A Bill to Make provision about sustainable aviation fuel.
House of Commons
Heidi AlexanderLabour (Co-op)
3 March 2026
May contain errors — check source documents for definitive information.
The Sustainable Aviation Fuel Bill would create a UK-wide scheme to stabilise revenue for SAF producers by taxing SAF suppliers to fund a designated counterparty that offers revenue‑certainty contracts. It aims to prioritise UK-produced SAF, cap contract lengths, delay the levy until a domestic producer is ready, and require reporting on ticket prices and SAF production. Over its passage, Lords pushed tighter controls (UK-only fuel, readiness requirements, and stronger reporting), while the Commons debated these changes; the Bill ultimately became law in March 2026.
The Bill moved from Commons through Lords amendments, with tightening amendments added in the Lords (including UK-only SAF, readiness, levy design, and reporting). It completed its journey and became law in March 2026 after consideration of Lords amendments.
In the Commons, amendments tightening the policy faced strong opposition from Labour (Co-op), while other parties (Lib Dems, SNP, Plaid Cymru, Greens) generally supported the broader direction. Specific Lords amendments to narrow eligibility and harden funding rules were debated, with some Conservative amendments defeated (e.g., reporting on price impacts) and Labour-backed provisions to prioritise UK-produced SAF accepted in parts. The overall approval across the House reflected cross-party support for a UK-focused SAF scheme, despite split positions on details.
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5 Mar 2026
Showing agreed, defeated, and withdrawn amendments.
Based on 2 recorded votes • Sorted by % Aye
Following agreement by both Houses on the text of the bill it received Royal Assent on 5 March. The bill is now an Act of Parliament (law).
This Act creates a levy on SAF suppliers to fund a designated counterparty that will administer revenue-certainty contracts to support sustainable aviation fuel. It sets out how the counterparty is designated, how contracts and transfer schemes operate, how the levy is collected and enforced (including penalties, notices and appeals), how any surpluses are returned to levy payers, and how proceeds are paid into the Consolidated Fund, with duties to consult and regulations governing the regime.
The Sustainable Aviation Fuel Bill would create a levy-funded framework to support UK-produced SAF by allowing the Secretary of State to direct a designated counterparty to offer revenue-certainty contracts to SAF producers, with payments determined by the difference between a strike price and a market reference price. It defines UK-produced SAF, requires transparency via a public register and publication of contracts, and provides transfer arrangements if the counterparty changes, with an initial 10-year period for directions (extendable in five-year steps). It also lays out levy regulations on aviation fuel suppliers to fund the scheme, including penalties for non-compliance and potential financial assistance to the counterparty, with the scheme applying across the UK and most provisions coming into force two months after enactment (section 1 coming into force later).
The amendments tighten the Sustainable Aviation Fuel Bill to ensure financial support targets UK-produced SAF, with revenue-certainty contracts and the levy ring-fenced for UK production and subject to stricter conditions. They introduce a timetable for power-to-liquid fuels from 2028, exclude HEFA and food crops from eligibility, and require new reporting on ticket prices and UK SAF production. They also reform levy collection (domestic point of sale and monthly invoices), impose a start-up delay until a domestic producer is ready, and cap levy contracts at 10 years.
