Key facts
- The Conservative Party claims rolling back net zero regulations could save UK households about £540 annually after 2030.
- A report by the think tank Onward, supported by the Tories, estimates the total cost of net zero policies between 2030 and 2050 at £320 billion.
- This £320 billion cost is projected to be spread across approximately 29 million households over two decades.
- Onward's modelling suggests potential annual bill reductions of around £200 by 2035 for average households, increasing to £290 with further fiscal measures.
- The report acknowledges trade-offs, including a projected 524 million tonnes of cumulative carbon emissions and increased vulnerability to gas price volatility.
The UK Conservative Party has highlighted a report suggesting that abandoning stringent net zero regulations could lead to annual household savings of approximately £540 after 2030. The report, published by the centre-right think tank Onward and endorsed by the Tories, posits that the full implementation of net zero policies by 2050 would cost the UK around £320 billion between 2030 and 2050, impacting roughly 29 million households.
According to Onward's modelling, the actual reduction in household energy bills could be closer to £200 per year by 2035 for an average consumer, potentially rising to £290 if additional measures are adopted, such as shifting certain energy costs into general taxation. The study, titled 'Firm Foundations', compares the current policy trajectory with an alternative pathway focused on demand and supply. Key savings are projected from reforms to network spending, ensuring supply sources are closer to power lines, and the elimination of carbon taxes. The analysis also hinges on assumptions about nuclear energy providing cost-effective electricity generation.
Conservative leader Kemi Badenoch stated that the party's approach to climate change prioritizes tangible results over setting targets. She contrasted this with Labour's perceived adherence to outdated plans and Reform UK's stance on climate change denial, asserting that the Conservatives would safeguard the environment and energy security while lowering costs. Shadow energy secretary Claire Coutinho is expected to elaborate on the costs associated with renewables, emphasizing the report's detailed costing of the electricity system.
However, the report acknowledges significant trade-offs. It projects 524 million tonnes of cumulative carbon emissions, implying a substantial cost for removing the final emissions. It also concedes a greater vulnerability to gas price shocks, estimating a 250% spike in 2040 could add £6 billion to fuel costs. Researchers noted that policymakers would need to decide how to lower costs through other taxes. Labour's energy secretary Miatta Fahnbulleh criticized the plan, stating it would tie Britain to the fossil fuel market and increase bills, while Labour invests in clean energy jobs and tax cuts for electricity bills.