Source · Select Committees · Environmental Audit Committee
Recommendation 10
10
Accepted
Paragraph: 62
The Government must first act to increase the funding of schemes that are already in...
Recommendation
The Government must first act to increase the funding of schemes that are already in place and have a proven track record of effective delivery. The £1 billion of further funding that the Government has provided to the Energy Company Obligation scheme over the next three years is welcome, but it is not commensurate with the scale or urgency of the energy security challenge. With over six million households now in fuel poverty, action on energy efficiency needs to be ramped up urgently.
Government Response Summary
The Government states it is investing £6.6 billion this Parliament on clean heat and improving energy efficiency in buildings and highlights existing schemes like ECO, HUG, and LAD to support low-income households. They plan to launch the new ECO+ scheme in spring 2023 worth £1 billion over three years.
Paragraph Reference:
62
Government Response
Accepted
HM Government
Accepted
21. Energy efficiency improvements are key in helping low income, fuel poor and vulnerable households to heat their homes. The Government is investing £6.6 billion over this Parliament on clean heat and improving energy efficiency in buildings, reducing our reliance on fossil fuel heating. In addition, £6 billion of new Government funding will be made available from 2025 to 2028. This provides long-term funding certainty, supporting the growth of supply chains, and ensuring we can scale up our delivery over time. 22. Energy efficiency measures are available to low-income and vulnerable households through schemes including the Energy Company Obligation (ECO), the Home Upgrade Grant (HUG), the Local Authority Delivery (LAD) scheme and the Social Housing Decarbonisation Fund. 23. The Energy Company Obligation (ECO) is an obligation on larger energy suppliers to provide energy efficiency and heating measures to low-income and vulnerable households living in the least energy efficient homes across Great Britain. 24. The Government currently intends to launch the new ECO+ scheme in spring 2023 and for it to run until March 2026, aligning with the current ECO4 scheme. ECO+ is proposed to be worth £1 billion over three years, delivering predominantly low-cost insulation to the least efficient homes in lower council tax bands, and to the most vulnerable. 25. It is proposed that ECO+ will include a mix of insulation measures that can be delivered on a large scale, including loft insulation, cavity wall insulation and heating controls (for the low-income group and when accompanied by another insulation measure). More expensive measures can be delivered but are more likely to require a consumer contribution. 26. It is proposed that all households in the lower council tax bands with an EPC of D or below will be eligible for energy efficiency measures, as well as low income and vulnerable households. The Government has recently consulted on ECO+ and is aiming to publish a response in spring 2023 before scheme launch.