Gas bills could rise by £1,000 under Labour

Labour are planning to move green levies to Gas which will add an average of £1,000 per year to the average home, which could significantly impact your household expenses.

If they were to take the baton from the previous Energy Secretary, Claire Coutinho, who received a report earlier this year proposing a controversial move: shifting green levies from electricity bills to gas bills or even into general taxation. This proposal has been put forward amidst concerns that the weight of green levies on household costs is stifling progress towards net zero emissions.

According to an analysis by Cadent, a gas distribution company, gas bills could rise by a staggering £1,000 per year for millions of homes reliant on gas if all green tariffs are moved from electricity bills to gas bills.

The analysis further reveals that low-income families would bear the brunt of this move, with green levies accounting for nearly half (47 percent) of their energy bills if they rely on gas.

Experts have warned that adding levies to gas bills would spread the costs among fewer households, potentially exacerbating fuel poverty. Furthermore, the report found that gas consumers would pay between £879 and £924 more in running costs than heat pump consumers by 2035, highlighting the potential inequality in energy costs.

With the recent snap general election called by Prime Minister Rishi Sunak, the decision on these proposals will fall upon either his government or an incoming Labour administration after July 4th. Sunak’s approach towards net zero and energy bills has been described as more “pragmatic and proportionate” than his predecessors, having watered down several green objectives last year.

“It is critical to make fair and equitable decisions to maintain public confidence in net zero. Research indicates that one of the options being considered on policy costs would not achieve that, disproportionately impacting some of the most vulnerable people in society.”

This is one of the options which could be considered by Ed Miliband, the shadow energy secretary, if they win the election in July, along with many other levies that he has already indicated that he would support.

Heat pumps are totally unsuitable for many British homes, and therefore, in order to swing the balance in favour of these hideous contraptions, one option would be to bump up the cost of gas disproportionately, in order to make heat-pumps appear to be better value, but ultimately, the reality is that those who can least afford to pay more, will be paying the most.

Is this really the way forward?