One thing we have learnt this week – cost of living crisis

The row about energy prices and the cost of living crisis rumbles on. There has been one interesting intervention this week from the independent committee on climate change. They say that;

The budget provides insurance against risks of dangerous climate change and rising energy bills. It offers significant cost savings relative to a path where action to reduce emissions is delayed until the 2030s. We estimate that the saving could be over £100 billion in present value terms under central assumptions about fossil fuel and carbon prices, allowing for expected impacts of shale gas; in a world of high fossil fuel prices, the benefit could be as high as £200 billion. Even with low fossil fuel or carbon prices, the budget would offer a cost saving compared to an alternative path where action to reduce emissions is delayed”.

and that

In the long run (e.g. after 2030) the budget offers benefits in terms of lower electricity and energy prices than would ensue without early decarbonisation“,

So there we have it, switching to a low carbon economy using renewables could lower bills in the long term.  The problem we have is that the cost of living crisis is only partly about costs.  The bigger problem is to do with incomes. Median incomes have been falling over the last five years in the UK. In fact its worse than that.  Median incomes for those at the bottom and middle of the pile have not risen very much for twenty years or so.  Another part of the cost of living crisis is food and whilst politicians mention this they are not offering any solutions on this one.  You may be almighty bored by this one but don’t expect any end to the cost of living crisis issue soon.  Is there any one you can help this Christmas?

A range of energy efficiency options and some ideas on food can be found in our book.   Have a happy Christmas.

Neil

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