Dhara Vyas, chief executive, EnergyUK:
“Support for energy bill payers is long overdue. The energy industry has for some time called for action to remove policy costs and bring down bills. So we warmly welcome the announcement today from the Chancellor, which will give customers some respite from the high energy costs that far too many households have struggled with over recent years.
“Investing in clean power will protect customers from volatile prices and lead to more stable bills in the future. But people are struggling now, and reducing bills for all customers is an important first step. We now hope to see further progress toward both tackling the current record levels of customer debt and introducing better targeted support for those most in need.
“It’s crucial that the Government delivers on the promise of the Warm Homes Plan. The proposal to cut the ECO programme significantly reduces the overall funding available for vital home improvements that would lower bills. It will also have an impact on the companies and supply chains that have made plans to invest and recruit and have again been hit by a change in policy.
“A focus on electrifying homes, businesses, and transport, as well as continuing to work towards making homes energy efficient, are all crucial to ensuring millions more people can live in warmth and comfort, particularly low-income customers who suffer the most from poor housing.”
Greg Jackson, CEO and Founder, Octopus Energy:
“This cut in electricity bills is a positive step in the right direction for customers. Making electricity cheaper is also crucial for people adopting electric heating and electric vehicles.
“The ECO scheme had become simply too wasteful, adding high costs to everyone’s bills and only delivering meagre savings for recipients. A reset through the Warm Homes Plan is the right approach.”
Ed Matthew, Campaigns Director, E3G:
“Cutting taxes from electricity bills is a crucial step towards helping people to switch to clean energy. But this is overshadowed by the morally indefensible decision to scrap the national home insulation scheme, ECO. This is exactly the kind of sticking plaster politics this government promised to end and fatally undermines the best long-term solution to fuel poverty. It will also cost 10,000 jobs and prevent 1 million families from insulating their homes in the next 4 years. The Chancellor must reverse this cut and maximise energy savings for the fuel poor.”
Jess Ralston, Head of Energy, Energy and Climate Intelligence Unit:
“A decade-long lack of investment in upgrading our homes is why the UK was so hard hit by the gas crisis, particularly families living in low-income or vulnerable households. Homes of children with a health condition are twice as likely to be cold in winter, and a third of insulation upgrades as part of the Energy Company Obligation went into homes that were home to a child. That’s the people that the Chancellor’s cut will impact most, with no chance that the already delayed Warm Homes Plan will be able to cover the shortfall.
“Cutting the only long-standing, flagship insulation scheme means uncertainty for 20,000 jobs in the industry. This repeats mistakes of the past where the only thing consistent has been the flip-flopping from successive governments.
“Moving some legacy policy costs like the Renewables Obligation and Warm Homes Discount into tax has been recommended by experts for years and helps to counter some bill increases next year. Making electricity cheaper so that households can transition away from gas boilers, which will increasingly run on foreign gas imports while electric heat pumps will increasingly be run on British wind and solar, is going to be crucial for the UK’s energy security.”
Steve Brittan, Chief Executive, Xoserve:
“We strongly support the UK Government’s focus upon driving down household energy bills within today’s Budget.
“Extending the Warm Homes Discount will help support a further 6 million households this winter and we welcome the commitment of £1.5 billion to fund energy efficiency measures through the upcoming Warm Homes Plan.
“As Central Data Service Provider for the UK gas industry, we will work with industry and regulators to understand the commitment to better align electricity and gas prices. As 85% of UK homes are heated using gas, this realignment cannot be at the expense of these customers through additional levies on gas bills.
“Xoserve will continue to make the case for whole systems thinking, reducing UK household and business energy bills.”
Toby Perkins MP, chair, Environmental Audit Committee:
“The Committee has heard again and again that reducing the cost of electricity is the best way to speed up the clean power transition. Reducing them is rightly a priority for the Government, especially as it encourages households to make the switch to cleaner and greener energy sources. So I welcome the Chancellor’s announcement today that the Budget will remove an average of £150 from household energy bills.
“I also welcome the additional investment to recruit planners in England. The Committee’s recent report on housing growth raised concerns about the exodus of planners leaving the profession; planning reforms and ambitious building targets cannot be achieved without the staff to deliver them.
“However, it is still critical that these new planners are equipped with expertise in ecology, so they can make the right decisions for communities and for nature.”
Rachel Solomon Williams, Executive Director, Aldersgate Group:
“The Chancellor’s Autumn Budget took positive steps to cut household electricity costs by moving levies from bills into general taxation. This will help to ensure a just transition and support the electrification of heating and transport. However, the planned closure of the Energy Company Obligation scheme will need to be balanced through a strong Warm Homes Plan, and delivery of the government’s commitment to upgrade 5 million homes by 2030.
“For many businesses, high electricity costs continue to be a major barrier to further electrification. Industry represents 12% of the UK’s total greenhouse gas emissions, but only around 3% of industrial process heat is currently electrified. Targeted support for the manufacturing and industrial sectors is essential if they are to play their part in the transition and retain crucial industries within the UK.”
