nuclear-news

Exempt charities from nuclear levy on energy bills, government urged

Third Sector UK, 14 October 2025 by Emily Harle

Some charities could see their bills rise up to £2,500 a year

The government has been urged to provide an exemption for charities from a new levy that could cost some voluntary sector organisations up to £2,500 a year. 

The nuclear regulated asset levy, which will be introduced in November, was developed by the previous government to provide a return to investors in Sizewell C, a new nuclear power station that is being built in Suffolk over the next decade.

Although industries that use the most electricity have been exempted from the levy by the government, the energy regulator Ofgem said this week that local charities, including youth clubs and community centres, will have to pay the full amount.

The Social Investment Business estimates that the average charity with a building could see their bills rise by up to £240 annually, but added that some will face an increase of more than £2,500 per year as a result of the levy.

This rise in electricity bills “will add even more pressure to charities”, SIB said, adding that the sector was particularly vulnerable to increasing prices due to the low income of volunteer-led clubs and the “often-draughty” buildings available for community groups.

In April, SIB’s research found that local youth charities were paying as much as half of their entire budget just to cover utilities.

Nick Temple, chief executive of the SIB, said: “Adding yet more charges on top of charity electricity bills penalises our most vital community spaces at a time when they are already struggling. 

“The government must urgently provide an exemption to this new levy for charities, who are particularly vulnerable to rising costs. 

“They should drop this model of adding charges onto electricity all together, which is no longer fit-for-purpose and is slowing down the country’s transition to renewables and inflates everyone’s bills.”

SIB have also urged charities to contact their energy providers, adding that if a charity is on a variable tariff, it will see charges introduced from 1 November, while those on fixed tariffs will need to check with their provider.

Wellspring Settlement, a charity based in Bristol delivering a range of community services to local families and young children, is one charity under threat due to the new levy costs, facing a potential uplift of more than £2,500 per year…………………………………….https://www.thirdsector.co.uk/exempt-charities-nuclear-levy-energy-bills-government-urged/finance/article/1936061

October 17, 2025 - Posted by Christina Macpherson | politics, UK