had conversations with Checkatrade and with people in the building trade. I said a moment ago that we are ensuring high levels of consumer protection to protect not just consumers but those in the building trade. Whenever I meet them, they ask for reliable regulation and standards that they can adhere to. The vast majority of builders, who are maintaining a high standard, do not want their reputation trashed by people who are not meeting those high standards. The energy system is changing.”
“I am confident that the landmark plan that we have announced will make people across Britain better off, secure our energy independence and do right by future generations by tackling the climate crisis. One of the effects of the affordability crisis has been to increase consumer debt, which remains at a record level. Reducing debt not only helps those in debt but cuts the cost of managing debt for all consumers. I recognise the need to tackle that problem, and I have been working closely with Ofgem to do that. In November, Ofgem published an updated debt strategy that set out its near-term actions and priorities in supporting suppliers to reduce debt in the sector. It includes proposals for a debt relief scheme to tackle the debt that some consumers built up during the energy crisis; that could reduce aggregate debt. I commend my hon.”
“Those upgrades can provide a significant saving for a typical household of £550 a year on their bills. Alongside that, we have allocated £5 billion to a new warm homes fund, almost £2 billion of which will go to the provision of low or zero-interest loans. That will make it easier for more people to meet the up-front costs of upgrading their homes in order to benefit from lower bills. About 30% of private rented sector tenants live in fuel poverty. We are introducing new minimum energy efficiency standards for the private rented sector and the social rented sector, which will save renters hundreds of pounds a year and ensure that they have decent, warm homes.”
“We should ensure that problems do not occur in the first instance, but when they do there must be proper adequate redress, so that there is confidence in the system. We cannot expect people to make these changes without confidence in the system. The warm homes plan will roll out upgrades to up to 5 million homes by 2030, saving households hundreds of pounds on energy bills and helping lift up to 1 million families out of fuel poverty by 2030. We are providing £5 billion of targeted support for low-income households, which will receive free upgrades, including heat pumps, solar panels and batteries. That includes additional funding for the very successful warm homes local grant, and the warm homes social housing fund for local authorities and social landlords to upgrade homes for those on low incomes and in social housing.”
“To address those points: the warm homes agency, which is part of the plan, is there to provide advice and guidance to consumers from the start to the end of the retrofit journey. That is about increasing the level of advice and guidance available. I understand that retrofitting a home is challenging and that people need advice and guidance to do it effectively, as the hon. Lady noted. As for oversight, there has been a problem in the past, as we saw with the number of issues around the ECO4 programme. The warm homes plan states clearly that we will consult on the protection available to consumers through the course of this year. As the Minister responsible, I never want to see an issue like ECO4 again. We need to make it as easy as possible.”
“When looking to renew their energy contracts, they should be actively comparing quotes across the non-domestic market and considering available customer service data such as Citizens Advice’s energy supplier performance league table. Small tenements have different needs for communal area pricing from those of a large council complex, for example. Although the existing approach has generally benefited households and offered protection from unfair reselling, some households can be exposed to high prices, as we have heard from the hon. Member and others. The Government are committed to ensuring that our approach to these issues delivers the best outcomes for our citizens as our energy system evolves.”
“It is a pleasure to serve under your chairmanship, Mr Stuart. I congratulate the hon. Member for Moray West, Nairn and Strathspey (Graham Leadbitter) on securing this debate and giving Members across the House a rare and, I am sure, welcome opportunity to discuss factoring arrangements in Scotland. The Government recognise that households in factored buildings and their equivalents face more complexity in securing the energy they need than typical households. I hope to address the six points that the hon. Member made at the end of his speech, but if there are any that he would like to discuss further with me, I will be more than happy to do so after the debate. Factors and other property managers have an important role to play in ensuring that they secure the best-value energy contract for their building.”
“Members again for being present at the debate, for raising these issues and for all their contributions, which I assure them will be taken into consideration by the Government and by Ofgem as we move forward. Question put and agreed to.”
