Carbon tax ‘must protect low-income households’

Almost 70 per cent of people are in support of a carbon tax that protects lower-income households from price increases, research from the Zero Carbon Campaign has found.

Alongside the results of an Opinium survey of 2,000 UK adults, the campaign is launching a petition calling on the government to introduce charges on carbon emissions.

The campaign, launched by Ovo founder Stephen Fitzpatrick in 2019, has calculated that a sector-by-sector carbon charge could raise £27 billion annually by 2030.

Its Zero Carbon Commission has previously called for such a measure, urging the government to introduce a gradually rising carbon tax across most sectors of the economy, growing from £55 per tonne in 2025 to £75 per tonne by 2030.

A carbon charge, it argues, would “strengthen and simplify” existing green levies that are inefficient or unfair, and introduce new forms of emissions pricing in sectors that do not currently face a price on the pollution they produce.

It would incentivise the transition away from fossil fuels in a way that is sensitive to the decarbonisation challenges faced by different sectors, while making sustainable choices more  convenient and affordable for consumers.

The petition also asks the government to ensure that carbon charges do not unfairly impact those who cannot afford to pay by using some of the money to support low-income households through the energy transition.

Seven in ten of those surveyed are in favour of a carbon tax that would make big polluters pay for their greenhouse gas emissions. Of these, 32 per cent say they would strongly support the proposals.

Large majorities say plans for a carbon tax must protect lower income households from the impact of any price increases (68 per cent) and ensure that big business polluters bear the brunt of increased costs (69 per cent).

Two thirds of people (67 per cent) believe that a carbon tax is a fair way to raise revenue and can benefit the entire country by increasing spending on:

• Creating green jobs and retraining workforces (45 per cent)
• Low carbon energy (44 per cent)
• Investment in the NHS (44 per cent)
• Clean tech and innovation (41 per cent)

Only 12 per cent said it should fund tax cuts and only 11 per cent wanted it to support general taxation.

Meanwhile 67 per cent believe the government needs to introduce new policies to tackle climate change and as the country prepares to host the Cop 26 summit, 64 per cent also say that it needs to show greater leadership on climate action and must encourage other countries to do the same.

Hannah Dillon, head of the Zero Carbon Campaign, said: “The message from the public is clear: we cannot continue to enable big polluters to profit from the production of toxic greenhouse gas emissions whilst consumers foot the bill.

“Stronger carbon pricing can help redress this imbalance, whilst providing much-needed revenues to support low-income households through the net zero transition. It’s fantastic to see that the public recognise this, and that members of parliament are willing to take it seriously.”