Building the Future: Economic and Fiscal Impacts of Making Homes Energy Efficient

Energy-Bill-RevolutionHigh energy bills are causing considerable financial hardship in the UK, with millions of people living in fuel poverty. One of the biggest causes of the fuel poverty crisis is the poor condition of the UK housing stock, which is one of the least energy efficient in Western Europe. Improving the energy efficiency of UK homes is an effective way to bring down energy bills, and offers a long-term solution to fuel poverty. In addition, it is important to drive carbon emissions reductions, with buildings responsible for almost 37% of all UK carbon emissions. At the same time, the building insulation market contracted by 22% in 2013, as the installation of cavity wall insulation fell by 46%, the installation of loft insulation fell by more than 87%, and the installation of solid wall insulation fell by 30%, compared with the number of measures installed under the Carbon Emissions Reduction Target (CERT) in 2012. The Energy Bill Revolution is calling for a radical new approach to home energy efficiency. They are calling for all low income homes to be given measures, by 2025, to bring them up to Band C on an Energy Performance Certificate (EPC), and for all other households to be offered 0% interest loans to improve them to an equivalent EPC standard by 2035; delivered as part of a major infrastructure investment programme. This report has undertaken detailed modelling to assess the economic, fiscal, and environmental impacts of this programme. It concludes that the economic case for making the energy efficiency of the UK housing stock a national infrastructure priority is strong.

  • Download the report here
  • Read the press release here