On 18 October 2026, research by the thinktank E3G revealed that insulating homes and investing in heat pumps could significantly reduce the UK’s cost of living and create more jobs than new oilfield drilling. The study highlighted that the government’s £15bn warm homes plan, aimed at making homes energy-efficient, could potentially cut £1bn a year from household energy bills, focusing benefits on low-income families. The initiative also promises to inject £1.6bn annually into the economy and generate approximately 50,000 jobs across various small businesses.
In comparison, the Rosebank oilfield, located west of Shetland, is projected to create only about 1,100 jobs, mostly concentrated in the North Sea and within two companies, one of which is an overseas investor. The thinktank’s findings indicate that the economic benefits of new oilfields are limited, with tax revenues expected to decline as the North Sea oil basin continues to decrease in productivity.
Warm homes plan compared to oil drilling
The E3G study suggests that the warm homes plan could add 0.08% to the UK’s GDP, compared to the 0.025% potential GDP increase from the Rosebank oilfield, assuming oil prices return to an average of $70 a barrel. Additionally, the plan would attract £15bn in private investment, distributed across the UK, in line with goals for nationwide economic growth. In contrast, while the oilfield promises significant private sector investment, a substantial portion of the associated tax revenue and economic benefits are uncertain due to tax reliefs and other factors.
Despite these findings, the warm homes plan faces potential cuts as the government seeks budget savings. Experts, including James Huw Dyson from E3G, argue that prioritising home insulation and clean energy could provide sustainable economic and job growth, rather than relying on fossil fuel exploitation. The Department for Energy Security and Net Zero has not commented on the study, while the energy industry continues to urge the government to uphold its commitments to electrification and clean energy initiatives.
What this means for newcomers
If you’re new to the UK, understanding the potential changes in energy policy could impact your decisions regarding setting up a home. The government’s focus on renewable energy and home insulation might influence your considerations about energy suppliers and long-term living costs. Keeping informed about energy policies can help you make smarter choices, especially if you’re planning to settle into a new home.
For more tips on establishing your life in the UK, including setting up utilities and managing Council Tax, check out our 30-day checklist for settling in the UK. This guide walks you through essential tasks to get you started on the right foot, ensuring you’re well-prepared for life here.
What you should do
- Stay informed about energy policy changes. Changes in government energy policies can affect your household bills and the options available to you. Keep an eye on official announcements and trusted news sources to stay updated.
- Consider energy efficiency when setting up your home. When looking for a place to live, consider properties with good insulation and energy-efficient heating systems. These can reduce your living costs significantly.
- Register for essential services promptly. Ensure you register for utilities, including electricity and gas, as soon as you move in. This will help you avoid any unexpected charges and ensure your home is heated properly during colder months.
Frequently asked questions
What is the warm homes plan?
The warm homes plan is a government initiative aimed at insulating up to 5 million homes to reduce energy bills and boost the economy. It focuses on improving energy efficiency across the UK.
How many jobs could the warm homes plan create?
The plan is expected to create about 50,000 jobs, mainly across small businesses nationwide, compared to about 1,100 jobs from the Rosebank oilfield project.
Will new oilfields lower fuel prices in the UK?
Experts suggest that new North Sea oil and gas developments are unlikely to reduce fuel prices in the UK because these resources are sold on international markets.
What should I prioritise upon arriving in the UK?
Newcomers should prioritise obtaining a National Insurance number and setting up a UK bank account, as these are essential for employment, housing, and managing bills.
Source: Guardian Business: read the original
