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I very much welcome the increased help the Government are giving to energy-intensive industries such as Tata’s Llanwern works in my constituency through the increase to the electricity network charges discount. However, given that they still face problems competing with other European steel producers, may I urge the Minister to keep discussing with ministerial colleagues and trade unions what further measures we could take to protect them and shield them, to the benefit of sites such as Llanwern?
I very much welcome the increased help the Government are giving to energy-intensive industries such as Tata’s Llanwern works in my constituency through the increase to the electricity network charges discount. However, given that they still face problems competing with other European steel producers, may I urge the Minister to keep discussing with ministerial colleagues and trade unions what further measures we could take to protect them and shield them, to the benefit of sites such as Llanwern?
I thank my hon. Friend for raising the issue of Llanwern; it is a site that I know very well and have worked on in the past. She is right to raise the competitiveness of energy-intensive industries. In my earlier answer, I talked through a number of measures we are taking to reduce levies and energy costs for those industries, but she can rest assured that I continue to look at whether anything more can be done.
May I draw the Minister’s attention to a Which? investigation into the lack of consistency in unit pricing by supermarkets? That makes it difficult for consumers to work out the real price of goods and, crucially, to choose between them. The Competition and Markets Authority is looking at this issue, but will the Government talk to the supermarkets too?
May I draw the Minister’s attention to a Which? investigation into the lack of consistency in unit pricing by supermarkets? That makes it difficult for consumers to work out the real price of goods and, crucially, to choose between them. The Competition and Markets Authority is looking at this issue, but will the Government talk to the supermarkets too?
The hon. Lady raises an important point. Which? does fantastic work. The CMA acts independently, without ministerial influence, and it is right that it does. However, I am sure it is keeping a close eye on that matter. As I said in a previous answer, the best way we can regulate prices in the UK is through strong competition. We have a very strong, competitive market in the supermarkets, with 14 chains in this country, and that is the best way to hold down prices. However, she raises an important point and I am sure the CMA will have listened to it.
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential impact of the Energy Bills Discount Scheme on the future energy prices paid by residents living in care and support accommodation.
To ask the Secretary of State for Energy Security and Net Zero, if he will make an assessment of the potential impact of the Energy Bills Discount Scheme on the future energy prices paid by residents living in care and support accommodation.
The new Energy Bill Discount Scheme will run from April 2023 until March 2024 and will continue to provide a discount to eligible non-domestic customers, including care and support accommodation. This follows a review of the current Energy Bill Relief Scheme which engaged with a wide range of stakeholders from the private sector, trade associations, the voluntary sector and other types of organisations.
The Government will continue to provide funding for care home energy bills and up to £2.8 billion this year and £4.7 billion next year will be made available to support adult social care and discharge. This is equivalent to 200,000 additional care packages and the biggest funding increase in history.
To ask the Secretary of State for Health and Social Care, whether he has had recent discussions with Hospice UK on the impact of the cost of energy on the hospice sector.
To ask the Secretary of State for Health and Social Care, whether he has had recent discussions with Hospice UK on the impact of the cost of energy on the hospice sector.
There is regular engagement with Hospice UK and other palliative and end of life care stakeholders at both ministerial and official level to understand the issues they face, such as the impact of the cost of energy on the hospice sector.
As my hon. Friend the Member for Rotherham (Sarah Champion) said, high energy costs and competitiveness were cited by Liberty Steel when it also announced the idling of the Newport site, which is really hard news for the dedicated and skilled workforce there. No more warm words from the Government: what will the Government practically do to work in partnership with our industry, as other European countries are doing—and they are far more generous, which is the point here—to ensure that this key strategic industry is competitive?
As my hon. Friend the Member for Rotherham (Sarah Champion) said, high energy costs and competitiveness were cited by Liberty Steel when it also announced the idling of the Newport site, which is really hard news for the dedicated and skilled workforce there. No more warm words from the Government: what will the Government practically do to work in partnership with our industry, as other European countries are doing—and they are far more generous, which is the point here—to ensure that this key strategic industry is competitive?
The Government have worked very hard with the steel industry, to the sum of hundreds of millions of pounds, and will continue to do so. We do recognise the strategic importance of steel, and we also recognise that energy prices are very high. As I mentioned to the hon. Member’s colleague, the hon. Member for Rotherham (Sarah Champion), a moment ago, we have already consulted on and will be in a position to say more soon about greater discounts in the energy-intensive industries, but we need to work together to make sure we can deliver that, and I look forward to extending the invitation to her as well.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the German government's decision to guarantee wholesale electricity prices at €130/MWh for steel producers for all of 2023; and if he will make it his policy...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the German government's decision to guarantee wholesale electricity prices at €130/MWh for steel producers for all of 2023; and if he will make it his policy...
HM Treasury is currently conducting a review of the Energy Bill Relief Scheme and evidence from the steel sector is included in that. As part of that review, we are looking at approaches taken in other countries. However, the Government cannot confirm what further support will be available after 31st March 2023 until the end of the review, which will report by the end of the year.
