Source · Select Committees · Business and Trade Committee
Recommendation 54
54
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Energy efficiency is the quickest and most cost-effective way to reduce gas demand and lower...
Conclusion
Energy efficiency is the quickest and most cost-effective way to reduce gas demand and lower household energy bills. The absence of a home insulation programme is an unacceptable gap in policy that must be urgently rectified. Since wholesale prices rose following July 2021, tens of thousands of homes could have been insulated each week had there been the political will to do so. Without addressing the underlying problem of draughty homes, the Government will again be forced to introduce costly and avoidable short-term fixes. While we would support action to boost the Energy Company Obligation, diverting funds away from other energy efficiency schemes is unacceptable.
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Government Response
Not Addressed
HM Government
Not Addressed
Energy efficiency is a key priority for the Government as the cheapest way to bring down bills for households over the long-term. On 8 September, the government announced a new Energy Price Guarantee, which will mean a typical UK household will now pay, on average, no more than £2,500 a year on their energy bill for the next two years, from 1st October 2022. This is automatic and applies to all households, with an equivalent level of support made available to households in Northern Ireland as in Great Britain. This will save the average household £1,000 a year based on current energy prices from October and is in addition to the £400 energy bills discount for all households. This latest support is in addition to the £37 billion package of support announced earlier this year to help households with cost of living, targeting the most vulnerable households. That support includes a £11.7 billion Energy Bills Support Scheme, worth up to £400 each for around 29 million households. Alongside reducing energy demand, the Government’s British Energy Security Strategy sets out plans to accelerate the deployment of clean, affordable, secure energy, which will further reduce our reliance on expensive fossil fuels and exposure to volatile global gas prices. This includes, as set out in the Growth Plan 2022, accelerating new sources of energy supply, unlocking the potential of the North Sea, and lifting the ban on shale gas production. The Government is making significant investment in improving the energy efficiency of homes. We have committed £6.6bn this Parliament and are fully committed to our ambition to improve as many homes as possible to EPC band C by 2030, whilst ensuring value for money for taxpayers. To date, schemes such as the Energy Company Obligation and Warm Home Discount have supported over 3 million low-income households with measures to improve energy efficiency. In total, the Government has invested over £12bn since 2010 to improve the energy efficiency of homes. Government has also committed to consulting on raising Minimum Energy Efficiency Standards (MEES) for privately rented homes to EPC band C where practical, cost-effective and affordable by 2028. The consultation response is due to be published shortly. In addition, the Government announced on 23 September 2022 that the Household Support Fund will be extended with an additional £421 million of funding for Local Authorities to support those most in need to help with essential costs.