Nick Clegg reveals £1.4 billion energy efficiency boost

The Deputy Prime Minister, Nick Clegg, has announced a £1.3 billion boost for Government’s home energy efficiency programme, with at least £540 million of support being made available to help the poorest homes.

In a speech delivered today, Nick Clegg said: “We will be requiring the energy companies to provide an estimated £1.3 billion a year of support for energy efficiency in our homes with at least £540 million to fund energy saving improvements in the worst off homes.

The Deputy Prime Minister has promised that around £350 million a year will be provided to help around 270,000 low income and vulnerable households adopt energy efficiency measures that will slash the cost of heating their homes. Those identified as living in the poorest areas, including in social housing, will be able to get further support worth around £190 million a year. The support will be available from energy companies and will see eligible properties fitted with loft and cavity wall insulation.

A large proportion of the Energy Company Obligation will still be targeted at solid wall insulation, but support will be opened up for more measures than before – including hard to treat cavity walls. Clegg also announced that energy companies will be allowed to carry forward overachievement against their targets under the current Carbon Emissions Reduction Target (CERT) and Community Energy Saving Programme (CESP) and count it towards their ECO targets.

Government hopes that the proposed changes will help bridge the gap between the current schemes, such as the Energy Company Obligation, and the Green Deal for the insulation industry, which has been heavily critical of the Green Deal in the past.

The Deputy Prime Minister's full speech can be read here.