Investing in insulation and renewables crucial to bring down energy bills for good

Spring Budget: Investing in insulation and renewables crucial to bring down energy bills for good 

 

As the government looks set to extend its energy bills support scheme, Friends of the Earth is urging the Chancellor to use the Spring Budget to invest in the common-sense, long-term solutions to both the cost of living and climate crises. 

 

With millions more people being pushed into fuel poverty by soaring energy bills and volatile global gas markets – despite government support – an extension of the energy price cap is the very least those facing financial hardship and health risks should be able to expect from the fiscal statement, the environmental campaign group says. 

 

As levels of fuel poverty soar, UK headquartered fossil fuel companies, including BP, Shell and British Gas owner Centrica, have all announced billions of pounds in record profits off the back of the energy crisis.  

 

Friends of the Earth has four calls for a Spring Budget that puts people’s health and wellbeing before protecting the profits of the oil and gas companies fuelling the energy crisis and climate emergency: 

 

  • Urgent investment in a basic street by street insulation programme in the neighbourhoods where people are being hardest hit by soaring bills before next winter, as recommended by the Climate Change Committee. This must come alongside a commitment to spend £6 billion a year over the next decade to future proof all the UK’s heat-leaking homes.  

 

  • A stronger, fairer windfall tax on the excess profits of the oil and gas companies to help fund measures to bring down bills for good. This must close the absurd loophole that allows companies to dodge the bulk of the tax if they invest in more fossil fuel projects. At the same time, the unfair windfall tax on renewable energy companies, which will drive investors overseas, must be reformed so that it incentivises investment in green energy while ensuring companies contribute their fair share in taxes.  

 

  • Back cheap, popular, homegrown onshore and offshore renewables to boost energy security and end our reliance on volatile global gas markets. To ensure the UK doesn’t fall behind in the global transition to a zero-carbon future, the government must lift barriers to onshore wind, speed-up the development of offshore wind, while maintaining environmental safeguards, and provide additional financial support to major offshore projects that may be abandoned due to the impact of inflation.  

 

  • Prioritise investing in bus services, improving cycling infrastructure and making public transport affordable, instead of freezing fuel duty. This will help save the huge numbers of bus services across the country, which are essential for people who don’t have a car or are unable to drive, at risk of being lost because of a lack of funding. 

 

Mike Childs, head of policy at Friends of the Earth, said:

“Action that simultaneously tackles the cost of living and climate crises must be at the heart of next week’s budget. An extension of the energy bills support scheme alone is not enough for the millions of people living in poorly insulated homes and struggling with soaring bills. 

 

“With so many people being pushed into extreme levels of hardship, the government must not miss another opportunity to invest in the solutions that will bring down energy bills and emissions now and for the future. A street-by-street insulation programme starting with those most in need and investment in cheap, popular, homegrown renewables are crucial. 

 

“With Europe and the US introducing policies to boost green growth, the government must ensure the UK doesn’t lose out on the economic growth and jobs potential that a zero-carbon economy could bring. Backing green energy and energy efficiency is not only good for the climate, but essential to our future prosperity.”