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Miliband's heat-pump plans under threat from Reeves's cuts
Miliband's heat-pump plans under threat from Reeves's cuts

Telegraph

time2 hours ago

  • Business
  • Telegraph

Miliband's heat-pump plans under threat from Reeves's cuts

Ed Miliband could be forced to reduce funding for his flagship heat-pumps policy under spending cuts planned by Rachel Reeves. The Energy Secretary's department is facing significant cuts to fill an estimated £30 billion black hole in Britain's public finances. The Department for Energy Security and Net Zero (DESNZ) is one of several 'unprotected' departments and may have to find billions of pounds of savings from its policy areas. Officials are reportedly looking for savings among Labour's 'warm homes' policies, which include funding for home insulation. The Telegraph understands another policy within the same net zero portfolio is the flagship heat-pump subsidy, which provides up to £7,500 to homeowners looking to install a ground or air source heat pump. Cutting heat-pump funding would mark the latest blow to Mr Miliband, who has already seen several government net zero initiatives rolled back amid concerns they were acting as a brake on growth. After Donald Trump imposed blanket tariffs of 25 per cent on car imports – since lowered to 10pc – Sir Keir Starmer announced that planned electric vehicle restrictions would not apply to some smaller manufacturers, in a concession to the British luxury automotive industry. The fight for net zero has been a source of contention within Labour in recent months, coming to a head last month when Sir Tony Blair warned Sir Keir that his current green policies were 'doomed to fail'. Mr Miliband hit back at the former prime minister this week, accusing him of having a 'defeatist' attitude towards net zero. The Energy Secretary increased the budget for heat-pump installations after taking office last year by adding £55 million to last year's spending plans left by the previous government and doubling the size of the pot to £295 million for this year. Demand for the grants has grown each year after the Conservatives increased the amount that each homeowner can claim. Despite admitting that heat pumps may never be cheaper than gas boilers, Mr Miliband has supported further expansion of the policy and is pushing for fossil-fuel-powered heating to be stripped from all new-build properties before 2027. Labour's manifesto promised an extra £6.6 billion in net zero investment for private homes, for 'insulation and other improvements such as solar panels, batteries and low carbon heating to cut bills'. However, both the heat-pump scheme and home insulation upgrades could be reduced if Ms Reeves follows through with double-digit cuts to the DESNZ budget in her June 11 spending review. It has also been reported that a planned £8.3 billion cash injection for the state-owned GB Energy company over the course of the parliament could be reduced. Health and defence priorities It is understood that no final decisions have been taken, and that Mr Miliband will be left to decide how to allocate the settlement he receives from the Treasury. The review will set departmental budgets for day-to-day spending for the next three years, and capital investment budgets for the next five years. Downing Street has been clear that it will prioritise the budgets of the NHS and the Ministry of Defence, which is set to receive an uplift to at least 2.7 per cent of GDP by the end of the parliament. But Ms Reeves is facing a crisis in the public finances, with the Treasury falling about £30 billion short of the money required to run the Government at current levels, according to the National Institute of Economic and Social Research. Speaking on a podcast released on Friday, Mr Miliband attacked Sir Tony for adopting a 'defeatist' attitude on tackling climate change. In a significant intervention last month, the former prime minister said that net zero was 'doomed to fail' and that it was wrong that people were 'being asked to make financial sacrifices and changes in lifestyle when they know that their impact on global emissions is minimal'. The comments prompted fury inside Downing Street and Sir Tony later appeared to back down, saying Sir Keir Starmer's net zero approach was 'the right one'. Mr Miliband told The Rest is Politics podcast: 'The report itself, he wrote a foreword to the report, is perfectly unobjectionable... but what is disappointing about Tony's foreword, and I have huge respect for Tony, is I think it is incredibly defeatist, which is not what Tony is. It is really defeatist.' Separately on Friday, the head of the Government's official environmental advisory body said he was 'concerned' over the budget for nature restoration ahead of the spending review. Tony Juniper, chairman of Natural England, said the 'very tight' spending settlement expected in light of current economic stresses will pose 'big challenges' for those working to reverse the country's decline in nature. He said: 'I am concerned about the budget side in particular because the job that we need to do is very significant. 'We will work within the envelope that we have, recognising the country does face very serious economic stresses at the moment,' he said. 'But it does concern me naturally in terms of the scale of the task ahead and what we need to do.'

