UK non-commodity charge · Taxes and levies · Gas
Climate Change Levy (gas)
Latest published rate, who sets it, and where it is forecast to go.
What Climate Change Levy (gas) is, who sets the rate, what the revenue funds and where it is heading. Rates come from the Purely Energy non-commodity cost data hub; forecasts are our own.
Roughly 3 to 6% of a typical UK business gas bill
Climate Change Levy (gas): what it is, who charges it, and what it pays for
What it is
The Climate Change Levy (gas) charge in plain English
Government tax on gas used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Since April 2024, gas CCL has been equalised with electricity CCL. HMRC publishes rates 2+ years ahead.
Introduced 2001 (Finance Act 2000). Gas rate equalised with electricity from April 2024.
Who charges it
The body that sets the rate
HMRC, announced in Budget. 2025-26: 0.775p/kWh, 2026-27: 0.801p/kWh, 2027-28: 0.827p/kWh
Unit
p/kWh
Applies to
Non-domestic gas supplies (domestic and charity non-business use are excluded)
What it pays for
Where the revenue ends up
UK climate policy, general taxation revenue (Treasury)
Share of typical bill
3 to 6%
HMRC's CCL main rate on natural gas contributes 3 to 6% of a non-domestic gas bill at the 2026/27 rate, depending on consumption and any Climate Change Agreement discount.
Published rate history
| Financial year | Rate | Year on year | Source |
|---|---|---|---|
| 2020/21 | 0.4060p/kWh | - | Published |
| 2021/22 | 0.4650p/kWh | +14.5% | Published |
| 2022/23 | 0.5680p/kWh | +22.2% | Published |
| 2023/24 | 0.6720p/kWh | +18.3% | Published |
| 2024/25 | 0.7750p/kWh | +15.3% | Published |
| 2025/26 | 0.7750p/kWh | 0.0% | Published |
| 2026/27 | 0.8010p/kWh | +3.4% | Published |
| 2027/28 | 0.8270p/kWh | +3.2% | Published |
Forecast trajectory
Forecasts from our non-commodity cost model. P10, P50 and P90 are the 10th, 50th and 90th percentile outcomes; P50 is the central estimate.
| Year | P10 | P50 | P90 | Confidence | Rationale |
|---|---|---|---|---|---|
| 2025-26 | 0.7750 | 0.7750 | 0.7750 | high | Published HMRC rate |
| 2026-27 | 0.7850 | 0.8010 | 0.8200 | high | Inflation indexation plus environmental premium |
| 2027-28 | 0.8050 | 0.8270 | 0.8500 | high | Continued moderate increases following historical patterns |
| 2028 | - | 0.8535 | - | - | |
| 2028-29 | 0.8600 | 0.8930 | 0.9300 | med | Policy acceleration expected but timing uncertain |
| 2029 | - | 0.8808 | - | - | |
| 2029-30 | 0.9400 | 0.9960 | 1.050 | med | Carbon pricing reforms and CBAM alignment |
| 2030 | - | 0.9090 | - | - | |
| 2030-31 | 1.050 | 1.130 | 1.220 | med | Net zero milestone pressure on environmental taxation |
| 2031 | - | 0.8952 | - | - | |
| 2031-32 | 1.100 | 1.214 | 1.350 | low | Highly speculative beyond current policy frameworks |
| 2032 | - | 0.9131 | - | - | |
| 2032-33 | 1.120 | 1.258 | 1.420 | low | Placeholder estimate lacking regulatory guidance |
| 2033 | - | 0.9313 | - | - | |
| 2033-34 | 1.180 | 1.340 | 1.520 | low | Directional indicator only, no policy commitments |
| 2034 | - | 0.9500 | - | - | |
| 2034-35 | 1.220 | 1.406 | 1.620 | low | Illustrative scenario, not reliable for planning |
Climate Change Levy (gas) FAQs
What is the Climate Change Levy (gas) charge?
Government tax on gas used by businesses to incentivise energy efficiency. Domestic consumers are exempt. Since April 2024, gas CCL has been equalised with electricity CCL. HMRC publishes rates 2+ years ahead.
Who sets the Climate Change Levy (gas) rate?
The Climate Change Levy (gas) rate is set by HMRC, announced in Budget. 2025-26: 0.775p/kWh, 2026-27: 0.801p/kWh, 2027-28: 0.827p/kWh.
What does Climate Change Levy (gas) pay for?
Climate Change Levy (gas) revenue supports UK climate policy, general taxation revenue (Treasury).
What is the latest published Climate Change Levy (gas) rate?
For 2026/27, the published Climate Change Levy (gas) rate is 0.8010 p/kWh.
What is the Climate Change Levy (gas) forecast?
Our latest forecast for 2027 is 0.8270 p/kWh (high confidence). Rate published by the setting body for the next FY.
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Rate data from the Purely Energy non-commodity cost data hub (dh.purelyenergy.co.uk). Published rates come from statutory publications by the body listed above; forecasts are modelled from published guidance and market trends, so treat P50 as a central estimate and use P10/P90 for sensitivity. Primary source