“It is cutting fuel poverty right now for those consumers who are in receipt of it. In addition to our work on reducing energy prices, the Government are delivering record investment in upgrading our housing stock through the warm homes plan. We have committed £15 billion to making the biggest ever public investment in home upgrades, upgrading up to 5 million homes by accelerating the installation of heat pumps, solar panels, batteries and insulation. When it is announced, it will come with Barnett consequentials for the devolved Governments, including the Scottish Government, to develop their own schemes under the funding. Alongside our action to make electricity cheaper and more flexible, that is how we are delivering warmer, more affordable homes and repairing a broken energy system. I thank hon.”
“Many households in factored properties will also benefit from the announcements that the Chancellor made in the autumn Budget, with action to take an average of £150 off the cost of domestic energy bills by closing the energy company obligation scheme, and providing Exchequer funding to reduce the cost of the renewables obligation for domestic energy suppliers from 1 April. Those measures are designed to provide immediate relief for people across the country and set the foundation for sustained long-term reductions in energy bills through a transition to clean home-grown power. That support, as many hon. Members will know, comes on top of the £150 off energy bills, a measure that was provided by the Government for about 6 million families and was extended—almost doubled—under the warm home discount this winter.”
“For example, the creation of GB Energy will help us to harness clean energy; contracts for difference will continue to drive clean power investment, as we have seen from today’s announcement of allocation round 7; the results of AR7 improvements to the capacity market will ensure security of supply while maximising bill payer value for money; and network improvements, with network providers finally making significant investment after years of under-investment, will reduce the costs of operating the energy system for decades to come. Across all fronts, the Government are taking action to drive down energy bills.”
“Members will know, international gas prices are still 40% higher than in 2021. Permanently reducing energy prices can be achieved only by moving to home-grown, clean power that we control. That is why my Department’s central mission is to deliver a clean power system by 2030 through renewables and through new nuclear power. This is the way to break our dependence on global fossil fuel markets and permanently protect bill payers from higher prices. The Government are determined to deliver on that mission, and my Department is leading an ambitious programme of work that will make it happen.”
“The review started with a call for input in autumn 2025 to gather evidence, and Ofgem aims to publish a policy consultation in summer 2026. The MRP has an important role across the energy industry: as well as improving the situation for households, changes to the MRP have a potential positive impact on other areas of the energy industry. I will like to touch briefly on the point that the hon. Member for Yeovil (Adam Dance) raised about his constituent. He may already know that we have announced regulation of third-party intermediaries. We will take that forward through upcoming legislation—this is an important point—to give people more power in brokered energy deals. Ultimately, households in factored properties feel that their energy costs, for communal areas and otherwise, are too high—because fundamentally they are too high. As hon.”
“The transition to an increasingly decentralised, digitalised and decarbonised system, driven by net zero ambitions and technological innovation, has seen new challenges and opportunities emerge. Ofgem has begun a review of the maximum resale price to determine whether it delivers fair, transparent pricing and adequate consumer protection and whether it enables investment in the low-carbon infrastructure and services necessary to deliver net zero at the lowest cost. Ofgem has identified that enforcement mechanisms for the current maximum resale price rules are failing to protect some consumers. That is a key area of its current review, and decisions on any further action that may be needed will be made on the basis of those findings.”
“The principle is that profit should not be made when reselling energy in those kinds of arrangements. The Government are very clear that resellers such as factors or landlords should not profit from the resale of energy. The maximum resale price is set at cost pass-through, meaning that the maximum price at which energy can be resold is the same as the price that the reseller paid. Many who are resold energy have limited choice over who supplies them. The maximum resale price is important, as it is the main protection against resellers exploiting their position. The energy system has evolved significantly since the last substantive review of maximum resale price.”
“Member also raised, are the responsibility of Elexon. Ofgem has previously clarified that, for communal supply arrangements, profile classes should not be the final determining factor in the supply type offered by suppliers. If further clarification is needed in that area, it can be explored by Ofgem and Elexon. I encourage the hon. Member to write to both of them on that point. We are aware that not having direct control over all aspects of the supply can create difficulties for households. Where households do not have direct control over their individual supply arrangements, Ofgem’s maximum resale price rules protect them from being overcharged by limiting the price of energy charged to consumers to the price paid by those procuring the energy.”
