Economists have warned that green energy levies are set to increase by £120 per household over the next five years as the UK accelerates its transition to renewable energy sources.
The Institute for Fiscal Studies (IFS) highlighted that this rise in environmental taxes is likely to result in higher prices for consumers, effectively shifting the financial burden onto households to support initiatives like wind farms.
The IFS stated, “We are getting consumers to pay for greener energy when it wouldn’t otherwise be as cheap as dirtier energy.”
A report from the Office for Budget Responsibility (OBR) revealed that taxpayers are expected to contribute over £14 billion in environmental levies by 2029.
This marks an increase of £3.4 billion from previous estimates made in March.
The rise in subsidies is attributed to new energy deals signed by the government in September, which are anticipated to enhance the expected generation of renewable energy as the forecast period progresses.
