Heat pumps and insulation would cut UK living costs more than new oilfields, study suggests
Warm homes plan would create 50,000 jobs, compared with about 1,100 for Rosebank oilfield, thinktank finds Insulating Britain’s homes and investing in heat pumps would do more to c
By The Guardian
Insulating homes and installing heat pumps could deliver greater benefits for household finances and the UK economy than developing new oilfields, according to research by thinktank E3G.
The analysis found that the Government’s £15bn Warm Homes Plan could reduce household energy bills by £1bn a year, with the biggest savings going to people on lower incomes.
The programme could also create around 50,000 jobs through thousands of small businesses involved in improving homes and installing low-carbon heating systems.
E3G estimated that delivering the plan in full would provide a £1.6bn annual boost to the economy. Up to five million homes could be insulated, while the work could attract a further £15bn in private investment.
The benefits would be spread across the UK rather than being concentrated in one area, the analysis found. It estimated that the plan could increase gross domestic product by 0.08%.
By comparison, the Rosebank oilfield west of Shetland would create about 1,100 direct and indirect jobs, according to the research.
E3G also estimated that Rosebank would add around 0.025% to GDP over its lifetime, based on modelling that assumed the average oil price would return to $70 a barrel.
The Warm Homes Plan is currently at risk of cuts as ministers look for savings in the Government’s budget. The programme is intended to improve energy efficiency, reduce bills and support the move towards low-carbon heating.
The research suggests that investment in insulation and heat pumps would deliver wider household and employment benefits than supporting new oil production.