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Written question asked by Llinos Medi (Plaid Cymru) on Monday, 13 July 2026, in the House of Commons. It was due for an answer on Thursday, 16 July 2026 (named day). It was answered by Dan Tomlinson (Labour) on Thursday, 16 July 2026 on behalf of the Treasury.

Energy: Billing

Question

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.

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.

Secondary information

Type
Written question
Reference
18228
Session
2026-27
Subjects
Billing Energy Taxation
Link
View this Written question on www.parliament.uk