Written questions by Snell.

Pursuant to the Answer of 13 March 2025 to Question 36726 on Energy Intensive Industries: Ceramics, whether he has undertaken a sectoral assessment.

The Department for Business and Trade has a close and productive relationship with the UK ceramics sector, particularly its leading Trade Association Ceramics UK who meet regularly with officials and Ministers.As part of our ongoing dialogue, we will continue to engage with ceramics business on the challenges they face now and in the future.

If he will introduce an energy price cap for (a) the ceramics industry and (b) other energy intensive industries.

The Government has no plans to introduce a non-domestic price cap. Businesses have different needs to households. Non-domestic demand varies in scale, flexibility and seasonality. From high demand from large industrial users to intermittent demand from some microbusinesses. Accordingly, there are a range of suppliers and energy products that are available to efficiently meet these needs. However, the Government is committed to championing businesses and improving non-domestic consumer protections. Since December 2024 Small and Medium Enterprises (SMEs) with fewer than 50 employees can now access free support to resolve issues with their energy supplier through the Energy Ombudsman. This means that 99% of British businesses can now access this service with outcomes ranging up to £20,000 in financial awards. Last year, the Government also launched a consultation on introducing regulation of Third-Party Intermediaries (TPIs), such as energy brokers. This is aimed at enhancing consumer protections, particularly for non-domestic consumers. The consultation has now closed, and a Government response will follow in due course once all feedback has been reviewed.

Whether she has made an assessment of the potential merits of removing VAT from the energy bills of ceramic manufacturers.

VAT input tax on energy bills wholly and exclusively related to business activity can be reclaimed by VAT registered businesses. The Government provides a range of support for business energy bills. The British Industry Supercharger includes a series of targeted measures to bring energy costs for key industries in line with other major economies. The Energy Intensive Industries Compensation Scheme provides businesses with relief for the costs of the UK Emissions Trading Scheme (ETS) and Carbon Price Support mechanism in their electricity bills. Finally, the Industrial Energy Transformation Fund supports businesses with high energy use to cut their bills and reduce carbon emissions and is available over the period to 2027.

Pursuant to the Answer of 13 March 2025 to Question 36726, what assessment he has made of the adequacy of the eligibility criteria for accessing the British Energy Supercharge scheme for sectors that already qualify.

Sectors have been assessed against their electricity and trade intensity. As part of our review of eligibility in 2026, we will assess whether these data sets and the thresholds we have previously used remain the best approach to judging eligibility for the Supercharger.

Pursuant to the Answer of 13 March 2025 to Question 36729 on UK Emissions Trading Scheme: Ceramics, whether he has made a sectoral assessment of the potential merits of exempting ceramics from the UK Emissions Trading Scheme.

The UK Emissions Trading Scheme, whose coverage includes energy intensive industries such as those in the ceramics sector, allows installations who meet certain criteria to apply to be exempted from the main scheme by obtaining ‘small emitter’ classification. Over half of sites in the ceramics sector are already exempted from the UK ETS via achieving Small Emitter status. The UK Emissions Trading Scheme as an essential part of our approach to cutting emissions and driving green investment. UK ETS participants, including those in the ceramics sector, are provided with free allocations, to incentivise emissions reduction and protect energy intensive, trade exposed industries from the risk of carbon leakage. We have guaranteed current free allocation levels until 2027 and are currently reviewing how we calculate free allocations to better support sectors most at risk of carbon leakage. We will always work in the best interest of industry.

What assessment his Department has made of the capability of UK ceramics manufacturers to transition to lower-carbon fuels.

Carbon savings through fuel switching from fossil fuels to low carbon alternatives are needed for the industrial sector to transition to net zero. Government is developing a suite of policies to deliver these savings. As it does so, it is closely engaging with sector trade association Ceramics UK, as well as ceramics manufacturers directly, to identify and understand the challenges and barriers to decarbonisation of this diverse sector.

