The UK Government has confirmed the cancellation of the proposed hydrogen levy, which was designated to cover the costs of hydrogen production.

Initially slated to be integrated into energy bills, the £120 annual charge aimed to support the transition towards cleaner energy sources, particularly hydrogen, as a part of the country’s broader sustainability goals.

Energy Secretary Grant Shapps recently confirmed that this levy, set to take effect in 2025, will not be imposed on households.

Mr Shapps highlighted the government’s intention to explore alternative funding methods to advance its net zero agenda, without adding to the financial burdens of households.

In June, the Energy Secretary stated: “We know we need to fund this transition, but we don’t want to do it through household levies.”