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Consumers Victim of £3.2 Billion Loss Under Energy Price Cap Fall

May 30, 2024

The Energy & Climate Intelligence Unit (ECIU) has revealed that insulation progress has halted in the UK, leaving consumers paying a hefty price of £3.2 billion a year under the recently announced price cap fall from Ofgem.

According to Ofgem, the energy price cap will fall by 7% from July 1 for those who pay by direct debit, but ECIU has discovered that the lack of insulation is costing homes more money. The prior drop saw a 12% decrease from a massive £1928 to £1690

The UK is said to have some of the worst energy-efficient homes in Europe, a reason the country has been hit so hard with ridiculous energy bills during the energy and gas crisis.

11 million properties could have full insulation right now, if not for the slowing down of installations.

“Millions of British bill payers are still counting the cost of inaction and low investment in insulating homes over the past decade. Renters are in a particularly difficult situation given they don’t have any control over improving the warmth of their homes.

Dr Simon Cran-McGreehin, Head of Analysis at Energy Climate & Intelligence Unit

A typical home has an EPC rating of D and by upgrading it to the government goal of a C rating, it could potentially save a home around £200 annually under the new Ofgem prices.

Nearly 4 and half million homes have worse efficiency ratings (EPC E and F) with the former potentially saving £400 and the latter £550 with the new price cap.

Getting Insulation Installed

If you live in a home that you know has a poor energy rating certificate, insulation can be what you need to improve it. The Great British Insulation Scheme is a scheme backed by the UK government to improve energy efficiency for those living in inefficient properties and suffering from fuel poverty.

The scheme ultimately saves those who are eligible money across the year, easing their financial stress when it comes to paying their energy bills.

How do you Qualify for the Great British Insulation Scheme?

If anyone who lives in your property receives one of the following benefits:

  • Child Benefit
  • Pension Guarantee Credit
  • Income-related Employment and Support Allowance
  • Income-based Jobseeker’s Allowance
  • Income Support
  • Tax Credits (Child Tax Credits or Working Tax Credits)
  • Universal Credit
  • Housing Benefit
  • Pension Credit Saving Credit

You could be eligible! As well as these benefits, EPC rating and Council Tax bands play a part in eligibility.

The Energy Company Obligation

Another government-backed scheme, ECO4 aims to reduce carbon emissions and ease fuel poverty that so many across the country are facing. The scheme includes the installation of insulation, as well as solar panels and a modern heating system.

To quickly find out if you are eligible for ECO4, use the button below.