Households across the UK relying on gas boilers have been alerted to a potential new annual charge on their energy bills, designed to fund a national shift towards greener heating.
The Proposed £30 Charge
Reports suggest a new green levy, adding approximately £30 a year to domestic gas bills, is under consideration as part of Energy Secretary Ed Miliband's flagship £15 billion Warm Homes Plan. The proposed charge, which has not been officially confirmed, aims to create a subsidy pot to help homeowners cover the significant cost of installing eco-friendly heat pumps.
Mixed Reactions from Industry Voices
The plan has sparked a heated debate. Green energy entrepreneur and Labour donor Dale Vince voiced strong criticism, stating it unfairly "impacts the people that can least afford their bills". He highlighted that even with a government subsidy, homeowners might need to find around £7,000 themselves for a heat pump installation.
In contrast, Jack Richardson, head of policy at Octopus Energy, hailed the potential move as "the biggest moves in the right direction in 20 years".
Broader Support for Home Upgrades
The wider Warm Homes Plan, now reportedly worth nearly £15 billion, is set to include a suite of measures to improve energy efficiency. Key proposals being discussed include:
- Low- or zero-interest loans for solar panels, heat pumps, and batteries.
- Continued direct subsidies for heat pumps until the end of the parliament.
- Targeted grants for poorer households.
- Funding for local councils to invest in community energy schemes.
A government spokesman responded to the reports by saying, "This is speculation. We are investing an additional £1.5 billion into our Warm Homes Plan... the biggest ever public investment to upgrade homes and tackle fuel poverty." They added that plans to support households and create clean energy jobs would be set out soon.
