A report published by the Institute of Public Policy Research (IPPR) has criticised the government's carbon floor price policy.

Entitled Hot Air, the study has claimed that the planned system could add £1 billion to energy bills and will not lead to any positive effects on reducing emissions from appliances such as flue accessories.

Andrew Pendleton, IPPR associate director, said: "The Carbon Price Support scheme risks giving energy and climate change policy a bad name because it will do nothing to reduce carbon emissions while piling more cost on to the shoulders of already hard-pressed consumers in the UK."

Mr Pendelton also referred to the policy as very poorly designed and claimed that it is not principally about climate change.

As well as this, the report stated that the policy will make carbon more expensive to acquire for companies in the UK and lead to tax being passed on to households.