A UK programme to insulate homes and accelerate installation of heat pumps would do more to reduce living costs, support employment and boost the economy than opening new domestic oilfields, according to research by the thinktank E3G.
E3G estimates that the government's proposed £15 billion warm homes plan would cut household energy bills by about £1 billion a year across the country, with the savings concentrated among lower-income households. The plan, the report says, would also add roughly £1.6 billion a year to national economic output.
The study projects the programme would generate about 50,000 new jobs, largely spread across thousands of small businesses involved in insulation and heat-pump installation. By contrast, the development of the Rosebank oilfield in the North Sea is forecast to support around 1,100 jobs, the thinktank notes.
The findings arrive as ministers consider trimming the warm homes scheme while seeking broader budget savings. Supporters of insulation and heat-pump measures argue the upfront investment would deliver recurring household savings and local employment, while critics have prioritised other fiscal pressures.
E3G's analysis frames the choice as one between policies with different short- and long-term effects on household finances and regional employment. The report underlines the potentially stronger distributional benefits of home energy measures, which would target bill reductions to lower-income households, compared with the more limited job creation associated with new oilfield projects.