Question to the Department for Energy Security & Net Zero:
To ask the Secretary of State for Energy Security and Net Zero, what recent assessment her Department has made of the potential impact of restructuring policy levies on domestic energy bills on household disposable incomes.
Tackling affordability is this Government’s number one priority. At the Budget on 28 October, the Government announced a new Cost Control Framework to be introduced at Spending Review 2027. Until that framework is in place, no further policy costs will be placed on energy bills unless they bring bills down or are essential to maintaining security of supply. The planned levy on gas bills to fund hydrogen will be scrapped, so the Government rather than consumers fund the costs of hydrogen projects.
This comes on top of the £150 of costs removed from bills at last year's Budget by scrapping ECO and moving 75% of the Renewables Obligation levy to the Exchequer, with these actions factored into bills until April 2029.