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Government’s new £1bn energy efficiency scheme will be ‘limited’ for social housing
Plans for a new £1bn government scheme to help households make their homes more energy-efficient have been unveiled, but the measures will be “limited” for those in social housing.
The ‘ECO+’ scheme is aiming for around 410,000 households across Britain to get “rapid installation” of new loft insulation, cavity wall insulation and heating controls, the Department for Business, Energy & Industrial Strategy (BEIS) said.
Around 80% of the funding will be made available for those in homes with an Energy Performance Certificate rating of D or below and in lower council tax bands, BEIS said.
And around a fifth of the fund will be aimed at the most vulnerable, which includes people on means-tested benefits or in fuel poverty, BEIS said.
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The three-year initiative is in addition to a similar government scheme known as ECO4, which is aimed at people in social housing, on a low-income or experiencing fuel poverty.
However, a consultation document on the new scheme said that the government proposes limiting the eligible measures for social housing as it is “typically more energy efficient than private housing”.
As a result, social housing residents who are eligible will receive insulation options, but not heating controls. These controls include room thermostats and radiators with thermostats.
“This is because social housing landlords are expected to provide a functioning heating system to their tenants and to avoid duplication with other support, such as the Social Housing Decarbonisation Fund (SHDF),” the consultation document said.
However, the SHDF’s application process was this week criticised by Geeta Nanda, chair of the G15 and chief executive of Metropolitan Thames Valley, as being “overly complex”.
In a tweet on the ECO+ scheme, the Chartered Institute of Housing said: “We’re glad that some of this funding is targeted at low-income households, and that energy-inefficient social homes will be eligible for some insulation measures.”
The new scheme is due to launch next spring, but will first be subject to consultation and new legislation will have to be introduced.
The plan is part of wider government measures aimed at helping the UK become energy-independent amid spiralling prices due to Russia’s invasion of Ukraine.
In addition, the government is launching an £18m publicity campaign to help people save money on their energy bills.
Business and energy secretary Grant Shapps said: “A new ECO scheme will enable thousands more to insulate their homes, protecting the pounds in their pockets, and creating jobs across the country.”
In chancellor Jeremy Hunt’s fiscal statement earlier this month he announced plans to raise the threshold on the government’s energy price cap to £3,000 and confirmed that it would stay in place until April 2024. The move was a change to Liz Truss’ previous plan for a two-year energy price cap at £2,500.
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