Energy price cap rise: slash bills by insulating eight millions homes, says Friends of the Earth

• New data analysis identifies the number of homes by local authority area and parliamentary constituency that would benefit from the rapid rollout of loft and/or cavity wall insulation. Top 20 league tables are available here and here, and the data for all areas is also available here
• Energy price cap rise effective from today will see households an average of £693 worse off
• Friends of the Earth calls for a massive programme of free loft and cavity wall insulation to boost the performance of the UK’s inefficient housing stock, starting with households struggling most to pay high energy costs

The energy bills of almost eight million households could be slashed by as much as 40% if the government prioritises retrofitting the country’s draughty, heat-leaking homes, says Friends of the Earth today as the energy regulator Ofgem’s price cap rise comes into effect. Cavity wall insulation can reduce energy consumption by up to 20%, as can loft insulation. For an average dual fuel household using both electricity and gas, the savings that could be made are up to £750 a year.

New analysis by the environmental campaign group has identified the areas of the country that would most benefit from a massive programme of free loft and cavity wall insulation, broken down by both local authority area and parliamentary constituency. Friends of the Earth is calling on the government to implement this policy as part of its upcoming energy review.

The top five local authority areas where most homes could see vast improvements in energy efficiency through the rollout of loft insulation are Birmingham, Leeds, Cornwall, Bradford, and Buckinghamshire. Similarly, Birmingham, Leeds, Bradford and Buckinghamshire are among the top five areas where homes would most benefit from cavity wall insulation, as well as Bournemouth, Christchurch and Poole.

The average household will see energy costs rise by £693 this year, which is expected to climb higher still when the energy regulator re-evaluates the price cap again later this year. Estimates suggest that one in four households will be plunged into fuel poverty from today as the initial price hike comes into effect. In some parts of the country, this will rise to more than 40% of households.

However, there are 5.7 million homes across the country where loft insulation could help households make significant cost savings, and a further 5.2 million where cavity wall insulation would have a similar effect. Some of these are homes that would benefit from both types of insulation.

The group has found that the majority (approximately 60%) of homes which could see lower bills through a government energy efficiency programme are in areas where household incomes are below the national average. Areas with the highest levels of poverty are also twice as likely to have homes requiring better insulation than areas with the highest concentration of wealth, say campaigners. They contend that home insulation improvements are the quickest way to bring down the country’s energy bills.

But while boosting energy efficiency will go some of the way to bringing down sky-high bills, this alone is not enough to eliminate inflated energy costs. That’s why Friends of the Earth is calling on the government today to enact a number of measures that will stop millions slipping into extreme financial hardship.

The green group is calling for:

• A free cavity wall and loft insulation programme, run by councils alongside Home Improvement Agencies, using a street-by-street approach. This must be targeted first at those experiencing fuel poverty.
• The introduction of a Windfall Tax, on the huge profits being made by fossil fuel companies. This will help to fund the free energy efficiency programme, as well as other measures to alleviate poverty, including the expansion of the Warm Homes Discount Scheme and increases to benefits such as Universal Credit.
• The government to honour its manifesto pledge to spend £6 billion on energy efficiency. To date it has only spent £4 billion. This money is essential to fund deeper energy efficiency solutions such as solid wall insulation and triple-glazing and must be additional to a loft and cavity wall insulation programme.
• The removal of unfair planning rules in England, which are holding back the development of onshore wind which is the cheapest form of energy and – alongside new solar power developments – will further help to bring down energy costs and reduce the UK’s dependence on gas imports.

Mike Childs, head of science, policy and research at Friends of the Earth, said:

“We know that our bills would already be significantly lower had the government not scrapped plans to make UK homes more energy efficient back in 2013. While the government can’t turn back time, it can choose to boost energy efficiency to reduce energy bills now and end the UK’s dependency on imported gas.

“A free loft and cavity wall insulation programme, targeted at areas with high levels of fuel poverty, can be rolled out quickly by councils and will make a huge difference for millions of people ahead of next winter. The bonus is that this will also cut carbon emissions.

“This programme can and should be funded by a Windfall Tax on profiteering fossil fuel companies. The government must commit to this as part of its upcoming Energy Security Strategy.”

Sana Yusuf, climate campaigner at Friends of the Earth, said:

“Sky-rocketing energy costs resulting from today’s price rise have many households wondering how they’ll afford to make ends meet, but without much-needed government intervention the number of people facing extreme financial hardship is shockingly high.

“Priority number one has to be protecting our communities from this and future price shocks. Extracting more fossil fuels simply isn’t the answer, not even in the short-term, because new developments take decades to become operational, will do nothing to help people struggling now, and will fuel climate breakdown which is already harming millions across the globe.

“Clearly, the quickest, cleanest, long-term solutions are already before us. Boosting energy efficiency is a crucial place to start, alongside an ambitious plan to scale up the country’s renewable energy capacity.”