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Green strategy for homes set to create 65,000 jobs

The Government has said 65,000 jobs could be created as a result of its new green strategy for British homes announced today (2nd March).


The green strategy sets out to have insulated six million homes by 2011 and all practical loft and cavity walls by 2015. By 2020 it intends that seven million homes will have had ‘eco upgrades' and that all homes will have smart meters.

By ‘Eco upgrades' the Government says it means going "significantly beyond basic insulation".

For some this will mean some form of renewable energy generation - such as air or ground source heat pumps or solar thermal - alongside loft and cavity wall insulation. For older homes with solid walls, it will mean solid wall insulation.

The Government recognises that the technology for solid wall insulation is relatively new and the supply chain in the UK limited - which in turn means costs are high. One of the aims of the strategy is to bring down these barriers to deployment by speeding its development in the UK.

The Department of Energy and Climate Change (DECC) estimates that measures such as putting in solid wall insulation could reduce a household's energy bills by £380 a year between 2013 and 2020.

Welcoming the initiative, Neil Marshall, the chief executive of the National Insulation Association (NIA) said: "There are around seven million homes in the UK that need solid wall insulation and this plan sets out a roadmap for insulating these and the millions of other houses that require cavity wall and loft insulation in the short term."

'Pay as you save' green finance scheme To enable the greening of Britain's homes on the scale it envisions, the Government is introducing a ‘pay as you save' green finance scheme that will allow people to use part of the money they save on bills, or the revenue from small-scale renewables, to pay back the loan for the eco-upgrade.

Because on average people move homes every 12 years and this is not long enough for the bill reductions to cover the upgrade costs, the Government proposes to pass legislation to allow the loan to be attached to the property rather that the individual.

It is also working with the Royal Institution of Chartered Surveyors, with a view to ensuring the energy performance of homes is better reflected in its market value.

Funding through Carbon Emissions Reduction Target The ‘pay as you save' scheme will only fund a proportion of the eco upgrades, most - particularly in the social housing sector - will be funded through a revamped Carbon Emissions Reduction Target (CERT) scheme which will see energy companies and local authorities teaming up to make homes more energy efficient.

The Government's commitment to eco upgrades has been welcomed by the UK Green Building Council, which has been campaigning for a pay as you save scheme for the last two years.

"Our leaky housing stock is responsible for 26 per cent of UK carbon emissions. If we want to tackle climate change, save money and conserve energy then we need to find a way of financing the refurbishment of millions of homes," said Paul King chief executive of the UK Green Building Council.

"Government can't pay for it and householders don't have the money upfront," he added.

"Revolution" in household refurbishment "The biggest barrier to low carbon refurbishment - the upfront cost - is set to fall. Pay as you save is a radical scheme, which could trigger a revolution in household refurbishment."

The UK Green Building Council is even more bullish than the Government in estimating the number of jobs likely to be created as a result of the strategy - putting the figure at "at least 100,000".

However, it is clear that the increase in demand anticipated will open up a sizable skills gap.

In the area of solid wall insulation alone, the NIA's Marshall said it is crucial for the scheme's success that industry works with central and local government to invest in and support the skills and training needed to deliver the extra capacity.

The Government is promising a "new set of standards for workmanship and products to protect consumers from the threat of cowboy eco-builders and dodgy products".

It has also undertaken to work with industry over the next year to support workforce training and help.

Green strategy for homes set to create 65,000 jobs

Government's 'Pay as you save' green finance scheme could lead to 65,000 green jobs

 

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