A National Insulation Scheme could more than pay for itself in consumer savings. External disruption, particularly the war in Ukraine, has exposed our vulnerability to rising fuel prices. While the Energy Bills Support Scheme is an important reactive measure to mitigate the damage, we need longer-term preventative solutions to fluctuating fuel prices.
Energy efficiency is key to cutting our energy consumption. Britain’s homes are old, cold, and costly. We have some of the oldest housing stock in Europe and while it’s great that our homes were built to last, we need to feather these nests if they are to meet the needs of future generations.
There are currently 8.5 million homes in the UK still in need of loft insulation. It would cost the Government just £4.5bn to install loft insulation in every one of these homes. As loft insulation can cut bills by 20%, households could save between £300 and £600 on their energy bill annually. Loft insulation for all of these homes would cut a total of £3.5bn off these houses’ energy bills per year. And with insulation lasting up to 40 years, this £4.5bn investment could end up generating £140bn of savings.
Those savings do not accrue just to the billlpayer. Because of the price protection of the Energy Price Guarantee, the Government is currently covering 54% of British energy bills and will continue to provide targeted support after April 2023. With the Government on the hook for bills as well as consumers, loft insulation could potentially save money for both taxpayers and consumers in the long term. The Government could recoup their £4.5bn spend on loft insulation in a matter of years, before even factoring in the savings of billpayers.
Alas, without government support, billpayers simply do not invest in insulation. A recent survey carried out by Stack Data Strategy found that half of British homeowners are put off from installing energy efficiency measures because of the initial cost. In a cost-of-living crisis, that’s understandable. A National Insulation Scheme could combat this hesitation, as 63% of homeowners say they would be more likely to install insulation if they had access to government support schemes.
We did not prepare adequately for our current energy crisis and we do not know how this situation will develop in the future. What’s clear is that energy prices could remain high for some time. And with prices high, the only way to reduce energy bills is to reduce energy usage.
Improved energy efficiency would allow British homes to do just that without having to forego any of the creature comforts that make up modern life. Moreover, unlike the bill support of
the Energy Price Guarantee, a National Insulation Scheme is the gift that keeps on giving. An investment this winter will create jobs immediately, and deliver savings permanently.