“Member for Moray West, Nairn and Strathspey, when residents do not have direct control over their energy supply, access to the Energy Ombudsman depends on the specific arrangements between them and the intermediary contracting with the supplier. If residents do not have control over the party that contracts with the supplier, allowing them access to the ombudsman fundamentally changes the role and purpose of the Energy Ombudsman as a service between the supplier and the contracted customer. Ofgem is always happy to clarify where consumers are currently able to access the ombudsman, to make sure that customers are not missing out on any avenues of redress to which they are entitled, but I am happy to take away the hon. Member’s point and raise it when I next meet the Energy Ombudsman in person. Meter profile classes, which the hon.”
“There is clearly a need, and there are widespread calls, for factoring reform in Scotland. There have been no major reforms to factoring since 2011, when my hon. Friend the Member for Glasgow West (Patricia Ferguson), in her time as a Member of the Scottish Parliament, took a Member’s Bill through Holyrood. The Scottish Government have recently rejected amendments to housing legislation that would have increased transparency in charging and made it far easier for homeowners to take action against factors. I believe that further work in the area would be welcomed by many across this Chamber and by tenants and homeowners in Scotland. As we have heard from the hon.”
“Ofgem keeps all the standard licence conditions under review to make sure that they are working in the best interests of consumers. As part of that, Ofgem will look again at standard licence condition 6 to ensure that the definitions continue to meet the needs of consumers and the evolving energy market. Before I turn in detail to other energy policy issues, let me briefly say something about factoring as a whole. It is a devolved responsibility, and it is for the Scottish Government to make decisions relating to it. However, there is widespread interest in factoring reform in Scotland, and there is clearly an interaction between the effectiveness of the factor and our ability to provide the best deal in energy, and many other areas, for the consumer.”
“I thank my hon. Friend for all her work to advocate on behalf of her constituents—I think it was at Saltire Square in Granton, and my hon. Friend the Member for Edinburgh East and Musselburgh (Chris Murray) is doing the same with a heat network in Greendykes. At that meeting, we heard how important it is that we get on top of this. The Ofgem regulation kicks in on 27 January, and we will be looking to Ofgem to implement it as quickly as possible. I agree with my hon. Friend the Member for Edinburgh North and Leith (Tracy Gilbert) that there are more actions that other Governments across the UK can take in this space. I will turn to that point in a moment. As I say, the Government are committed to ensuring that our approach to these issues delivers the best outcomes for our citizens as our energy system evolves.”
“The Minister for Energy has asked Phillips 66 for clarity as soon as possible, and to retain as many jobs as possible. The Government will continue to support the 124 workers affected by redundancy last October.”
“Phillips 66 plans to integrate key assets into its Humber refinery operations, expanding its ability to supply fuel to UK customers from the Humber refinery. That is positive news for boosting domestic energy security, securing jobs—including hundreds of new construction jobs over the next five years—and creating future growth opportunities for renewable and traditional fuels. That being said, Ministers in the Department and I recognise that this is a very worrying time for workers, and I am glad to report that the remaining 250 directly employed workers are guaranteed employment until the end of March, although that will be cold comfort to many of them. Phillips 66 will provide further information on the number of jobs that will be retained as it moves towards completion of the sale in coming months.”
“The company has decided not to restart stand-alone refinery operations at Lindsey. In its words, not mine, “Due to the limitations of its scale, facilities, and capabilities, evaluations have shown that the refinery is not viable in current form.” Although that is disappointing, it is not totally unexpected, given the long history of problems with the business. We understand that the previous owners, Total, sought to sell the refinery for several years and sold it to Prax for a nominal amount. Since Prax’s acquisition in 2021, the refinery has recorded about £75 million of losses. In addition, following a thorough assessment of offers, the official receiver confirmed that no offer was put forward that would credibly see a return to refining operations in the next few years.”
“Since the insolvency, we have worked with the official receiver to protect workers, and to ensure the safety of the site and the security of fuel supplies. That has also allowed time for bidders to express an interest in the site and its assets. After a thorough process to identify a buyer for the site, the official receiver has determined that Phillips 66 is the most credible bidder and can provide a viable future for the site. I am glad to say that the sale is expected to complete in the first half of 2026. As many hon. Members will be aware, Phillips 66 is an experienced and credible operator of a Humber refinery, next door to Lindsey. It already supplies fuel to the region and has consistently turned a profit in recent years. The sale allows Phillips 66 to quickly expand operations at its Humber refinery.”