What discussions he has had with energy companies on reducing prices for (a) UK ceramic manufacturers and (b) other energy intensive industries.

Details of Ministers' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK. The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.The creation of Great British Energy will help us to harness clean energy with less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. Companies in the ceramics sector are eligible to apply to the British Industry Supercharger scheme, which has provided energy bill support to hundreds of firms in energy intensive sectors. Financial relief to support energy intensive industries with electricity costs is worth £470 million per year through a mixture of spending and bill discounts. I understand that Minister Jones is due to meet with representatives of the ceramics sector later this month to discuss challenges faced by manufacturers, including high energy costs. Government is committed to continuing to listen and engage with the sector.

Whether he plans to reintroduce an energy bills discount scheme for energy and trade intensive industries.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently.The creation of Great British Energy will help us to harness clean energy with less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. We are working relentlessly in this Parliament on how we reduce wholesale energy costs, and we want to make sure this follows through onto domestic and non-domestic bills. Financial relief to support energy intensive industries with electricity costs is worth £470 million per year through a mixture of spending and bill discounts. Additionally, 300 energy intensive businesses across the UK will benefit from the British Industry Supercharger, which has targeted measures to ensure the energy costs for key UK industries are in line with other major economies around the world.

What assessment he has made of the potential impact of GB Energy on UK ceramic manufacturers.

Ceramics manufacturing is an energy-intensive process, and we recognise that price shocks in recent years have left businesses and families struggling with energy bills. In an unstable world, the only way to guarantee energy security and protect billpayers is to accelerate the transition away from fossil fuels. We have a sustainable, long-term plan to protect all UK billpayers. Great British Energy will be part of this plan by driving the deployment of homegrown energy to boost our energy independence. By delivering clean, secure energy, Great British Energy will help reduce our exposure to volatile international markets.

If his Department will make an assessment of the potential impact of the UK Emissions Trading Scheme on employment levels in ceramic manufacturers.

The Government is committed to supporting UK industry to decarbonise and protecting hundreds of thousands of jobs in regions across the UK. A strong UK Emissions Trading Scheme (UK ETS) will drive green investment as part of a broader industrial strategy, helping deliver a just transition, grow the economy, and secure good jobs for people across the country. UK ETS participants, including those in the ceramics sector, receive free allocations to protect energy-intensive, trade-exposed industries from carbon leakage. As part of the review into free allocations, an assessment of impacts to sectors will be conducted before any final decisions are taken.

Whether he has had discussions with (a) Ceramics UK, (b) the Secretary State for Business and Trade and (c) the Chancellor of the Exchequer on the exclusion of imported ceramics from the scope of the Carbon Border Adjustment Mechanism.

My Rt. Hon. Friend the Secretary of State has regular discussions with Ministerial Colleagues on a number of issues. Details of Ministers' and Permanent Secretaries' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK. Products from the ceramics sector will not be in scope of the UK CBAM upon implementation in 2027. The ceramic sector is, on average, less emissions intensive than those sectors within scope of the UK CBAM, and therefore relatively less exposed to carbon leakage risk.

What assessment her Department has made of the potential impact of not including imported ceramics in the scope of the Carbon Border Adjustment Mechanism from 1 January 2027 on UK ceramics manufacturers .

Products from the ceramics sector will not be in scope of the UK CBAM upon implementation in 2027. The ceramic sector is, on average, less emissions intensive than those sectors within scope of the UK CBAM, and therefore relatively less exposed to carbon leakage risk. The sector also raised feasibility concerns in relation to potential implementation. The government will continue to work with industry to address these concerns and will consider potential inclusion at a later date. The domestic ceramic sector participates in the UK Emissions Trading Scheme. Under the UK ETS, installations in sectors deemed at risk of carbon leakage receive free allowances. The UK ETS Authority is committed to ensuring adequate carbon leakage protection for participating sectors, and is conducting a review into the allocation of free allowances (Free Allocation Review) are better targeted to sectors most at risk of carbon leakage.

