Wouldn’t it be great if there was a policy that provided the finance needed to tackle the energy-bill crisis whilst, at the same time, tackling climate change?
Well there is, and all it requires is a small change to a policy already implemented and already supported across the political spectrum—we should continue to provide government support to households to pay their bills but this should be funded by taxing the products, rather than the profits, of fossil fuel companies.
It may seem counter-intuitive to tackle high energy prices by increasing taxes on fossil fuels but, as a recently released report from the Citizens’ Climate Lobby (CCL-UK) shows, the numbers stack up. If the revenue collected from carbon-taxes is used to help pay energy bills then the majority of households receive significantly more in assistance than they pay out in increased prices.
Our report looks, in detail, at how much money the carbon-price, advocated by the International Energy Agency as needed to tackle climate change, would raise for the UK Treasury. It’s a whopping £700 billion! We then look at the impact on household income this would have, if the revenue was recycled as support for energy bills, and show that the least well-off households would be £100s better off.
So, a policy that tackles both climate change and fuel poverty at no net-cost to the Treasury—what’s not to like!