“I thank the hon. Member for Brigg and Immingham (Martin Vickers) for securing this debate. I know that he and other hon. Members, including my hon. Friend the Member for Great Grimsby and Cleethorpes (Melanie Onn), have been engaging closely on this issue with the Minister for Energy, who stands ready to continue to engage with them on the detail. Let me start with Prax Lindsey oil refinery. It entered insolvency on 30 June 2025 because of the untenable position in which the owners left the refinery, which gave the Government very little time to act. I know how difficult the process has been for the workers, their families and the local community. The insolvency process at the refinery is led by the court-appointed official receiver, who must act independently, in accordance with his statutory duties.”
“While overall fuel demand is expected to shift over time, sectors such as aviation, maritime and heavy industry will continue to depend on refined products well into the future. We want to preserve our refining sector and keep it competitive.”
“They are anchors for local economies, providing well-paid, skilled jobs and supporting a wide web of supply chains, which involve everything from chemicals to plastics to advanced manufacturing. Refinery facilities also enable the production of specialist materials that many of our industries rely on. For example, the Humber refinery produces the UK’s only anode-grade petroleum coke, used in electric vehicle technology, while Fawley’s output of specialised rubber helped to ensure vaccine vials could be produced securely during the pandemic. Crucially, our refineries are also adapting for the future. They are investing in modernisation, low-carbon fuels, and technologies such as carbon capture, which are all essential to the UK’s transition to net zero. The Humber region will have a major role to play in that over the coming years.”
“I believe that the agreement with Phillips 66 marks the next step in securing an industrial future for the site and for the workers, who were badly let down by the former owners. The circumstances surrounding the insolvency are deeply concerning, and that is why the Energy Secretary immediately demanded that the Insolvency Service launch an investigation into the owners’ conduct and the circumstances surrounding the insolvency, which is ongoing. Turning to issues in the broader UK oil refining sector, the UK’s refineries continue to play a vital role in maintaining reliable supplies of essential fuels that keep transport moving, industry operating and support households with their day-to-day lives. We appreciate that their contribution goes far beyond fuel alone.”
“The hon. Gentleman will know that such discussions are commercially confidential, and the official receiver has undertaken an independent process to come to his decision. As my hon. Friend the Member for Great Grimsby and Cleethorpes mentioned, the support for the 124 workers affected by redundancy last October includes a training guarantee to ensure that they have the skills that they need, and are supported to find long-term jobs. That goes above and beyond the usual support offered in insolvency situations. I am pleased to confirm that many —the majority—of those workers have already taken up this offer. My hon. Friend the Minister for Energy will be pleased to discuss any issues that my hon. Friend the Member for Great Grimsby and Cleethorpes thinks may emerge to do with the training guarantee.”
“That is a key priority for industry, and it would help ensure that UK refineries were not undercut by imports produced to lower environmental standards. Collectively, these measures signal our determination to create the conditions for continued investment, innovation and long-term competitiveness as we transition to a low-carbon economy. Looking ahead, the Government are deepening their engagement with the sector to ensure a smooth and secure transition in the coming years. It is important to note that Minister Shanks led the first ministerial—”
“We are also working to de-risk investment in sustainable aviation fuel production through the revenue certainty mechanism. Secondly, we are working closely with industry on major decarbonisation efforts, including carbon capture and hydrogen projects, within industrial clusters such as Viking and HyNet, which will be central to keeping UK manufacturing competitive as global markets tighten emissions standards. The UK ETS Authority’s decision to maintain current benchmarks for the 2027 scheme year provides the consistency and breathing room that energy-intensive industries need to plan investments and manage costs effectively. In the autumn Budget, we committed to assessing the feasibility of including refined products in the carbon border adjustment mechanism.”
