Category: Press Releases

PRESS RELEASE : Baroness Goldie addresses 24th Chemical Weapons Demilitarisation Conference

The press release issued by the Ministry of Defence on 8 September 2022.

The 24th Chemical Weapons Demilitarisation Conference, hosted by the Ministry of Defence and Defence Science and Technology Laboratory (Dstl), has concluded today.

Bringing together representatives from governments across the world, the annual conference enables crucial conversations on the demilitarisation of chemical weapons.

99% of declared chemical weapons stockpiles have been destroyed and the conference brings together global experts to discuss progress, share experiences and lessons, and to co-operate in eradicating existing chemical weapons and addressing outstanding challenges.

Delivering the keynote speech of the conference, Baroness Goldie condemned Russia’s illegal and unjustified invasion of Ukraine, recognising the continued threats around the use and retention of chemical weapons, and the need to hold those responsible to account.

Defence Minister, Baroness Goldie, said:

As we mark the 25th anniversary of the Chemical Weapons Convention, it is right to acknowledge the major achievements in that time. However, as recent events have shown, the threat of chemical weapons remains very real, and we must not become complacent.

As we embark on the next 25 years of the Chemical Weapons Convention, we must continue with energy and passion to work together to do all we can to uphold it.

On the progress being made with the Chemistry and Technology Centre and the work of Conference Ambassador and Director General of the Organisation for the Prohibition of Chemical Weapons (OPCW) Fernando Arias, Baroness Goldie added:

The work being led so resolutely by the Director General is nothing short of impressive. From the Verification Regime to the Global Partnership Agenda, we must be proud of these collective achievements.

I am equally pleased with the progress of the Chemistry and Technology Centre, which will enhance the Organisation for the Prohibition of Chemical Weapons’ technical and scientific capacity and improve facilities for training; the UK has contributed almost £900k to the construction of the Centre and remains willing to provide expert technical support.

A wide range of topics were covered, with sessions focused on emerging risks and potential solutions to combat chemical weapon threats, as well as new disposal systems and neutralisation methods.

Organisation for the Prohibition of Chemical Weapons Director General, Fernando Arias said:

Current global events underscore that preventing the re-emergence of chemical weapons is an agenda that will always remain open after the end of the period of destruction.

For the sake of future generations, it is our responsibility to build on the gains already accomplished under the resilient multilateral framework of the Chemical Weapons Convention. And in the interest of humankind, it is our further responsibility to strengthen the ban that has proven so robust for so long.

The Minister also acknowledged and applauded the crucial work of scientific, technical and policy experts that strive to make the world safe from chemical weapons.

As joint hosts of the conference, Dstl plays a lead role in support of global demilitarisation and has an ongoing programme disposing of current and historic chemical weapons.

Dstl Chief Executive, Paul Hollinshead said:

Over the years with combined international efforts and investment in science and technology we have provided the solutions to allow the safe destruction of stockpiles. I’m immensely proud of the role of our world-class experts in Dstl, the Ministry of Defence, and our international partners are playing to create a safer future free from chemical weapons.

The Chemical Weapons Convention entered into force in 1997, banning chemical weapons, and requiring states parties to destroy any existing stockpiles. In 1998 the first Chemical Weapons Demilitarisation conference was held, and this has continued to be hosted annually by the MOD and Dstl.

The Convention requires global cooperation to affect lasting change, as highlighted by chemical weapon attacks including in Russia on Mr. Alexey Navalny in 2020, in Salisbury in the UK in 2018, and the numerous chemical weapon attacks by the Assad regime in Syria.

U.S. Assistant Secretary of Defense for Nuclear, Chemical and Biological Defense Programs, the Honourable Ms. Deborah Rosenblum said:

I congratulate the conference organizers and participants for coming together at such a critical time globally. The threats posed by chemical weapons continue to grow and the norms against use continue to atrophy. We must come together to reverse this trend.

September 9, 2022
PRESS RELEASE : Search to be launched for new Treasury Permanent Secretary

The press release issued by the Treasury on 8 September 2022.

The Chancellor has asked the Cabinet Secretary to begin the recruitment process for a new Permanent Secretary to the Treasury to succeed Tom Scholar, who has left his post as Permanent Secretary after 6 years, and will leave the Civil Service after 30 years of dedicated service.

