Home heating in the UK

The UK government has drawn up and unveiled an energy efficiency plan that will earmark £1.5bn for work to insulate 130,000 low-income homes in England. It was reported by the BBC on Thursday.

According to the Department of Energy, through these measures, residents will be able to save on electricity bills from £400 to £700 per year per house. The money for home improvements will be divided between regional authorities and social housing providers.

This programme to improve the insulation of homes includes insulating walls and attics, double glazing, and installing heat pumps and solar panels. At the moment, the energy efficiency of British private homes is among the lowest in Europe.

According to UK Energy Secretary Jacob William Rees-Mogg, implementing the plan will "make homes across England warmer and cheaper". He adds that it will lead to "tremendous economic growth, boosting the green sector and creating thousands of jobs".

As noted, the Energy Price Guarantee ("EPG") will set the unit cost at a level equivalent to an annual bill of £2,500 for a typical household with average gas and electricity consumption. As explained, this is to stop the immediate problem of the October 1 surge in bills and will be in place for an initial period of three months to December 31. However, the plan is to keep the EPG scheme going until 2023 to protect households during this winter.

In 2013, UK Prime Minister David Cameron cut government support for home insulation, leading to a dramatic drop in the country's home energy efficiency. However, it is worth noting that other programmes, including the Green Home Grant, were cut because they could not be fully implemented.