New Energy Efficiency Plan Criticised By Campaigners

The Chancellor’s new energy efficiency scheme has attracted criticism from campaigners who argue that the plan will mean less homes are insulated and the UK will miss fuel poverty targets.

George Osbourne is a bit more optimistic, arguing that the scheme will reduce an average of £30 per year for 24 million households. The five-year scheme will commence in 2017.

Citizens Advice has warned that lower income families will not see their homes insulated.

“Making homes more energy efficient is key to achieving long-term savings on energy bills so it is important the remaining budget is spent on those who really need it,” said Gillian Guy, chief executive of Citizens Advice.

“Today’s reduction will also make it difficult for government to tackle fuel poverty by 2030.”

The new scheme will replace the Energy Company Obligation, which costs around £940m per year, which adds around £36 to annual energy household bills.

It had previously been found that ECO was the most popular energy efficient measure. ECO also offers a wide range of benefits.

The Government hopes that the new scheme will only cost £640m, targeting 200,000 homes per year.

Shadow Energy Secretary and MP for Wigan Lisa Nandy has called the changes “extraordinary”, alleging that the new scheme will leave millions with bigger bills.

“Its extraordinary that the chancellor has announced huge cuts to home insulation on the very same day we discovered that thousands of people died last winter because of the scandal of cold homes.

“By slashing investment in energy efficiency yet again millions of families will be left paying more for their energy bills and people will suffer.”

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