Skip to content

Net Zero Watch welcomes Government U-turn on heating levy

Press Release
Net Zero Watch has welcomed the Government’s apparent U-turn on plans for a new levy on household bills.

The levy, introduced as part of the drive to “Net Zero”, was designed to fund the development of hydrogen as an alternative to gas heating. However, it would have hit households with a bill estimated at £120 per year.

According to press reports, the Energy Secretary has now admitted hydrogen will never replace gas boilers, and it appears that the levy will now be dropped.

Net Zero Watch has been informing ministers and MPs about the radical shift in public opinion in much of Europe in response to the cost of energy and cost of living crises.

Governments around Europe are beginning to water down and abandon Net Zero policies. There can be little doubt that the Net Zero U-turns by both Labour and the Conservatives are a clear indication that the cost of living and the costs of Net Zero crisis will become one of the key election issues.

Craig Mackinlay MP, chairman of the parliamentary Net Zero Scrutiny Group, said:

The cancellation of the proposed £118 Hydrogen Tax on household energy bills is hugely welcome and I hope is the start of a common sense journey for the government on energy policy. When the laudable ambition of Net Zero hits the reality of cost and significant changes to the way we live, the public are understandably turned off as they look at low uptake of the ‘plan’ globally and their ongoing growth on the back of cheap traditional energy.

History is littered with failed and costly government projects. I forecast that many of the wasteful Net Zero plans based on unreliable, fringe technologies will be historically judged in the same way.”

Additional information 
Fact sheet: The cost of green levies (pdf)