Liz Truss has officially been appointed Prime Minister with 57.4% of the vote, the National Insulation Association (NIA) reported on 7 September 2022. The industry body set out a summary of her stated policy positions on decarbonisation, net zero and the cost of living, alongside a timeline of forthcoming government events1.
On decarbonisation, the NIA reports that Truss "has announced interest to enforce a temporary moratorium on the green energy levy" and "has indicated support to lift the ban on fracking, offshore oil and gas developments". She "is expected to issue up to 130 new oil and gas drilling licenses in the North Sea", and "has shown interest in investing in new nuclear", a position the NIA says is shared by "her likely Chancellor, Kwasi Kwarteng who is supportive of new nuclear projects like Sizewell C". On hydrogen, the NIA notes there have been no comments on hydrogen policy, but that Truss "has shown support for hydrogen blending within the gas network". She "has criticised the use of onshore wind and solar power as part of the UK's energy mix", and it has been reported that her government will consider capping the price at which wind and solar energy can be sold into the UK grid, with the aim of restraining rising costs1.
On net zero, Truss "has pledged to maintain the commitment to Net Zero by 2050" and is described as highly supportive of new UK developed technologies and manufacturing related to net zero. She "has shown interest to review the EU's habitat directive and develop stronger Britain-focussed biodiversity targets"1.
On the cost of living, the NIA reports that Truss "has shared her intention of a temporary moratorium on the green levy for two years however, she has not committed to matching the spending". It adds that "it has been widely reported that Truss is planning to freeze energy bills. However, it is unclear what this entails. This may include eliminating VAT or extending the existing household handouts." Beyond this, the NIA states that Truss "has not provided concrete details of her plans to address the cost of living"1.
"Truss has shared her intention of a temporary moratorium on the green levy for two years however, she has not committed to matching the spending."
| Date | Government event |
|---|---|
| 6 September | Speech setting out new government priorities; appointing of cabinet and senior departmental ministers |
| 7 September | Further ministers to be appointed |
| 11 September | All ministers to be appointed |
| Before 2 October | A fiscal event to address cost of living and energy challenges |
| 2 October to 5 October | Conservative Party Conference |
| 17 October | Parliament returns in full following party conferences |
Why it matters for households
The measures described touch the two main levers on a household's energy position: what a unit of gas or electricity costs, and how much of it a home needs. A temporary moratorium on the green energy levy would change what is collected through bills, but the NIA notes no commitment to matching the spending, so the net effect on a household bill is not set out. A freeze on energy bills has been widely reported, but the NIA says it is unclear what this entails and that it may mean eliminating VAT or extending existing household handouts1. On the supply side, support for new nuclear, North Sea licensing and hydrogen blending concerns the make-up of the grid and gas network over the longer term, while criticism of onshore wind and solar, and a possible cap on the price at which wind and solar output is sold, concerns the generation mix and its cost. The NIA's summary does not quantify any of these effects for a household, and no figures for bill changes have been reported1. The NIA describes itself as consisting of industry experts, installers, system designers and product manufacturers, promoting high quality insulation in terms of products and service, and working closely with the Department of Business, Energy and Industrial Strategy1. The regulation and policy picture set out here is a statement of positions rather than settled measures.
What happens next
The NIA's timeline lists a fiscal event to address cost of living and energy challenges before 2 October, the Conservative Party Conference from 2 to 5 October, and the full return of Parliament on 17 October1. The NIA reports that Truss's team is working with officials to make an announcement ahead of October1.