Thank you for contacting me about energy efficiency.
Homes in the UK represent 15 per cent of all greenhouse gas emissions (22 per cent if electricity generation is included), so the Government recognises that upgrading home energy performance is crucial if we are to meet net zero greenhouse gas emissions across the UK economy by 2050.
In the Clean Growth Strategy, the Government set out its aspiration for as many homes as possible to be Energy Performance Certificate Band C by 2035 where cost effective, affordable and practical, and to reach this standard by 2030 for fuel poor homes. To achieve this, it will need to mobilise up to £65 billion for upgrades, which will put us on a path to net zero, significantly reduce household energy bills, and improve our health and wellbeing. It will also create new opportunities for the energy efficiency sector, currently the largest part of the low carbon and renewable energy economy.
The Government is working to build a vibrant and sustainable market through introducing a suite of policies and measures that will drive uptake of energy efficiency:
- Through the Energy Company Obligation, over 2 million homes have had energy efficiency improvements since 2013. The Government is committed to extending this support to 2028, driving more than £6 billion of investment in domestic energy efficiency.
- Invest a further £6.3 billion over the next 10 years to upgrade the worst homes and improve the energy performance of social housing.
- A commitment to publish consultations on a long-term trajectory to improve the energy performance standards of privately rented homes, and on setting requirements for lenders to improve the energy performance of homes they lend to.
In addition, the Government will introduce a Future Homes Standard by 2025, which will see new build homes future-proofed with low carbon heating and world leading standards of energy efficiency.
Thank you again for taking the time to contact me.
Rt Hon Robert Goodwill MP
Poor Households
Households struggling with their bills are eligible for insulation measures, including solid wall insulation, through the Energy Company Obligation (ECO) scheme. Homeowners and those in privately rented homes who are on specific benefits may also be eligible for support towards heating improvements, including oil-fired boiler replacements, through ECO Affordable Warmth.
Rural Off-grid Homes
Ministers are aware of the challenges faced by those living off the gas grid and are looking at the best ways to help. An important part of this is the £25 million Central Heating Fund, which will fund the installation of first-time central heating systems in low income homes off the gas grid.
The Renewable Heat Incentive programme supports the installation of renewable heating systems and is primarily designed to offer off-gas households affordable heating alternatives. It compensates for the additional costs of replacing an oil boiler with a renewable heating system.
Advice on ECO Scheme
Different energy suppliers may have different funding offers through their installers, so it is important to shop around for the best quote. Ofgem, which administers the scheme, provides further information about ECO for consumers on its website, including contact details for the energy suppliers.
You may also like to contact the Government-funded Energy Saving Advice Service, which can provide independent advice on the full range of energy efficiency support. The number to call is 0300 123 1234.
Removal of the Carbon Emission Reduction Obligation
The Government has decided to move to a 100 per cent Affordable Warmth scheme with the aim of targeting ECO to low income, vulnerable and fuel poor households. While I recognise that the removal of the Carbon Emission Reduction Obligation will result in lower carbon emissions reductions being achieved, there are other policies that address carbon savings in homes and across the economy more widely.