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Drax claimed record £999m in subsidies for burning trees in 2025, thinktank says | Energy industry
The owner of the Drax power plant in North Yorkshire received record subsidies of almost £1bn for burning trees to generate electricity in 2025, a climate thinktank has calculated.
The company was paid £999m last year for generating about 4.5% of Great Britain’s electricity from its biomass plant, costing each household £13 a year, according to analysts at Ember.
The power plant was able to claim £2.7m a day from energy bills in part by increasing its power generation by about 2% from the year before – but mostly due to the rising payouts from a legacy renewables support scheme.
Drax has claimed a total of about £8.7bn in renewable energy subsidies since 2012, despite persistent claims from campaigners and scientists that the wood pellets burned at its power plant are not sourced sustainably and may be increasing carbon emissions.
The allegations have raised concerns in Westminster over the company’s claims that the millions of tonnes of wood pellets produced by its Canadian subsidiary use only low-value waste wood from sustainably managed forests.
The Guardian revealed last November that forestry experts believed the company was burning 250-year-old trees sourced from some of Canada’s oldest forests as recently as last summer, despite growing scrutiny of its sustainability claims.
The concerns that Drax may have sourced some wood from ecologically valuable forests was first raised in 2022. The company publicly denied the allegations, but court documents made available to journalists earlier this year revealed that senior staff members had raised concerns internally over the company’s statements at the time.
The tribunal documents were disclosed when the company’s former chief lobbyist took Drax to court alleging they were sacked after saying in 2022 that the company was “misleading the public, government and its regulator” about the sustainability of the imported pellets.
Drax agreed a settlement with the employee over the tribunal claim last year after reaching “a mutually agreeable position, without admission of liability”, the company said.
In response to the “explosive” court disclosures, a cross-party group of 14 MPs and peers called on Ed Miliband, the energy secretary, to halt the power plant’s subsidies while the financial watchdog investigates the company’s “historical statements”.
Drax said these allegations were investigated by the industry regulator, Ofgem, which did not find any evidence of deliberate misreporting of sustainability data. The regulator’s 16-month investigation did find “an absence of adequate data governance and controls”. Drax agreed to pay £25m in compensation for the breach.
The government has already halved the subsidies available to Drax for the electricity it generates, under a new subsidy contract which will run from next year until 2031, and promised that Drax will provide power only when it is “really” needed.
Under the new contract the power plant will have to switch to using woody biomass from 100% sustainable sources, up from the current level of 70%. The government threatened “substantial penalties” if Drax does not comply.
Frankie Mayo, the author of the report, said: “While it’s a relief these overly generous payments will halve from 2027, British taxpayers should never have been in this position in the first place.”
“Nearly £1bn for woody biomass burning is an astonishing high-water mark for public subsidies – and a problematic one as prices soar,” Mayo added.
Drax is also reviewing the future of its Canadian biomass pellet production business, and said earlier this year it would stop burning trees from British Columbia entirely before the subsidy regime takes effect.
A Drax spokesperson said its North Yorkshire power plant generated a record 15 terawatt hours (TWh) of electricity in 2025, “keeping the lights on for millions of homes and businesses, no matter the weather”.
The company claims the power plant will save £3.1bn between 2027 and 2031 compared with running a gas-fired power plant. It added that replacing its 2.6GW capacity with new nuclear reactors or gas plants would require billions in capital investment.
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Nurse punched neighbour and forced her way into her home in row over parking
Christine Sharman demanded her neighbour move his car, before lunging at his wife and punching her in the chest.
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Starmer was kept in dark about Mandelson’s vetting by two other top civil servants | Peter Mandelson
Keir Starmer was kept in the dark about sensitive information relating to Peter Mandelson’s security vetting by two other top civil servants, including the head of the civil service, the Guardian can reveal.
The prime minister said on Friday that it was “unforgivable” and “staggering” that senior officials did not tell him that Mandelson failed a security vetting process weeks before he took up his role as ambassador to Washington.
Olly Robbins was forced out of his job as permanent secretary of the Foreign Office on Thursday after it was revealed his department granted Mandelson developed vetting clearance against the advice of the relevant agency.
Now the Guardian can reveal that two other top civil servants, including the cabinet secretary, Antonia Romeo, failed to immediately notify him when they discovered that UK Security Vetting (UKSV) had advised that Mandelson should be denied clearance.
Downing Street has said Starmer did not find out about the vetting failure, which occurred in January 2025, until Tuesday this week. However, the Guardian has established that both Romeo, the government’s most senior civil servant, and Catherine Little, the Cabinet Office’s permanent secretary, have been aware since March.