During his time in the Civil Service, Tom has advised successive Prime Ministers and Chancellors on international and economic issues, served as the UK representative at the International Monetary Fund and the World Bank, played a leading role in dealing with the banking crisis of 2007 to 2009, and led the Treasury through the Covid pandemic.

Chancellor of the Exchequer, Kwasi Kwarteng, said:

“Tom has been a dedicated and exceptional civil servant and I thank him for his exemplary service to the Government and the country for the past 30 years.

“He’s helped steer the Treasury and the Government through many economic challenges, from the financial crisis to the Covid pandemic, and he leaves the Civil Service with the highest distinction.”

The Cabinet Secretary, Simon Case, said:

“Both personally, and on behalf of the whole civil service, I would like to thank Tom for his remarkable public service and leadership.

“Tom has been a steadfast and loyal colleague to so many of us – and we will be forever grateful for his wise advice, generosity, humour and decency.”

Tom Scholar said:

“The Chancellor decided it was time for new leadership at the Treasury, and so I will be leaving with immediate effect.

“It has been the privilege of my career to lead this great institution since 2016. I wish the Treasury all the best for the times ahead, and I will be cheering on from the sidelines.”

A successor will be appointed shortly. In the interim, Beth Russell (Director General Tax and Welfare) and Cat Little (Director General, Public Spending) will lead the department as Acting Permanent Secretaries.

September 8, 2022
PRESS RELEASE : Plans to end the Education Maintenance Allowance (EMA) programme [January 2011]
The press release issued by the Department for Education on 19 January 2011.
MPs will today vote on the Government’s plans to end the Education Maintenance Allowance (EMA) for 16- to 18-year-old pupils in education or training. Colleges, schools and training providers will receive an enhanced discretionary learner fund so that they can target pupils most in need of financial support to stay in education post-16.

A Department spokesperson said:

Already 96 per cent of 16-year-olds and 94 per cent of 17-year-olds participate in education, employment or training. We are committed to going further still, to full participation for all young people up to the age of 18 by 2015.

EMA is a hugely expensive programme, costing over £560 million a year with administration costs amounting to £36 million. Pilot evidence and more recent research from the National Foundation for Educational Research found that almost 90 per cent of young people receiving the EMA believed that they would still have participated in the courses they were doing if they had not received it.

Young people currently receiving the EMA will continue to receive it for the rest of the academic year. However, they will not receive it next academic year.

Currently £26 million per year is given to schools, colleges and training providers as a discretionary leaner support fund to enable them to make small payments to those young people who are most likely to drop out of education without support. After the EMA is abolished this fund will be significantly increased.

Who is eligible for EMA and how much does it cost?

EMA costs £560 million a year in England and is paid to 650,000 young people – 45 per cent of 16- to 18-year-olds in full time education. Around 80 per cent of those receive the highest rate of £30.

In England there were three income thresholds based on household income as follows:

income of up to £20,817 per annum – £30 per week

income of £20,818 to £25,521 per annum – £20 per week

income of £25,522 to £30,810 per annum – £10 per week.

Why have you made the decision to scrap the EMA?

The deeply worrying state of the public finances has meant we have had to make some tough decisions. Having looked at all the facts it was decided at the time of the spending review that the EMA scheme had to be replaced.

EMA costs over £560 million per year with administration costs amounting to £36 million. The Government believes it must target its resources to those most in need.

Research commissioned by the last Government shows that almost 90 per cent of young people receiving the EMA said that they would still have participated in the courses they were doing if they had not received it (Barriers to Participation in Education and Training, the Department for Education, published 24 June 2010). It also shows that finance only stops a minority (four per cent) from doing what they want to do after leaving school.

The same research also showed that the majority of young people (86 per cent) do not face any barriers that stop them from doing what they want to do at the end of Year 11.

What will you do to support those that are at risk of dropping out of education because they need financial support?

We are significantly increasing the £26 million learner support fund to help those most in need. This money is properly targeted to those who most need it and is distributed by individual colleges and schools who are on the ground and know the circumstances of their students far better than the Government does.

How will students on EMA afford transport to and from college or sixth form?

