The UK government is examining changes to how the costs of the green transition are recovered, with Energy Secretary Miatta Fahnbulleh suggesting that some charges currently levied on household energy bills could instead be met from general taxation.
Fahnbulleh told officials and industry representatives that Britain must look at the mechanisms used to fund green projects, including the possibility of varying levies between different customer groups or moving the whole burden to taxpayers. She said that approach could result in "billions of pounds" worth of green levies being taken off consumer energy bills.
Ministers have not announced a firm policy change; the comments signal an ongoing review of funding options for renewable and low-carbon infrastructure. The proposals under consideration would shift the point of payment from energy bills to the broader tax system, a move that would alter which households and businesses bear the immediate cost.
Any decision to change the funding model would carry political and fiscal implications, touching on affordability for bill-payers and the distribution of costs across taxpayers. The government said it was assessing the options as part of its wider work on meeting climate goals while managing household costs, with further details expected as the review progresses.