People in ‘fuel poor’ households in England face annual bills around £250 higher than necessary due to their poorly insulated homes, according to research by the Local Authorities Association (LGA).
The LGA has identified around 3 million households where better insulation would save large sums of money to people struggling with the rising cost of living. Around £770m is wasted each year trying to heat these leaky homes, according to analysis for the LGA by WPI Economics.
The LGA has called for all fuel-poor homes to be properly insulated by 2030 and estimates that at least two-thirds of the 3 million will need some form of government help to achieve this.
David Renard, councilor and environment spokesman for the LGA, which represents 350 local authorities in England and Wales, said: “So many homes are losing more and more money as energy prices rise. This will hit stretched household budgets and the government purse hard, while exacerbating the climate crisis. The investment now will save households further down the line, ease the cost of living crisis and mean families will have extra security and flexibility within their budgets.’
The LGA said improving people’s homes would save around £500 million for the NHS every year, as cold and damp homes contribute to illness. It will also lead to tens of thousands of new green jobs, the LGA said.
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Government help to insulate homes targets the most vulnerable through the Energy Companies Liability Scheme, paid through energy bills. However, this fails to reach many households and there is no widely available government scheme to help most other UK households. The Commission on Climate Change warned in a scathing report this week that ministers were failing on insulation.
The government aims to insulate around 900 homes a day by 2030.
The LGA said it was best placed to provide insulation and energy efficiency, a view shared by the CCC. But the CCC warned that the Government had proved reluctant to work with local councils.
Renard said: “Ensuring homes are well insulated also means fewer people are at risk of the health risks associated with living in cold and wet conditions, and that’s work we need to do as part of our drive to net zero. The councils are keen to help the government achieve this win-win policy and increase the number of winter insulated buildings.’
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