We recognise that transport costs in some areas can be expensive. Local authorities have a statutory duty to make sure that no young person in their area is prevented from attending education post-16 because of a lack of transport or support for it. If that duty is not being met then young people and families need to raise this with the local authority in the first instance.

A new root and branch review of all school transport will start shortly and look at all these issues.
September 8, 2022
PRESS RELEASE : New Schools Commissioner announced as government demands action on school improvement [January 2011]
The press release issued by the Department for Education on 14 January 2011.

Michael Gove today formally confirmed that Dr Elizabeth Sidwell, the highly respected headteacher and chief executive of the Haberdashers’ Aske’s Federation of schools, will be the new schools commissioner.

Following this week’s school performance tables there are now 216 secondary schools and 962 primary schools below the floor standard. Michael Gove will now challenge local authorities and schools to build on their current work and produce robust improvement plans to turn around schools which are underperforming. Many will benefit from becoming academies, and Dr Sidwell will engage with schools, local authorities and potential sponsors so that more academies replace schools that are underperforming. Her role will be to:
- broker academy arrangements between schools that would benefit most from an academy solution and established sponsors with a good track record of performance improvement
- encourage and recruit more potential academy sponsors
- enthuse leaders of good schools to go for academy status
- raise the profile of Free Schools among prospective proposers.
Welcoming Dr Sidwell to her new post, Education Secretary Michael Gove said:

There are few people in the education world with the pedigree and quality of Elizabeth Sidwell. She has been at the forefront of education policy for over 20 years, first as head of the brilliantly successful Hatcham College, one of the most popular schools in the country, and more recently taking on underperforming schools through the Academy programme.

She will be an excellent schools commissioner, using her credibility and knowledge to go round the country, speaking to local authorities, and challenging them and their schools to come up with robust plans for improving.

I know that Elizabeth will be fair, but not shy away from recommending strong solutions, such as academy status, to those schools who are not making good enough progress.

There are still too many schools below the floor target, and the Government will not blink when it comes to standing up for the rights of children to get a better education.

Dr Sidwell said today that:

It is a tremendous honour to be schools commissioner for England. After 20 years of running schools I am very excited at the prospect of working at a national level to help drive something that all of us want to see – more good schools for all of our pupils, regardless of their background.

I know how great the challenge is in some areas. I know how dedicated and hardworking teachers are across the country – desperately trying to improve their schools. I want those teachers to know that I’m on their side.

However, I will not shy away from confronting failure, and I will be honest when I don’t think schools are improving fast enough. My direct experience of transforming a good school to great, turning round a seriously failing school, transforming primaries and setting up a new school means I am not asking anyone to do what I, and others across the country, have not already done.

The Coalition Government introduced new floor standards for schools in November’s Schools White Paper. These new standards, which are higher but fairer than previous targets, require schools to be above certain attainment levels and also have pupils making at least average progress between Key Stage levels in English and mathematics. For secondary schools the new attainment target is 35 per cent of pupils getting five GCSEs at A* to C including English and mathematics, and in primary schools the requirement is 60 per cent of pupils achieve level 4 in English and mathematics at Key Stage 2.

The schools commissioner post was created in the 2006 Education and Inspections Act, and was formerly held by Sir Bruce Liddington.

Notes to editors

Dr Liz Sidwell is currently chief executive of the Haberdashers’ Aske’s Federation in South London. She was formerly principal of Haberdashers’ Hatcham College in Lewisham, which was rated outstanding by Ofsted. It is also one of the most oversubscribed schools in London, with 12 applications for every place. In 2005 Dr Sidwell led the federation of Hatcham College with the Mallory School, an underperforming school, which became Haberdashers’ Knights Academy. Since becoming part of the federation, results have risen by over 30 percentage points from a start of less than 7 per cent of pupils getting five or more good GCSEs, and Ofsted has said the school is ‘a rapidly improving school that provides a good education for its students’.
September 8, 2022
PRESS RELEASE : Letter from Michael Gove on music teaching [January 2011]

The press release issued by the Department for Education on 7 January 2011.

Michael Gove, Secretary of State for Education, has written to the NSPCC, the Musicians Union, Associated Board of the Royal Schools of Music and Youth Music in response to their advice to music teachers to avoid any physical contact with children.

