Ministers are expected to ditch a new green tax which would add around £180 a year to household energy bills.The levy was intended to support the
Ministers are expected to ditch a new green tax which would add around £180 a year to household energy bills.
The levy was intended to support the move away from fossil fuels by funding hydrogen production.
But the Government fears a public backlash over the tax.
Officials previously said there was ‘uncertainty regarding the precise impact of the levy on consumer bills’ when it was announced last month.
But the tax would be expected to land households with an added charge of around £180 per year if introduced, as originally planned, in 2025.
Ministers are expected to ditch a new green tax which would add around £180 a year to household energy bills
One insider told The Sun on Sunday: ‘It’s looking like the levy in its current form is going to have to go.
‘Too many MPs think it’s just too toxic when families are already struggling with bills.’ Jack Richardson, head of energy and climate for think-tank Onward, said.
‘Ditching the hydrogen levy would be a good move for all involved: greater political support for hydrogen industry and for the Government by not whacking households with higher energy bills for stuff they won’t use.’
The Government said hydrogen would be ‘critical in reducing emissions from heavy industry, as well as in power, transport and potentially heat’.