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Stephanie Peacock
The Parliamentary Under-Secretary of State for Digital, Culture, Media and Sport
I beg to move,
That the Committee has considered the draft Digital Government (Disclosure of Information) Regulations 2026.
It is a pleasure to serve under your chairmanship, Sir Desmond. The regulations, which were laid before the House in draft on 6 July, make three targeted amendments. They improve information-sharing powers in the Digital Economy Act 2017 to support people living in fuel poverty.
First, the amendments enable specified public authorities to share information with energy suppliers for the purpose of identifying and supporting people living in fuel poverty who are experiencing energy debt. Secondly, the amendments, laid by the then Department for Science, Innovation and Technology on 6 July, specify that Department under the existing fuel poverty objective, enabling the Government Department responsible for data policy to support work assisting people living in fuel poverty, including the national data library kickstarter project. Following the machinery of government changes announced in July, that responsibility is transferring to the Department for Digital, Culture, Media and Sport. Any technical changes needed to reflect the transfer will be made separately and will not affect how these measures operate. A third technical measure clarifies that the Department for Energy Security and Net Zero can rely on the fuel poverty objective, in accordance with the transfer of relevant functions to it in 2023.
Taken together, these practical and proportionate amendments will help to ensure that support reaches the right households at the right time. The information needed to identify households in difficulty is often held by different organisations. Properly governed data sharing can bring that information together, allowing public authorities and energy suppliers to identify need more accurately and target assistance more effectively.
The first amendment fills a specific gap in the existing framework. The current fuel poverty power supports households that cannot afford to keep their homes adequately warm, but it does not expressly cover households with outstanding energy debt. The change will help to ensure that households facing both fuel poverty and energy debt can be identified and supported, rather than falling through the gaps in existing arrangements. Although the two groups frequently overlap, fuel poverty and energy debt are not identical. The amendment therefore enables information sharing for the specific purpose of identifying and supporting households that are fuel-poor and that experience energy arrears.
The statutory instrument will provide the necessary legislation to enable the Government to support a future energy debt relief scheme. The precise design of any scheme remains under development by the Government and Ofgem, and the draft regulations do not themselves establish or fund such a scheme. They provide the legal data-sharing basis that would allow an appropriately designed scheme to operate effectively. If such a scheme proceeds, it is estimated to reduce the administrative burdens involved in identifying eligible households and providing further support to families in need. The proposal that the regulations would deliver received strong support in the consultation, with 98% of respondents supporting the proposed information-sharing arrangements.
The second amendment specifies the Department for Science, Innovation and Technology as a public authority that may share information with certain other public authorities for the existing fuel poverty objective, which will enable it to support fuel poverty initiatives such as the national data library kickstarter project. It will test ways to identify households in need by securely linking information such as earnings, benefits and energy use. That responsibility will transfer to DCMS when the machinery of government changes take place through the usual process. It will mean that, in effect, DCMS will have that function, which is more efficient than withdrawing the process and starting it again.
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Will the Minister clarify how many people are within scope of benefiting from the regulation and what the total cost will be, in terms of the savings they will get?
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I know that the right hon. Gentleman was a little bit late in arriving, but I did say that the scheme is the responsibility of the relevant Department. These regulations provide the legal framework for the data sharing.
I now turn to the third amendment, which concerns the Department for Energy Security and Net Zero. Its predecessor Department—the Department for Business, Energy and Industrial Strategy—was able to share information with certain other public bodies under the fuel poverty objective, and the relevant functions were transferred to DESNZ in 2023, but the relevant secondary legislation was not consequentially amended at that time. This amendment corrects that omission in the interests of certainty.
Those measures sit alongside the Government’s broader action to tackle affordability. We have cut VAT on electricity bills, expanded the warm home discount to around 6 million households, and are delivering the warm homes plan and fuel poverty strategy to reduce bills, improve energy efficiency and help to lift up to 1 million households out of fuel poverty by 2030. These regulations help to ensure that support is targeted more effectively and reaches those who need it most.
I recognise that Members will rightly expect assurances about privacy, proportionality and the potential for scope creep. These regulations do not create a general data-sharing power. Information may be shared only by specified bodies, for specified purposes and within the existing statutory framework. All sharing remains subject to the UK GDPR, the Data Protection Act 2018, restrictions on reuse and onward disclosure. Bodies sharing data should have regard to the statutory code of practice, including recording information-sharing agreements on a public register. Those safeguards are integral to the operation of these powers. Responsible data use and public trust must go together.
The regulations will help public authorities to identify households experiencing fuel poverty or energy debt and ensure that support can reach them more efficiently. They make limited, targeted changes to existing powers, while retaining strong privacy and transparency safeguards. I commend the draft regulations to the Committee.
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It is an honour to serve under your chairmanship again, Sir Desmond. This statutory instrument extends an existing power in the Digital Economy Act 2017 that enables data sharing between public authorities and energy suppliers. The changes will enable the reduction or cancellation of customers’ debt to their energy supplier in certain circumstances.
The regulations will specifically permit the sharing of information to support the delivery of a debt relief scheme, amend the list of fuel poverty measures to enable specified persons to disclose information to energy suppliers for the reduction or cancellation of customers’ debt, and amend the 2018 regulations to add the Department for Energy, Security and Net Zero and the Department for Science, Innovation and Technology—that last one might need updating—to the list of specified persons that may share information. I hope that Ministers will make sure that this Committee is not a waste of time, and that we will not find ourselves here again soon, making another regulation to add other Departments to that list.
Members will know that His Majesty’s most loyal Opposition have long criticised the Government’s broader energy policy. We are clear that consumer debt is rising because impossible net zero targets, such as achieving full clean power by 2030, have driven up energy bills across the country. We reiterate our calls for the Government to take a serious approach that tackles the root cause of high energy prices, rather than raising taxes to pay for temporary solutions.
