‘UK needs to splash out extra £5.8bn in energy efficiency to cut bills’

Households boosted with energy efficiency and low carbon heating measures could save £500 a year from April, according to a report

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The government must increase spending on energy efficiency and low carbon heating by at least £5.8 billion by 2025 to help the UK reach its commitments.

That’s according to research by the think tank Institute for Public Policy Research which warns that public investment in making UK households more energy efficient is falling short of what is needed to meet climate goals.

The study highlights that under the new price cap in April, upgrading homes with high-quality insulation, ventilation measures and heat pumps could save up to £500 on annual energy bills.

Researchers found that the Chancellor could meet the funding gap in the government’s pledges by bringing forward by two years the £6 billion committed in the Autumn Statement 2025-2028.

The IPPR recommends that ministers should offer full energy efficiency grants for fuel-poor homes and grants of up £7,500 for non-fuel poor homes.

The report also calls on officials to carry out ‘heat zoning’ to determine the most appropriate heat technologies for different areas.