Ukraine: ”Britain at forefront of global response” – Grant Shapps

Defence Secretary oral statement for the second anniversary of the full-scale Russian invasion of Ukraine

With permission, Mr Deputy Speaker I would like to update the House on the current conflict in Ukraine as we prepare to mark two years since the start of the full-scale Russian invasion.

Like many in this House, I remember exactly where I was on 24 February 2022.

Just before sunrise, I was woken by a phone call, to be told Russia had illegally invaded Ukraine – a car would be outside at 6am and headed for COBR.

After that meeting, Ministers went to speak to their respective Ukrainian counterparts.

At the time I was Transport Secretary, and my arrangement was to speak via Zoom with my then opposite number, Oleksandr Kubrakov.

Oleksandr – whom I’ve subsequently got to know very well – was standing in the middle of a field outside of Kyiv. I asked him about the situation and he told me that, quite frankly, he didn’t know how much longer the city would last.

The Russian army was understood to be just kilometres away. The wolf, or in this case, the Russian bear, was literally at the door. Expert opinion suggested Kyiv would be taken in perhaps three days’ time.

And yet – as this war drags into its third year – far from winning, Russia has been pushed back from those early days.

Putin has achieved none of his strategic objectives. His invading force has suffered more than 356,000 casualties.

Ukraine has destroyed or damaged around 30 per cent of the Russian Black Sea Fleet.

And Ukraine has retaken 50 per cent of the territory that Russia stole from it.

Meanwhile, Oleksandr Kubrakov is now the Deputy Prime Minister and his job is actually the restoration of Ukraine when this is over.

So Putin arrogantly assumed this conflict would be over in days – and he was wrong. He reckoned without the strength of the international support that would rally to Ukraine’s cause.

And I am proud that over the course of the past 730 days, Britain has been at the forefront of that global response. Our efforts, always a step ahead of our allies, have made a genuine difference.

From the outset, we declassified intelligence – specifically to scupper Russian false flags.

Our NLAW anti-tank missiles, provided in advance of the full-scale invasion, and our Javelins helped brave Ukrainians devastate Putin’s menacing forty-mile armoured convoy, which was headed direct for Kyiv.

We were the first to send main battle tanks with our Challenger squadron, plus 500 armoured vehicles and 15,000 anti-armour weapons.

All of this helped to degrade Russia’s once formidable fighting force with Putin’s losses amounting to 2,700 main battle tanks; 5,300 armoured vehicles; 1,400 artillery pieces.

Throughout this conflict, our 4 million rounds of small-arms ammunition have allowed Ukraine to maintain a rate of fire and recently helped keep the Russians at bay during their winter offensive.

Meanwhile, the Kremlin has been unable to achieve the air superiority that they’d assumed they’d have, in part, thanks to our donation of 1,800 air defence missiles and over 4,000 British drones have been sent to date.

Mr Deputy Speaker, this conflict has demonstrated that drones are changing the face of modern warfare and we are already learning the lessons from that, which is why earlier today, My Honourable Friend, the Defence Procurement Minister, launched the UK Defence Drone Strategy, to stay ahead in this new frontier of technology, backed by at least £200 million announced by the Prime Minister, making the UK the biggest drone partner with Ukraine/

Yet it’s actually at sea where the allied contribution to Ukraine’s cause has been most keenly felt.

Our mighty Storm Shadows, and our uncrewed sea systems, have helped Ukraine achieve a breakthrough in the Black Sea.

Not only has Russia lost seven different surface ships, plus a submarine, but a Black Sea corridor has opened up for trade – allowing Ukraine to export 19 million tonnes of cargo, including 13.4 million tonnes of agricultural produce.

At the end of last month, Ukrainian agricultural exports from its Black Sea ports had reached the highest level since when the war began – far exceeding what happened under Putin’s Black Sea Grain Initiative.

But as President Zelenskyy said to me when I last visited, the UK’s contribution has been monumental.

And he pointed out that, since the start of the conflict, the UK has sent almost 400 different types of capabilities to Ukraine.

Together, we’ve shown that when Ukraine gets what it needs, it can win – which is why the UK is continuing to step up our support.

Last month, the Prime Minister announced we’ll be investing a further £2.5 billion into military support for Ukraine, taking our total military aid package so far to over £7 billion and our total support to over £12 billion, accounting for economic and humanitarian as well.

So Mr Deputy Speaker, in that spirit, today I can announce a new package of 200 Brimstone anti-tank missiles in a further boost to defend Ukraine.

These missiles have previously had significant impact on the battlefield, in one instance forcing Russian forces to abandon and retreat from an attempted crossing of a river.

But members will recall a few days ago President Zelenskyy told the Munich Security Conference that an “artificial deficit of weapons will only help Russia”, and he is right.

And so today we’re giving Ukraine more of the help they need – inflating their capabilities, so they can defend freedom’s frontline.

Other capabilities will also be coming their way too.

Our UK founded and administered International Fund for Ukraine has pledged more than £900m to help Ukraine plug its gaps in its capabilities, delivering cutting-edge drones along with electronic warfare and mine clearance capabilities with millions worth of kit to come. 

