To ask the Chancellor of the Exchequer, what assessment his Department has made of the effect on the economy of long-term investment in energy efficiency programmes.
Maximising the economic benefits of long-term investment in energy efficiency programmes is a central component of the government’s approach to decarbonising our building stock on the path to Net Zero.
The ONS estimate that already 114,400 people are employed in the energy efficiency sector and this will need to expand significantly to support our aspiration to raise the energy efficiency of all homes to EPC Band C by 2035 - where practical, cost-effective and affordable. The policies already set out in the 10 Point Plan are expected to generate £11bn in private investments in heat and building decarbonisation over the 2020s and their effect on the economy are already being felt.
Since June, we have provided £1.5bn to support low income households across the country to improve their energy efficiency while also expanding the Energy Company Obligation to £1bn per year. Together, this is estimated to support over 25,000 jobs and save households an average of £350-450 per year on their energy bills.
The upcoming Heat and Buildings Strategy will set out further detail on the Government’s plans to maximise the potential economic benefits of improving energy efficiency.