Government must fund missing billions from energy efficiency programmes

The Government’s new Heat and Buildings Strategy has had a mixed reaction, with many anti-poverty and climate change campaigners pointing to significant shortcomings in the final announcement.

The headline announcement in the strategy is a grant to help cover costs of heat pumps up to £5,000. The current cost of a heat pump is between £6,000 and £18,000.

A spokesperson for the End Fuel Poverty Coalition, commented:

For millions of households who desperately want and need to improve their energy efficiency by switching to heat pumps, the promised government money won’t be enough. While costs for heat pumps will come down in time, the level of grant available at present is nowhere near enough for households already in fuel poverty.

Coming on the back of the damning Committee for Fuel Poverty report, which suggested that government investment is not targeted at those who need it most, it would appear that the Government has yet to learn lessons from the past.

The government also needs to confirm what has happened to the missing billions, which is the gap between the investment announced today and the levels of investment promised in the Conservative Party Manifesto at the last election.

We hope the Comprehensive Spending Review will offer more support for families in fuel poverty and plug the gap between funding that has been promised and that which has been delivered.

Welcome for government energy efficiency measures

The End Fuel Poverty Coalition welcomes the government’s moves today to improve energy efficiency of people’s homes. We hope this is the first in a series of announcements that will help end fuel poverty in line with our submission to the Comprehensive Spending Review.

The increase in Energy Performance Certificates to level C for those in private rented accommodation is especially welcome. The next step will be to ensure local authorities enforce these new regulations.

Homeowners in England, including landlords, can get up to £5,000 to pay part of the cost of energy saving measures like insulation. Low income households can get 100% of the costs of work covered up to £10,000.

The scheme will help fund energy efficiency and low carbon heating measures in 600,000 households who could save up to £600 a year on energy bills. Installing energy efficient home improvements also cuts emissions, which is better for the environment. Tradespeople and businesses should make sure they’re eligible to carry out work under the scheme, which will support thousands of green jobs.

More information is available online: https://greenhomesgrant.campaign.gov.uk/

 

One in three British households are already concerned about the health impacts of living in a cold home this winter. And should a second wave of Covid-19 hit during cold weather, the impact could be catastrophic for individuals and our health services.

As a result, the Coalition has urged the Government to commit to five main spending priorities:

1) Rapid roll-out of large-scale energy efficiency programmes

2) Urgent delivery of government promises on tackling fuel poverty

3) This unprecedented level of investment needs to be coupled with large scale training programmes

4) Immediate steps to improve energy standards in the private rented sector

5) Fuel Poverty Debt Relief to ensure fewer people will have to choose between heating and eating this winter

Coalition responds to Chancellor’s Economic Statement

Ending fuel poverty is a public health priority, which can only be solved through economic measures. We hope that the plans set out in the Chancellor’s Economic Statement are the first step towards an ambitious programme to end fuel poverty.

The Green Homes Grant and the social housing decarbonisation fund are welcome, but must be expanded to become long-term programmes. And the government must go further and faster.

The government must deliver the full manifesto pledge to invest £9.2 billion in building energy efficiency, extend the Warm Home Discount and introduce wider Home Upgrade Grants. It must also take further steps to improve energy standards in the private rented sector, alongside improved security and affordability for private tenants.

Finally, we must see a Fuel Poverty Debt Relief programme (not deferral) introduced to ensure fewer people will have to choose between heating and eating.

 

Business and charities unite in call for energy efficiency investment

End Fuel Poverty Coalition members have joined leading charities and businesses in a new drive for energy efficient investment.

A Declaration, ‘Energy Efficiency First’, has been published, calling on all political parties to make investment in home energy efficiency an infrastructure investment priority.

The Declaration states that to reach the UK’s legally binding net-zero emission and fuel poverty targets, all the UK’s homes will have to be made highly energy efficient. Additional public capital investment of £1 billion a year for the next 15 years is needed to ensure the targets are achieved.

The signatories point out that there is potential to reduce energy demand in UK homes by at least a quarter, saving the average household £270 every year. A quarter of the energy currently used could be saved and there is technical potential to cut home energy use in half.

The Declaration has been published on the day that the Energy Efficiency Infrastructure Group (EEIG) sets out its vision for how to make all UK homes energy efficient. Called ‘The Net-Zero Litmus Test’, it reminds politicians that energy efficiency is the most cost-effective way to decarbonise the economy and would deliver a net benefit of over £50 billion to UK households, businesses and government.

The report finds that installation rate of home insulation measures has been cut by 95% since 2012. 170,000 homes are being upgraded with energy efficiency improvements in the UK each year but the number needs to rapidly rise to 1.2 million a year in order to meet decarbonisation targets.

The EEIG reports progress made against the its six-step plan to set up an energy efficiency infrastructure programme for the UK and sets out how to get on track.

Peter Smith, Director of Policy and Research at National Energy Action, and End Fuel Poverty Coalition Member said:

Fuel poverty continues to be a very real and stark reality for millions of people across the UK. The aim to reach net-zero is one of the most ambitious strategic goals the UK Government has ever set. It will have profound implications for all UK citizens, businesses and society at large.

The UK can only move rapidly towards net-zero, whilst creating a fair energy future for all citizens, if we urgently provide central investment to improve domestic energy efficiency. The top priority is to help the poorest households living in least efficient homes, mainly in rural areas and other hard to heat homes.

Alasdair MacEwen, Spokesperson for the Energy Efficiency Infrastructure Group said:

Achieving net-zero emissions cost-effectively is simply impossible without a huge cut in energy demand. Whether any political party is prepared to do this is the litmus test of whether it is serious about achieving net-zero emissions. It can only be achieved if we treat the decarbonisation of homes as the UK’s number one infrastructure priority. No other infrastructure project can benefit so many and at the same time create returns on investment.

Tom Thackray, Director of Infrastructure and Energy Policy at the CBI said:

All government departments must buy in to improving the efficiency of our homes and buildings and work with industry to provide the correct regulation. Treating energy efficiency as an infrastructure priority, would change the way in which it is approached by the Government allowing the issue to be treated as other public investments, such as in public buildings and transport infrastructure. It would send a clear message to investors and consumers as to the direction and ambition of government policy.

The EEIG represents a growing and broad-based coalition of over 25 industry groups, NGOs, charities and businesses that are asking for rapid improvement on energy efficiency in homes and buildings policy in the UK.

For a full list of signatures to the Declaration, please visit www.e3g.org