Energy Prices

Oral Answers to Questions — Treasury – in the House of Commons at 11:30 am on 28 January 2014.

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Photo of Stella Creasy Stella Creasy Shadow Minister (Business, Innovation and Skills) 11:30, 28 January 2014

What recent assessment he has made of the effect of domestic energy prices on consumer price inflation.

Photo of Nicky Morgan Nicky Morgan The Economic Secretary to the Treasury

Consumer price inflation was 2% in December. That is the first time it has been at or below the 2% target since November 2009. It is well below half the peak of 5.2% in September 2011. The Office for Budget Responsibility is responsible for producing independent economic and fiscal forecasts, and factored in energy prices in the latest forecasts for consumer price inflation.

Photo of Stella Creasy Stella Creasy Shadow Minister (Business, Innovation and Skills)

Given what the Minister says about inflation, in plain English, can she tell us whether she accepts that the energy Bills of my constituents and those of all hon. Members have gone up this winter? Does she think that is good or bad for them and our economy?

Photo of Nicky Morgan Nicky Morgan The Economic Secretary to the Treasury

I thank the hon. Lady for her questions. Yes, energy Bills have gone up, but how come she voted for a decarbonisation target last autumn that would have added a further £125 to all average bills?

Photo of Anne McIntosh Anne McIntosh Chair, Environment, Food and Rural Affairs Committee, Chair, Environment, Food and Rural Affairs Committee

Will my hon. Friend look at the impact of domestic energy prices on off-grid customers and try to find common measures to enable them to access lower energy prices?

Photo of Nicky Morgan Nicky Morgan The Economic Secretary to the Treasury

I certainly will do so. I am sure my hon. Friend welcomes the moves the Government have made so far—in the autumn statement 2013—to cut £50 off household Bills. Of course, we would like to do more, working with the companies.

Photo of Linda Riordan Linda Riordan Labour, Halifax

What assessment has been made of the impact on Fuel Poverty of the proposed changes to the carbon emissions reduction obligation funding, which will prevent insulation work from being carried out on hard-to-treat cavity properties, particularly in the north?

Photo of Nicky Morgan Nicky Morgan The Economic Secretary to the Treasury

I am interested to hear the hon. Lady’s question, as she also voted for the decarbonisation target that would have added £125 to Bills. However, I am sure she welcomed the winter fuel payments made to 14,000 people in her Constituency in winter 2012-13. This Government are on the side of helping people to deal with the rising cost of their fuel bills. In autumn statement 2013, we extended the energy company obligation target, but we have certainly not given up on it.

bills

A proposal for new legislation that is debated by Parliament.

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

fuel poverty

A household is said to be in fuel poverty when its members cannot afford to keep adequately warm at reasonable cost, given their income.

constituency

In a general election, each Constituency chooses an MP to represent them. MPs have a responsibility to represnt the views of the Constituency in the House of Commons. There are 650 Constituencies, and thus 650 MPs. A citizen of a Constituency is known as a Constituent