We’re not just investing in weapons, but in the brave personnel who carry them. So far Britain has put more than 60,000 Ukrainian troops through their paces, here in the UK.

But Operation Interflex, our main training effort, is going to expand even further. 

I’m delighted to announce that Kosovo and Estonia are joining. And they’ve joined with us, Australia, Canada, Denmark, New Zealand, Norway, the Netherlands, Sweden, Finland, Lithuania and Romania all training Ukrainian troops here in Britain.

And together we will train a further 10,000 in the first half of 2024.

Meanwhile, we are building capability coalitions.

Alongside Norway, we are leading a Maritime Capability Coalition and we’ve been joined by a dozen other countries in this enterprise – this is about Mine detection drones, raiding craft, Sea King helicopters – which have already been sent their way – so Ukraine can build its navy and defend its sovereign waters.

Last week, I met with my NATO counterparts in Brussels, and I announced together with Latvia, that we would lead the drone coalition. That will allow us to scale up and streamline the West’s provision of miniature first-person view, or FPV drones, to Ukraine – while supporting the establishment of a drone school for Ukrainian operators and a test range, as well as develop AI swarm drone technology, which will surely be critical in the next phase of this war.

Britain has earmarked some £200 million to procure and produce long-range strike and sea drones and has become Ukraine’s largest supplier of drones. 

Yet this is far from the summit of our ambitions. In December, we set up a new taskforce to build a strong defence industrial partnership with Ukraine, ensuring Ukraine can sustain the fight for years to come.

And in January, the Prime Minister signed the historic Security Cooperation Agreement. This is the start of a 100-year alliance that we are building with our Ukrainian friends.

And once again, it is the United Kingdom that has signed the first such agreement, with welcome signings from France and Germany having followed.

Mr Deputy Speaker, the Ukrainians have the will, and they have the skills. They’ve shown that if they’re given the tools – they can do the job. But their need today remains particularly urgent.

Russia is continuing to attack along almost the entire front line, only recently decimating and capturing the eastern town of Avdiivka.

The Kremlin continues to callously strike at civilian targets – most recently hitting a hospital in Selydove.

And Putin is making absolutely no secret whatsoever of being in this for the long term.

Russia’s economy has indeed shifted onto a full-time war footing, spending some 30 per cent of their federal expenditure on their defence – a nominal increase of almost 70 per cent just on last year alone.

And if the cruel death of the remarkable, brave, Russian opposition leader, Alexei Navalny, has taught us anything at all – it is that Putin’s victory is something that none of us can afford.

The tyrant of the Kremlin is determined to simply wait out the West. He believes that we lack the stomach for the fight, and we must show him he is wrong.

And this house may not be united on all matters, as we have seen in the last 24 hours, but we are united on one thing – and that is our support for Ukraine.

So the UK will continue to double down on that support. And all freedom loving countries must be compelled to do the same.

This year will be make or break for Ukraine. So it’s time for the West – and all civilised nations – to step up, and give Ukraine the backing it needs.

Two years ago, when I spoke to an anxious Oleksandr Kubrakov, who had retreated to that field outside Kyiv, he did not know what would happen to Ukraine.

But now, entering the third year of this conflict – it is remarkable to see the Ukrainians remain in full fight.

I know that the whole House will join me in saying that the UK won’t stop supporting the brave Ukrainians, our friends, until we can enjoy a call celebrating victory.

Ofgem: Welcome fall in the price cap but high debt levels remain

Energy regulator Ofgem has today (Friday 23 February, 2024) announced a significant reduction of the energy price cap for the second quarter of 2024. 

The price cap, which sets a maximum rate per unit that can be charged to customers for their energy use, will fall by 12.3% on the previous quarter from 1 April to 30 June 2024. For an average household paying by direct debit for dual fuel this equates to £1,690, a drop of £238 over the course of a year – saving around £20 a month.  

This will see energy prices reach their lowest level since Russia’s invasion of the Ukraine in February 2022 caused a further spike in an already turbulent wholesale energy market, driving up costs for suppliers and ultimately customers. 

However, despite reaching this welcome milestone, Ofgem recognises that the cost of living remains high and many customers continue to struggle with their bills as standing charges rise and energy debt reaches a record figure of £3.1 billion. 

Therefore, today Ofgem is also announcing: 

  • Confirmation of the levelisation of standing charges to remove the ‘PPM premium’ previously incurred by prepayment customers.  
  • A decision to allow a temporary adjustment to the price cap to address supplier costs related to increased levels of bad debt. 
  • A decision to extend the ban on acquisition-only tariffs (BAT) for up to another 12 months. 
  • Confirmation of the end of the Market Stabilisation Charge (MSC) from April 1. 
  • A decision not to change wholesale cost allowances following a review conducted in late 2023. 

