The Government should impose a single carbon price to reduce both carbon emissions and "fuel poverty", according to a new report by the Institute of Fiscal Studies.
The IFS said that a multitude of policies aimed at reducing emissions have actually increased energy prices, and a uniform cost would help the Government to meet emission reduction targets at no additional cost, and without lower income households being made worse off.
The Government could be forced to raise £6 billion in new taxes after the 2015 General Election despite the Chancellor's latest round of spending cuts, experts have warned.
The Institute for Fiscal Studies (IFS) said that, despite the £11.5 billion worth of reductions for 2015/16 set out by George Osborne, savings of a similar magnitude had already been pencilled in for the following two years.
IFS director Paul Johnson said there would have to be a "serious debate" on whether fiscal retrenchment on such a scale could be achieved through more spending cuts alone, or whether taxes would have to rise as well.
He said: "At almost any other moment in the past 60 years, announcements of spending cuts of this scale would have created a storm.
"Returning to an 80/20 split for the consolidation as a whole would mean a £6 billion tax increase in the next Parliament. Coincidentally this is pretty close to the average tax increase seen in post-election budgets in recent decades".
Low wages are causing a "dramatic fall" in post-recession productivity rates, according to economists.
Workers are producing 2.6 percent less an hour than they were at the start of 2008 and 12.8 percent less overall than if pre-crash growth in output had continued, according to the Institute for Fiscal Studies (IFS).
Its research found a drop in real wage levels meant companies were able to take on more staff, while output remained the same. Restrictions in the benefit system mean more people may have been encouraged to find a job while the workforce also has less power to protect wage levels, it added.
Wenchao Jin, a research economist at IFS, said: "The fall in labour productivity seems to have been driven by low real wages and low firm investment. Productivity slowdown has happened right across the economy.
"They have not been driven by a change in the composition of the economy nor by a change in the composition of the workforce".