Writing in the Times, Healey wrote that there is “no sense building power that can’t connect and then paying to switch it off.” New offshore wind projects bidding for subsidy contracts will only be signed off by ministers if they believe all the power generated could be accommodated by the grid without raising consumer costs. The move follows a budget this week that cut more than £3bn from the energy department, much of which will pay for defence. The cuts included £741m from the boiler upgrade scheme, which provides subsidies for heat pumps. The government aims to increase heat pump installations to 250,000 a year by 2030, but renewables experts warned the cuts meant Britain was unlikely to hit its targets on green heating. Healey said the policy is “not a retreat from clean power” but a credible route to it. Allies of former energy secretary Ed Miliband and his successor Miatta Fahnbulleh said the green agenda remains strong, pointing to a long-term move to shift green costs from bills to taxpayers. A National Audit Office report in September warned that homes and businesses could face a potential annual bill of £7.8bn by 2030 to deal with the issue.
Healey to veto new offshore wind projects unless they lower bills
Chancellor’s budget and veto plan raise concerns over Labour’s 2030 clean power goal
Chancellor John Healey has said he will veto new offshore wind projects if they will not lower bills, adding to concerns over the government’s commitment to clean power by 2030.
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Analysis
Why This Matters
- The veto conditions could slow new wind capacity, endangering the 2030 clean power target.
- Household energy bills may stay higher if grid constraints persist.
- The budget cuts signal a possible retreat from the previous green agenda.
Background
Labour has a goal of clean power by 2030, championed by Ed Miliband and Miatta Fahnbulleh. Healey’s budget cut over £3bn from the energy department, including money for heat pump subsidies. A National Audit Office report from September warned of high costs from grid capacity issues.
Key Perspectives
John Healey: Defends the veto as ensuring projects lower bills and connect to the grid, calling it a credible path to clean power. Allies of Ed Miliband and Miatta Fahnbulleh: Insist the green agenda remains strong and point to the shift of green costs to taxpayers. Renewables experts: Warn the budget cuts make Britain unlikely to hit green heating targets.
What to Watch
- How many wind projects receive approval in the next renewables auction.
- The rate of heat pump installations and whether the 2030 target is achievable.
- Further budget moves that may affect the 2030 clean power timeline.
Sources
Checked
12 claims in this story checked against 1 source: 11 supported.
Show each claim
- SupportedHealey will veto new offshore wind projects unless they lower bills.UK news | The Guardian: “Healey to veto new offshore wind projects if they will not lower bills. John Healey has said he will veto new offshore wind projects if they will not lower bills”
- SupportedThe budget and veto plan raise concerns about Labour’s 2030 clean power goal.UK news | The Guardian: “The move appears to be a further shift away from Labour’s target of having clean power by 2030, after Healey revealed more than £3bn worth of cuts to the energy department’s budget this week”
- SupportedWriting in the Times, Healey said: “no sense building power that can’t connect and then paying to switch it off.”UK news | The Guardian: “Writing in the Times, he said: “There’s no sense building power that can’t connect and then paying to switch it off.”
- SupportedMinisters will sign off new offshore wind projects bidding for subsidy contracts only if they believe the grid can accommodate all their power without raising consumer costs.UK news | The Guardian: “New offshore wind projects lodging bids for subsidy contracts will only get signed off by ministers if they believe that all the power generated could be accommodated by Britain’s electricity grid without pushing up costs for consumers.”
- SupportedThe energy department’s budget was cut by more than £3bn this week.UK news | The Guardian: “after Healey revealed more than £3bn worth of cuts to the energy department’s budget this week”
- SupportedMuch of the energy department’s budget cuts will pay for defence.UK news | The Guardian: “more than £3bn worth of cuts to the energy department’s budget this week, much of which will pay for higher defence spending.”
- SupportedThe cuts included £741m from the boiler upgrade scheme, which subsidises heat pumps.UK news | The Guardian: “including £741m from the boiler upgrade scheme, the government’s plan to incentivise people to replace their gas boilers with electric heat pumps.”
- Partly supportedThe government aims to increase heat pump installations to 250,000 a year by 2030.UK news | The Guardian: “Under the scheme, a typical household can claim £7,500 towards a heat pump, with about 60,000 a year being fitted in existing homes. The government has a target to raise that to 250,000 a year by 2030”
- SupportedRenewables experts warned the cuts meant Britain was unlikely to hit its green-heating targets.UK news | The Guardian: “The cuts caused alarm among renewables experts, who warned they meant that Britain was unlikely to hit its targets on green heating”
- SupportedHealey said the policy was “not a retreat from clean power” but a credible route to it.UK news | The Guardian: “He said: “This is not a retreat from clean power. It is the credible route to it.”
- SupportedAllies of Miliband and Fahnbulleh said the green agenda remained strong, pointing to a long-term move to shift green costs from bills to taxpayers.UK news | The Guardian: “Allies of Miliband and Fahnbulleh insisted the government’s green agenda remained as strong as ever, pointing out that Healey also announced a long-term move to shift green costs away from bills and on to taxpayers”
- SupportedA National Audit Office report in September warned homes and businesses could face a potential annual bill of £7.8bn by 2030 to deal with the issue.UK news | The Guardian: “A National Audit Office report in September warned that homes and businesses could be faced with a potential annual bill of £7.8bn by 2030 to deal with the issue.”