Labour’s plans to save households over £1bn a year on energy bills

The Labour Party have announced today that, if elected to Government, they will save 4 million households at least £270 per year by funding local authorities to deliver ‘street by street’ home insulation schemes

This will be delivered through an investment of £2.3bn per year to provide financial support for households to insulate their homes, and for local authorities to drive take up and delivery of insulation schemes.  It is hoped that this investment will drastically improve energy efficiency, and bring 4 million homes up to Energy Performance Certificate (EPC) Level C by the end of a parliamentary term.

Labour’s plans include fully covering the cost of insulation for low income homeowners and all social housing, which will particularly benefit older people living in fuel poverty and pensioners on low incomes struggling to cover the cost of skyrocketing energy bills

It is thought that 1 in 10 UK households are living in fuel poverty, one in five of which are pensioners; and at least £1 for every £4 spent on heating UK homes is wasted due to poor insulation.  Age UK has previously estimated that cold homes cost the NHS in England £1.36 billion a year

Labour’s plan will:

  • Reduce the cost of domestic energy bills for 4million households saving at £270 pa or affected households
  • Improve the health and well being of families, reducing NHS costs
  • Create new skilled jobs
  • Reduce carbon emissions

The funds will be targeted at low income homeowners, social rented homes and rental properties occupied by low income tenants by providing

  • Grants to low income households
  • Funding the update of council and housing association homes
  • Zero interest loans to “able to pay” home owners and landlords to make upgrades.

Speaking on behalf of Insulation Manufacturers Association, Simon Storer said “Our members very much welcome the ambitious plans to focus on energy efficiency, and insulation in particular, especially for those most vulnerable in our society.  The plans will undoubtedly throw up many challenges along the way in terms of scaling up delivery and ensuring sufficient skilled workers are trained to meet targets.  With new PIR plants coming on stream in the coming years, our members will be ready to help them meet their targets and we very much look forward to working with them when the time comes.”