Search

NAPIT responds to Chancellor's Budget

NAPIT has criticised the Chancellor's Budget for mixed messages on electric vehicles and household bills, welcoming the electric car grant extension but noting a missed chance to cut the link between electricity and gas prices.

A newspaper on a kitchen table beside a model of rules and regulation

NAPIT, a certification body and trade association, published its response to the Chancellor's Budget on 27 November 2025. The organisation said the statement contained mixed messages and missed opportunities for the green economy and low carbon sector1.

On motoring, NAPIT noted that fuel duty is frozen until next September, while drivers of electric and hybrid vehicles will pay 3 pence per mile from 20281. It said an additional £1.3m has been made available for the electric car grant, which has been extended to 2030, and an extra £200m is going to accelerate the electric vehicle chargepoint roll out1. The grant applies only to new cars, so it will not affect the second-hand market1.

On household bills, NAPIT said average household energy bills will fall by an estimated £150 a year, paid for by cutting the ECO scheme and removing other costs from bills1. It said the Government missed an opportunity to remove the link between electricity and gas prices, which it argued would have made technology such as heat pumps and electric vehicles more affordable to run1.

Stephen Melton, Director of Commercial and Compliance at NAPIT, said:

"The decision to start charging drivers of electric and hybrid vehicles while freezing fuel duty for petrol and diesel vehicles seems to be sending mixed messages at a time when we should be encouraging motorists to make the switch towards electric vehicles (EVs)."
NAPIT, 27 November 20251

NAPIT said it has over 20,000 members who are electricians and installers of heat pumps, solar PV and EV chargers1. Melton said the organisation has been calling for consistency and certainty for its members, and that the transition to Net Zero "may have stalled"1.

Budget measureDetail
Fuel dutyFrozen until next September1
Electric and hybrid vehicle charge3 pence per mile from 20281
Electric car grantAdditional £1.3m; extended to 2030; new cars only1
Chargepoint roll outExtra £200m1
Average household energy billsEstimated £150 a year fall, funded by cutting the ECO scheme and removing other costs from bills1

Why it matters for households

The £150 estimated fall in average household energy bills is funded by cutting the ECO scheme, which has supported insulation and heating efficiency measures, and by removing other costs from bills1. The effect on any individual home depends on which costs are removed and how the ECO change is applied, and those details are not set out in the response.

The link between electricity and gas prices, which NAPIT says was not removed, affects the running cost of electric heating and electric vehicles relative to gas1. Keeping that link means the running cost advantage of switching a home's heating or a car to electricity is smaller than it would otherwise be.

For homes with solar PV, a heat pump or an EV charger, the Budget's signals on demand for those technologies matter to the installers who fit them. NAPIT's members work across those trades, and the association said the transition "may have stalled"1. The regulation-policy framework covering these measures is where the outstanding detail sits.

What happens next

NAPIT said details of the Government's Warm Homes Plan and Future Homes Standards are still awaited and are expected before the end of the year1. It said it hopes those details will offer positive news for members working on the Government's missions to build 1.5 million new homes and continue the switch away from fossil fuels1. No further dates for the Budget measures beyond those above have been reported.

Sources1 cited
  1. Mixed Messages and Missed Opportunities - NAPIT Response to Chancellor’s Budget, napit.org.uk