Michael Gove writes:

By telling your music teachers that they should avoid any physical contact with children, it sends out completely the wrong message. It plays to a culture of fear among both adults and children, reinforcing the message that any adult who touches a child is somehow guilty of inappropriate contact. We must move away from this presumption and the Department for Education is taking steps to restore common sense to this whole area.

September 8, 2022
PRESS RELEASE : The Department for Education responds to Ofsted’s report on science [January 2011]

The press release issued by the Department for Education on 7 January 2011.

Ofsted has today published an evaluation of science education in schools and colleges in England from 2007 to 2010. Responding to the report’s findings, Schools Minister Nick Gibb said:

Science is a critically important subject for this country which needs to be taught by those with knowledge and flair. It is good that many schools are providing pupils with an excellent science education, but it is disappointing that some of our brightest pupils are being held back because of a lack of expertise. The recent PISA study also gives cause for concern, with England slipping down the international league tables in science – from 4th in 2000 to 16th in 2009.

As Ofsted points out, teachers must be properly equipped with the right skills and knowledge if standards in our schools are to improve. Our recent White Paper outlines how we will do this – by creating more opportunities for teachers to learn from each other and by building a new cadre of teaching schools, which will act as local centres of excellence in teacher training and development.

We will also review the National Curriculum to make sure pupils are properly equipped for further study. The introduction of the new English Baccalaureate, which will include science GCSEs, will also provide a powerful incentive for schools to drive participation in science at GCSE and beyond.

We hope all schools and FE colleges will learn from the best practice shown in this report to drive improvement in science education.

September 8, 2022
PRESS RELEASE : 400 academies now open [January 2011]
The press release issued by the Department for Education on 6 January 2011.

Figures released today show momentum is building for the government’s flagship school reform. The government announced today that
- there are now 407 academies open in England
- 371 secondary schools are now academies – 11 per cent of all secondary schools in England.
- 204 academies have opened since September 2010 under the coalition government, with 46 opening this week alone. Of these, 136 were schools converting to becoming academies that will now use their academy freedoms to support weaker schools. Sixty-eight were weaker schools that had been granted academy status and new sponsors to help them turn round underperformance
- at least one school has converted to become an academy every school day since September
- an additional 254 more schools are in the pipeline having applied to become academies, with more applications coming in every week
- Sixty-four schools applied to become academies in the last week before Christmas alone
- it took 4 years to open the first 27 academies. It took 5 years to open 15 city technology colleges.
In addition, the Department for Education is working with academy sponsors who have targeted underperforming schools. Plans are advanced to reopen these schools as academies in the coming academic year.

Michael Gove today congratulated the schools becoming academies this term:

I am delighted that more schools are opening as academies this week, and are now free from central and local bureaucratic control.

Schools are taking up our offer to become academies because they recognise the huge benefits of being an academy – more autonomy, more power to teachers, and an opportunity to thrive, free from interference from government.

The Coalition believes that headteachers and teachers – not politicians and bureaucrats – know best how to run schools. That’s why all school now have the opportunity to become academies, with stronger schools supporting weaker ones.
September 8, 2022
PRESS RELEASE : Nick Gibb responds to ‘Daily Telegraph’ article on exclusions [January 2011]

The press release issued by the Department for Education on 3 January 2011.

Dear Sir

Your thoughtful leader (3 January 2011) on behaviour in schools points out the radical changes we are making to restore the authority of teachers and headteachers by strengthening their powers to search pupils, issue detentions and use force where necessary.

However, it is wrong to say that we are making it more difficult for headteachers to exclude unruly pupils. In fact, we are increasing the powers headteachers have to exclude by ensuring that pupils cannot be reinstated against a school’s wishes.

You are right to point out that we are also piloting a new system to help pupils who have been expelled. Schools will have the power, additional money and responsibility to secure alternative education for these pupils. We don’t believe this will act as a deterrent to exclusion. Many headteachers are wary of expelling disruptive pupils for fear of the poor quality of alternative provision. By improving that alternative it will be easier for heads to exclude those pupils who need more specialised help to tackle their behavioural problems.

Yours faithfully

Nick Gibb
Minister of State for Schools

September 8, 2022
PRESS RELEASE : New approach for school sports – decentralising power, incentivising competition, trusting teachers [December 2020]
The press release issued by the Department for Education on 20 December 2010.

