Measure

Climate change levy and carbon price support

The measure

The main rates of the climate change levy (CCL) for gas, electricity, and solid fuels will be uprated in line with the Retail Prices Index (RPI) in 2026-27. The main rate for liquefied petroleum gas will continue to be frozen. The reduced rates of CCL will remain at an unchanged fixed percentage of the main rates.  

The government will maintain carbon price support (CPS) rates in Great Britain at a level equivalent to £18 per tonne of CO2 in 2026-27. 

 

Who will be affected?

Business and public sector users of energy, gas and electricity utilities, and suppliers of solid fuels and liquefied petroleum gas (LPG). 

 

When will the measure come into effect?

The main rates of CCL on electricity, gas and solid fuels will increase on 1 April 2026.  

Our view

The measure is consistent with previous announcements.