Select Committee recommends major reforms to energy bill support as UK Government publishes its climate plan

OCTOBER 30, 2025

Campaigners welcome Parliament’s proposals to make the energy system fairer, but are less fulsome about the Government’s Carbon Budget and Growth Delivery Plan.

MPs on the Energy Security and Net Zero Committee have backed a series of reforms to make the energy system fairer and support households facing a fifth winter of high bills.

In a major report on tackling the energy cost crisis, MPs recommended a permanent energy debt relief scheme funded through energy sector excess profits, automatic support for vulnerable households, a social tariff for energy and reforms to the Warm Home Discount. 

The Committee also called for urgent action to fix unfair standing charges, improve data sharing to target support and overhaul Cold Weather Payments to ensure help reaches those who need it when temperatures drop.

Crucially, the Committee echoed the charities’ warnings about the growing energy debt crisis and proposed a structured, long-term solution to write off unpayable arrears without passing costs onto billpayers. 

It also urged the Government and Ofgem to act quickly to rebuild trust in the energy market, strengthen consumer protections and ensure households are not penalised for reducing gas use as the energy system transitions.

Simon Francis, coordinator of the End Fuel Poverty Coalition, commented: “This report should be used to mark a turning point in the fight to end the energy cost crisis. The cross-party group of MPs have recognised what millions of households already know – our energy system has been stacked against people struggling to heat their homes and urgent change is needed.

“We are particularly pleased that MPs have backed the principle of energy debt relief funded through excess profits in the sector, alongside a social tariff, reforms to standing charges and improvements to the Warm Home Discount and Cold Weather Payments. These are landmark recommendations that could protect the most vulnerable.

“As this report makes clear, warm homes must be treated as a public health priority, with fair pricing, modernised winter protections, social tariffs and stronger rights for renters.

“If the Government is serious about implementing change, the Warm Homes Plan announced next month must be the first step. That means a £13.2 billion plan to create warmer and safer homes for those most in need, independent quality checks, skilled green jobs, trusted local advice services and prioritisation of the lowest-income households in the coldest homes.”

In responses to Government consultations, charities and fuel poverty experts have set out the key tests the Government’s forthcoming Warm Homes Plan and Fuel Poverty Strategy must meet. These include:

• Treating warm, safe housing as a public health priority and retain the target to end fuel poverty by 2030
• Adopting a 10% fuel poverty measure (after housing costs)
• Committing to a ten-year national retrofit programme, agreed across parties, backed by skilled jobs, apprenticeships and national standards
• Prioritising the Worst First — low-income households in the coldest, least efficient homes
• Guaranteeing independent retrofit assessment, performance monitoring and consumer protections
• Providing free, trusted local advice services and one-stop-shops for households
• Funding delivery through public spending, not new levies on bills
• Introducing targeted financial support including modernised cold weather payments and social tariffs
• Empowering local authorities with data access and funding to lead street-by-street schemes
• Protecting tenants from ‘retrovictions’ and unfair rent rises

Simon Francis added: “Warm homes are a basic right. This must be the moment the Government finally commits to a long-term plan to end fuel poverty — not just improve averages or fund short-term schemes.

“We need a decade-long Warm Homes Plan that delivers real-world warmth, safety and affordable bills, backed by independent quality checks, trusted advice and proper protection for tenants and consumers.

“After years of delays and stop-start programmes, it’s time to get on with delivery and ensure support reaches those in deepest need first.”

The full report can be read here. The End Fuel Poverty Coalition’s evidence to the inquiry can be read online.

Government climate plan 

Meanwhile the Government has published its long-awaited Carbon Budget and Growth Delivery Plan. Friends of the Earth, who took previous governments to court – twice – over weak climate plans, responded to Labour’s 238-page document.

Positives in the Government plan include:

• A commitment to create 800,000 clean energy jobs by 2030 compared to 430,000 currently.
• Investment in nature restoration, for example, tree planting to help reduce emissions and cut flood risk.
• A focus on the fast roll-out of electric vehicles – including more public chargers.
• A reduction in electricity costs for energy-intensive industry to reduce pressures for businesses to relocate.
• A set of policies that together appear meet the UK’s legally-binding emissions reduction targets for 2030 and 2035.

In other areas, more ambition is needed:

• More information on how the Government will cut energy costs and insulate homes.
• More help for lower-income households to switch to clean, green heat pumps.
• A proper plan for bringing much-needed bus services back across the country – they’ve been halved in the last decade.
• Polluter-pays taxes, like a frequent flyer levy, to reduce pollution and fund green measures.
• Deeper emission cuts. Our legally binding targets are the bare minimum – we can and should do more to limit climate breakdown.

Reacting to the Plan, Friends of the Earth’s Chief Executive, Asad Rehman, said: “With extreme weather events increasingly battering the planet – just as we’re seeing in Jamaica and Cuba right now – and hitting those who’ve done least to cause the crisis hardest, here and overseas, strong climate action has never been more urgent.

“There are some encouraging signs that, at long last, we have a government ready to step up and get the UK’s climate targets back on track. Crucially, the government has signalled that it recognises that meaningful climate action isn’t just a legal duty – it’s a massive social and economic opportunity too. Done right, it can deliver cheaper bills, warmer homes and thousands of good green jobs. This would help tackle the deep inequality felt across the country and build a fairer, more prosperous future.

“The last two climate plans were ruled unlawful after legal action by Friends of the Earth, ClientEarth and Good Law Project. Let’s hope this time they’ve got it right.”

Make the polluters pay. Sign Friends of the Earth’s petition here.

“The energy bill write-off con”

In other energy news, the BBC reports that thousands on benefits could have their energy debt cancelled. “Nearly 200,000 people on benefits could have their debts to their energy supplier cancelled, if they make some effort to pay what is owed,” it said. “Up to £500m could be knocked off the total under plans that regulator Ofgem wants to take effect early next year.”

But there’s a catch! The cost would be covered through an extra £5 added to everyone’s gas and electricity bill.

Labour peer Prem Sikka called it “the energy bill write-off con.” He pointed out that energy companies have made £514bn operating profit since 2020. This proposal would see no cut in their profit, just a restructuring of existing energy debt. His solution: “Nationalise energy. End profiteering.”

Image: https://craigberry.substack.com/p/technology-can-help-to-slow-or-reverse Creator: Nick Humphries. Licence: Attribution-NonCommercial-NoDerivs 3.0 Unported CC BY-NC-ND 3.0 Deed