Ed Miliband’s £15bn green heating plan must put consumers first | Politics | News
The government’s much-anticipated Warm Homes Plan is an important step towards lowering energy bills and supporting the UK’s transition to clean electric heating. The Department for Energy Security and Net Zero (DESNZ) has committed £15 billion to help consumers reduce their bills and reduce their carbon footprint.
That money will go toward a combination of grants and low- or no-interest loans to help homeowners install heat pumps, solar panels, batteries and insulation. Which? The research found that homeowners are increasingly open to greener options for home heating, but many are held back by high up-front costs, so this financial support should increase adoption.
Unfortunately, the money will only go so far as DESNZ faces an uphill battle to rebuild consumer confidence. There have been a number of failed home energy schemes in recent years where poor oversight allowed rogue traders to wreak havoc on people’s homes.
A report by the National Audit Office found that 98% of homes fitted with external wall insulation under the government-backed ECO4 scheme had major defects such as damp, mould, exposed electrical and blocked ventilation.
While many households are happy with energy improvements to their homes, tens of thousands of homes have suffered from shoddy home heating schemes, and unless the government can show how it plans to fix these past failings, homeowners will understandably be wary of new schemes.
The government is starting to take action on these issues, but the necessary improvements to consumer protection are not yet available and will be resolved through consultations in the coming months.
The launch of the Warm Homes Scheme has been plagued by delays and missed deadlines, but DESNZ cannot afford to fall short on consumer protection if it hopes to restore public confidence in green heating technology.
Another challenge that DESNZ has had to overcome is the general lack of familiarity with heat pumps. The government openly acknowledges that cost is a barrier, but uncertainty and lack of information about heat pumps are also holding many people back.
Financial support is welcome, but grants and loans are not enough to solve a complex and important decision like overhauling your home’s energy installation. Consumers need better information and independent advice and it is disappointing that the Warm Homes Plan offers nothing new to support homeowners with this. For example, a plan to direct consumers to reliable independent information.
From a consumer perspective, the Warm Homes Plan is encouraging but is closer to a ‘work in progress’ than a full solution. If it is to achieve its goal of enrolling millions of people in the green heating revolution, the government needs to back up financial support with concrete protections and better information.
Rocio Concha is Director of Policy and Advocacy and Chief Economist at Which Company?
