The Chancellor's Plan for Growth included an end to the effective ban on building onshore wind in England, according to the End Fuel Poverty Coalition's reading of the small print1. The same document expanded the Energy Company Obligation (ECO), the scheme that requires energy companies to install energy saving measures in fuel poor homes, with a GBP1bn boost over three years starting from next April1. The new funding is to be targeted at those most vulnerable and made available for the least efficient homes in lower council tax bands1.
The government also said it would imminently open applications for up to GBP2.1 billion over the next two years to support local authorities, housing associations, schools and hospitals invest in energy efficiency and renewable heating1. The Coalition reported that experts at E3G estimate the ECO expansion is about a fifth of the amount needed to be spent on green building measures, and that the Home Upgrade Grant Conservative manifesto pledge remains GBP1.4 billion short of what should have been committed to 20251.
"Hidden away in the small print of the Chancellor's Plan for Growth is an announcement to expand the Energy Company Obligation (ECO) ... with a GBP1bn boost over three years, starting from next April"
The Coalition said that with a week to go before the October price cap change, energy bills were set to increase by 64% compared to last winter1. It gave the average household bill in winter 2021/22 as GBP1,277, rising to GBP2,100 for winter 2022/23 taking into account support promised so far, with the increase limited to an average bill of GBP1,700 this winter for some of the most vulnerable households, still a 33% increase year on year1. It noted that the Energy Price Guarantee caps the unit cost of energy, not the total bill1.
| Measure | Figure | Period |
|---|---|---|
| ECO expansion | GBP1bn | Three years, from next April1 |
| Energy efficiency and renewable heating fund | Up to GBP2.1bn | Next two years1 |
| Average household bill, winter 2021/22 | GBP1,277 | Winter 2021/221 |
| Average household bill, winter 2022/23 | GBP2,100 | Winter 2022/231 |
| Limited average bill for most vulnerable | GBP1,700 | This winter1 |
The Coalition estimated 4.6m UK households were in fuel poverty in winter 2021/22, rising to 6.99m in winter 2022/231. Age UK analysis cited in the same piece found that from October 2022 around three in ten older households in England would be living in fuel poverty, including 1.3m lower income older households1.
Why it matters for households
The planning change matters because onshore wind is one of the cheapest ways to generate electricity in the UK, and the effective ban had restricted where new turbines could be built in England. Households wanting to understand what the change means for a single turbine or a small array can read the site's guide to wind turbine planning permission in England, and how onshore and offshore output reaches homes is set out in wind power on the UK grid.
The ECO expansion is aimed at the least efficient homes in lower council tax bands, so the households it reaches are those where insulation and heating measures cut the most energy per pound spent. The Coalition's position is that the funding is welcome but small relative to the scale of the problem, and that the Energy Price Guarantee limits the unit cost of energy rather than the total bill, so a home that uses more units still pays more1. Energy efficiency measures reduce the units a home needs, which is the part of a bill a household controls; the regulation and policy section covers how such schemes are set and administered.
What happens next
The ECO boost starts from next April1. Applications for the GBP2.1 billion energy efficiency and renewable heating fund were to open imminently at the time of publication1. No commencement date for the onshore wind planning change was reported1.
Sources1 cited
- Mini-Budget minimal on help for those in fuel poverty - End Fuel Poverty Coalition, endfuelpoverty.org.uk