Industry calls for massive retrofit programme

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Industry bodies call for government to make retrofit a national infrastructure priority and invest up to 拢4bn per year in improving aging housing stock

Green Deal

Improving the energy efficiency of UK homes should be national infrastructure priority, with the government committing to retrofit a million homes a year by 2020, a major new industry coalition has urged.

In an open letter to infrastructure minister Lord Deighton (published below), 20 organisations from the construction, housing and environment sectors have today called for the government to invest up 拢3-4bn per year to fund a significant programme of energy efficiency to transform the UK鈥檚 aging housing stock.

Boosting capital spending on retrofit is a key aim of

The heads of the environmental groups, charities, membership organisations and trade associations, including UK the Green 黑洞社区 Council (UKGBC), the Association for the Conservation of Energy, and the Federation of Master Builders (full list below), warn that the UK鈥檚 homes are among the 鈥渃oldest and draughtiest in Europe鈥�, which results in high energy bills and 鈥渙ne of the worst records on fuel poverty and preventable winter deaths鈥�.

Green for growth - index pic

The coalition of organisations says investment in retrofitting the UK鈥檚 housing stock would address market failures and leverage substantial additional private investment.

The open letter reads: 鈥淒omestic energy efficiency is one of the most cost effective ways to achieve the Government鈥檚 three strategic priorities for energy infrastructure: controlling energy bills, tackling climate change and unlocking investment to support economic growth.鈥�

鈥淣o other investment can achieve so much for individual householders and for UK Plc.鈥�

The letter comes as the group of organisations publishes a short report, setting out the strong economic benefits for improving home energy efficiency. These include:

Generating significant economic growth and doubling the number of jobs in the energy efficiency sector to 260,000.
Improving energy security and reducing the UK鈥檚 reliance on imported gas.
Reducing carbon emissions to meet carbon targets and combat climate change.
Permanently reducing energy bills by 拢300 a year and lifting nine out of 10 homes out of fuel poverty.
Improving health and wellbeing, reducing excess winter deaths and lowering NHS and social care costs.

Speaking on behalf of the coalition, UKGBC chief executive Paul King, said the UK鈥檚 aging housing stock represented a 鈥済aping hole at the heart of the government鈥檚 plan for infrastructure鈥�.

He added: 鈥淭he government has so far failed to recognise the huge opportunities it presents.

鈥淏ut it鈥檚 not too late. Making home energy efficiency a national infrastructure priority - and offering it significant support alongside transport, energy generation or communications projects - would not only cut households鈥� rocketing energy bills and help tackle climate change, but would create thousands of new jobs and strengthen the UK鈥檚 energy security.

鈥淕overnment spends 拢45bn a year on capital infrastructure investment - our bricks and mortar deserve to be included鈥�

Text of letter in full

Paul Deighton

Dear Lord Deighton

The UK鈥檚 26 million homes should be fit for the future. Our homes are among the coldest and draughtiest in Europe. As a result we have high energy bills and one of the worst records on fuel poverty and preventable winter deaths. We are also wasting vast amounts of energy and increasing our reliance on expensive fossil fuels.

Rising energy bills and safeguarding energy security will be key issues for the General Election in 2015 but they will not be solved overnight. We need a long term plan to transform the energy efficiency of our homes, within a generation.

We are calling on all the government to:

Make home energy efficiency a top infrastructure priority
Support investment with a long term revenue stream
Achieve 1 million deep retrofits each year by 2020

Overhauling the energy efficiency of our existing homes will be a challenge, but one that offers huge opportunities. Improving our existing homes will stimulate economic growth and create thousands of jobs spread across the country. It is the most cost-effective way to slash our carbon emissions and aid the transition to cleaner sources of energy. No other investment can achieve so much for individual householders and for UK Plc:

Generate significant economic growth in all regions of the UK and double the number of jobs in the sector to 260,000 jobs.
Improve the UK鈥檚 energy security and reduce our reliance on imported gas.
Reduce carbon emissions to meet carbon targets and combat climate change.
Permanently reduce energy bills by 拢300 and lift 9 out of 10 homes out of fuel poverty.
Improve health and wellbeing, reduce excess winter deaths and lower NHS and social care costs

An issue of such significance must be regarded as a national infrastructure priority. The National Infrastructure Plan recognises that markets need support to deliver projects of national importance, and this is clearly true for home energy efficiency.

There is a key role that Government can play in creating the right conditions for a flourishing market. Firstly, Government can provide an overarching strategy, to give confidence to investors in the infrastructure pipeline and help facilitate a clear delivery plan. Secondly, there are projects where it is essential Government capital spending is used to overcome barriers to delivery. A significant programme of energy efficiency would need public investment of 拢3-4 billion a year to address areas of market failures and leverage substantial additional private investment.

Domestic energy efficiency is one of the most cost effective ways to achieve the Government鈥檚 three strategic priorities for energy infrastructure: controlling energy bills, tackling climate change and unlocking investment to support economic growth. It is the only way to permanently reduce energy bills, it reduces the cost of decarbonising generation and it creates jobs in every constituency in the UK.

We would welcome a meeting with you to discuss these points in more detail.

Yours sincerely -

Signed by: