IPPR welcomes proposal for a windfall tax on North Sea oil and gas to tackle cost of living crisis

IPPR says the UK must reduce reliance on volatile fossil fuels and ramp up home insulation to tackle long-term energy crisis

Responding to the Labour party proposals to tackle the energy crisis, the IPPR think tank says that it is right that those profiting from the crisis contribute to supporting those hardest hit.

Last year the think tank published a report setting out a comprehensive plan to decarbonise the UK’s housing stock and insulate homes across the country.

Luke Murphy, IPPR associate director for energy, climate, housing, and infrastructure, said:

“The rise in the global gas price is soon going to translate into an unprecedented rise in the energy bills of families and businesses across the UK.

“We welcome Labour’s proposals to prevent this from turning into a cost of living crunch by providing short term measures such as expanding and increasing the Warm Homes Discount paid for by a one-off windfall tax on North Sea oil and gas producers.

“It’s only right that those profiting from this crisis contribute to the costs of supporting hard pressed consumers and businesses across the country.

“In the longer-term, the only way to address this crisis is not to increase domestic gas production as some have suggested, but to reduce our reliance on volatile fossil fuels by ramping up renewables and an ambitious plan to insulate homes across the country, as IPPR has long argued for.

“The government must now deliver a plan that can ease the immediate cost of living crisis this year and address the longer-term challenge of delivering an energy supply that is affordable, secure and net zero.”

ENDS

CONTACT

Robin Harvey, Senior Digital and Media Officer: 07779 204798 r.harvey@ippr.org

NOTES TO EDITORS

1. IPPR called on the government in December 2021 to offer support to alleviate the immediate cost of living crisis by cutting VAT on domestic electricity, expanding the Cold Weather and Winter Fuel Payments and restore the Universal Credit Uplift of £20 per week https://www.ippr.org/news-and-media/press-releases/ippr-sunak-must-put-in-place-broad-support-package-for-businesses-and-livelihoods-hit-by-winter-crisis
2. IPPR has previously called for a windfall tax on those companies that have reaped excess profits during the pandemic https://www.ippr.org/research/publications/prosperity-and-justice-after-the-pandemic
3. Late last year, IPPR set out a plan to decarbonise the UK’s housing stock and insulate homes across the country: https://www.ippr.org/research/publications/pump-up-the-volume
4. IPPR is the UK’s pre-eminent progressive think tank. With more than 40 staff in offices in London, Manchester, Newcastle and Edinburgh, IPPR is Britain’s only national think tank with a truly national presence. www.ippr.org