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BESA calls on government to speed up energy efficiency spending

The Building Engineering Services Association has urged ministers to bring forward £6bn of energy efficiency funding promised for 2025, citing an IPPR report on the cost crisis.

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The Building Engineering Services Association (BESA) has called on the government to accelerate its spending on building energy efficiency and heat pumps, in a statement published on 27 January 20231. The association, which represents companies working on building improvement, said funding earmarked for the second half of the decade should be brought forward because of the ongoing energy cost crisis1.

BESA pointed to a report by the Institute for Public Policy Research (IPPR) that urged the government to bring forward the £6bn promised by the Chancellor Jeremy Hunt from 2025, to help building owners cut energy use by 15% compared with current levels1. The IPPR also said the government would need to subsidise the heat pump sector by a further £3.4bn to reach its stated ambition of 600,000 installations a year by 20281. According to the report, the government was already failing to deliver its manifesto commitment to spend £9.2bn on energy efficiency during the current parliament1.

BESA's technical director, Graeme Fox, said the timetable needed review and that the country was missing a shorter-term opportunity to improve energy security by not tackling the root causes of fossil fuel use for heating1.

"It is not just the cost of heat pump installation that deters homeowners, but the complexity of the grant application process."
Graeme Fox, BESA, source1

The IPPR report said retrofitting homes to improve energy efficiency and installing a low carbon heating system would save the average household £500 once the new £3,000 Energy Price Guarantee came into effect in April1. It added that the government was not on track to deliver its target of all existing homes reaching Energy Performance Certificate (EPC) grade C or higher by 2035, and that the target should be pulled forward to 2030 for owned homes and 2028 for privately rented properties1. A recent government pilot programme found heat pumps were suitable for every type of UK property, with upfront cost the biggest barrier for building owners1. Conservative MP Chris Skidmore also urged the government to go "further and faster" after his independent review of progress towards net zero1.

MeasureFigure as reported
Funding to be brought forward£6bn, from 2025
Further heat pump subsidy sought£3.4bn
Installation ambition600,000 a year by 2028
Manifesto energy efficiency commitment£9.2bn this parliament
Average household saving claimed£500
EPC C target2035, proposed 2030 owned and 2028 privately rented

Why it matters for households

The figures set out here concern the money behind energy efficiency schemes and heat pumps, rather than any change to bills or grants already in force. The IPPR's £500 saving is a projection attached to retrofitting and a low carbon heating system, calculated against the £3,000 Energy Price Guarantee due in April1. The EPC C target dates matter to anyone whose home falls below that grade, because a pulled-forward deadline for owned and privately rented homes would change the timescale over which improvements are expected1. The Energy Price Cap governs how the default tariff is set, which is separate from the guarantee figure cited here. For a household weighing a heat pump, the reported barriers are upfront cost and the complexity of applying for grants, not suitability across property types1. How far heat pumps support household energy independence depends on the electricity supply and the fabric of the building, both of which the funding debate above is intended to address.

What happens next

No decision by the government on bringing forward the £6bn, on the additional £3.4bn for heat pumps, or on revised EPC C dates is reported in the source1. The IPPR's recommendations and BESA's call are positions put to ministers, and the source does not record a response from the government or a timetable for one1.

Sources1 cited
  1. GOVERNMENT MUST SPEED UP ENERGY EFFICIENCY SPENDING, thebesa.com