Ed Miliband attacks 'defeatist' Tony Blair after ex-PM warned Labour's Net Zero is 'doomed to fail'
Ed Miliband attacks 'defeatist' Tony Blair after ex-PM warned Labour's Net Zero is 'doomed to fail'

Daily Mail​

time8 hours ago

  • Business
  • Daily Mail​

Ed Miliband attacks 'defeatist' Tony Blair after ex-PM warned Labour's Net Zero is 'doomed to fail'

Ed Miliband yesterday branded Tony Blair 'incredibly defeatist' over his warning that Labour's controversial Net Zero drive is 'doomed to fail'. In a high-profile intervention last month, Mr Blair savaged the Government's obsession with Net Zero, saying voters were being asked to make 'financial sacrifices and changes in lifestyle' that they knew would have 'minimal' effect on global emissions. The former prime minister said Mr Miliband's drive to phase out fossil fuels was 'doomed to fail'. And he urged ministers to rethink the Government's 'irrational' approach. His comments came in the foreword to a report on climate change published by his think-tank. Downing Street declined to criticise Mr Blair at the time, saying that parts of the report were in tune with Government thinking. But Mr Miliband went on the attack on Friday, saying critics of his agenda were being 'far too defeatist about Britain'. He said he was 'absolutely determined' to deliver on Labour's Net Zero plans – and suggested they should even be accelerated. Speaking to the Rest is Politics podcast, Mr Miliband described the former PM's intervention as 'disappointing'. Podcast host Alastair Campbell, who served for years as Mr Blair's chief spin doctor, revealed that on the day of his intervention last month, Mr Miliband sent him a message asking: 'What the f*** is he up to now?' Mr Miliband replied: 'The report itself – he wrote a foreword to the report – is perfectly unobjectionable... but what is disappointing about Tony's foreword, and I have huge respect for Tony, is I think it is incredibly defeatist which is not what Tony is. It is really defeatist. 'It sort of says we're not going to succeed, we're not going to achieve 1.5 degrees – the whole thing is, it's all going badly.' Mr Miliband insisted that global action on climate change was now achieving more than when he previously held a similar role in the last Labour government 15 years ago. 'It is just not true to say the world has not made progress,' he said. Mr Miliband is in charge of Labour's 'mission' to decarbonise the UK's entire electricity supply by 2030 – a goal which many experts believe is impossible to achieve without incurring ruinous costs. Trade unions have warned the plan will cost thousands of well-paid jobs in the North Sea oil and gas industry. On Friday, Mr Miliband vowed to press ahead with his agenda, regardless of the criticism – and insisted that the rest of the world would eventually follow. Mr Miliband was speaking to Rest Is Politics podcast host Alastair Campbell, pictured with Mr Blair in 1994. He served for years as Mr Blair's chief spin doctor 'Let's not have a diminished view of Britain,' he said. 'We really matter in this. So many countries come to me and say, you have got a really important responsibility here.' Mr Miliband suggested there was even a case for accelerating Labour's plans. 'The biggest single risk is that we are held in absolute contempt by future generations,' he said. 'They will say, you knew – as a generation – about the problem, you knew about the scale of the problem, you saw the wildfires and the heatwave deaths... you knew about the problem and had time to do something about it and you totally f***ed it up, you didn't do it.'

William Hague's sage advice for Ed Miliband on handling defeat
William Hague's sage advice for Ed Miliband on handling defeat