Michael Gove has today set out the direction of travel, and initial funding, for the coalition government’s new approach on school sports. Schools will receive funding to allow PE teachers to further embed competitive sport in schools across the country and raise participation.

Every secondary school will receive funding up to the end of the academic year in 2013 to pay for one day a week of a PE teacher’s time to be spent out of the classroom, encouraging greater take-up of competitive sport in primary schools and securing a fixture network for schools to increase the amount of intra- and inter-school competition.

Lottery funding from Sport England will also be deployed to build a framework of competitions as part of the new School Games. Competitions for pupils with disabilities and SEN will be included at every level. All schools will be invited to compete against one another in district competitions, leading to county festivals of competitive sport, and even the chance of appearing in the first national finals in spring 2012 with events at the Olympic Stadium.

This approach will mean that funding and support are there so that school sports partnerships can continue, if schools wish them to, in order to drive an increase in competitive sport.

The government will also:
- revise the PE curriculum in our curriculum review to place a new emphasis on competitive sports
- invite Dame Kelly Holmes to lead a network of sporting advocates to work with her in promoting school sport around the country and to encourage more young people to participate in sport
- work through Sport England with the national governing bodies of individual sports to get more volunteer sports leaders and coaches into our schools to encourage wider participation
- fund the Youth Sport Trust to expand the Young Ambassadors programme so that every secondary school, and some primary schools too, can appoint ambassadors in the run up to London 2012.
The coalition government’s new approach marks a departure from the previous strategy.

Previously, PE and Sports strategy was driven by top-down targets, undermined by excessive bureaucracy, limiting the freedom of individual schools on how they used their funding, especially on sports and PE and lacked a proper emphasis on competitive team sports.

We have abolished the targets and the box-ticking that went with it. Instead we will ask schools to list the sports they offer and the fixtures they have arranged on their website so parents and the local community can support children and young people.

We have removed ringfences around the main school funding pot which limited headteachers’ powers to spend money as they wished. Schools funding can now be spent through a variety of sources. For the first time schools now have the freedom to choose how they deliver sport in schools. This is a bottom-up, decentralised approach to sport.

As we move towards a system where schools enjoy progressively greater freedom over how they spend money it is important that we do not lose the benefits of those aspects of the existing school sports infrastructure which have brought real benefits.

The government recognises the good work that school sport partnerships, and national bodies such as the Youth Sports Trust, Sport England, the Association for PE, Sportscoach UK, and many national governing bodies of sport, have done in supporting sport in schools and wants to ensure that there is a smooth transition to this new system. The Department for Education is therefore announcing time-limited funding to help schools embed this good practice:
- The DfE will pay school sport partnerships for the full school year to the end of the summer term 2011 at a cost of £47 million. This will ensure the partnerships and their service can continue until the end of the academic year.
- A further £65 million from the DfE’s spending review settlement will be paid to enable every secondary school to release one PE teacher for a day a week in the school year 2011 to 2012 and in 2012 to 2013. This will ensure all the benefits of the current system are fully embedded.
Michael Gove commented:

I want competitive sport to be at the centre of a truly rounded education that all schools offer. But this must be led by schools and parents, not by top down policies from Whitehall. It’s time to ensure what was best in school sport partnerships around the country is fully embedded and move forward to a system where schools and parents are delivering on sports with competition at the heart.

This will take some time and I’m pleased to be able to confirm some funding for school sports partnerships during this transition. But I’m looking to PE teachers to embed sport and put more emphasis on competitions for more pupils in their own schools, and to continue to help the teachers in local primary schools do the same.

The government is clear that at the heart of our ambition is a traditional belief that competitive sport, when taught well, brings out the best in everyone, be they the Olympian of tomorrow or the child who wants to keep fit and have fun learning new sports and games.

Secretary of State for Culture, Olympics, Media and Sport Jeremy Hunt said:

The School Games will be a fantastic opportunity for schools to get children inspired by the London Olympics, not just in 2012 but for years to come, creating a lasting sporting legacy. The competition will capture the values and spirit of the Olympic and Paralympic movement, and benefit from the knowledge and expertise of the Youth Sport Trust. And with competitions up and down the country with the final being held in the Olympic Park, it will also secure the passions and enthusiasm of the young competitors. Competitive sport is hugely important for all school children and the transitional funding outlined today will allow schools to help deliver this.