Caroline Bragg, chief executive, ADE:
“We welcome the Chancellor’s decisive move to fix the outdated levies that have handicapped clean energy for years – a massive win for both billpayers and our decarbonisation goals that took real political courage. The protection of £13.2 billion for the Warm Homes Plan is another very welcome commitment, providing a crucial foundation for heat networks across the country. However, while families will see costs fall, industry has been left behind. The budget’s neglect of industrial electrification turns its back on hundreds of thousands of jobs.”
Yselkla Farmer, chief executive, BEAMA:
“We welcome the Government’s focus upon driving down energy bills for UK households, but further measures are needed to ensure that we are creating a sustainable energy system by supporting investment from consumers and businesses with credible, delivery-focused policies that bring the public along with us.
“With much still to do to achieve Clean Power by 2030 and a need to accelerate progress towards the Net Zero 2050 requirement, now is not the time to introduce uncertainty. The scrapping of the Energy Company Obligation and other domestic electricity levies will deliver immediate savings to energy bills. However, without a clear policy on how this essential funding will be replaced within the twice-delayed Warm Homes Plan, the Budget has added further policy confusion as we work towards Clean Power 2030.
“Manufacturers need policy consistency over time and tangible delivery plans to encourage investment, and Government should understand this investment cannot appear overnight. Businesses also continue to struggle with energy and hiring costs which have not been materially improved by today’s Budget.
“Our members enthusiastically welcomed the action plans for Clean Power, Industrial Strategy and Green Jobs, demonstrating the positive sentiment that Government can set. But manufacturers quickly need a clear and consistent policy to ensure short term relief is followed by long term improvements that will bring benefits to consumers for decades to come.
“Our members have consistently supported policies to reduce electricity costs as a top priority to help consumers and encourage investment in energy saving technologies. As such the bill savings announced in today’s Budget are welcome a short-term measure.
“However, while the Government has announced an additional £1.5bn capital spending to the Warm Homes Plan pot, industry will want to receive clarity as soon as possible on how this will be raised and spent following the scrappage of the Energy Company Obligation (ECO).
“Uncertainty remains over the publication of the delayed Warm Homes Plan, Future Homes Standard, and longer term structural changes to electricity prices. These policies are a great opportunity to stimulate consumer and business investment, economic growth, and accelerated decarbonisation.
“We will be supporting the Government to accelerate policy development and decisions to boost industry confidence and press ahead with developing an energy system fit for the present and future.”
Jane Cooper, Deputy Chief Executive, RenewableUK:
“We’re pleased to see the Chancellor has supported our call to drive domestic electricity bills down by moving some energy policy costs into general taxation. It’s fairer, as it’s based on people’s ability to pay, so families on low incomes will benefit most. We also welcome her moves to make electricity cheaper for industry, as this will reduce costs for the energy sector’s supply chain and accelerate electrification, both of which will, in turn, reduce electricity costs, benefitting billpayers.
“The Chancellor’s commitment to invest in measures to speed up the planning system, including recruiting 350 extra planning officers in England, is a timely intervention which will enable us to roll out vital new clean energy capacity significantly faster, strengthening the UK’s energy security.
“It’s exciting to see the Government approving two new freeports in Scotland and Wales. These are the latest examples of the renewable energy sector revitalising ports across the country by building centres of excellence. We also welcome the announcement of investment in renewable energy projects in Cornwall through a new local Industrial Growth Fund.
“We’re grateful that the Chancellor has taken up our suggestion to remove the Climate Change Levy from the production of green hydrogen, as this will encourage the growth of our innovative clean hydrogen industry and help to maintain our global lead in this cutting-edge technology.
“This package of measures will help our industry to deliver greater energy security and create even more jobs while ensuring fairness for consumers”.
Jonathan Cohen, Partner, Fladgate:
“Today as part of the Budget, it was announced that the Treasury will fund 75% of the domestic cost of the legacy Renewables Obligation for three years, this will reduce domestic consumers bills although we note that such levies will be moved into general taxation. So, we query whether domestic customers will actually be better off in the round. As our clients are developers/generators rather than domestic customers this may have little impact on them.
‘’Of more relevance to our clients are the proposed changes to the indexation of ROCs and FiTs that DESNZ are consulting on (note: this is not a Budget announcement). These proposals would replace RPI with CPI and such changes (if approved) may be implemented from 1 April 2026 and the resulting change to CPI should reduce consumer costs. If such changes are implemented, generators will need to review RPI-linked debt and any contracts affected by the change including power purchase agreements (PPAs) covering the sale of ROCs as well as a review of any Change in Law provisions allowing any price reopeners.’’
Richard Sallnow, transport expert, PA Consulting:
“..Moving to a pay-per-mile system for electric vehicles is an inevitable step, but its design and implementation needs careful consideration for a smooth journey ahead. This shouldn’t be seen as a radical shift – internal combustion engines already pay a per mile charge of sorts through fuel duty. This latest announcement is an extension of that same principle for zero emission vehicles.
“The quickest, fairest way to start is a simple mileage-based charge for zero-emission vehicles, verified through annual mileage readings. It gets the system running fast without intrusive surveillance or costly technology.”