Households face £170 net-zero green levy within days as government funding ends

24 June 2023, 22:59 | Updated: 24 June 2023, 23:05

Rishi Sunak is pictured arriving at Rupert Murdoch's summer party in Westminster on Thursday
Rishi Sunak is pictured arriving at Rupert Murdoch's summer party in Westminster on Thursday. Picture: Alamy

By Adam Solomons

Taxpayers face a £170-a-year green levy on top of their energy bills within a few days as the government suddenly cut off its subsidy for the net-zero charge.

Listen to this article

Loading audio...

The two-year suspension of green levies, which came into place just six months ago, will reportedly end at the start of July.

Energy firms and MPs had lobbied for the government to pay the charge during the cost of living crisis.

But with energy bills set to fall by an average of almost £500 from July, the government is placing the cost back on households, The Telegraph reported.

Read more: Annual energy bills to drop by nearly £500 from July as price cap is lowered to £2,074

Read more: 'Selfish and irresponsible': LBC caller condemns the junior doctors' strikes

Chancellor Jeremy Hunt has been accused of 'slyly' implementing the new charge
Chancellor Jeremy Hunt has been accused of 'slyly' implementing the new charge. Picture: Alamy

Jacob Rees-Mogg told the newspaper that Rishi Sunak and Jeremy Hunt have behaved "slyly".

He said: “Green levies are part of the problem behind the UK’s particularly high electricity prices. They ought to be abolished but should fall on general taxation until that can happen. The ambition for net zero must not make us cold and poor.

“Any new or re-imposed charge ought to be announced to Parliament first and not slipped through slyly.”

Government funding for the green levy will end at the start of July
Government funding for the green levy will end at the start of July. Picture: Alamy

Energy regulator Ofgem and the Treasury did not respond to requests for comment.

The good news for consumers is that energy bills are set to be slashed from the start of July as the government's energy price cap falls by £426.

The cap will now be an annual £2,074, down from a peak of £4,279 in January this year.

It's the first time consumers on default tariffs will see their prices fall since the global gas crisis took hold more than 18 months ago, Ofgem said.

Caller says government will 'collapse the economy' asking 'why does it need to hurt to work?'

Dame Clare Moriarty, Chief Executive of Citizens Advice, said: “The fall in the price cap provides some desperately needed respite for households but energy bills will still be nearly double what they were just 18 months ago. That’s unaffordable for millions of households.

“For many, life is getting worse, not better. Year on year we’re breaking records for the number of people struggling with energy debt.

“It’s clear more government support will be needed in the future for struggling households.”

More Latest News

See more More Latest News

Defendant Ruby Franke looks on during court in St George, Utah

YouTuber Ruby Franke apologises at sentencing in child abuse case

Duane 'Keffe D' Davis in court during a status hearing at the Regional Justice Centre in Las Vegas

Ex-gang leader’s murder trial over Tupac Shakur killing pushed back to November

Ruby Franke will serve up to 60 years in prison

Parenting advice YouTuber and influencer Ruby Franke jailed for abusing her children

Shehbaz Sharif

Rivals of Pakistan ex-premier Khan name Shehbaz Sharif as joint candidate for PM

Palestinian crowds struggle to buy bread from a bakery in Rafah, Gaza Strip

UN World Food Programme suspends aid amid chaos in northern Gaza

The Security Council meets before voting on a resolution concerning a ceasefire in Gaza at United Nations headquarters

US vetoes UN resolution demanding immediate humanitarian ceasefire in Gaza

Under the order, Lingham is banned from entering Holt Lowes between February 1 and October 1.

Shell-shocked: 'Addicted' Norfolk man illegally collected 3,000 native bird eggs

In an apparent attempt to get ahead of another possible rebellion, Labour on Tuesday tabled its lengthy amendment, which will be voted on tomorrow.

'I want to do what is right': Labour's ceasefire motion is 'broader' and 'goes further' than the SNP's, says David Lammy

Prince William has called for an end to the Israel-Hamas war

Israel says Gaza war will only end when 'Hamas is dismantled' in direct reply to Prince William’s intervention

David Neal has been sacked by the Home Office

Home Office fires immigration chief inspector David Neal after claims about security risks at major London airport

Shahd Waleed is trying to leave Rafah with her parents and enter Egypt

'They want us to experience pain': Young woman trapped in Rafah with her parents tells of terror as Israel invasion looms

Gabriela was fired from her job cleaning at Devonshires

Cleaner ‘fired after taking leftover £1.50 tuna sandwich’ speaks out against ‘unfair bosses’ as protesters target law firm

Before this announcement, Tesco only showed unit pricing on normal prices and not their special Clubcard prices.

Tesco announce big change to how it displays Clubcard prices - and it could save you money

Russian defector Maksim Kuzminov at a press conference in Kyiv, Ukraine, in September 2023

Spanish police suspect bullet-riddled body may be that of Russian who defected

Russia Ukraine War Putin’s Game

Zelensky says Russia ‘taking advantage’ of delays in assistance to Ukraine

Kristina Rihanoff claims Robin Windsor was in ‘excruciating pain’ before his sudden death

'May you dance with the angels': Robin Windsor's Strictly partner says dancer was in ‘excruciating pain’ before death