The Chancellor's autumn statement set out an additional £6bn of funding for energy efficiency measures, to be made available from 2025 to 2028, according to the National Insulation Association1. The NIA describes the sum as a doubling of the government's annual investment on energy efficiency1. The statement also set a target to reduce energy consumption from buildings and industry by 15% by 2030, against 2021 levels1.
The government's own figures, quoted by the Chancellor, put the value of hitting that 15% reduction at £28bn off the UK's national energy bill and £450 off the average household bill1. An Energy Efficiency Taskforce, led by Sir Patrick Vallance, is to be responsible for delivering energy efficiency across the economy1. The NIA notes that insulation was not specifically mentioned in the statement, though it says the government has been clear it supports a fabric-first approach1.
The Building Engineering Services Association, in a separate response, welcomed both the £6bn and a government public information campaign intended to help people cut their energy use by 15% over the winter2. BESA said "more ambitious" financial incentives and policy measures would also be needed to deliver the scale of building upgrades required2. It cited research from the Centre for Economic and Business Research, published with the pump manufacturer Grundfos, which found UK businesses and homeowners were missing out on over £3bn worth of savings every year because of a lack of energy efficiency awareness and financial incentives2.
That research surveyed 500 business owners and 2,000 homeowners2. Among businesses, 14% had either never had a boiler service or had not had one in the last five years, and 20% had not had an energy efficiency audit for more than five years, many never2. Only 37% of the business owners said they checked their eligibility for business grants and only 32% would seek advice on improving energy efficiency2. Among homeowners, 12% did not know when they last had their boiler serviced and 23% were not sure when their system was last checked for potential efficiency upgrades, despite 64% naming rising energy prices as their biggest concern2.
"It is very frustrating that businesses are considering taking such draconian steps when improving building energy performance can be done quickly by adopting a series of relatively simple and low-cost measures"
Rowlando Morgan, CEBR's head of environment, infrastructure and local growth, said the research had uncovered concern about "high upfront costs and a lack of available qualified installers"2.
Why it matters for households
The £6bn does not begin until 2025, so it does not change what is available to a household in the current winter1. The stated aim is a 15% cut in energy consumption from buildings and industry by 2030, which the government values at £450 on the average household bill1. For a home, that figure depends on the measures actually installed and on how the funding is allocated, and the NIA says detailed plans and spending commitments had not yet been published1. The CEBR findings point to the other side of the picture: a share of households do not know when their boiler was last serviced or their system last checked for efficiency upgrades, and the report identifies upfront cost and installer availability as barriers2. Energy efficiency sits alongside the Energy Price Guarantee as the longer-term route to lower bills, and the grants-schemes hub sets out the schemes currently open, including ECO4 and how it interacts with other government grants. Households in Scotland are covered by separate Scottish Government policy, including the Heat in Buildings Supply Chains Delivery Plan1, and Scottish building standards and energy efficiency standards for privately rented homes in Scotland apply there. Policy in Wales is devolved, and the department responsible for home energy policy in England is DESNZ. Anyone contacted about a grant should check the energy grant scams guidance.
What happens next
The Energy Efficiency Taskforce, led by Sir Patrick Vallance, is to deliver energy efficiency across the economy1. The NIA says it will update members once more detailed plans and spending commitments accompany the headline promises1. The Scottish Government's Heat in Buildings Supply Chains Delivery Plan includes a review of support for green skills and training, a programme of industry engagement focused on installers in the heat and energy efficiency supply chain, £17.6m for research and development of new green heating solutions, and more than £800,000 of Green Growth Accelerator funding across all local authorities this year for low-carbon infrastructure projects including retrofitting existing buildings1.