The energy sector has hugely impacted the UK economy in 2013, concludes a new report by EY, commissioned by Energy UK. The report shows that the industry has generated around 6% of the GDP in 2013, and that one in every 44 jobs is connected to the energy industry.
Professional services firm EY recently released its new report ‘Powering the UK 2014’. This report, which was commissioned by the UK trade association for the energy industry Energy UK, sets out the contribution of the energy industry to the UK economy, in terms of economic investment and employment contribution.
The report shows that the energy sector is a huge contributor to the UK economy, in terms prosperity and stability, and delivers, according to the consulting firm, an absolutely fundamental service to all its citizens. The sector has last year, generated significant economic value for the UK through investments and operations. In 2013, the energy industry has provided energy to 26 million households and business, resulting in £25 billion in direct economic benefits, which in its turn delivered £71 billion of economic benefit elsewhere in the economy, adding up to a total of £96 billion in Gross Value Added. This is the equivalent of around 6% of total UK GDP. In addition, the sector as a whole paid £5.7 billion in tax to the Treasury.
EY’s report also indicates that the energy sector contributes to the UK economy by creating a considerable amount of jobs. The firms that generate the energy in the UK supported 131,000 jobs directly and another 549,000 within their immediate supply chains and the wider economy, totalling to 680,000 jobs generated by the energy industry. This accounts for 1 in every 44 UK jobs and is a 5% increase from 2012. Most UK sectors are concentrated around London and the South East, but the energy sector is relatively spread out across the country. Most of the created jobs in 2013 benefited the North of the UK, with an increase of 4,000 since 2012. EY expects the energy industry to remain a significant employer, given the ongoing investment in the sector.