Jonathan Brearley, CEO of Ofgem, said: “This is good news to see the price cap drop to its lowest level in more than two years – and to see energy bills for the average household drop by £690 since the peak of the crisis – but there are still big issues that we must tackle head-on to ensure we build a system that’s more resilient for the long term and fairer to customers. 

“That’s why we are levelising standing charges to end the inequity of people with prepayment meters, many of whom are vulnerable and struggling, being charged more up-front for their energy than other customers.  

“We also need to address the risk posed by stubbornly high levels of debt in the system, so we must introduce a temporary payment to help prevent an unsustainable situation leading to higher bills in the future. We’llbe stepping back to look at issues surrounding debt and affordability across market for struggling consumers, which we’ll be announcing soon. 

“These steps highlight the limitations of the current system – we can only move costs around – so we welcome news that the Government is opening the conversation on the future of price regulation, seeking views on how standard energy deals can be made more flexible so customers pay less if using electricity when prices are lower. 

“But longer term we need to think about what more can be done for those who simply cannot afford to pay their energy bills even as prices fall. As we return to something closer to normality we have an opportunity to reset and reframe the energy market to make sure it’s ready to protect customers if prices rise again.” 

Affordability remains the most significant issue, as people continue to struggle with bills over the last two years, which has led to record levels of energy debt. 

 

To address this challenge in the short-term, Ofgem will allow a temporary additional payment of £28 per year (equivalent to £2.33 per month) to make sure suppliers have sufficient funds to support customers who are struggling.

This will be added to the bills of customers who pay by direct debit or standard credit and is partly offset by the termination of an allowance worth £11 per year that covered debt costs related to the Covid pandemic.  

Prepayment meter (PPM) customers will not be impacted by the extra charge, reflecting the fact that many do not build up the same level of debt as credit customers because they top up as they go. 

Ofgem also confirmed plans to maintain the equalisation of standing charges across payment methods so that customers are not charged more depending on the payment method they use.

Since October 2022 the so-called ‘PPM premium’ was removed by government support via the Energy Price Guarantee. However, with that support coming to an end on April 1, Ofgem has taken steps to provide a lasting solution, which must be funded by bill payers rather than tax payers, to maintain fairness in the system. 

This means PPM customers will save around £49 per year while direct debit customers will pay £10 per year more. 

Increasing network costs has also contributed to the rise in standing charges – and in anticipation of this we published a call for input in November 2023 and are currently reviewing more than 40,000 responses. 

Today Ofgem is also publishing a decision to extend the ban on acquisition-only tariffs (BAT) for another 12 months, but intends to open a consultation to consider shortening this extension to just six months. 

The BAT was introduced in April 2022 to provide more stability at the height of the energy crisis, removing often risky short-term discounted tariffs intended to attract customers from other suppliers. 

As competition returns to the market, Ofgem is encouraging rising numbers of customers switching with a number of measures, including shortening the time suppliers are given to complete a customer transfer from 15 days to just five. 

Additionally, from 1 April, the Market Stabilisation Charge – introduced in tandem with the BAT – will come to an end, meaning suppliers are no longer required to compensate a new customer’s previous supplier when they switch. 

This influenced the regulator’s decision to temporarily extend the BAT rather than remove both safeguards at the same time, ensuring a phased and responsible return towards normality in the market while preventing a return of the risky behaviours which contributed to the high number of supplier failures during the energy crisis. 

Ofgem is also publishing a decision following its wholesale adjustment review. Following unusually high volatility in wholesale prices between October 2022 and September 2023, the regulator examined whether suppliers experienced differences between wholesale costs and the allowances they were allowed to recover via the price cap. 

However, after careful consideration the regulator has concluded to take no further action as wholesale costs did not systematically differ from allowances. 

Citizens Advice Scotland has responded to today’s announcement by Ofgem, setting the energy price cap at £1,690.

The charity is stressing that even though prices are coming down they are still way too high for many households.

CAS Social Justice spokesperson Matthew Lee said: “Today’s announcement has to be seen in the context of peoples’ incomes and how badly households have been battered by the cost-of-living crisis of the past 18 months.

“Even if prices are coming down they are still way too high for many people to be able to afford, particularly the many who have had to go into debt to cover their energy costs since the price surge in 2022.

“It’s important that we don’t become complacent about the lower cap. The fact is that too many people are still struggling to pay these bills, and more targeted financial support like a social tariff is needed for the most vulnerable households.”

Previous CAS research on energy affordability has found that: 

  • Nearly 3 million people report switching the heating off when it’s cold, wrapping themselves in blankets and extra layers instead.
  • 1.4 million people regularly sit in the dark, with no TV or laptop/tablet on, to save on energy bills.
  • Nearly 3 million people in Scotland have cut back on food as a result of rising energy bills.
  • Tens of thousands of people in Scotland have been forced onto pay as you go energy meters against their will.
  • Over 300,000 people say they are concerned about energy debt.
  • In December the average energy debt for people seeking complex debt advice was £2,307 – up nearly £500 compared to the same time last year.
  • 185,000 people say they have changed their bathing habits to save on hot water – they’re sharing bathwater or showering at work or at the gym.