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Labour wins UK General Election and forms new government

Labour won the UK General Election and Sir Keir Starmer became Prime Minister with a majority of 181, completing cabinet energy appointments at the Department for Energy Security and Net Zero.

A newspaper on a kitchen table beside a model of rules and regulation

Sir Keir Starmer became Prime Minister after the Labour Party's victory in the UK General Election, taking office as the 58th British Prime Minister with a majority of 181 votes in the House of Commons1. Cabinet appointments for energy were completed, with Ed Miliband appointed Secretary of State for Energy Security and Net Zero and Sarah Jones appointed Minister of State in the Department for Energy Security and Net Zero as well as the Department for Business and Trade1. Both held the same roles in the shadow cabinet1.

The government has committed to including draft legislation on Great British Energy in the first King's Speech on 17 July, at the state opening of the new parliament1. Great British Energy is described as a publicly-owned company aimed at driving private investment in clean, home-grown energy, headquartered in Scotland and partnering with industry and trade unions1. The government's stated plans include achieving a zero-carbon electricity system by 2030 by doubling onshore wind, tripling solar power and quadrupling offshore wind capacity1. Chancellor Rachel Reeves set out an update to the National Planning Policy Framework removing rules that de-facto ban new onshore wind farm projects, with immediate effect1.

On home heating, the Labour Party manifesto declared that "nobody will be forced to rip out their boiler", with home energy efficiency upgrades and low carbon heating addressed through the Warm Homes Plan, offering grants, low interest loans and other new private finance solutions1. On hydrogen, £500 million was announced to support the manufacturing of green hydrogen, alongside a National Wealth Fund to invest in ports, hydrogen and industrial clusters1. On gas infrastructure, the party's position is to maintain a strategic reserve of gas power stations to meet energy security needs, and to deliver on oil and gas licences already in progress but not issue any new licences1.

The Institution of Gas Engineers and Managers (IGEM) published a policy brief setting out six asks for the new government, covering gas and electricity systems integration, sustainable gases, the net zero workforce, gas sector regulation, hydrogen blending and hybrid heating1. IGEM stated:

"Following last week's Labour Party victory in the UK General Election, Sir Keir Starmer is now in office"
IGEM, Policy Brief: Policy asks of our new government1

IGEM cited its industrial connections research, which found 124 biomethane sites connected to the gas grid at the time of the study, with 29 further sites in the connections process1. Renewable gas capacity from connected sites is 10.1 TWh, enough to heat over 840,000 homes, rising to 14.5 TWh and 1.2m homes including connecting sites1. IGEM said a strategy maximising hybrid heating systems could help heat up to 6m homes, 22% of all homes in the UK, and called for a more ambitious biomethane production volume target than the current 30TWh by 20501. It also cited Climate Change Committee figures that between 135,000 and 725,000 net new jobs could be created by 2030 in low-carbon sectors1.

Why it matters for households

The election result settles which department and ministers hold the levers over home energy policy, including the DESNZ brief now held by Ed Miliband1. The stated commitment that nobody will be forced to rip out their boiler, alongside the Warm Homes Plan's grants and low interest loans, bears directly on how homes are heated and upgraded1. IGEM's figures suggest the gas grid already carries renewable gas at a scale equivalent to heating over 840,000 homes, and that biomethane growth could reduce reliance on gas imports without householders changing their heating systems1. Planning changes for onshore wind affect the supply of home-grown electricity, while the strategic reserve of gas power stations indicates an ongoing role for gas in meeting peak demand1. Energy and buildings policy is devolved, so the Welsh Government's controls and Scotland's rented sector standards sit alongside UK-wide measures1.

What happens next

Draft legislation on Great British Energy is committed to the first King's Speech on 17 July1. Gas network companies are due to submit their 2026-2031 business plans to Ofgem at the end of 2024, and IGEM asked for a clear position on biomethane's strategic role before then1. The Future Homes Standard sets carbon reduction requirements for new homes, and further detail on how it interacts with the new government's plans has not been reported1.

Sources1 cited
  1. IGEM Policy Brief: Policy asks of our new government | The Institution of Gas Engineers and Managers (IGEM), igem.org.uk