On Wednesday, Chancellor Rishi Sunak announced a “green package” as part of the government’s “mini-budget”, confirming experts’ predictions. The bulk of this came in the form of a £2 billion home insulation scheme.
The scheme, based on the Green Homes Grant, would see the government pay at least two-thirds of the cost of energy-efficient home improvements. The Treasury expects the scheme to support more than 100,000 jobs as the introduction of government subsidies increases demand for home improvements.
Consumers will be able to view the scheme online from September, including application details for approved local suppliers and recommended energy efficiency measures.
Commenting on the announcement of the insulation scheme, Ringley Managing Director Mary-Ann Bowling said:
“Today’s Home Insulation Vouchers are welcome news as this is an important policy that will make homes greener and cheaper to run.”
“Britain’s housing stock is one of the oldest in Europe and too many properties suffer from damp and cold problems, which is not only bad for the environment but also bad for our health.
“It is important that the government’s voucher scheme targets renters, especially as housing in the private rental sector tends to be older.”
Chris Holmes, investment advisor at environmental asset firm JLEN (LON:JLEN), added:
“It is heartening to see the green economy feature so prominently in government budgets today. coastal flooding, extreme weather events, droughts and bushfires can severely disrupt agriculture, infrastructure and livelihoods.”
While noteworthy for those looking to participate in the new plan, previous similar efforts were flawed. While true to the promised discounts, the government’s solar panel and double glazing schemes both offer savings as government subsidies were only available to those using certain companies. It wasn’t very helpful.
In fact, these approved companies were sometimes so expensive that it turned out to be more profitable to stop discounting and look for other companies. We don’t assume history will repeat itself, but it’s worth bearing in mind.
Looking to the future, Mr Bowling suggested additional ways to seriously boost job creation in the property sector, adding:
“Additional financial support to renovate aging homes, an across-the-board reduction in stamp duty, including for landlords, and a commitment by the government to remove all dangerous cladding at any cost, could cost thousands more. It will create hundreds if not more jobs, boost the housing market, and improve the quality of housing in our homes. ”
