Claim dd766b9eChecked 22 Jul 2026
PlausibleOn the evidence scale
“The Conservatives are paying for the Cheap Power Plan by scrapping Net Zero policies.”
Reasoning & Evidence22 Jul 2026
The Conservatives explicitly state that their Cheap Power Plan (cutting household energy bills by ~£200) would be funded by scrapping Net Zero schemes, including GB Energy, heat pump subsidies, and Renewable Obligation subsidies. The £200 saving breaks down as ~£94 from removing VAT on energy bills, ~£75 from scrapping the carbon tax, and ~£22 from ending legacy renewable subsidies.
However, the framing is substantially circular: approximately £97 of the £200 saving (£75 from carbon tax + £22 from renewable subsidies) comes directly from removing green levies from bills — scrapping the levies IS the bill cut, not a separate funding source. The VAT removal component (~£94) requires separate Treasury funding, which the Conservatives say would come from North Sea drilling tax revenue, a different mechanism from "scrapping Net Zero policies."
The financial arithmetic is heavily contested. Labour called the plan "a multi-billion-pound unfunded spending commitment" whose "sums still don't add up." The Oxford Smith School found that maximised North Sea extraction would save households only £16–£82/year (far below the £200 claimed), while a renewables-led approach would save £105–£441/year. The IFS and Energy and Climate Intelligence Unit similarly question the viability. Additionally, repealing the Climate Change Act entirely would reduce government revenue (OBR estimates ETS receipts at £2.6bn/year), not increase it.
The claim accurately reflects the Conservatives' stated policy approach, but the causal link between "scrapping Net Zero policies" and "funding" the plan is only partially and contestably established — partly circular, partly reliant on disputed North Sea revenue assumptions.
Sources: BBC News, "Remove VAT from energy bills for three years, Tories urge" (https://www.bbc.co.uk/news/articles/c4gx01d0re1o); GB News, "Kemi Badenoch pledges to ditch carbon levies 'killing British industry'" (https://www.gbnews.com/politics/kemi-badenoch-ditch-carbon-levies); Conservative Party, "Our Plan to get Britain back on Track" (https://www.conservatives.com/our-plan-to-get-britain-back-on-track); Kemi Badenoch MP, "We MUST get our oil and gas out of the ground" (https://www.kemibadenoch.org.uk/news/kemi-badenoch-mp-we-must-get-our-oil-and-gas-out-ground); BBC News, "Tories pledges to fully scrap carbon taxes on business" (https://www.bbc.co.uk/news/articles/c145elk3deeo); New Civil Engineer, "Conservatives launch campaign to expand North Sea production" (https://www.newcivilengineer.com/latest/conservatives-launch-campaign-to-expand-north-sea-production-but-face-backlash-31-03-2026/); Oxford Smith School, "Impact of Oil and Gas Exploitation in the North Sea on UK Household Energy Bills" (https://www.smithschool.ox.ac.uk/sites/default/files/2026-03/North_Sea_Rapid_Analysis_March2026_OxfordSmithSchool.pdf); IFS, "Temporary VAT cut on household electricity bills: IFS response" (https://ifs.org.uk/articles/temporary-vat-cut-household-electricity-bills-ifs-response); The Conversation, "Would more North Sea drilling lower UK energy bills? Our analysis says no" (https://theconversation.com/would-more-north-sea-drilling-lower-uk-energy-bills-our-analysis-says-no-278467)
From tweet
Conservatives have set out our fully funded Cheap Power Plan that will cut family energy bills by £200, including by cutting their VAT. We are paying for that by getting Britain drilling and scrapping Net Zero policies. John Healey should take a look at it and steal our ideas.
Sources opened
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