Policy paper
Climate Change Levy rates from 1 April 2026
This tax information and impact note is about legislation to amend the Climate Change Levy rates from 1 April 2026, which were announced at Autumn Budget 2024.
Documents
Details
Finance Bill 2024-25 will legislate for the Climate Change Levy rates changes announced at Autumn Budget 2024. These changes will increase the main rate of Climate Change Levy for electricity, gas, and solid fuels in line with the Retail Price Index, with effect from 1 April 2026. The main rates of Climate Change Levy on liquified petroleum gas will continue to be frozen. The reduced rates of Climate Change Levy will remain at an unchanged fixed percentage of the main rates, therefore the liability for those eligible to pay reduced rates will increase proportionately.