HOUSEHOLDS face higher energy bills under an EU deal that limits Britain’s ability to change its Net Zero rules, experts warn.

Sir Keir Starmer has agreed to hook the UK into the EU’s carbon market as part of his wider Brexit reset.

The move ties British firms to Brussels’ climate laws and rising pollution charges.

It makes it harder for any future government to water down green targets without triggering trade penalties.

Carbon prices in the UK surged six per cent on the news, and it is feared they could climb further to match Europe’s, where firms pay around €70 (£58) a ton compared with just £51 in Britain.

One energy insider said gas power stations — which usually set the UK’s electricity price — will now face higher carbon costs, hitting every household and business regardless of if they export to the EU.

Shadow Energy Secretary Andrew Bowie said the link-up “leaves the door wide open for higher energy bills and new taxes on transport”.

Ex-Brexit negotiator Lord Frost also blasted the deal.

He wrote on X: “Want to weaken our Net Zero commitments? In future, only if the EU says so.”

Since coming to power last July, Labour has pushed a Net Zero policy crusade under Energy Secretary Ed Miliband.

The Government says the new move will help British exporters avoid EU taxes due from 2026, which would hit goods such as steel, fertiliser and cement made in countries with weaker climate rules.

It also claims the link could save UK firms £770million between 2026 and 2030, by cutting trade red tape and smoothing out price shocks.

A Department for Energy Security and Net Zero spokesman said: “Forty-four different business organisations including the CBI, Make UK, and UK Steel, all backed our approach last month as crucial to preventing businesses relocating overseas and reducing costs for both UK and EU consumers.”