Warm this Winter: Estimating the benefits and costs of the campaign proposals
The key findings of this report outline that removing a tax incentive loophole in the government’s energy policy levy would have generated £22bn in additional revenue compared to what the government currently expects from measures they have brought in. This could pay for emergency insulation measures for millions of households and cut energy costs by £336 per year per household next year. The research also found that if the government increased ambition of renewable energy deployment there would be considerable energy system cost savings.
Produced by the New Economics Foundation for the Warm this Winter coalition, which includes End Fuel Poverty Coalition, Possible, Uplift and Green Alliance, the report analysed the savings from a programme of tax and spend that the Chancellor could have chosen instead, focusing on energy efficiency and renewables.
"Getting off gas for good with renewable energy would cut energy bills and emissions, helping us to build a safer future for all. Oil and gas producers are raking in record profits, even as people’s homes get colder and our climate gets hotter. Despite this, the government is still refusing to unblock onshore wind, even though it’s a vital source of clean, cheap energy which is highly popular across the UK. We need urgent action to get on with the job of delivering clean energy and insulation so we can end reliance on polluting, expensive gas.” Ali Warrington, campaign manager at Possible.
The briefing also outlines how, if the government got on with the job of more than tripling installed capacity of onshore wind, offshore wind and solar by 2030, then there would be £28.5 billion of savings to the UK’s energy system by 2025. If the government refuses to unblock onshore wind and restricted solar energy projects on farms, savings of £3.1 billion to 2025 would be lost.
Polling conducted by Survation to coincide with the research found that 85% of people in the UK support a windfall tax to invest in insulation and lower energy bills. Amongst those who voted Conservative in 2019, 85% supported these measures, and among those who intend to vote Conservative in the next election 87% of people supported this. 81% want to see the government speed up the development of onshore wind and solar energy to less reliance on gas.
The findings are being released as an alternative to the windfall tax announcements made in the Autumn Statement. The solutions analysed are derived from the core demands of the Warm this Winter campaign. This coalition of more than 40 organisations are calling on the Chancellor to act now to help tackle rising energy bills this winter, ensure energy is affordable for everyone in the future, and cut emissions and bills for good with clean energy.