Advertisement
Housing

Six million poorly insulated homes to face £320 ‘surcharge’ from April

The government is looking at scrapping a scheme that makes low-income homes more energy efficient.

Soaring energy bills will hit those living in poorly insulated homes the worst, according to new research highlighting the true cost of the government’s inaction towards insulating Britains’ homes and the worsening cost of living crisis. 

Families living in homes with an energy efficiency rating E or worse will face annual heating bills at least £320 higher than those living in C-rated homes from April, according to new research from the Resolution Foundation.

While homes with poor insulation have always been more expensive to heat, the scale of the difference is laid bare in the findings.

Four million homes have an E insulation rating, while 1.5 million families live in homes with an even worse rating of F, and will face a surcharge of £390.

Subscribe to The Big Issue

Support us

Take a print or digital subscription to The Big Issue and provide a critical lifeline to our work.

The government’s green homes target will require landlords to insulate privately rented properties to a C-rating by 2028, but there is no plan for the two-thirds of households who are homeowners. 

In April, the energy price cap is expected to rise by around £700 at the same time as new taxes are levied and inflation is driving up the costs of everyday goods

Advertisement
Advertisement
Big Issue Foundation
Your gift today will connect individuals living in poverty to the vital resources, services and opportunities needed to begin their journey to a new future. You will be supporting individuals in key areas including housing, finance, mental health and employment.

The Bank of England has warned Brits to prepare for the steepest drop in living standards for 30 years as the cost of living crisis sets in from April. Interest is predicted to soar to 7.25 per cent, meaning the cost of everyday goods like groceries will rise even further while wages continue to stagnate.

“It is vital that the Government ramp up progress in insulating homes and reducing the costs of public charging points for electric vehicles so that the whole of society can benefit financially from a low carbon economy,” said Jonny Marshall, senior economist at the Resolution Foundation.

The key to delivering Britain’s net zero transition, will ultimately depend on “delivering the infrastructure around (low-carbon technologies) – such as better insulating Britain’s housing stock,” he continued. 

The new report, produced in collaboration with the LSE, funded by Nuffield Foundation, calls on the government to reverse “the previous decade of abject policy failure on home insulation.”

In a bid to tackle rising energy costs, the government is looking at scrapping a scheme that makes low-income homes more energy efficient, The Guardian recently reported.

The Energy Company Obligation (ECO) is a £1bn levy on energy bills which helps to pay for installation of energy efficiency measures in low-income households. Experts have warned, however, that removing the levy would save little money – about £29 on the average bill – and would ultimately leave poorer households paying the price.

Advertisement

Every copy counts this Christmas

Your local vendor is at the sharp end of the cost-of-living crisis this Christmas. Prices of energy and food are rising rapidly. As is the cost of rent. All at their highest rate in 40 years. Vendors are amongst the most vulnerable people affected. Support our vendors to earn as much as they can and give them a fighting chance this Christmas.

Recommended for you

Read All
The disturbing parallels between Awaab Ishak’s death in Rochdale and the Grenfell Tower disaster
Awaab Ishak

The disturbing parallels between Awaab Ishak’s death in Rochdale and the Grenfell Tower disaster

Black and minoritised ethnic communities at disproportionate risk of homelessness in the UK
Homelessness

Black and minoritised ethnic communities at disproportionate risk of homelessness in the UK

How many empty homes are there in the UK?
Housing

How many empty homes are there in the UK?

The number of people sleeping rough in England could be double the official count
Homelessness

The number of people sleeping rough in England could be double the official count

Most Popular

Read All
Here's when and where nurses are going on strike
1.

Here's when and where nurses are going on strike

Pattie Boyd: 'I was with The Beatles and everything was fabulous'
2.

Pattie Boyd: 'I was with The Beatles and everything was fabulous'

Here's when people will get the additional cost of living payment
3.

Here's when people will get the additional cost of living payment

Why do people hate Matt Hancock? Oh, let us count the ways
4.

Why do people hate Matt Hancock? Oh, let us count the ways