Source · Select Committees · Environmental Audit Committee
Recommendation 11
11
Accepted in Part
The current ECO scheme is not delivering anywhere near the numbers of energy efficiency improvements...
Recommendation
The current ECO scheme is not delivering anywhere near the numbers of energy efficiency improvements it did at its peak a decade ago. The Government needs to ensure that ECO+ is properly funded to deliver hundreds of thousands if not millions of improvements every year for the remainder of this decade. We recommend that the Government set a target to build capacity in the energy efficiency sector, with an objective to deliver at least 1 million installations a year by 2025 and 2.5 million a year by the end of the decade. The Government should direct the newly-announced Energy Efficiency Taskforce to estimate the extent of additional funding required to achieve such a timetable. (Paragraph 69) 82 Accelerating the transition from fossil fuels and securing energy supplies
Government Response Summary
The government acknowledges the ECO scheme's importance and outlines the ECO4 and ECO+ schemes, with a combined budget of £2 billion from 2022-2026, aiming to upgrade homes and reduce energy bills. The Energy Efficiency Taskforce will focus on reducing energy demand by 15% by 2030.
Government Response
Accepted in Part
HM Government
Accepted in Part
27. Energy Company Obligation (ECO) is focused on the lowest income households living in the least energy efficient housing, who are unable to heat their homes cost effectively. Eligibility for those in receipt of non-means tested benefits has been removed, including non-means tested disability benefits. Disabled people on means- tested benefits will continue to be eligible, whilst those on non-means tested benefits may receive support under ECO4 Flex. 28. The current scheme, ECO4, focuses support on low income and vulnerable households living in the least energy efficient homes across Great Britain. The scheme is worth £1 billion per annum and will run from 2022 – 2026. We estimate that this will help upgrade an extra 450,000 homes, cutting on average £300 off their energy bills, preventing 15.08 megatons of carbon emissions over the total lifetime of the measures. 29. The Government intends to launch the 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. The Government has recently consulted on ECO+ and is aiming to publish a response in spring 2023 before scheme launch. 30. The Energy Efficiency Taskforce will advise and work with ministers on delivery of the government’s ambition to reduce total UK energy demand by 15% from 2021 levels by 2030, across domestic and commercial buildings and industrial processes. The Taskforce will have a particular focus on the role of the private sector and the stimulation of investment.