Measure

Climate Change Levy rates

The measure

The main rates of Climate Change Levy (CCL) for electricity and liquified petroleum gas will be frozen from April 2028, at 2027-28 levels. The main rates for gas and solid fuels for 2028-29 will be uprated in line with RPI. 

Additionally, the government will end Carbon Price Support rates in Great Britain from April 2028.  

 

Who will be affected?

Business users of electricity and liquified petroleum gas. 

 

When will the measure come into effect?

From April 2028. 

Our view

The measures represent a rebalancing of the UK’s energy tax landscape from April 2028. Freezing CCL on electricity while increasing the rates applicable to gas and solid fuels in line with inflation should strengthen the relative incentive for businesses to electrify their energy consumption.