Source · Select Committees · Environmental Audit Committee
Recommendation 15
15
Accepted in Part
Paragraph: 76
The promise of £6bn further funding from the Chancellor is welcome, but those in fuel...
Recommendation
The promise of £6bn further funding from the Chancellor is welcome, but those in fuel poverty cannot afford three winters of delay. We believe it is a false economy to hold this money back at a time when households are struggling, and the taxpayer is having to spend billions to subsidise energy bills. The extra money promised on energy efficiency should be brought forward now to fulfil the Government’s manifesto commitment, not begin to be spent after a two year interval. We recommend that the Government launch a national ‘war effort’ push on energy saving and efficiency. The Government must treat the upgrading of all homes in England at band D or below to band C as a national priority to ensure affordability, enhance the UK’s energy security and reduce the high emissions from the country’s leaky and draughty building stock.
Government Response Summary
The government recommitted to net zero targets through the Department for Energy Security and Net Zero and set an aspiration for as many homes as possible to reach EPC Band C by 2035 where cost-effective, affordable & practical. They cite current investments and planned ECO+ scheme, but do not commit to bringing forward the £6bn of funding.
Paragraph Reference:
76
Government Response
Accepted in Part
HM Government
Accepted in Part
37. The Government has recommitted the net zero targets through the creation of the Department for Energy Security and Net Zero. The new department will deliver security of energy supply, ensuring properly functioning energy markets, encouraging greater energy efficiency, cutting energy bills and seizing the opportunities of net zero to lead the world in new green industries. 38. The Government has set an aspiration for as many homes as possible to reach EPC Band C by 2035 where cost-effective, affordable & practical. There has been good progress improving the energy efficiency of households but there is more to do. 47% of homes in England now have reached the Government’s 2035 target of achieving EPC C levels, up from 14% in 2010. 39. 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. 40. The Government’s ‘Help to Heat’ schemes have continued to deliver upgrades to consumer homes over the 22–23 winter period and are expected to deliver upgrades to over half a million homes in the coming years through our Social Housing Decarbonisation, Home Upgrade Grant Schemes and Energy Company Obligation Scheme. 41. The Home Upgrade Grant scheme provides grants for energy efficiency measures and low carbon heat to low-income households (below £31,000) living in off gas grid homes with an Energy Performance Certificate (EPC) rating of band D, E, F, or G in England. 42. The Local Authority Delivery scheme is focused on low-income households in homes that most need energy efficiency upgrades. The scheme prioritised homes with low Energy Performance Certificate (EPC) ratings of D, E, F&G. Over 200 Local Authorities took part in Phase 1 of the scheme – and participation increased further through Phase 2 of the scheme. 43. ECO4 is fully focused on providing support to low income and vulnerable households and is estimated to bring a positive value to society of around £810m, with around 800,000 measures to be installed in around 450,000 homes. 44. 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. 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.