Ed Miliband’s ambitious drive to achieve Net Zero carbon emissions by the next general election in 2029 will cost British taxpayers a staggering £37billion, it has been revealed.
The massive spending programme comes as ministers develop plans to subsidise solar panels and energy storage batteries in homes across the country.
The Energy Secretary has claimed that average energy bills could be reduced by £300 within five years as Britain transitions to a greener economy.
The extensive spending package forms part of Labour’s push to accelerate the UK’s net zero drive, with the Government pledging to achieve 95 per cent clean electricity by the end of the decade.
The Government is pledging to achieve 95 per cent clean electricity by the end of the decade.
PA
Under plans being developed in Whitehall, fuel-poor households will receive upfront grants to install solar panels and batteries.
Other homeowners could benefit from cheap loans to cover installation costs, which would be repaid through energy bills at rates lower than current electricity charges.
Senior Government sources told The Times the solar initiative was a “critical element” of the Government’s clean energy plan.
The Department for Energy Security and Net Zero has already committed £3.4 billion over the next three years, with up to 300,000 households set to benefit from home upgrades next year.
Ministers are also considering increasing the amount homeowners can earn by selling unused energy back to the grid, as current prices are capped below market levels.
The full details of the support package will be revealed after the Government’s spending review concludes in June.
The Mail reported the £37.4billion spending package includes several major initiatives across different sectors:
- The creation of Great British Energy, a publicly owned firm, will require £8.3bn of public funds.
- The National Wealth Fund, supporting clean energy industries, has secured £7.3bn in Treasury backing.
- Labour has committed to honouring a 2019 Conservative pledge of £11.6bn for international climate funding by 2026.
- The Government will provide an estimated £4billion in subsidies to the Drax power plant by 2027 for burning wood pellets.
- Additional funding includes £2bn for the automotive industry’s transition to Net Zero, £2bn for hydrogen projects, and £1.5bn for renewable energy auctions.
Earlier this month, Ed Miliband set out what he called “the most ambitious reform to the energy system in generations”, aiming to make the UK reliant on 95 per cent clean electricity by 2030.
“This is about harnessing the power of Britain’s natural resources to protect working people from the ravages of global energy markets. “The clean power sprint is the national security, economic security, and social justice fight of our time.”
The plan acknowledged existing subsidies for clean energy initiatives and promised further details on solar power support after June’s spending review.
“We are considering the role that finance may play in supporting homeowners with the upfront costs of energy efficiency improvements, solar panels and installing low-carbon heating,” the plan stated.
Senior government sources indicated the initiative was crucial for meeting the target of installing 600,000 heat pumps annually by 2028.
Critics have raised concerns about the scale and implications of Labour’s Net Zero spending plans.
Tory energy spokesman Claire Coutinho said: “Labour’s Net Zero zealotry will mean taxpayers having to fork out billions of pounds in pursuit of Ed Miliband’s vanity projects, and leaving families facing higher costs.”
The UK Energy Research Centre has warned that Miliband’s drive for £40billion a year in private investment to decarbonise the National Grid could force Britain to pay a premium for technology.
The research centre also noted that, due to uncertainty over gas prices, there was no guarantee the initiative would lead to lower energy bills.
Families are already facing increased costs, with Chancellor Rachel Reeves recently raising Air Passenger Duty by 15 per cent on most flights.
