Question
The measures in the Budget to help with the cost of living through cuts in energy bills were welcome. The Chancellor also said that he would adopt one of the Energy Security and Net Zero Committee’s recommendations not to add further policy costs to bills, but can I encourage him to look at one of our other recommendations, which is to move policy costs from electricity to gas? That would help people take up electric heat and batteries, which will enable them to take advantage of the tariffs that are available now.
Answer
The action I took in the Budget last week was on top of help that the Government have given this year to help across the board with energy costs. It included some of the measures that my hon. Friend’s Committee has urged us to look at. Going into this Budget, I was conscious of the pressures and the worry that people have about rising energy bills, which are driven by the Iran war. My priority was therefore the steps we have taken: extending the 5p cut to fuel duty, extending the VAT cut on electricity bills, and removing the standing charge from gas bills for next year. Above all, we will see the direct payment of £100 into the bank accounts of 20 million households in January, which will help at that point of maximum pressure as people face those winter bills.
Verdict: RED (20/100)
The reply responds to the question only in general terms, saying the Budget included "some of the measures" the Committee had urged. It does not say whether policy costs will be moved from electricity bills to gas bills. The concrete points it mentions, a VAT cut on electricity and removal of the gas standing charge, are related energy-bill changes but not the cost transfer that was asked about. The reply is hedged and does not directly address the central point, so the person who asked would likely need to ask again for a clear answer.
How we got there
| Question item | Coverage | Specificity | Rationale |
|---|---|---|---|
| Will the Government consider moving policy costs from electricity bills to gas bills, as recommended by the Energy Security and Net Zero Committee? | Partially Addressed | Hedged | The reply says the Budget included "some of the measures" the Committee urged, but never states whether policy costs will be moved from electricity to gas bills. The closest concrete items are the VAT cut on electricity and removing the gas standing charge, which are related energy-bill measures rather than the policy-cost transfer that was asked about. |