“I will write to my hon. Friend on that point about the carbon border adjustment mechanism and the ETS. As was set out in the autumn Budget, we are reviewing critical policies to address the challenges that the sector faces. I will briefly go through the steps that we have already taken to help the downstream sector adapt and stay competitive. First, through the renewable transport fuel obligation and the new sustainable aviation fuel mandate, we are backing the production and use of cleaner fuels. The Humber refinery is already delivering sustainable aviation fuels at scale, and refineries at Fawley and Stanlow are benefiting from Government support through the advanced fuels fund to bring next-generation fuels to market.”
“Thank you for reprimanding me, Madam Deputy Speaker. The Minister for Energy led the first ministerial roundtable with the sector for more than a decade, and will continue to engage with the industry. In closing, let me be clear: we recognise the importance of the Lindsey oil refinery and the Lindsey site to the local community and the national economy. The integration of its assets into the Humber refinery will boost energy security and support high-quality employment locally. The UK refining sector matters, and that is why this Government are acting. From supporting low-carbon fuel production and deploying carbon capture and hydrogen, to launching a call for evidence that will shape our long-term strategy, we will work with industry, devolved Governments and the community to deliver a managed transition. Question put and agreed to.”
“Happy new year to you, Mr Speaker, and to other hon. Members. I am proud that the Labour Government have extended the warm home discount to an extra 2.7 million households, extending the total to around 6 million. The Conservatives opposed that change. It will make a vital difference to so many families this winter, including approximately an additional 220,000 households in the south-west. That is almost double the number of households supported year on year.”
“My hon. Friend is a champion not just for his own constituency, but for Cornwall as a whole. We support the development of geothermal projects and recognise, in particular, the potential of geothermal heat as a low-carbon source for heat networks. We will have more to say about that in the warm homes plan, which will be published soon.”
“The Government are gripped by the need to get energy bills down. That is why in April we will take £150 off the cost of energy for everyone in the country, and why we extended the warm home discount this year to 6 million households, almost doubling the previous number, and we will continue to take action to reduce bills for people across the country.”
“Tackling fuel poverty is a priority for this Government. We will publish a new fuel poverty strategy for England to ensure that many more fuel-poor households are protected by 2030, at the same time as publishing the warm homes plan. We have also expanded the warm home discount to nearly 6 million households, adding approximately 2.7 million additional households to the scheme.”
“I thank my hon. Friend for that important question. Energy prices are still far too high because of dither and delay from the Opposition when they were in government. No one should have to make the difficult choices that my hon. Friend describes. The Government are totally focused on reducing the cost of energy and making life easier for people throughout the UK. That focus includes the £150 off the cost of energy from next April—the removal of those costs from bills—and the extension of the warm home discount. We are also working with other Government Departments to improve access to data so that we can properly target support for households. We will come forward with more proposals in due course.”
“It is worth waiting for the warm homes plan, which will be published very soon. Alongside that there will be an ambitious fuel poverty plan for England. The Chancellor has already announced £15 billion of funding for that. We will set it out very soon and I look forward to constructive discussions with the hon. Member when it is published.”
“The warm homes plan will be published soon and I look forward to conversations with the hon. Member about how we roll out its ambitious measures. ECO did not target those in fuel poverty successfully enough—we spent far too much on something that did not deliver the right results. Instead, the warm homes plan will provide £1.5 billion of additional capital support, targeted at people on low incomes. That is in addition to, for example, local authority grants, which target billions of pounds at low-income households. However, I am more than happy to have further conversations with the hon. Member when the warm homes plan is published.”
“My hon. Friend is right to highlight the work of the Brockmoor Energy and Environment Scheme. I met Richard Parker recently, and I hope to come and see some of these projects myself in the future. We will soon publish the warm homes plan, which will set out further plans to support such projects, but we have already allocated £1.8 billion to local authorities and social housing providers through the warm homes local grant, and the warm homes social housing fund.”
“If the hon. Member sends me the details, I would be more than happy to look into it. That would be a matter for Ofgem, but there is also recourse available through the Energy Ombudsman.”
“My hon. Friend will have heard me say earlier how important heat networks are to decarbonisation. They will play such an important role in providing energy across our country in future. I am more than happy to meet my hon. Friend to discuss that.”
“I have had very constructive conversations with the hon. Member about this. The warm homes plan will be published soon, and we will have something to say in that.”
“It provides regulation proportionate to the size of Government’s ambitions for the heat network sector and its future growth.”