Insulating millions of homes and installing heat pumps could do more to ease household finances than developing new North Sea oilfields, according to research from thinktank E3G.
The government’s £15bn warm homes plan could cut energy bills by £1bn a year, with the biggest benefits going to people on lower incomes. E3G says it could also create around 50,000 jobs through thousands of small businesses and provide a £1.6bn annual boost to the UK economy.
A wider economic reach
The plan would insulate up to 5 million homes and attract a further £15bn in private investment, spread across communities around the country. E3G estimates that delivering it in full could increase GDP by 0.08%.
That compares with around 1,100 direct and indirect jobs linked to the Rosebank oilfield west of Shetland. Modelling cited by E3G suggests Rosebank would add about 0.025% to GDP on average over its lifetime, assuming oil prices return to $70 a barrel.
The findings come as ministers consider spending reductions that could affect the warm homes programme. Decisions on the Rosebank and Jackdaw North Sea projects are also pending.
Supporters of new drilling point to investment and tax revenues, while opponents argue that oil and gas prices are set internationally and would not lower UK energy bills. Separate analysis cited in the report suggests tax reliefs and future decommissioning costs could reduce the public return.
Why it matters for Britain
The warm homes plan could lower bills for households, support jobs in small businesses and bring private investment to areas across the UK. It also focuses spending on improving the homes people already live in.
