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Written evidence from the British Energy Efficiency Federation (BEEF)

 

BEEF strongly welcome and support the introduction of the Chancellor’s new

£3bn Green Homes Grant, Public Sector Decarbonisation Fund (PSDF) and associated local authority led home retrofit programmes.

 

The focus of these programmes, to respond to the challenging economic situation we all face as a result of the pandemic, by stimulating the growth of employment through increasing activity in the energy efficiency sector is well placed. Industry experience alongside numerous studies have highlighted that investing in such programmes can generate significant new employment opportunities, increase local business activity (especially in the hard-hit SME sector), across a  wide range of trades, whilst also improving building fabric, saving energy and reducing carbon emissions.

 

BEEF have welcomed the three recent meetings held with BEIS officials, which have been helpful in highlighting the department’s thinking in relation to the forthcoming programmes, and allowed members to input their thoughts into the process. A number of industry-concerns have arisen out of these discussions, principally relating to the Government’s ambitions for the programme in terms of the scale of retrofit anticipated, against the timescales that has been set by HM Treasury to stimulate rapid increases in economic activity.

 

However, we strongly believe that these programmes can be made to work successfully and deliver the Government’s post-lockdown goals, whilst also providing the foundation to unlock the Government’s full manifesto commitment of £9.3bn investment over this Parliament in energy efficiency programmes.

 

BEEF set out a five recommendations, that could be swiftly implemented, and

help ensure the Chancellor’s programme can deliver to its maximum impact.

 

 

1.      It is critical that all energy efficiency solutions deployed are installed properly. There is evidence that previous deadlines set by Government funding programmes have let to sub-optimal insulation installs as contractors have had to undertake ‘rush jobs’ to meet funding deadlines. Poor installs will diminish the efforts of the programme, leave longer terms problems for households, and also set back the Government’s messaging on climate action in the year of COP26.

HMT and BEIS should be as flexible as possible in relation to the timescales for installation for measures across all programmes supported in this £3bn plan. Notwithstanding the emphasis these programmes have on kick-starting jobs, work undertaken needs to be of a good quality.

 


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2.      Increase the range of measures that can be funded through the Green Homes Grant to include high efficiency LED lighting and ‘older’ double glazing to modern double or triple glazing.

 

3.      As currently designed, the Green Homes Grant has created a major limiting factor in terms of the full extent of measures that could be installed in a home through the requirement for matching spend between primary and secondary measures. Removing this limiting factor would help ensure much more work is able to be undertaken.

 

4.      The tight timescales for application are already showing signs of underspend – as the first round of the Local Authority Delivery (LAD) element of the programme has shown. Allow greater flexibility to shift funds across the different initiatives set out in the £3bn programme to respond to need as it arises will help ensure support matches demand.

 

5.      For businesses to be able confidently respond to this programme, set out details of a longer term energy efficiency strategy, for the full £9.3bn spend, to ensure that industry can properly invest.

 

November 2020