The UK Green Building Council (UKGBC) and 28 prominent business leaders have urged the government to prioritise support for domestic energy efficiency and low carbon heat in the Spring Statement as a “common-sense response”
The UKBGC has coordinated the letter, addressed to chancellor Rishi Sunak, which highlights the critical role the government can play in supporting domestic energy efficiency and tackling the energy crisis.
The letter stipulates the benefits of prioritising energy efficiency as delivering permanent energy security, tackling the climate emergency, reducing household bills, addressing fuel poverty and supporting the levelling up agenda.
A number of significant business leaders have signed the letter, including those in property, construction, energy and across the built environment, such as E.ON UK, Grosvenor Property UK, Barratt Developments PLC, Landsec, and JLL UK Ltd.
One in every six tonnes of carbon emitted in the UK comes from homes
Considering that one in every six tonnes of carbon emitted in the UK comes from homes, there is huge potential for improvement.
Signatories of the letter state, “as businesses committed to the UK’s transition to net zero, we know our sector cannot meet its goals alone without more Government action to decarbonise homes…”
They are “…deeply concerned that vast amounts of gas are wasted by heat leaking from the UK’s homes, and that up to six million households face fuel poverty from April.”
What funding and financial incentives are needed to support domestic energy efficiency and low carbon heat?
The letter states that the following incentives are needed to institute a large-scale home upgrade effort:
- Fulfil outstanding funding commitments as part of the 2019 manifesto promise to invest £9.2bn in green homes and buildings
- Introduce financial incentives such as removing VAT on refurbishment work and low carbon heat sources
- Provide a long term, revenue neutral, structural demand driver through a variable stamp duty adjusted in line with the energy performance of a property
- Expand the Boiler Upgrade Scheme which is currently limited to 90,000 heat pump installations – a figure dwarfed by the government’s aim of reaching 600,000 installations per year by 2028
- Announce a Green Homes Grant Scheme successor to support owner-occupiers, but with sustained funding and designed to scale up over the coming few years
‘The government must invest now in long term solutions to stop vast amounts of energy being wasted’
UKGBC’s chief executive officer, Julie Hirigoyen, added:
“Energy bills are shooting up, leaving millions of households facing fuel poverty, and energy prices are likely to remain elevated for years.
“Making domestic energy efficiency a priority is not only the responsible thing to do for public finances, but it will help towards the Government’s energy independence and levelling up agendas, not to mention accelerating our journey towards a net zero carbon economy.
“The government must invest now in long term solutions to stop vast amounts of energy being wasted by heat leaking from the UK’s homes.”