Times

time8 hours ago

  • Entertainment
  • Times

William Hague's sage advice for Ed Miliband on handling defeat

Ten years ago Ed Miliband was licking his wounds after a bitter defeat in the general election, but it turns out there is a support group for vanquished leaders of the opposition. 'I saw William Hague,' Miliband tells The Rest Is Politics, adding that the former Tory leader had a key bit of advice: 'Carry on being the person you are because you'll find people's attitude towards you transforms and they'll say, 'Where was that person before?'.' Miliband did as he was told and won new admirers, though he did find that some still needed clarification on which person he was. At Holborn Tube a few months later, a man saw him and recognised the big loser in the election. 'Oh my God,' the fellow said. 'It's Nick Clegg!' A state of affairs A baffling job advert has come up at Angela Rayner's ministry of housing, which has said that it is looking for a 'Head of public affairs'. This usually means a lobbyist, though the meat of the ad suggests that they meant to say 'external affairs'. Or maybe Rayner's decided that the best way to get Keir Starmer onside with her bold economic ideas is to exert public pressure until he U-turns. It's a tried and tested method. Coburn's close call When Politics Live returns on Monday, it will be without Jo Coburn who has hosted the show since it began in 2018. Speaking to Westminster Insider, she recalled how the job saw her break news and break up fights. On one edition, the commentator Will Self and the Tory MP Mark Francois (two names to have rarely troubled lists of dream dinner party guests) squared up on air over the issue of Brexit. 'The editor said to me 'Jo, they look like they're going to hit each other, what are you going to do?',' Coburn recalls. If the clip is rewatched, Coburn can be seen indicating the two glasses of water in front of them and then nodding towards the camera. It's not clear whether the would-be pugilists noticed this threat, but both men regained control and the programme did not become an absolute shower. Crown rinse Some actors begin preparing for a role by finding their character's shoes but, as she prepares to play the late Queen on a national tour, Anne Reid started at the other end of the body. 'I've talked to her hairdresser,' Reid tells The Bath Chronicle. 'I had to ring him and say, 'She talks about having permed hair. Did she have permed hair?' ' Apparently, Her Majesty got the full Kevin Keegan at least three times year. True to stereotype, the hairdresser also proved good for gossip, telling Reid that the Queen was once mid-investiture when a new dame's phone went off. 'Should you get that?' the monarch said. 'It might be important.' Gaffe in the gents You never know who you are going to bump into in parliament, and small talk must be approached with caution. Lord Lee of Trafford had an awkward moment recently when he found himself next to someone in the gents who was dressed brightly, with stockings, baggy trousers, bodice and a fancy hat. The wine from dinner gave him the courage to ask, 'Are you a Morris dancer?' This is a bold question when uncertain of the reply, and so it proved when this chap took it badly. 'No,' he replied. 'This is the national dress of Norway.'

