UK's Warm Homes Plan Faces Criticism as Cuts to Energy Scheme Leave Thousands at Risk of Dampness and Displacement.
Government officials have been accused of "pulling the ladder up" on low-income households struggling with energy bills, as funding for a key insulation scheme is set to be drastically reduced. The £1.3 billion energy company obligation (ECO) scheme, which has helped fund upgrades for homes owned or rented by households earning under £31,000 since 2013, will see its annual budget slashed from £150 to zero in March.
Experts warn that this sudden cut could lead to a surge in "fuel poverty" as thousands of low-income families are left without the support they need. The estimated 222,000 retrofit projects set to be cancelled under the scheme could leave homes damp and draughty over the winter months, exacerbating existing health issues for vulnerable households.
Small firms involved in the insulation industry have voiced their concerns, citing uncertainty over the future of their businesses. "Funders are pulling back on anything new that hasn't already been allocated," says Anna Moore, founder at Domna, a retrofit company working with housing associations and councils. "The immediate impact is slamming the breaks on programmes, right in the middle of a cold snap."
Moore has written to Energy Secretary Ed Miliband requesting a one-year extension for funding and ringfencing for low-income households in the warm homes plan. She argues that this would help bridge the gap between the ECO scheme's end and the launch of the new initiative.
Industry experts are warning of job losses, with climate change thinktank E3G estimating that 10,000 skilled jobs could be eliminated. "This is not the moment to pull up the ladder," Moore says. "Bridging ECO to the warm homes plan is essential if we are to protect residents, protect jobs and protect progress."
The government claims that the ECO scheme was not delivering value for money, but opponents argue that it has delivered significant savings on energy bills, with over 15 million homes benefiting since its inception. Despite the criticism, the government remains committed to its warm homes plan, which will see an additional £1.5 billion invested in tackling fuel poverty and upgrading homes. However, concerns remain over the lack of clarity and support for small firms and vulnerable households facing the cut in funding.
Government officials have been accused of "pulling the ladder up" on low-income households struggling with energy bills, as funding for a key insulation scheme is set to be drastically reduced. The £1.3 billion energy company obligation (ECO) scheme, which has helped fund upgrades for homes owned or rented by households earning under £31,000 since 2013, will see its annual budget slashed from £150 to zero in March.
Experts warn that this sudden cut could lead to a surge in "fuel poverty" as thousands of low-income families are left without the support they need. The estimated 222,000 retrofit projects set to be cancelled under the scheme could leave homes damp and draughty over the winter months, exacerbating existing health issues for vulnerable households.
Small firms involved in the insulation industry have voiced their concerns, citing uncertainty over the future of their businesses. "Funders are pulling back on anything new that hasn't already been allocated," says Anna Moore, founder at Domna, a retrofit company working with housing associations and councils. "The immediate impact is slamming the breaks on programmes, right in the middle of a cold snap."
Moore has written to Energy Secretary Ed Miliband requesting a one-year extension for funding and ringfencing for low-income households in the warm homes plan. She argues that this would help bridge the gap between the ECO scheme's end and the launch of the new initiative.
Industry experts are warning of job losses, with climate change thinktank E3G estimating that 10,000 skilled jobs could be eliminated. "This is not the moment to pull up the ladder," Moore says. "Bridging ECO to the warm homes plan is essential if we are to protect residents, protect jobs and protect progress."
The government claims that the ECO scheme was not delivering value for money, but opponents argue that it has delivered significant savings on energy bills, with over 15 million homes benefiting since its inception. Despite the criticism, the government remains committed to its warm homes plan, which will see an additional £1.5 billion invested in tackling fuel poverty and upgrading homes. However, concerns remain over the lack of clarity and support for small firms and vulnerable households facing the cut in funding.
- it's like they're taking away a lifeline from people who need it most. £150 to zero? That's just not fair 
. I mean, we know the government wants to make savings, but at what cost? These families are already struggling to pay their energy bills - now they'll be facing dampness and displacement 
. And don't even get me started on the impact on small firms in the insulation industry - it's like they're being left high and dry 
.
. We need to make sure that these vulnerable families are protected, especially during the cold winter months 
. The government needs to come up with a more solid plan to support them - it's not just about throwing money at the problem, we need to see some real action 
.
. I mean, have they seen the numbers? Over 15 million homes benefiting since its inception! That's a significant impact on energy bills and carbon emissions - it can't just be ignored 
.
. We need to make sure that these Warm Homes initiatives are protecting residents, preserving jobs, and driving progress - not the other way around 
.
i mean, 222k retrofit projects cancelled? that's a lotta people goin to be stuck with damp homes & health issues 
climate change thinktank say 10k jobs at risk? that's a lot of ppl losin their livelihoods 
we gotta do better than this gov 
. Now I'm all for keeping costs down and making sure programs are efficient, but it feels like they're just trying to screw low-income families out of the support they need 
222k retrofit projects being cancelled is insane, whats gonna happen to all those homes? wont they be all damp and stuff this winter?? 
low-income families are already struggling so much its like theyre being thrown under the bus. and now small businesses are freaking out because their livelihoods are at stake 
... it's like, didn't they think that one through? 
I'm so worried about these low-income families who are already struggling to make ends meet 
. And now, with the insulation scheme being cancelled and thousands of retrofit projects set to be axed... it's like they're being left high and dry 
. What about those families who already live in damp homes? 
It's going to get even harder for them over the winter months. We need more support not less 
.
But anyway, back to the point... I wonder if they could just use more efficient solar panels or something instead of cutting funding for insulation schemes? That'd be like a win-win, right? 
. It's unconscionable that the government would pull the rug from under these vulnerable households at a time when they need it most 
. It's also concerning that the government isn't providing adequate support for small firms in the insulation industry, which will be severely impacted by this funding cut 
. Anything less would be a dereliction of duty towards these households, who will be left to bear the brunt of this funding cut