Starmer , Miliband,  Neso and Denz

The £12 Billion Burden on British Households who’s to blame?

Labour’s push for a “zero-carbon” electricity system is costing British households an eye-watering £12 billion a year—equivalent to an average of £450 per household annually. While Labour insists that green energy will eventually “lower energy bills for good,” the reality is that these subsidies are already driving up the cost of living for millions of Britons, with costs projected to rise even further in the coming years.

The Breakdown: Where is the £12 Billion Going?

The bulk of these costs come from three major green energy schemes designed to subsidise renewable energy projects and force the transition away from fossil fuels:

Contracts for Difference (CfD) – £2.3 billion per year
This scheme guarantees renewable energy developers a fixed price for the electricity they generate. If market prices fall below the agreed amount, taxpayers foot the bill to make up the difference.

Renewables Obligation (RO) – £7.8 billion per year
Introduced to force energy suppliers to buy renewable electricity, this scheme is now one of the biggest contributors to higher energy bills. Suppliers pass on the costs directly to consumers, driving up household and business energy bills alike.

Feed-in Tariff Scheme – £1.86 billion per year
This subsidy supports small-scale renewable energy generation, such as solar panels on homes and businesses. While initially intended to encourage independent power generation, it has become another cost burden for ordinary consumers.


Projected Increases: The Rising Cost of Green Levies

These green levies are not just expensive now—they are set to rise to £14.8 billion a year by 2030. That means even higher energy bills, more pressure on businesses, and further increases in the cost of living as companies pass on their rising costs to consumers.

The Hidden Cost: More Than Just Your Energy Bill

While the most obvious impact is the £150 annual increase in household energy bills, the real cost of these green subsidies is much higher. The remaining two-thirds of the £450 burden per household comes from increased prices on the high street. As businesses face higher energy costs, they pass them down to consumers, leading to price hikes on everyday goods and services.

Labour’s Green Gamble: A Risky Energy Strategy

Labour justifies these rising costs as part of its plan to create a fully “zero-carbon” electricity system, aiming to reduce reliance on fossil fuels and foreign energy imports. Their argument hinges on the belief that these subsidies will eventually lower costs and protect Britain from geopolitical risks like dependence on Russian gas. However, British consumers are already feeling the pinch, with no clear signs of relief.

The Reality: Are Green Subsidies Making Energy Cheaper?

Despite claims that green energy will “lower bills for good,” the facts suggest otherwise. The increasing cost of subsidies means that energy prices remain high, and businesses—unable to absorb the extra costs—are passing them onto consumers. Instead of creating a more affordable energy system, Labour’s policies are squeezing household budgets and raising the cost of living for millions.

Conclusion: Who Pays the Price?

The push for green energy under Keir Starmer’s Labour government is coming at a massive cost to hardworking British families. With subsidies already at £12 billion a year and set to rise to £14.8 billion by 2030, households will continue to bear the financial burden—whether directly through their energy bills or indirectly through rising prices on goods and services.

If Labour truly wants to create an affordable and reliable energy system, they must rethink their strategy. Instead of relying on expensive and inefficient subsidies, the government should focus on securing stable and cost-effective energy solutions—ones that don’t leave the British public footing an ever-growing bill.