Key facts
- New offshore wind projects must demonstrate they can lower bills to be approved.
- The government plans to shift green costs away from bills and onto taxpayers.
- Funding for the heat pump subsidy scheme will be reduced.
UK Chancellor John Healey has stated he will veto new offshore wind projects if they do not demonstrably lower consumer energy bills. This policy shift aims to prevent the grid from being overloaded and incurring costs for consumers, as warned by the National Audit Office. Healey emphasized that the move is a 'credible route' to clean power, not a retreat, and will strengthen energy security while aiding decarbonization. The government also plans to shift green costs from energy bills to taxpayers and has announced significant cuts to the energy department's budget, impacting schemes like heat pump subsidies, with funds redirected to defense spending.