Labour to slash 'hidden tax' for UK households by 'four fifths' after backlash

A hidden boiler tax will be scaled back by Labour Party Energy Secretary Ed Miliband after a Budget backlash. Labour is set to slash a 'hidden tax' on gas boilers that was introduced as part of the UK's drive towards 'net zero' carbon emissions.

Policies created by the Conservative Party government would see boiler manufacturers fined if they fail to meet targets for selling heat pumps. Makers have said they would have to increase the price of boilers by at least £120 to cover the fines.

Mr Miliband is reportedly set to slash the penalties by around 80%. Mr Miliband is set to announce within weeks that he is forging ahead with plans to introduce mandatory targets for heat pump sales from next April.

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Tory ministers initially proposed a penalty of £5,000 per missed unit, but then reduced it to £3,000 following outcry from businesses. “They’re absolutely beside themselves at it being called a boiler tax,” the source said. “They’re keen to keep the cost off the consumer for net zero.”

A spokesman for the Department for Energy Security and Net Zero said: “The energy shocks of recent years have shown the urgent need to upgrade British homes. Our Warm Homes Plan will make them cheaper and cleaner to run, rolling out upgrades from new insulation to solar and heat pumps.

“We will respond to the consultation on the postponement of the Clean Heat Market Mechanism to April 2025 in due course.” His decision will set the precedent that the Government could water down other net zero policies that directly hit families in the pocket.

Mr Miliband is set to announce within weeks that he is forging ahead with plans to introduce mandatory targets for heat pump sales from next April, according to reports in the Telegraph newspaper today (Saturday).