In a speech in the House of Commons on Friday, Chancellor Kwasi Kwarteng unveiled a new growth plan that represents a revolutionary package of measures designed to overtake the UK economy and push growth to at least 2.5 percent. Dubbed a ‘mini-budget’, industry experts told Express.co.uk, a key energy-saving measure around home insulation announced by Mr Kwarteng would prove to be a big win for millions of households, helping them keep their costs down ‘permanently’ “.
In a statement, the government said: “In order to make homes cheaper to heat, the government will introduce legislation to implement new obligations for energy suppliers to help hundreds of thousands of their customers take action to reduce their energy bills and achieve an average saving of to earn around £200 a year.
“This aid will total £1billion over the next three years from April 2023. Support is aimed at the most vulnerable but is also available to the least efficient homes in the lower tax brackets.”
In fact, it means energy suppliers will spend £1billion over three years to help the most vulnerable households, with much of the money going on attic insulation and, in some cases, funds to replace boilers to help Brits to help save around £200 a year.
Speaking to Express.co.uk, Mike Foster, CEO of the Energy and Utilities Alliance, a trade body, said: “First of all, it’s clearly good news that money is being invested in energy efficiency because homes are screaming up insulation levels to meet the bills permanently low and save CO2.
“In reducing our need for gas and electricity because of the level of insulation we have, the more insulation we have the better, because it reduces the amount of gas we have to buy and the risk and impact of putins Invasion of Ukraine minimized. So it’s a win in every way.”
Meanwhile, Jess Ralston, a senior analyst at the Energy and Climate Intelligence Unit (ECIU), also welcomed the containment measures, saying: “If prices remain high, the Government’s gas subsidy bill would be many times the investment required to cover all 28 million Households in the UK get properly insulated.
“Funding the ECO program could end up being cost-neutral for the Treasury as isolation lowers gas demand and hence the overall price of the bailout.”
Despite Prime Minister Liz Truss freezing household energy bills at £2,500 a year, Citizen’s Advice has warned that the measure will not protect energy-inefficient homes.
READ MORE: Energy horror as one million Britons lose £950 in paid heat
The charity is warning homes with an Energy Performance Certificate (EPC) of F may have to spend £500 on top of Ms Truss’ £2,500 frozen cap, costing her £3,000 on her annual bill.
Analysis by Kingfisher has also found that households living in inefficient homes with an EPC rating of D or below will face an average increase in energy bills of £1,730 a year in October, well above the £982 a year year that these households face Living in more efficient properties with an EPC rating of C or higher.
Commenting on the Chancellor’s growth plan, Conservative Environment Network (CEN) Director Sam Hall said: “It is excellent news that the Chancellor has listened to calls from the Conservative Environment Network for a significant increase in funding for isolation.
“Renewable energy and insulation will not only permanently lower bills and accelerate progress towards net zero, but also strengthen our energy security and protect Britain from Vladimir Putin’s arming of Russian gas reserves.”
While the government has claimed it is committed to converting as many homes as possible to Band C by 2030, the average household is currently in Band D.
But critics say it does little to motivate those unwilling to upgrade their homes for cost reasons, as it could cost anywhere from £7,000 to £15,000
Aside from helping households save on energy bills, a new report has found that eco-friendly home improvements like insulation and heat pumps will create 140,000 new jobs by 2030.
An analysis by Cambridge Econometrics, commissioned by Greenpeace, also found that such measures, already predicted to save millions of dollars in bills, could boost the country’s economy by a staggering £7 billion a year.