Baroness Sue Campbell, Chair of the Youth Sport Trust, said:

The Youth Sport Trust is absolutely delighted that the coalition government has taken the decision to build on the great work that is being delivered across the country in school sport and is providing a level of investment that will allow all young people to continue to have opportunities to take part, and compete, in sport. We are fully committed to support schools as they transition into this new phase of development.

Dame Kelly Holmes is a well-known, independent, respected and long-standing advocate of school sport. The Secretary of State has invited Dame Kelly to lead sporting advocates to work with her in promoting school sport around the country and to encourage more young people to participate in sport.

Dame Kelly said:

I’ve been pleased to be able to advise the government on school sport. I am pleased to see the funding extended as I believe the school sport partnerships have done some great work and think their biggest success has been to raise the profile of sport in schools, bring PE and sport to more children and the professional standing of all the teachers who teach PE and sport.

However with the need for change in the current economic climate, schools will start to be creative in their thinking to find local solutions to maintain the current levels of participation in sport as well as a focus on competition. I like the emphasis on competition as well as participation because healthy competition is the driving force behind every world-class sports person, as well as giving every child key life skills. I hope to see communities helping their local schools to run a range of competitions for all and for sport to be a high priority in the run up to 2012 and beyond.

Notes to editors
1. The coalition government is committed to reducing bureaucracy to give teachers the freedom they need to run their schools. As announced in October, the Department has lifted the many requirements of the previous Government’s PE and Sport Strategy, so giving schools the clarity and freedom to concentrate on competitive school sports. This included the need for schools to: * plan and implement a centralised approach to sport * collect information about every pupil for an annual survey * deliver a range of new Government sport initiatives each year * report termly to the Department on various performance indicators (the school sport; partnership self-review tool involves 115 tickboxes) * conform to a national blueprint for how to deliver PE and sport, and how to use their staff and resources * get permission from the Department to use their funding flexibly or to vary how they do things.
2. The new £65 million will be spread over 3 financial years: 2011-12 to 2013-14.
September 8, 2022
PRESS RELEASE : Government announces Energy Price Guarantee for families and businesses while urgently taking action to reform broken energy market [September 2022]
The press release issued by 10 Downing Street on 8 September 2022.
Energy Price Guarantee

From 1st October, a new ‘Energy Price Guarantee’ will mean a typical UK household will now pay up to an average £2,500 a year on their energy bill for the next two years. This is automatic and applies to all households.

This will save the average household at least £1,000 a year based on current energy prices from October and is in addition to the £400 energy bills discount for all households.

This applies to all households in Great Britain, with the same level of support made available to households in Northern Ireland.

Typical household will save an average of £1,000 a year on their energy bills, under a new two-year Energy Price Guarantee

Businesses and public sector organisations will see equivalent support over the winter

New plans will tackle the root causes of problems in the energy market by boosting domestic energy supply

Package will boost growth and curb inflation rises

Prime Minister Liz Truss sets out decisive action to support people and businesses with their energy bills and tackle the root causes of the issues in the UK energy market through increased supply – ensuring the country is not left in the same position again.

Under new plans, a typical UK household will pay no more than £2,500 a year on their energy bill for the next two years from 1st October, through a new ‘Energy Price Guarantee’ which limits the price suppliers can charge customers for units of gas. This takes account of temporarily removing green levies, worth around £150, from household bills. The guarantee will supersede the existing energy price cap.

This will save the average household £1,000 a year based on current energy prices from October. It comes in addition to the announced £400 energy bills discount for all households and together they will bring costs close to where the energy price cap stands today.

The new guarantee will apply to households in Great Britain, with the same level of support made available to households in Northern Ireland.

Those households who do not pay direct for mains gas and electricity – such as those living in park homes or on heat networks – will be no worse off and receive support through a new fund.

Today’s action will deliver substantial benefits to the economy – boosting growth and curbing inflation by 4-5 points, reducing the cost of servicing the national debt.

