Nearly two million homes in the UK could be fitted with insulation measures funded by the revenue generated by the Energy Profits Levy.
Among these new measures, the Chancellor unveiled a new 25% energy profits levy that will be charged on the profits that oil and gas companies are currently making.
Alongside the new levy, the Chancellor announced a new 80% investment allowance – he suggested the investment allowance would lead to tax relief of more than 91p for every £1 invested.
A report by the independent think tank E3G estimates the subsidy could be up to £5.7 billion in tax relief for investment in oil and gas in the next three years.
The authors of the report note this lost revenue could have supercharged an energy efficiency drive, insulating millions of British homes with an average energy bill saving of £342 per household every year.
ELN has contacted the Treasury for a response.