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Government delivers on manifesto pledge with £6 billion package to help end fuel poverty and drive innovation in energy efficiency

Government announces £6 billion package to help end fuel poverty.

  • Flagship £6 billion energy efficiency scheme to start with re-focusing flagship scheme entirely on low-income and vulnerable, cutting bills for thousands more families until at least 2028
  • plans to extend the Warm Home Discount ensuring over 2 million low income and vulnerable customers receive £140 off their energy bills next winter
  • drive to increase world-leading British innovation in green technologies as part of the government’s Clean Growth Strategy

Nearly a million more low-income households are set to benefit from innovative energy saving measures under new plans outlined today by the Minister for Energy and Clean Growth Claire Perry, as part of the Clean Growth Strategy.

A consultation has been launched today to focus Energy Company Obligation (ECO), the government’s flagship energy efficiency scheme to tackle fuel poverty and reduce carbon emissions by providing energy efficiency upgrades and heating measures – entirely on low income households. Currently only 70% of beneficiaries are from low income families. Since the scheme was launched in 2013, more than 1 in 16 homes have benefitted from over 2.2 million improvements.

This is the latest step in the delivery of the government’s Clean Growth Strategy, aiming to bring 2.5 million fuel poor homes up to an Energy Performance Certificate rating of C by 2030, helping to save energy and bring down bills.

Alongside this, a separate consultation looks ahead to changes to the Warm Home Discount beyond next winter which will enable all payments to be made automatically. The Warm Homes Discount provides a much needed top up of £140 to the energy bills of the most vulnerable in society. The consultation will also include extending eligibility to people who receive Universal Credit who are in work and earn less that £16,190 a year.

Speaking on a visit to Q-bot in Wandsworth South London, an award-winning technology company which has developed robots to install underfloor cavity insulation quickly and easily, Energy and Clean Growth Minister Claire Perry said:

“We have made clear our commitment to eradicating fuel poverty and by making our flagship energy scheme 100% focused on low-income families we are taking another step towards achieving this goal.

“As set out in our Clean Growth Strategy, we also want to continue to drive world-leading British innovation in green technologies for the benefit all consumers. That’s why we are increasing the opportunity for energy suppliers to get funding to develop new and innovative energy saving product and services, like the award winning company Q-bot’s robotic insulation service.”

The proposed changes to focus 100% of the ECO scheme on the fuel poor would see energy saving improvements like insulation and modern efficient heating systems installed in 900,000 homes by March 2022. The government also committed to maintaining funding for home energy efficiency until at least 2028 as part of the Clean Growth Strategy, a total of just over £6 billion.

At the end of February the government also took action for 11 million households on poor value standard variable tariffs by introducing a landmark Bill into Parliament for a temporary price cap on these tariffs until effective competition is in place.

Respond to the consultations:

Energy Company Obligation: ECO3, 2018 to 2022

Warm Home Discount scheme: 2018 to 2019

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