Government critique of Labour insulation plan ‘politically-motivated’

Commenting on figures put out by the Government today on Labour’s Warm Homes Plan [1] Jess Ralston, Energy Analyst at the Energy and Climate Intelligence Unit (ECIU) said, "These appear to be politically-motivated figures, rather than a proper assessment. They deflect from the failure of the Government to get homes insulated which has left the most vulnerable choosing between eating and heating during the gas price crisis. Sky high bills, and a multi-billion pound taxpayer bailout are the price for this lack of investment from the Government.

“The numbers completely miss out the savings struggling families can make from warmer, more efficient homes that waste less energy. They also miss the crucial point that unless we insulate homes to burn less gas, we’ll become ever more dependent on foreign imports as the North Sea continues its decline – new licenses won’t nudge the dial on that.

“Anyone arguing against investment in insulation is calling for higher bills, less energy independence and unhealthy homes. Cold, damp homes damage people's health and cost the NHS billions of pounds every year.”

The analysis does not appear to take into account the home upgrades that might be made through policies that are cost-neutral to the Exchequer, such as restoring the Minimum Energy Efficiency Standards for the private rented sector, which the Prime Minister scrapped in September. There were around 4.5million privately rented homes in the UK in 2022.

The assumptions in the analysis include that all policies are Exchequer funded. Currently, several insulation schemes such as the Energy Company Obligation and Great British Insulation Scheme are funded by energy suppliers and recouped by a levy on bills. Therefore the amount of Exchequer funding for Labour's Warm Homes plan may be significantly less than is stated, as some or all of the policies may continue to be funded in this way.

ENDS

Notes to editors:

1. Opposition policy costing – National Warm Homes Plan – Labour: https://assets.publishing.service.gov.uk/media/65c25dfa3f6aea0013c1551f/Opposition_Costing_-_National_Warm_Homes_Plan.pdf
2. ECIU analysis has found that the Prime Minister scrapping the Minimum Energy Efficiency Standards in the private rented sector, announced during his net zero speech, could mean that around 2.8m privately rented homes may not receive energy efficiency improvements: https://eciu.net/media/press-releases/2023/pm-scrapping-energy-efficiency-regulations-to-hit-renters-in-swing-seats-hardest

For more information or for interview requests:

George Smeeton, Head of Communications, ECIU, Tel: +44 (0)7894 571 153, email: george.smeeton@eciu.net