The historic intervention comes after a failure to invest in home-grown energy and drive reform in the energy market. Putin’s weaponisation of energy supply has exposed the UK’s vulnerability to the volatility of global markets, coupled with a regulatory framework which is no longer fit for purpose, which is driving up bills and holding back economic growth.

Prime Minister Liz Truss said:

Decades of short-term thinking on energy has failed to focus enough on securing supply – with Russia’s war in Ukraine exposing the flaws in our energy security and driving bills higher. I’m ending this once and for all.

I’m acting immediately so people and businesses are supported over the next two years, with a new Energy Price Guarantee, and tackling the root cause of the issues by boosting domestic energy supply.

Extraordinary challenges call for extraordinary measures, ensuring that the United Kingdom is never in this situation again.

As businesses have not benefited from an energy price cap and are not always able to fix their energy price through fixed deals, many are reporting projected increases in energy costs of more than 500%.

A new six-month scheme for businesses and other non-domestic energy users (including charities and public sector organisations like schools) will offer equivalent support as is being provided for consumers. This will protect them from soaring energy costs and provide them with the certainty they need to plan their business.

After this initial six-month scheme, the Government will provide ongoing, focused support for vulnerable industries. There will be a review in 3 months’ time to consider where this should be targeted to make sure those most in need get support.

The Government will provide energy suppliers with the difference between this new lower price, and what energy retailers would charge their customers were this not in place. Schemes previously funded by green levies will also continue to be funded by the Government during this two year period to ensure the UK’s investment in home-grown, secure renewable technologies continues.

Whilst the intervention will be funded by the Government, action is being taken to significantly reduce the cost over time, including:

A new Energy Supply Taskforce – led by Madelaine McTernan who headed up the UK’s successful Vaccine Taskforce – has begun negotiations with domestic and international suppliers to agree long-term contracts that reduce the price they charge for energy and increase the security of its supply. The Taskforce and Department for Business, Energy and Industrial Strategy will negotiate with renewable producers to reduce the prices they charge as well.

HM Treasury are announcing a joint scheme, working with the Bank of England, to address the extraordinary liquidity requirements faced by energy firms operating in UK wholesale gas and electricity markets. The Energy Markets Financing Scheme will enable stability to both energy and financial markets, and the economy, and reduce the eventual cost for businesses and consumers. The scheme will provide short term financial support and will be designed to be used as a last resort.

Learning from the mistakes of the past, the Government is taking action to accelerate domestic energy supply, increase our energy resilience and achieve our ambition to make the UK an energy exporter by 2040:

Launch a new oil and gas licensing round as early as next week, expected to lead to over 100 new licences.

Lift the moratorium on UK shale gas production. This will enable developers to seek planning permission where there is local support, which could get gas flowing in as soon as six months.

Drive forward the acceleration of new sources of energy supply from North Sea oil and gas to clean energy like nuclear, wind and solar.

Continue progressing up to 24GW of nuclear by 2050, with Great British Nuclear helping to set direction of getting new nuclear projects online in the UK.

Undertake fundamental reforms to the structure and regulation of energy market through recommendations from a new review of the UK Energy Regulation.

Launch a review to ensure we are meeting our Net Zero 2050 target in an economically-efficient way, given the altered economic landscape. Chaired by Chris Skidmore MP and reporting by the end of this year, it will ensure delivering the target is not placing undue burdens on businesses or consumers.

Chancellor Kwasi Kwarteng said:

Millions of families and businesses across the country can now breathe a massive sigh of relief, safe in the knowledge that the government is standing behind them this winter and the next.

The price of inaction would have been far greater than the cost of this intervention. Not only can we provide urgent support now, but the beauty of our scheme is that it will also bring down inflation, helping tackle wider cost of living pressures.

Business and Energy Secretary Jacob Rees-Mogg said:

The global headwinds caused by Russia’s war in Ukraine, Putin’s weaponisation of energy and the aftermath of Covid, have exposed the need to strengthen Britain’s energy security for the good of the nation and the millions of households and businesses who will struggle to meet the cost of bills this winter.

The action we are taking today will reduce that worrying burden in the short term and will invigorate the long term reforms we need to complete, to resolve the underlying problems in the energy market and ensure the British people enjoy affordable and plentiful energy in future.
September 8, 2022