Russia’s invasion of Ukraine last year caused oil and gas prices to surge, triggering a cost of living crisis in many countries, including the UK.
To pay for support for households and businesses experiencing this energy price crisis, the government introduced an additional 25% levy on oil and gas extraction from 26 May 2022. This was increased again in the 2022 Autumn Statement to 35% from January 1 2023. Proposals were also put forward for a separate 45% electricity generator levy.