Whether he has had discussions with ceramics manufacturers on the viability of hydrogen as a fuel for energy intensive industries.

Details of Ministers' meetings with external individuals and organisations are published quarterly in arrears on GOV.UK.

If his Department will make an assessment of the adequacy of the long-term viability of the UK ceramics sector.

The Department for Business and Trade has a close and productive relationship with the UK ceramics sector, particularly its leading Trade Association, Ceramics UK, who meet regularly with officials and Ministers.As part of our ongoing dialogue, we will continue to engage with ceramics business on the challenges they face now and in the future.I will continue to work to ensure that long-term viability of the UK ceramics sector.

What steps his Department is taking to prioritise financial support for the energy costs of ceramic manufacturers.

The Government believes that our mission to deliver clean power by 2030 is the best way to break our dependence on global fossil fuel markets and protect billpayers permanently. The creation of Great British Energy will help us to harness clean energy with less reliance on volatile international energy markets and help in our commitment to make Britain a clean energy superpower by 2030. Companies in the ceramics sector are eligible to apply to the British Industry Supercharger scheme, which has provided energy bill support to hundreds of firms in energy intensive sectors. Financial relief to support energy intensive industries with electricity costs is worth £470 million per year through a mixture of spending and bill discounts. I understand that Minister Jones is due to meet with representatives of the ceramics sector later this month to discuss challenges faced by manufacturers, including high energy costs. Government is committed to continuing to listen and engage with the sector.

Whether he has made an assessment of the potential impact of the zonal electricity pricing consultation on UK ceramic manufacturers.

We are analysing the potential impact of zonal pricing options on Energy Intensive Industries, including ceramic manufacturers, working closely with the Department for Business and Trade. We recognise concerns that zonal pricing may introduce some uncertainty and variability in the cost of electricity, and are carefully considering a range of possible mitigations for Energy Intensive Industries should they be deemed necessary.

What assessment he has made of the potential merits of opening the Energy Intensive Industry Exemption scheme to all ceramics manufacturers.

Eligibility for relief through the British Energy Supercharger scheme is based on an assessment of the electricity and trade intensity of an individual sector and how exposed it is to the risk of carbon leakage. The list of eligible sectors is set out in legislation, meaning we are unable to add to it without a full public consultation. The Government plans to review eligibility of sectors in 2026 and my officials will keep interested stakeholders updated on developments.

What assessment he has made of the potential impact of being temporarily exempted from the UK emission trading scheme on UK ceramic manufacturers.

The Government is committed to supporting UK industry to decarbonise, protecting thousands of jobs in regions across the UK and enabling growth and wealth creation.The UK Emissions Trading Scheme (UK ETS) incentivises industries to find the most cost-effective solutions to decarbonise. UK ETS participants, including those in the ceramics sector, are provided with free allocations, to incentivise emissions reduction and protect energy intensive, trade exposed industries from the risk of carbon leakage.

What assessment he has made of the potential merits of removing the business-level test from the Energy Intensive industry scheme eligibility requirements for UK ceramic manufacturers.

The business level test was introduced to focus support under the British Industry Supercharger at those individual businesses most at risk of carbon leakage and to balance the cost of the scheme to other electricity users with the benefits to Energy Intensive Industries. There are currently no plans to amend that business level test and any proposed amendments to the scheme criteria would be subject to consultation.

If his Department will convene a ceramics taskforce, chaired by a Minister.

The Department for Business and Trade works closely with the ceramics sector through Ceramics UK and directly with businesses to understand its challenges and provide support to help its global competitiveness. If we take a view that a ceramics taskforce is required, we will convene it. Our engagement includes the Energy Intensive Users Group which includes representation from the ceramics sector. I recently held a roundtable with members of EIUG and met with a ceramics sector delegation today.