Their delay in informing the prime minister will fuel concern about whether his government is being run by mandarins rather than ministers.
Romeo, who was appointed by Starmer in February, was told about the failure by Little in March. Little is the top civil servant at the Cabinet Office, which UKSV is part of. Her department has also been overseeing the process of complying with a “humble address”, parliamentary motion that ordered the government to release “all papers” relevant to Mandelson’s appointment.
The motion made an exception for papers prejudicial to national security or international relations, which it said should be released to the intelligence and security committee (ISC).
A government source insisted Little “did not sit on the information” but was involved in a complex process and was trying to establish the risks in sharing highly sensitive information, including with the prime minister. The source added that Little informed Romeo of her plan to establish those risks. Romeo, the government source said, was supportive of the plan.
That process appears to have taken weeks, with as many as a dozen officials and lawyers aware of Mandelson’s vetting failure. Starmer’s statement would suggest he was not formally notified by any of them until a few days ago.
At the centre of the controversy was an extraordinary summary document produced by UKSV on 28 January last year, weeks after Starmer had announced Mandelson would be his ambassador to Washington.
The document identified highly sensitive concerns UKSV had about Mandelson and recommended, in conclusion, that he should not be given security clearance. It was that recommendation that was overruled by the Foreign Office.
A Cabinet Office spokesperson said that, after receiving the UKSV document after the humble address, Little “immediately undertook a series of expedited checks in order to be in a sound position to share the document, or the fact of it”.
The spokesperson said this included receipt of legal advice about what could be shared in the context of the humble address and consideration of whether the information would prejudice criminal proceedings.
Little also sought information from the Foreign Office about “the process they had followed” when deciding to give Mandelson security clearance against the advice of UKSV, the spokesperson said. They added: “As soon as these checks were conducted, the prime minister was informed.”
According to a government source, Little had always been of the view that the outcome of the UKSV process should be made public, and the relevant document disclosed in unredacted form to the ISC. However, officials in her department have in recent weeks been divided over how to proceed and whether to release the document to the committee at all.
Prior to the publication of the Guardian’s story on Thursday, there was said to have been “no consensus” among officials. Some flagged national security concerns and argued it would be “unprecedented” to disclose the UKSV file, even to the ISC, a committee comprising nine MPs and peers, including Jeremy Wright, a former attorney general, and Alan West, a retired Royal Navy admiral.
Its members are sworn to secrecy under the Official Secrets Act and are given access to highly classified material. According to one source familiar with debates swirling in Little’s department, there were fears among at least some officials that there might be an attempted “cover-up” and the document would never see the light of day.
Some officials noted that the UKSV document appeared to contradict statements made by the prime minister and his former chief of staff, Morgan McSweeney, that implied vetting failures could partly be blamed for Mandelson’s appointment.
Amid an impasse among officials, some in government are said to have argued that precedent should be set aside to disclose the UKSV documents to the committee, and tjat anything short of that would risk breaching the wishes of parliament.
The discussion about whether or not to release the documents to the parliamentary committee appears to have lasted for weeks. If Downing Street’s chronology is to be believed, the prime minister was completely oblivious that it was even happening.
By Wednesday this week, one compromise option being considered involved providing unredacted versions of the document only to two ISC members, such as the chair and one other member. Another was only showing the documents to those members of the committee who are also members of the privy council, a historical body that advises the monarch.
One source said Little is now expected to be asked to appear before the ISC in a closed hearing to answer questions about the affair. Lord Beamish, who chairs the ISC, has said that his committee and parliament would take a “very dim view” if documents were withheld from its members.
A Cabinet Office spokesperson said Little and officials working on the humble address “have always worked on the basis of being transparent about the UK Security Vetting recommendation”.
Neither the Cabinet Office nor No 10 have disputed, however, that there has been an internal debate over whether the materials could be withheld. That raises questions about the accuracy of public remarks on Friday by the chief secretary to the prime minister, Darren Jones.
A close ally of Starmer, Jones was asked on the BBC’s Today programme to comment on the Guardian’s report that “officials have toyed with the idea at least of not revealing all of this to parliament”.
He replied: “That’s not true. All of these documents are going through what’s called the humble address process, which my department is responsible for.”
Asked if he had misled the public, a source close to Jones insisted that his answer was “clearly focused on the official government response to the humble address, which he makes clear later in his answer.”
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Irish fugitive and suspected crime boss Daniel Kinahan arrested in Dubai
Kinahan, in his 40s, was arrested in Dubai on foot of an arrest warrant issued by the Irish courts.
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