Energy Prices: Economic Growth
1/45. What assessment he has made of the potential impact of trends in the level of energy prices on economic growth.
High and volatile energy prices are bad for growth, take money out of consumers’ pockets and make our businesses less competitive. Through our mission to achieve clean power by 2030, we are taking the country off the rollercoaster of global fossil fuel prices and have set a route to home-grown cheap and greener energy.
The Minister and I come from one of the most energy-rich parts of Europe, yet its consumers have among the highest energy bills in Europe. That drives up fuel poverty and hits the cost of living crisis. He will be aware of that. Labour promised to bring down bills by £300; they will have gone up by about the same amount. Does the Minister understand why people are so frustrated with the Government?
Like the hon. Member, I understand people’s frustration when they look at their energy bills each month. [Interruption.] That promise stands. That is why we are taking concerted action through the warm home discount, which is providing 2.7 million households with support this winter, and the warm homes plan, which we will roll out this year.
Economic growth is a key driver for all our constituents. What is the Government’s estimate of the number of jobs that will be created in the UK by 2030? Is it true to say that it will be triple the number in the old economy?
Hundreds of thousands of jobs will come from the clean power revolution. That is why it is so important that we push ahead with it and do not adopt the tactics of the Conservative party, or their friends on the Back Benches. We need to push ahead with clean power in order to unlock those hundreds of thousands of jobs across the country.
I call the shadow Secretary of State.
I welcome the new Ministers to the Front Bench. On the first day of recess, away from scrutiny, the Labour party published the prices for its allocation round 7 of the renewables auction. Labour used to say that renewables were nine times cheaper, but the prices that the Secretary of State has said he is willing to pay are 40% higher than the current cost of electricity—they are the highest prices in a decade—and he has extended the contract length to 20 years. Those are not just the prices that we will be paying; they are the prices that our children will be paying. Will the Minister explain how locking us into higher prices for longer will cut bills by £300?
The right hon. Lady’s comparison is absolute nonsense, and she knows it. She compares the cost of building and operating new renewables, which is what the contract for difference relates to, with the cost of operating—not building—gas plants. Once we make a fair comparison, the truth is that renewables are cheaper to build. We will take no lessons on energy policy from the Conservative party, which abandoned its commitment to clean energy at its party conference.