The Department for Business, Energy and Industrial (BEIS) cross-party select committee report on ‘Energy pricing and the future of the energy market’ makes it clear that the only way to resolve our energy crisis in the long term is to insulate our homes, citing the lack of a home insulation programme as ‘an unacceptable gap in policy that must be rectified’.
I couldn’t agree more. Insulating homes reduces energy bills, carbon emissions and would create tens of thousands of new jobs. Most importantly, it will benefit society’s poorest the most significantly, because these households spend a far higher proportion of their income on energy, especially in the current circumstances.
The BEIS report particularly criticises the piecemeal response of UK Governments over the last decade, something that is reflected in our experience of retrofitting homes at Severn Wye. Support from government can come in many forms; grant payments, low cost loans, targeted support for vulnerable people or supporting the industry itself through training programmes for retrofitters or investment in new technologies.
These are all important investments, and each is vital if we are to tackle the twin challenges of climate change and fuel poverty. But there are two key ingredients that government have consistently missed for decades: consistency and scale.
Let’s start with consistency. Whether it’s one-off payments to households to cover cost increases or the frequent, short term and limited grants for insulation, the unpredictability of investment means charities like Severn Wye are jumping from one plan to the next. Every scheme is different. Grants support different geographies, some are open to all, some just to those who are disadvantaged; some pay for particular technologies (whether they are the right things to install or not) and some pay simply for advice. The changes happen so frequently that our teams of advisors sometimes spend more time learning about constantly changing eligibility criteria than they do learning about how best to save energy. It’s no wonder take up of such scheme is sometimes low.
Then there is scale. Most home insulators are small companies, meaning their ability to scale up is limited. Piecemeal grants and legislation mean they stay small. They don’t have the confidence to invest in new staff, marketing, new technologies or training and because they stay small, schools, colleges and universities are not investing in the training for young people entering the industry. When Severn Wye need to recruit new, expert staff we struggle because they are just not there. So, the cycle continues.
Let’s be real, kickstarting a new industry is difficult. It takes long term, substantial investment, but it can be done. For several decades the UK Government invested in the renewable energy sector and now it is established and thriving; a sector that attracts investors and employees alike.
If we are really serious about tackling fuel poverty and climate change we need a similar long term, substantial investment programme that insulates homes across the UK, starting with those who need it most.
If we do that, the industry will invest and grow to meet demand. Standards will improve, good practice will be shared, and young people in particular will see career prospects in the industry. Investment will improve and we can create the sorts of skilled green jobs everyone has been talking about.
Most importantly it will reduce bills for those who need it most. In a recent survey of our clients, 82% said they worry less about their bills after working with us. At the same time, whilst providing this peace of mind and lessening stress, we’re reducing carbon emissions too.
I hope the UK Government takes notice of the BEIS select committee report and invests in a large scale insulation programme. What better way to invest tax payers money?
