Government ‘can’t afford further delay’ on insulation

Taxpayers and households would have recouped more than a quarter of investment in an industry-proposed insulation scheme this winter alone if it been rolled out over the past year, Energy UK has told the government.

As chancellor of the exchequer Jeremy Hunt prepares to unveil his Autumn Statement on 17 November, the energy trade body has urged the government to take up its proposal for an extension of the Energy Company Obligation (ECO) energy efficiency scheme.

The existing industry-financed £1 billion per annum ECO scheme pays for energy efficiency upgrades for low-income households and social housing with poor energy efficiency ratings.

Under Energy UK’s ECO+ proposals, outlined in September, this funding would be doubled via matching contributions from the government and households.

Energy UK has already calculated that this level of investment could deliver loft and cavity wall insultation improvement to 702,000 additional homes over a year.

Based on recent increases in energy costs, the bills for each of these improved homes would have been £400 lower between this October and March next year, according to the industry body’s analysis.

The residents’ own bills would have been £280 lower while the government would have saved £120 per dwelling in Energy Price Guarantee costs, it says.

In total households and taxpayers could have avoided unnecessary spends of £199 million and £85 million respectively on energy bills this winter, says Energy UK. This works out at a total of £284 million, which is more than a quarter of the proposed investment, while providing permanent savings, it adds.

Louise Shooter, policy manager at Energy UK, said: “Many homes are wasting gas, and subsequently lots of money, for no reason. We need to avoid making the same mistake for next winter and ramp up the installation of energy efficiency measures now.

“The turbulence in government has delayed many policy decisions, but this is not one we can afford to wait on. High energy bills are likely to continue into next year, so the government needs to get on with it.

“Earlier this year the prime minister spoke about the need for an energy efficiency programme, so we hope he delivers in this at the forthcoming budget as it’s good for households, the economy, jobs and the public purse – as well as UK energy supply, and carbon emissions.”