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Green campaigners condemn cuts to energy-efficiency scheme Green campaigners condemn cuts to energy-efficiency scheme
(about 3 hours later)
Green groups and charities have reacted with anger after the government announced cuts to the UK’s most important energy-efficiency programme, which was created to help the poorest homeowners.Green groups and charities have reacted with anger after the government announced cuts to the UK’s most important energy-efficiency programme, which was created to help the poorest homeowners.
The move by George Osborne significantly reduces a requirement for energy companies to install new boilers and insulation. The chancellor said it would help cut homeowners’ gas and electricity bills by £30 a year.The move by George Osborne significantly reduces a requirement for energy companies to install new boilers and insulation. The chancellor said it would help cut homeowners’ gas and electricity bills by £30 a year.
The changes affect the Energy Company Obligation (ECO) scheme, which is paid for by the big six energy firms and adds around £47 a year to the average gas and electricity bill, which is £1,100 a year.The changes affect the Energy Company Obligation (ECO) scheme, which is paid for by the big six energy firms and adds around £47 a year to the average gas and electricity bill, which is £1,100 a year.
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The money is spent on making the housing stock more energy efficient by installing loft and cavity wall insulation. It also helps people on the lowest incomes replace old and inefficient boilers.The money is spent on making the housing stock more energy efficient by installing loft and cavity wall insulation. It also helps people on the lowest incomes replace old and inefficient boilers.
The scheme almost exclusively benefits those on the lowest incomes, according to campaigners, who say the recipients tend to live in the worst housing stock and would not be able to afford the improvements themselves.The scheme almost exclusively benefits those on the lowest incomes, according to campaigners, who say the recipients tend to live in the worst housing stock and would not be able to afford the improvements themselves.
Charities and green groups reacted with dismay to the news., They labelled it the latest anti-environment move from a government that originally promised to be the greenest ever. The decision comes on top of planned cuts to solar subsidies scheduled for January, and was announced days before ministers will attend the UN climate change talks in Paris.Charities and green groups reacted with dismay to the news., They labelled it the latest anti-environment move from a government that originally promised to be the greenest ever. The decision comes on top of planned cuts to solar subsidies scheduled for January, and was announced days before ministers will attend the UN climate change talks in Paris.
The ECO scheme has long attracted criticism from the big power companies. They claimed it puts them at a disadvantage to smaller rivals that are not required to take part. It has also drawn the ire of the rightwing press, which has repeatedly attacked the imposition of what have been termed green taxes.The ECO scheme has long attracted criticism from the big power companies. They claimed it puts them at a disadvantage to smaller rivals that are not required to take part. It has also drawn the ire of the rightwing press, which has repeatedly attacked the imposition of what have been termed green taxes.
George Osborne said ECO will replaced from April 2017 with a cheaper domestic energy efficiency supplier obligation, which will run for five years.George Osborne said ECO will replaced from April 2017 with a cheaper domestic energy efficiency supplier obligation, which will run for five years.
“The new scheme will upgrade the energy efficiency of over 200,000 homes per year, saving those homes up to £300 off their annual energy bill, tackling the root cause of fuel poverty and delivering on the government’s commitment to help 1m more homes this parliament,” he said.“The new scheme will upgrade the energy efficiency of over 200,000 homes per year, saving those homes up to £300 off their annual energy bill, tackling the root cause of fuel poverty and delivering on the government’s commitment to help 1m more homes this parliament,” he said.
Eco is thought to raise around £1.1bn a year, but this could be cut to around £400m a year under the new, lower-cost option, proposed by Osborne.Eco is thought to raise around £1.1bn a year, but this could be cut to around £400m a year under the new, lower-cost option, proposed by Osborne.
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On Wednesday morning the Office for National Statistics said there were almost 44,000 excess winter deaths in England and Wales last year, a 15-year year high and 151% higher than the year before. Poor-quality heating is thought to play a big part in such deaths, although it is not the only factor.On Wednesday morning the Office for National Statistics said there were almost 44,000 excess winter deaths in England and Wales last year, a 15-year year high and 151% higher than the year before. Poor-quality heating is thought to play a big part in such deaths, although it is not the only factor.
The shadow energy secretary, Lisa Nandy, said: “It’s 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.”The shadow energy secretary, Lisa Nandy, said: “It’s 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.”
Friends of the Earth described the cuts as “yet another blow to government credibility on tackling high energy bills”. Peter Smith, from fuel poverty charity National Energy Action, said the move was shortsighted.Friends of the Earth described the cuts as “yet another blow to government credibility on tackling high energy bills”. Peter Smith, from fuel poverty charity National Energy Action, said the move was shortsighted.
He added: “Energy efficiency can reduce energy bills and keep vulnerable people out of hospital. This decision could lead to the NHS having to spend in excess of £22bn to treat cold-related illnesses over the next 15 years.”He added: “Energy efficiency can reduce energy bills and keep vulnerable people out of hospital. This decision could lead to the NHS having to spend in excess of £22bn to treat cold-related illnesses over the next 15 years.”
Julie Hirigoyen, the UK Green Building Council’s chief executive, said: “The chancellor was keen to emphasise the government’s green credentials ahead of Paris, but they are going backwards on one of the most cost-effective opportunities – improving the energy efficiency of our existing housing stock.”Julie Hirigoyen, the UK Green Building Council’s chief executive, said: “The chancellor was keen to emphasise the government’s green credentials ahead of Paris, but they are going backwards on one of the most cost-effective opportunities – improving the energy efficiency of our existing housing stock.”
Osborne also confirmed that the Renewable Heat Incentive, which helps those off the national grid invest in green heating measures, is also being cut by £700m. Green groups had feared the scheme, which suffered a series of delays, could have been suffered the same fate as feed-in-tariffs, which have supported the growth of solar power.Osborne also confirmed that the Renewable Heat Incentive, which helps those off the national grid invest in green heating measures, is also being cut by £700m. Green groups had feared the scheme, which suffered a series of delays, could have been suffered the same fate as feed-in-tariffs, which have supported the growth of solar power.
The solar industry is braced for significant cuts in January to feed-in-tariffs, which have encouraged thousands of householders to install electricity generating panels on their roofs. Several big solar firms have already ceased trading and more are expected to follow.The solar industry is braced for significant cuts in January to feed-in-tariffs, which have encouraged thousands of householders to install electricity generating panels on their roofs. Several big solar firms have already ceased trading and more are expected to follow.
According to the Treasury, when the ECO changes are taken into account, the entire package of energy measures will save householders a total of £35 a year by 2020.According to the Treasury, when the ECO changes are taken into account, the entire package of energy measures will save householders a total of £35 a year by 2020.