Sunak’s UK oil subsidy could have insulated 2m homes, says thinktank

(The Guardian, 31 May 2022) The billions now going to fossil fuel exploitation could have funded efficiency measures that cut energy bills for good.

Billions of pounds given away in a tax break for UK oil and gas exploitation could have permanently cut the energy bills of 2m homes by £342 a year if invested in insulation measures, according to a green thinktank.

Rishi Sunak announced the 91% tax break alongside a windfall tax on the huge profits of oil and gas companies last week. The E3G thinktank calculated that the tax break would hand between £2.5bn and £5.7bn back to the oil companies over three years, while an energy efficiency programme of £3bn over the same period would upgrade 2.1m homes making them less reliant on gas.

Soaring international gas prices are expected to more than double energy bills in a year by October, pushing a third of households into fuel poverty. Proponents of energy efficiency, including loft and wall insulation, say it is a no-regrets investment that cuts bills for good, slashes the carbon emissions driving the climate crisis and boosts jobs. Green groups said the chancellor’s grants to households partly funded by the windfall tax were only a “sticking plaster”.

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The Guardian, 31 May 2022: Sunak’s UK oil subsidy could have insulated 2m homes, says thinktank