To ask the Secretary of State for Transport, whether he has (a) taken recent steps to help reduce and (b) had recent discussions with Cabinet colleagues on the price of hydrogenated vegetable oil.
To ask the Secretary of State for Transport, whether he has (a) taken recent steps to help reduce and (b) had recent discussions with Cabinet colleagues on the price of hydrogenated vegetable oil.
The price of HVO is ultimately driven by market conditions and production costs, however, the operation of the RTFO is the Government’s primary mechanism for addressing the cost difference between fossil fuels and renewable fuels such as HVO.
Ministers have not had any conversation with Cabinet colleagues recently regarding price of HVO specifically. But the Government recognises the important contribution that fuels such as HVO can play as it works to decarbonise transport.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his Department's policy to support measures to reduce electricity prices for the steel sector beyond the six-month energy price cap announced in October.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his Department's policy to support measures to reduce electricity prices for the steel sector beyond the six-month energy price cap announced in October.
The Government recognises that businesses are feeling the impact of high global energy prices, particularly steel producers. I am pleased that steel companies will benefit from the Energy Bill Relief Scheme over a six-month period. The Government will publish a review into the operation of the scheme by the end of the year to inform decisions on future support after March 2023.
This scheme is in addition to extensive support we have provided to the steel sector to help with energy costs, worth more than £800 million since 2013.
To ask the Secretary of State for Education, what assessment his Department has made of the potential impact of rising energy prices on students in higher education.
To ask the Secretary of State for Education, what assessment his Department has made of the potential impact of rising energy prices on students in higher education.
To support disadvantaged students and those who need additional help, the department has confirmed in guidance to the Office for Students (OfS) on funding for the 2022/23 financial year that universities will continue to be able to support students in hardship through their own hardship funds and the student premium, for which up to £261 million is available for academic year 2022/23.
We have also worked closely with the OfS to clarify that English providers can draw upon this funding now, to provide hardship funds and support disadvantaged students impacted by cost-of-living pressures.
Maximum grants and loans for living costs have also been increased by 2.3% this academic year. Students who have been awarded a loan for living costs for the 2022/23 academic year that is lower than the maximum, and whose household income for the 2022/23 financial year has dropped by at least 15% compared to the income provided for their original assessment, can apply for their entitlement to be reassessed.
In addition, maximum tuition fees, and the subsidised loans available from Government to pay them, remain at £9,250 for the 2022/23 academic year in respect of standard full-time courses. We are also freezing maximum tuition fees for the 2023/24 and 2024/25 academic years. By 2024/25, maximum fees will have been frozen for seven years. As well as reducing debt levels for students, the continued fee freeze will help to ensure that the HE system remains sustainable while also promoting greater efficiency at providers.
As part of a package of support for rising energy bills, the government is giving a council tax rebate payment of £150 to households that were living in a property in council tax bands A to D as their main home on 1 April 2022. This includes full-time students that do not live in student halls or in property that is not considered a House in Multiple Occupation for council tax purposes. Alongside this, the government is also making available discretionary funding of £144 million to support vulnerable people and individuals on low incomes, including students, to support those ineligible for council tax.
The government has also announced that households will get £400 of support with their energy bills through an expansion of the Energy Bills Support Scheme. Students who buy their energy from a domestic supplier are also eligible for this support. Furthermore, The Energy Price Guarantee, announced on 8 September, will save the average household at least £1,000 a year based on current energy prices from October. Students who buy their energy from a domestic supplier are eligible for the energy bills discount.
What assessment his Department has made of the impact of food price rises on household budgets.
What assessment his Department has made of the impact of food price rises on household budgets.
Since we last gathered for DEFRA oral questions, our noble Friend Lord Plumb has, sadly, passed away. He was a titan of the agriculture industry, and National Farmers Union president throughout most of the 1970s, during a period of great change. He then went on to be President of the European Parliament. I know that the thoughts of all those in the House will be with his family.
Agricultural commodity prices fluctuate in any given year based on factors including energy costs and exchange rates. High energy costs exacerbated by events in Ukraine mean that there is going to be pressure on food prices as a result of increased input costs. The Government monitor household spending on food. Between 2008 and 2016, the proportion of household income spent on food by the poorest 20% of households was about 16%. It then dipped to under 15%, but we can expect that proportion to rise.
Family-run farms such as Castle farm in my constituency are really being hit hard by the cost of feed, fuel and fertiliser, which in turn impacts on the cost of things such as eggs, as reported by BBC Wales today, and just adds to the soaring food prices that are hitting families so hard. Why are the Government not doing more, especially when the supermarkets are now cutting prices?
Family-run farms such as Castle farm in my constituency are really being hit hard by the cost of feed, fuel and fertiliser, which in turn impacts on the cost of things such as eggs, as reported by BBC Wales today, and just adds to the soaring food prices that are hitting families so hard. Why are the Government not doing more, especially when the supermarkets are now cutting prices?
