Government faces criticism for £22 billion spend on carbon capture projects

The Government has been criticised for spending billions on carbon capture and storage projects while it continues with its plans to means-test the winter fuel allowance.

Reform UK’s Richard Tice argued that millions of pensioners will view the decision to spend £22 billion on renewable energy as “absolutely extraordinary”.

Meanwhile, Tory former minister Andrew Murrison said the Chancellor’s decision to “magic” up money to fund the projects is surprising due to her recent focus on financial “black holes”.

This comes after Prime Minister Sir Keir Starmer announced the plans to develop projects to capture and store carbon emissions from energy, industry and hydrogen production at a glassmaking factory in Cheshire last week, alongside Energy Secretary Ed Miliband and Rachel Reeves.

On Monday, Mr Miliband told the Commons the use of carbon capture, utilisation and storage (CCUS) technology signifies a “new era” of Britain’s “energy journey”.

CCUS captures the emissions from burning fuels for energy or from industrial processes such as cement production, and uses or transports them for storage permanently underground – for example, in disused oil fields under the sea.

It is seen by the likes of the International Energy Agency (IEA) and the Climate Change Committee as a key element in meeting targets to cut the greenhouse gases driving climate change.

In a statement on the projects, Mr Miliband said: “This Government is determined that as we begin the next stage of Britain’s energy journey, we create a new generation of good jobs in our industrial heartlands.

“That is why on Friday we began a new era, as Government and industry agreed the deals that will launch Britain’s carbon capture industry. This has been a long time coming.”

Mr Murrison, MP for South West Wiltshire, said: “Given the Chancellor’s rhetoric about black holes, it’s perhaps a little surprising that the Government has managed to magic £22 billion for this, but I wish the Secretary of State well in his plan, I hope it works.

“Can I ask whether he shares my concerns that in doing this we’re going to reduce the drive to decarbonise industries? Just like the use of waste incinerators has reduced the imperative to reduce, reuse, and recycle waste.”

Mr Miliband replied: “This is a long-term investment in the future of the country and I think the Chancellor is farsighted in seeing the importance of it.

“On the second part of his question, there are hard to obey industries that are just going to find it very hard without carbon capture to enter a decarbonised world, and we’ve got to protect those industries for the future.”

Mr Tice, who represents Boston and Skegness, said: “Ten million pensioners will find it absolutely extraordinary that this Government has managed to find over £20 billion, when they can’t find £1 billion to fund the winter fuel allowance. £20 billion, Secretary of State, in what you’ve admitted today is a risky technology.”

He added: “This is almost £1,000 per household Secretary of State, will this sum of taxpayers money, will it be added to general taxation when taxes are already at record highs or will it be added to our energy bills that you’ve promised will be brought down?”

Mr Miliband responded: “Here we have the party that claims to be the party of working people opposing jobs for working people right across the country, it says all you need to know about (Mr Tice).

“Outside of this House he pretends to be in favour of good industrial jobs for Britain, in this House he opposes them.”