Chancellor announces £70 million cuts to DECC budget
On the 4th June 2015, the Chancellor, George Osborne announced £4 ½ billion of cuts including £70 million to be cut from the Department of Energy and Climate Change (DECC) budget.
The Carbon Brief released a report previous to this on the 3rd June 2015 highlighting the limited scope for cuts within the DECC and the potential impact if cuts did take place.
With the Conservative government promising to decrease public spending, whilst protecting health, pensions and education, unprotected departments such as the DECC are likely to be the focus for cuts.
Impact of cuts
Carbon Brief analysed the 2013/14 budget of the DECC which was £3.4 billion. The money spent on managing the UK’s military nuclear waste and decommissioning legacy accounts for 65% of this budget. The core departmental priorities accounts for the remaining 34%.
The Carbon brief concluded that 87% of the overall budget was essential and would not be eligible for cuts. This 87% is made up of costs relating to the nuclear legacy, international agreements and legal liabilities from formerly nationalised energy industries. Therefore, 13% of the budget could potentially be cut from the DECC’s budget. Currently, 2% (£70 million) of their budget has already been cut.
The impact of these cuts will mean there is less money to dedicate to research on energy and climate change as well as schemes to help people out of fuel poverty.
One example of a scheme which the Carbon Brief suggests is likely to be cut is Green Deal. This a government scheme lead by the DECC which helps people find the best way to pay for energy saving improvements they want to make to their homes including energy grants, like the Green Deal Home Improvement Fund. These improvements can include insulation, heating, double glazing and renewable energy sources which can help reduce long-term energy costs. Without the support of the government, less people will have access to the funding needed to make important improvements to their homes.
Importance of community energy
When the government is demonstrating that they are willing to make cuts to energy and climate change services, the need for community energy projects becomes clear.
Community energy projects which favour renewable energy sources can help to create a more secure energy future for the community in addition to helping reduce the impact of climate change.
Access to cost-efficient local energy benefits all members of the community but is especially essential to people who are living in fuel poverty.