In September 2020, Energy Saving Trust submitted a representation to the UK Government’s Comprehensive Spending Review (part of the UK Government’s budgeting framework, through which funding is allocated to departments). Submissions comment on government policy or suggests new policy ideas.
Our representation focussed on public spending to improve the energy efficiency of existing housing stock and make low carbon heating more affordable for households.
Insulating our leaky homes: In 2017, the government committed to the energy efficiency of homes (to Energy Performance Certificate Band C) by 2035. We don’t think this is fast enough for a net zero target and that the target (and associated benefits) should be bought forward to 2030.
Around two thirds of homes in England are below this standard. This must be tackled before low carbon heating can be rolled out at scale.
The government’s 2019 manifesto committed to spend £9 billion on energy efficiency by 2030. Our representation suggests this funding is bought forward into this parliament with a further £10 billion allocated between 2024 and 2030. With the right policy framework, this public investment could stimulate over three times this level of private investment meaning that the target of making all homes energy efficient could be met by 2030.
This is a real opportunity for a green recovery supporting economic growth and between 150,000 to 200,000 jobs from now to 2030 in every part of the country. It would also cut energy bills for millions of households, save the NHS an estimate £2 billion a year (the cost of treating conditions exacerbated by cold, damp living conditions) and get the sector back on track for net zero, building the foundation for low carbon heat.