Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what recent assessment he has made with Cabinet colleagues of the average cost for each household of (a) taxes and (b) other levies that support net zero policies.

The energy price cap is currently set to £1,923 and is made up of different costs, for example the wholesale cost of gas and electricity, costs to supply energy on the network and VAT. This includes environmental and social costs (“green levies”) worth approximately £170 per year for the typical household.

Environmental and social costs play an important role in reducing energy costs by supporting investment in renewables and helping to reduce our exposure to global price volatility – the key driver of high energy bills.

Taxes are important in delivering our environmental policy objectives, with several taxes designed to encourage businesses and consumers to make greener choices, such as Landfill Tax and the Climate Change Levy.