An expert report has revealed how investing now in energy saving solutions could save the UK Government hundreds of billions in ‘sticking plaster’ solutions this decade.
Experts calculate that the UK government has spent £37bn this year to stand still on soaring costs of living, without meaningful investment in solutions which could permanently reduce bills. With estimates that fossil fuel prices will remain at an unprecedented level until at least 2030, E3G is calling for long-term energy saving solutions to save the Treasury from needing to spend hundreds of billions in ‘sticking plaster’ solutions.
Households living in the least efficient homes will pay around £916 more per year on energy bills when the energy price cap rises to £2,800. If everyone living in homes below Energy Performance Certificate (EPC) band C were improved to EPC C today, the aggregate saving would be £10.6bn each year.
Independent climate and energy think tank E3G has set out a package of measures to make rapid near-term progress, saving families an average of between £450 – over £1,000 per year.
As well as energy efficiency measures in homes, key measures suggested also include launching an Olympic-style skills and training programme for the retrofit supply chain and making independent energy and retrofit advice readily available to people across the country to share what help is available.
Juliet Phillips, Senior Policy Advisor at E3G and lead author of the report says:
“With fossil fuel prices expected to remain sky high until at least 2030, the government must decide whether it wants to go on spending £37bn per year just to stand still – or to invest now in permanent solutions for lower bills, which will pay off multiple times over in the years ahead. Until the structural drivers of the cost of living crisis are addressed, including the cold and leaky nature of our housing, the government could be left spending tens of billions on emergency financial support packages each year.”
Stew Horne, head of policy at Energy Saving Trust said:
“E3G’s latest report highlights the steps the UK Government should take if it is to help people across the country reduce household energy usage and bills for the long-term. Time is ticking away to make the much-needed improvements to the energy efficiency of UK homes that UK government has committed to this decade. Energy Saving Trust particularly welcomes the report’s proposals for bespoke advice and support for consumers as this will play a vital role in helping make the changes that will permanently reduce the energy required to heat their homes and keep energy costs down.”