PARLIAMENTARY WRITTEN QUESTION
(13 July 2026)
Question Asked
To ask the Chancellor of the Exchequer, what recent assessment has her department made of the potential merits of moving policy costs from domestic energy bills into general taxation.
Asked by:
Llinos Medi (Plaid Cymru)
Asked by:
Llinos Medi (Plaid Cymru)
Answer
At last year’s Budget, the Chancellor took the decision to fund 75% of the domestic share of the Renewables Obligation through the Exchequer and ended the levy-funded Energy Company Obligation. These decisions took on average £150 of costs off household energy bills and are forecast to reduce inflation by over 0.2 percentage points in 2026/27.
The government keeps all taxes under review and is introducing a new framework to subject levies to enhanced scrutiny and ensure they are affordable, reflect good value for money, and do not impose unnecessary costs.
Answered by:
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