The Government are taking action. We have made available an additional £500 million to help households with increased pressure on household budgets. We are also taking measures, for instance, to remove tariffs on maize to try to reduce the costs of animal feeds. The hon. Member is right that the supermarkets will absorb some of these costs, but probably not all.
Motion that this House has considered the cost of living in Wales. Motion lapsed.
Motion that this House has considered the cost of living in Wales. Motion lapsed.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with Cabinet colleagues on monitoring of the gap in industrial energy prices between the UK and other key nations.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what discussions he has had with Cabinet colleagues on monitoring of the gap in industrial energy prices between the UK and other key nations.
My Rt. Hon. Friend the Secretary of State has regular meetings with Cabinet colleagues on a variety of issues.
The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.
Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.
We estimate that reduction in the various renewable costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. We have also extended the schemes to compensate certain energy intensive industries for indirect emission cost to the end of the next financial year in order to minimise disruption to existing recipients whilst we conduct a review. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take to ensure that electricity costs for the UK steel sector are competitive.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what steps he plans to take to ensure that electricity costs for the UK steel sector are competitive.
The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.
Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.
We estimate that the reduction in the various renewable policy costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.
We have also extended compensation for the indirect emission costs in electricity prices for the most energy-intensive companies at significant risk of carbon leakage by a year, to the end of 2021.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of any divergence between the UK and the EU Emissions Trading System on the UK steel sector.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the potential effect of any divergence between the UK and the EU Emissions Trading System on the UK steel sector.
As stated in the Government Response to the Consultation on The Future of UK Carbon Pricing, the design of the UK Emissions Trading Scheme builds on and is similar to Phase IV of the EU ETS, including for free allocation of emissions allowances. This provides continuation of emissions trading and protects the competitiveness of UK businesses. To have a take a fair, proportionate and considered approach to potential improvements to free allocation, we have committed to reviewing free allocation of allowances.
We currently have a range of ambitious policies in place that will help industry to reduce costs and decarbonise, including the Industrial Energy Transformation Fund, Clean Steel Fund and Industrial Clusters Mission, among others. In Spring 2021, we will publish an Industrial Decarbonisation Strategy, setting out a coherent plan for decarbonisation of the UK’s industrial sector in line with our net zero target.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the UK steel sector’s commitment to increase capital investment in the UK in the event that the Government takes steps to ensure that electricity costs are...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the UK steel sector’s commitment to increase capital investment in the UK in the event that the Government takes steps to ensure that electricity costs are...
The Government is committed to minimising energy costs for businesses to ensure our economy remains strong and competitive. The ability for our industries to be able to compete across Europe and globally is a priority for this Government.
Our aim is to work with the steel sector and help them to reduce carbon emissions. We will continue to support the steel sector in achieving these aims through the various funds available such as the Industrial Energy Transformation Fund and Clean Steel Fund.
We estimate that the reduction in the various renewable policy costs for eligible energy intensive industries, including steel, will save them around £400m a year in electricity costs. Between 2013 and 2019, total compensation paid to the steel sector was over £480m.
We have also extended compensation for the indirect emission costs in electricity prices for the most energy-intensive companies at significant risk of carbon leakage by a year, to the end of 2021.
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the recommendations set out in the report by UK Steel entitled Closing the gap, published in February 2021, on reducing the industrial electricity price disparity between...
To ask the Secretary of State for Business, Energy and Industrial Strategy, what assessment he has made of the implications for his policies of the recommendations set out in the report by UK Steel entitled Closing the gap, published in February 2021, on reducing the industrial electricity price disparity between...
All these issues are related to electricity costs for the steel industry and were highlighted in the recent UK Steel report “Closing the Gap”. We welcome this report and will give its recommendations careful consideration.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to introduce discounts on energy network costs for the steel sector.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to introduce discounts on energy network costs for the steel sector.
All these issues are related to electricity costs for the steel industry and were highlighted in the recent UK Steel report “Closing the Gap”. We welcome this report and will give its recommendations careful consideration.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to introduce a Capacity Market Levy exemption to lower electricity prices for the steel sector.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to introduce a Capacity Market Levy exemption to lower electricity prices for the steel sector.
All these issues are related to electricity costs for the steel industry and were highlighted in the recent UK Steel report “Closing the Gap”. We welcome this report and will give its recommendations careful consideration.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to implement 100 per cent compensation for the indirect costs of carbon to lower electricity prices for the steel sector.
To ask the Secretary of State for Business, Energy and Industrial Strategy, if he will make it his policy to implement 100 per cent compensation for the indirect costs of carbon to lower electricity prices for the steel sector.
All these issues are related to electricity costs for the steel industry and were highlighted in the recent UK Steel report “Closing the Gap”. We welcome this report and will give its recommendations careful consideration.