According to recent reports, the government is considering launching a green plan that will encourage households to warm their homes with low carbon heat sources, such as heat pumps.
By lowering bills for customers by removing taxes and subsidies from energy bills, it’s hoped that households will be incentivised to replace their gas boiler with a greener alternative. This will then help the government reach its target of replacing 600,000 gas boilers every year from 2028.
Removing taxes and subsidies to lower bills
Currently, around a quarter of your energy bill covers taxes such as subsidies for renewable energy and fuel vouchers for low income households. But, many experts now believe that these additional costs are acting as a major barrier and are preventing people from heating their homes using low carbon alternatives like heat pumps.
As a result, the government is currently consulting with experts on how bills could be lowered or changed. As part of this, a decision is set to be made on how much of the 23% of policy costs will be removed from electricity tariffs.
Speaking about the plans, a government spokesperson said: “Heating for homes and workplaces make up almost a third of all UK carbon emissions so we need to reduce these levels to ensure we eliminate our contribution to climate change by 2050.
“More efficient heating systems will reduce energy bills overall and we will be publishing a call for evidence on affordability and fairness in due course to ensure heat pumps reduce people’s bills.”
Changes you can make today
Although the plans are weeks away, further consultation is likely to be required and the government’s boiler replacement targets will not come into effect until 2028. However, if you’re concerned about the carbon impact of your heating and electricity, there are changes that you can make today that will create an immediate impact.
Firstly, you can reduce your energy bills by being smarter with how much you’re using on a day-to-day basis. By taking simple steps like not leaving items on standby, you can lower your bills and protect the planet.
In addition, you can reduce your carbon footprint by switching to a green energy tariff or a tariff that has a fuel mix with a high amount of renewables.
Switching supplier is easy. By running an online energy comparison, you can find the best energy deals near you and compare green energy deals from across the market. As an added bonus, we often find that these green energy deals are cheaper than standard deals and green energy suppliers like Octopus and Bulb are considered to be some of the best energy suppliers in the UK today.
So, by switching providers, not only will you save money on your energy bills, but you’ll also reduce your carbon footprint and receive better service.
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