Great British Energy Act 2025

Key Points

• Establishes Great British Energy as a Crown‑owned company with powers to finance and run clean energy projects to decarbonise the economy and improve energy security.
• Imposes governance and accountability: annual accounts, reporting on sustainability, ministerial directions, and an independent reviewer to assess performance.
• Sets strategic priorities and potential policy levers (including anti‑slavery protections in supply chains), with Treasury oversight and an initial capitalisation (£8.3 billion).
• Broadly UK‑wide in scope, with Legislative Consent Motions from Scotland and Northern Ireland and devolved safeguards to respect competence of Scotland, Wales and Northern Ireland.
• Includes debates over what counts as “clean energy” (potential inclusion of nuclear, CCUS and low‑carbon hydrogen) and adds provisions to support community energy, home insulation schemes, and UK supply chains.
• Anti‑slavery and supply‑chain protections were a major policy battleground, resulting in provisions to prevent financial support where there is credible evidence of modern slavery, alongside an independent review mechanism.
• Devolution and consent were central: motions from Scotland and Northern Ireland approved, enabling the Act to cover devolved areas while respecting devolution."

Progress

The bill progressed through all parliamentary stages in both Houses, with numerous amendments and cross‑border consent motions from devolved legislatures. It received Royal Assent on 15 May 2025, becoming law. Key changes during its passage included anti‑slavery protections in supply chains, the establishment of an independent reviewer, and safeguarding provisions to respect devolved competences.

Voting

In the Commons, Labour‑led votes supported the bill, while Conservatives largely opposed; amendments on priorities and job creation were debated and refined. The cost and policy questions around energy bills, UK supply chains and independence reviews featured heavily. A notable Commons move rejected Lords Amendment 2 on modern slavery; later discussions in the Lords produced compromises, including anti‑slavery safeguards in the supply chain. The bill ultimately passed to Royal Assent after cross‑party negotiations.