Sunak’s statement only ‘scratches the surface’ on energy efficiency

theguardian.com:

Solar panels will be about £1,000 cheaper for households to install from April, the chancellor of the exchequer, Rishi Sunak, has announced, with the removal of VAT on green home-upgrade equipment.

Heat pumps and energy efficiency materials will also benefit from the zero rating in a boost for clean energy generation. Heat pump installations will be about £500 cheaper as a result and the cost of installing cavity insulation will fall by about £190 and loft insulation by about £160 for the average household.

But the measure was the only nod towards the need to reduce greenhouse gas emissions in a mini budget that supported fossil fuels through a 5p cut in fuel duty, while doing little to relieve the high cost of energy for most households and businesses. Tellingly, Sunak failed even to mention the term “net zero” in his speech.

Beyond the VAT cut, there was no other help for households seeking to reduce their energy bills through insulation or green energy. A boiler upgrade scheme, already announced, will provide grants of up to £5,000 for heat pumps from April but is set to benefit only 90,000 households in the next three years.

Yet helping households with energy efficiency was the biggest step the chancellor could have taken to bring down bills, according to green campaigners. Ed Matthew, campaigns director at the thinktank E3G said: “The UK has the most energy-inefficient housing stock in western Europe and action to cut energy demand is the most effective way to bring down energy bills. The cut in VAT for retrofitting homes is welcome – it will boost the industry and make action to decarbonise homes more affordable. What is missing is more financial support for low-income households to insulate their homes.”

The fuel duty