Recommendation 14

HM Government · verbatim extract Accepted in Part

The government partially agrees with this recommendation. As set out in the Clean Energy Jobs Plan, the Oil and Gas Transition Training Fund will be extended and expanded from 2026–7 to 2028–9 with up to £18m provided by UK and Scottish Governments. We will also be exploring opportunities for additional private investment. The current Oil and Gas Transition Training Fund is jointly delivered by UK and Scottish Government with Skills Development Scotland as delivery partner. UK Government were actively engaged in the design and scope of the fund and are monitoring delivery. The UK and Scottish Governments are committed to working together to deliver the expansion. We will share further information on the scope of the Transition Training Fund in due course. The government is committed to managing the North Sea in a way that ensures a fair, orderly and prosperous transition, while recognising domestic oil and gas will continue to have a role in the energy mix for decades to come. On tax, we are taking a responsible and proportionate approach which recognises the ongoing role of the oil and gas industry and workforce in our current energy mix while ensuring the sector contributes more towards our energy transition. While the Energy Profits Levy (EPL) remains, the regime continues to provide attractive tax relief for investment of up to around £84 for every £100 of private investment, with even more tax relief (up to £109) for investment in decarbonisation activities such as electrification. However, the Government would have considerable fiscal sustainability concerns with regards to the use of taxation revenues from oil and gas production profits for a hypothecated fund for the energy transition in the long term. This is mostly due to the expectation that production from the basin will continue to decline over the longer-term and because of the significant volatility of projected oil and gas receipts, which depend on a range of factors including commodity prices and wider market conditions. Given this, earmarking revenues this way significantly limits the Government’s ability to manage the public finances flexibly. Conclusion 15 There has been a failure of communication from consecutive governments to oil and gas workers about the transition and what they need to do to prepare and benefit from it. Government action is required to ensure the visibility and promotion of clean energy jobs, as well as to ensure existing workers are aware of the reality of transition and that these new opportunities are available to both prospective and existing workers. (Conclusion, Paragraph 103) In the Clean Energy Jobs Plan, we set out how awareness of clean energy jobs is a key barrier to achieving our Clean Energy Superpower Mission. Energy & Utility Skills, with support from the Department for Energy Security and Net Zero and organisations including BEAMA, ECITB, Energy UK, EngineeringUK, and RenewableUK, are leading a UK-wide industry- led awareness and attraction campaign on job and career opportunities, launching next year. In parallel, a deep dive will be undertaken on several priority occupations with critical workforce needs to improve understanding of, and overcome, specific barriers to entry, whether that be lack of visibility of career pathways or attractiveness of roles. In the Nuclear sector specifically, the Destination Nuclear communications campaign is raising awareness about the wide range of opportunities available across the sector, helping to attract a broader and diverse range of new talent by raising awareness and reshaping public perceptions of careers in nuclear. This campaign also includes a careers portal bringing nuclear sector jobs to one place. The Department recently worked with the Port of Tyne and the North East Combined Authority to host a Clean Energy Jobs Fair on the 11 December. The event showcased the growing range of clean energy careers across the North East, and featured major employers including Equinor, National Grid, Siemens Energy and JDR.