We have entered the Age of Electricity
We have entered the Age of Electricity

New Statesman​

time16 hours ago

  • Business
  • New Statesman​

We have entered the Age of Electricity

Image:Like it or not, we're entering a new 'Age of Electricity', one which promises greater self-reliance amid geopolitical tensions, and a cheaper, upgraded future. But the central challenge facing Britain's electrification push isn't grid capacity or renewables rollout. It's cost. Specifically, how we charge for electricity – and how that system is actively making things worse. Labour's pledge to cut household energy bills by £300 a year this parliament grabbed the headlines but has fast become a political headache. The instinct is sound: UK energy bills are among the highest in Europe. But how you achieve that reduction is unclear, and the timeline implausible. Critics of clean energy are using this to go on the attack, blaming our high bills on renewables, Ed Miliband, and all manner of straw men. But the public are listening. With energy bills topping cost-of-living concerns, a perceived failure to deliver could be disastrous. We absolutely do need to build every last gigawatt of low-carbon power we can. But supply alone won't win the race. Without reforming the way we price electricity, demand won't keep up. The problem isn't the mission; it's the way the UK's energy bills are structured. And if that stays broken, Labour's clean energy vision risks unravelling. The short-term problem: unrealistic promises play into Reform's hands The public expects change – and when it doesn't arrive, they remember. In the Runcorn by-election, Reform's campaign persistently reminded voters of the government's £300 energy bill reduction pledge, casting it as emblematic of Labour's failure to deliver on cost-of-living promises. 'Can you afford to vote Labour?' is a slogan that will resonate as long as bills are high. The perception that electricity is expensive, and that clean power is to blame, is starting to stick. Energy bills are becoming shorthand for something deeper: the sense that Westminster doesn't understand – or can't – fix the pressures facing ordinary households. This is dangerous ground for any government to tread. In practice, a £300 bill reduction by 2030 is close to impossible. Structural reform of the energy system will take longer than five years to reach the average household. But the public is unprepared to wait. As long as the £300 target remains in the consciousness of the electorate, it will carry political cost. The most effective lever Labour has If rapid bill reductions are out of reach, what should the government do? There is a solution, but it requires honesty, not overpromising. Ministers need to be brave and make the case that reform will take time, that meaningful change beats quick fixes that could backfire. If (and when) they do, they only damage the wider mission. The way we charge energy bills is a huge problem. Electricity bills carry the weight of clean energy subsidies, fuel poverty schemes, and legacy system costs, making them artificially high. Gas – still the primary heat source for UK homes – bears a far smaller burden, making it artificially cheap. But because wholesale gas prices will set the price of electricity for some time to come, high gas prices drive up all energy bills – even for homes using solar panels, heat pumps, or other electric solutions. The result: electricity, the very thing we need more of, is more expensive than it should be. Subscribe to The New Statesman today from only £8.99 per month Subscribe And the system is regressive. Everyone pays the same levies, regardless of their income. With public trust in government so low, sneaking levies onto bills is a one-way ticket to the 'they aren't governing for me' mentality that has set in across the nation. What's worse, people don't even know it's happening, and when they find out, they feel robbed. Robbed by government, by energy firms, let down by a system they believe is stacked against them. Tweaking around the edges won't fix this. Nor will it do anything for public trust. While the energy sector is mired in a needlessly messy debate over zonal pricing, policy cost rebalancing is an oasis of consensus. Rebalancing means shifting those policy costs away from electricity and distributing them more fairly – either across gas bills or into general taxation. Rebalancing won't break the gas link entirely, but it will help to level the playing field, making electrified heat and transport more affordable. More to the point, it is the best way for government to lower energy bills – by up to £400 for households already on electric heating, who today are more likely to be in fuel poverty. Done with the right support for gas users to avoid adverse effects, this is as close as policy gets to a silver bullet. Cheaper electricity drives demand. Demand drives up competition and drives down costs. The economic logic is simple. Why it matters If we want to ditch fossil fuels, electricity must be competitively priced. The current system guarantees the opposite. Unless the government fixes it, no amount of clean power investment will translate into truly affordable bills. This isn't just about the long term. Without rebalancing, Labour has little hope of delivering on its energy bill pledge. Even worse, new costs – for carbon capture, new nuclear, network costs, grid upgrades, and larger CfDs – are coming online. They too will be loaded onto electricity bills. Gains made elsewhere will be quietly eroded, just in time for the 2029 election. The public won't blame international markets; they will blame the government. Rebalancing alone won't deliver £300 savings for everyone. But it is the single most effective medium-term lever available. Combined with targeted support for gas users and the fuel poor, it would enable a smoother transition to low-carbon heating. The alternative? A worst-of-all-worlds compromise like the proposed 'Clean Heat Subsidy' risks exactly the kind of two-tier energy system which Labour has pledged to avoid: one in which the wealthier enjoy subsidised heat pumps and electric vehicles, while everyone else is stuck paying for a legacy gas system they can't afford to escape. This isn't a technical argument about net zero. It's about cutting bills, upgrading homes, and insulating the UK economy from global gas shocks. Electrification is inevitable. Rebalancing is how we make it affordable. The politics of timing But timing is everything. Today, policy costs are hidden in plain sight – loaded onto bills through a tangle of legacy levies. The result is a regressive system that charges consumers through the backdoor, opaque, unequal, and unfair. Public frustration is growing. This is fertile ground for populist opposition and makes bill reform urgent. There is a narrow window to get this right. Some of the older levies begin to fall away from 2027-2028. But others – backing new infrastructure – are just ramping up. If no change is made, these will simply add to bills, offsetting progress elsewhere. And unlike global gas prices, these are policy choices. Labour won't be able to pass the blame. If Labour is serious about electrifying and cutting costs, about cost-of-living relief, and about restoring public trust, it must deliver change. Change means addressing how energy bills are charged. Rebalancing is not optional. It's the foundation of a fairer system, and the clearest route to delivering on promises made. Anything less is just tinkering. What's needed is clarity, courage, and a willingness to break with the orthodoxy that is failing consumers and holding Britain back. Related

Will we see 'noisy heat pump' rows as Ed Miliband lets homeowners put them right next to neighbours?
Will we see 'noisy heat pump' rows as Ed Miliband lets homeowners put them right next to neighbours?

Daily Mail​

time17 hours ago

  • Business
  • Daily Mail​

Will we see 'noisy heat pump' rows as Ed Miliband lets homeowners put them right next to neighbours?