The Government should therefore adopt our cheap power plan to scrap the carbon tax on electricity generation from gas, as well as removing VAT on domestic energy bills, maximising extraction of our oil and gas resources in the North sea, and committing to reliable, secure power generation from gas and nuclear. Although the regulations have noble intentions, they do nothing to address the underlying problems and costs for consumers. They simply paper over the cracks of a Labour Government already failing to deliver on the promises they made to the public.
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It is a pleasure to serve under your chairmanship, Sir Desmond. The Liberal Democrats support this statutory instrument. The principle here is inherently good. The Government already hold the information needed to identify households in difficulty, and letting that information reach the people who can act on it, with proper safeguards, is exactly what the Digital Economy Act was meant to enable. We have seen in open banking what happens when consumers’ interests are put at the heart of responsible data sharing. There is real potential to apply the same thinking more widely, such as with property data. I hope the Minister sees the regulations as a template rather than a one-off.
Households across the country, including in Harpenden, Berkhamsted and Tring, are still carrying debt, much of which was built up during the energy crisis through no fault of their own. That debt is a drag on everything else in their lives. That is only set to worsen as the energy price cap rises. If the debt relief scheme—although not part of these regulations—can support those in need, it should happen as quickly as possible. We must also tackle the root causes of energy prices. We should look at Lib Dem policies on, for example, the link between electricity and gas prices to make sure that cost is tackled.
I have a few questions for the Minister. I am pleased to hear about privacy and protection of the data being at the heart of this, but I would love to hear more about holding suppliers to account to ensure that they are using the data for the purposes, and being protected accordingly. She addressed the question about the Department for Science, Innovation and Technology, but I would also like to ask what mechanisms there are to share what is learnt and about what is working with other Departments running fuel poverty and vulnerability schemes. We should be looking at the possibility of using smart data to deliver to our communities.
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I speak to my brief exchange earlier with the Minister. As the previous speaker, the hon. Member for Harpenden and Berkhamsted, said, the draft regulations are fairly benign and very welcome to help people who are struggling with their bills. Fundamentally, however, when changing the law, it behoves us to understand who is within the scope of that change and what adverse impacts there might be as a result.
A cohort of people will be just about managing to pay their bills, yet there will be a cost to this measure, welcomed though it has largely been by the Committee in the speeches so far. What is unclear to me, however, is the cost. For this measure to substantively help people with their energy debt in a meaningful way, one assumes a significant cost as a result of being able to share the data in order to write off those bills. Therefore, for the Minister to make the claim that it is helping—as she did—one assumes that she will know what the cost is of the change to the law that she has brought to the Committee.
Given that, it also behoves us to understand who will pick up the cost of the measure. I was therefore surprised that in the Minister’s remarks, she did not touch on that cohort just above the other one—some people who can pay the addition to their energy bills without any difficulty whatever. We all represent constituents—indeed, the Government frequently talk about the pressure of the cost of living on them—who are just struggling. Indeed, they are those who, to coin a phrase, need some breathing space. They are just about affording their bills, but they will not be covered by the protections in the draft regulations; quite the reverse—they will be the ones who bear the cost.
One assumes that the Minister has not brought in a change in the law without being clear about what the cost of that change is or what the impact might be on some of those struggling to pay their bills. In her wind-up, will she clarify those two figures? What is the cost of the amount of debt that is going to be written off, and how many people are potentially within scope of being pushed into that cohort because their bills will go up? We did not have those figures, but I hope she now has the inspiration from the Box to answer those points.
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It is a pleasure to conclude this debate. I am grateful to Members for their contributions and for the broad consensus that households facing fuel poverty and energy debt should receive support quickly, fairly and effectively.
At its heart, this draft statutory instrument makes three targeted changes. First, it enables information sharing to support households experiencing energy debt. Secondly, it enables the Department responsible for data policy to participate in information sharing under the fuel poverty objective, including through work associated with the national data library. Thirdly, it provides certainty for the Department for Energy Security and Net Zero, following the machinery of government changes in 2023. Taken together, the three measures will help to ensure that support reaches the households that need it most.
I will pick up briefly on a few different points. On the name of the Department, we will not be coming back here. That is the whole reason why we have not withdrawn this and done it all again: this is the most efficient way of doing it— [ Interruption. ] I will give way if the right hon. Member for North East Cambridgeshire wishes to intervene.
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When I was reading the draft regulations, I was confused, because I thought they mentioned a Department that had been scrapped. It seems odd to bring in a change in the law for a Department that the Government have already scrapped.
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The right hon. Gentleman is an experienced Member of this House and understands how changes to the machinery of government work. We could withdraw it and bring everyone back in a few months’ time, but the most efficient way to do it is to proceed with the Department as it is; the powers will come to DCMS later. I am sure he is aware of that from his time in government. That is also the answer to the question from the shadow Minister, the hon. Member for Old Bexley and Sidcup.
I am grateful to the hon. Member for Harpenden and Berkhamsted for her point. It is absolutely right that we should take learnings from this. Indeed, towards the end of my speech, I spoke about some of the protections and some of the detail.
The right hon. Member for North East Cambridgeshire asked me some questions about who is in scope and who will benefit from the scheme. Again, had he been listening to my contribution, he would have heard—I will repeat my comments—that the precise design of any scheme remains in development by the Government and Ofgem. The draft regulations do not themselves establish or fund such a scheme; they provide the legal data-sharing basis to allow an appropriate design scheme to operate effectively.
As much as all the points are incredibly important—data poverty, fuel poverty and debt poverty, which I see in my own constituency—we are not in Committee to debate them; we are here to debate data sharing. That is what we have done, and I commend the draft regulations to the Committee.
Question put and agreed to.