The cost of the Climate Change Act

The cost of the Climate Change Act

A new report has revealed the cost to taxpayers of the Climate Change Act will reach £300 billion by 2030. 

The report by Peter Lilley MP, as reported in the Times, finds that there “is at best economic illiteracy and at worst deliberate deception” by government when it comes to the costs of the Act.

The costs are largely associated with providing subsidies to renewable energy which have raised household bills across the UK. A report by the National Audit Office earlier this year found just one scheme, the Levy Control Framework, will add £110 to the average UK electricity bill.

Lilley’s report also states that the Government currently does not include system costs in their official figures which artificially lowers perceived costs. System costs include the money required to be paid to keep baseload forms of energy such as coal and gas on standby for falls in renewable power. 

The paper also revealed a report by former non-executive director of the former Department for Energy and Climate Change (DECC), Tom Kelly found systemic underestimation in the Government’s costings. He states “weaknesses in the original governance arrangements that were not rectified over time, a lack of transparency and a tendency to groupthink.”

In his column, Matt Ridley argues that spending is worrying as “this spending has to be forced by law,” and that “we have an energy policy that has imposed huge costs on the economy,”.

The increasing scrutiny of the UK’s energy policy comes while the National Grid is turning to traditional fuels to secure supply over winter, bringing coal-fired plants back online.

Find the full report here. 



  1. Philip Stockley

    More of Ed Millibands legacy to add Cody to industry and the poorest in society. In the latter it’s rather like robbing the poor to pay the rich

  2. Stephen Evans

    No one said fighting climate change would be cheap. It is necessary. CO2 has had its part to play in the problem. It will get worse as the warming releases more methane.

    • Michael Bartlett

      Hi. Good scientific endeavour puts forward the view that Co2 absolutely NOT the problem but that water vapour clearly is. The earth needs the level of Co2 at the current level for all of us.

    • A Richards. Engineer.

      Correct, but what is,worrying is that none of those making decisions have the faintest understanding of generation transmission or consumption.

  3. Keith Eastelow

    This confirms what most of us think, that monies going to wrong companies! We’re paying more for our energy than necessary and imposing our industries with excessive costs. The benefits appear to be for foreign manufacturers of dubious wind generators!

  4. Reg Of the Dee family

    Climate change is a scam. Clean energy ends up not so clean when manufacturing energy use is factored in. CO2 causing warming is still not a proven fact and as most CO2 is naturally produced, the impact clean energy will have is negligible. Its just another scare and herd tactic by the NWO brigade.
    Different tune, same old song.
    I’m off now to light my BBQ.

  5. Could you provide a reference to this report that you’re talking about, please

  6. Philip Nalpanis

    Except that the wind turbines are being manufactured in this country, thus providing employment and a new manufacturing industry.

  7. P RR Simmons

    If the UK went 100% green it would make no overall difference to the global warming situation unless the USA RUSSIA CHINA AND INDIA make significant changes to its emissions that’s not to say we should not but the government are making claims which is completely false

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