Homeowners no longer need to get planning permission to install a heat pump less than one metre away from a neighbour's property, the government has said. As Labour battles to boost the number of heat pumps installed across Britain amid its net-zero drive, it eased the planning restriction. Before the announced change, homeowners needed planning permission if they wanted to install a heat pump within one metre of their neighbour's property amid concerns over noise. In locations where homes are close together or terraced, the former rule would often delay heat pump installations. The change relates to the installation of air source heat pumps. Most ground source heat pump installations already fall under permitted development rules and do not require additional planning consent. Air source heat pumps sit on the outside wall of a home and look similar to the air conditioning units seen outside many industrial buildings. The planning changes also included a relaxation of the rules for the size and number of heat pumps households can install. According to the Department for Energy Security and Net Zero, led by Ed Miliband, heat pumps typically have sound levels 'similar to a fridge'. However, some people have previously complained about heat pump noise, saying they can sound similar to industrial fan units found by restaurant kitchens. The government department said it commissioned independent research last year which concluded that noise complaints from air source heat pumps were rare and that heat pumps were generally perceived as being very quiet. For many homeowners concerns remain about the high cost of heat pumps, despite grants being available. Homeowners who want to make the leap from gas boiler to heat pump already have access to grants worth up to £7,500. Even with the grants, critics claim heat pumps remain an option that only a minority of households can afford. Thomas Clarke, who runs Asset Plumbing & Heating in London, told This is Money the planning rule easing will help his customers and business. He said: 'Previously, there would often be long delays and many customers had to pay extra for an architect in order to get a heat pump fitted. The easing of the planning rule is helping to streamline the process.' Clarke told This is Money that the government should provide more help to small and medium sized businesses to ensure they can afford to train up apprentices. He said a shortage in the number of people trained to install heat pumps was driving up the cost of installations for households. David Broom, new build partnerships director at Kensa, told This is Money: 'The changes will make it easier for households to install air source heat pumps without needing planning permission. 'Any move that removes barriers and helps more people switch to efficient, low-carbon heating should be welcomed.' He added: 'For ground source heat pumps, the good news is most installations already fall under permitted development, meaning they won't require planning consent. 'While these updates are a step in the right direction and should help boost uptake, more still needs to be done to make heat pumps accessible to every household. 'The most effective next move would be for the government to implement the long-awaited Future Homes Standard. This would end gas boiler installations in new developments, unlocking a market for around 200,000 heat pump installations each year.' A Department for Energy Security and Net Zero spokesperson told This is Money: 'The energy shocks of recent years have shown the urgent need to upgrade British homes and our Warm Homes Plan will make them cheaper and cleaner to run, rolling out upgrades from new insulation to solar and heat pumps. 'We are helping more people get a heat pump, providing £7,500 towards the cost, and they are three times more efficient than gas boilers, enabling families to save around £100 a year by using a smart tariff. 'All heat pumps installed have to comply with strict sound emission limits.' How to find a new mortgage Borrowers who need a mortgage because their current fixed rate deal is ending, or they are buying a home, should explore their options as soon as possible. Buy-to-let landlords should also act as soon as they can. Quick mortgage finder links with This is Money's partner L&C > Mortgage rates calculator > Find the right mortgage for you What if I need to remortgage? Borrowers should compare rates, speak to a mortgage broker and be prepared to act. Homeowners can lock in to a new deal six to nine months in advance, often with no obligation to take it. Most mortgage deals allow fees to be added to the loan and only be charged when it is taken out. This means borrowers can secure a rate without paying expensive arrangement fees. Keep in mind that by doing this and not clearing the fee on completion, interest will be paid on the fee amount over the entire term of the loan, so this may not be the best option for everyone. What if I am buying a home? Those with home purchases agreed should also aim to secure rates as soon as possible, so they know exactly what their monthly payments will be. Buyers should avoid overstretching and be aware that house prices may fall, as higher mortgage rates limit people's borrowing ability and buying power. What about buy-to-let landlords Buy-to-let landlords with interest-only mortgages will see a greater jump in monthly costs than homeowners on residential mortgages. This makes remortgaging in plenty of time essential and our partner L&C can help with buy-to-let mortgages too. How to compare mortgage costs The best way to compare mortgage costs and find the right deal for you is to speak to a broker. This is Money has a long-standing partnership with fee-free broker L&C, to provide you with fee-free expert mortgage advice. Interested in seeing today's best mortgage rates? Use This is Money and L&Cs best mortgage rates calculator to show deals matching your home value, mortgage size, term and fixed rate needs. If you're ready to find your next mortgage, why not use L&C's online Mortgage Finder. It will search 1,000's of deals from more than 90 different lenders to discover the best deal for you. > Find your best mortgage deal with This is Money and L&C Be aware that rates can change quickly, however, and so if you need a mortgage or want to compare rates, speak to L&C as soon as possible, so they can help you find the right mortgage for you.

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