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Government urged to reinvest carbon taxes into energy efficiency schemes

The government has been called on to reinvest revenue generated from carbon taxes into insulating UK households and driving down fuel poverty.

A total of 207 MPs have backed the scheme ahead of Cold Homes Week, a week of action beginning today, during which charities and businesses will pressure the government to invest in home insulation.

Coordinated by campaign group, the Energy Bill Revolution and backed by an alliance of 170 major charities, businesses and unions, the organisation is encouraging the public to ask their local MPs to support the scheme this week.

A debate in parliament on fuel poverty is also expected to take place this in the next few days.

Currently the government taxes large companies on the amount of carbon emissions they emit through the European Emissions Trading Scheme and the Carbon Floor Price.

However, the Energy Bill Revolution is concerned that the money the government receives is not being used to household become more energy fuel efficient, which would cut carbon emissions even further and cut energy bills for householders.

According to the Energy Bill Revolution, the government will raise an average of £4 billion every year in carbon taxes over the next 15 years.

In a statement the organisation said: “If the Government recycled this carbon revenue back to households, it could provide billions of pounds to help insulate the UK’s homes. The benefits would be immense. This could bring 9 out of 10 homes out of fuel poverty, lower people’s bills, cut carbon emissions and create jobs. It’s time for an Energy Bill Revolution.”