Energy Strategy: Poorly insulated homes are paying £9bn more in heating bills

  • 13 million homes across UK have poor energy efficiency rating
  • Conservatives’ failure to upgrade homes leaves some households paying nearly £1,000 than needed
  • In some areas over four in five families are living in leaky homes
  • Chancellor’s failure to invest in insulating homes branded “short-sighted penny pinching”

The Government’s failure to insulate Britain’s homes is leading to families paying over £9 billion more a year for their energy bills, research by the Liberal Democrats has revealed.

It comes as the Treasury has reportedly blocked plans to invest more in home insulation in tomorrow’s energy security strategy, despite a government target of upgrading all homes to Band C by 2035.

Analysis by the Liberal Democrats shows 13.4 million homes across the UK have received poor energy efficiency ratings (EPC Bands D-G). These households pay an average of £687 more a year than those with a Band C rating. Meanwhile, those on the lowest energy efficiency ratings pay nearly £1,000 more a year.

It means that in total, households in poorly insulated homes are set to pay an estimated £9.2 billion more in energy bills a year, because the government has failed to bring them up to at least a Band C rating.

The figures also reveal the areas with the highest proportion of leaky homes. People living in the Isles of Scilly have some of the worst insulated homes, with 85% of homes being in Band D-G. Four in five families in Pembrokeshire and Gwynedd are in poorly insulated homes, paying an estimated £45.7 million more a year, while three-quarters of Blackpool residents are paying around £40 million more for their drafty homes.

Liberal Democrat Climate and Energy Spokesperson Wera Hobhouse MP said: “This Conservative Government’s failure to tackle our cold and leaky homes has piled misery on top of the cost of living crisis. It has left families around the country struggling to heat their homes and put food on the table.

Wera Hobhouse

“Now is not the time for short-sighted penny pinching by a Conservative chancellor who has shown he is completely out of touch.

“An emergency package of support is needed to fix Britain’s leaky homes and cut energy bills in the long term, funded by a windfall tax on the super profits of oil and gas companies.”

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