Poor insulation will cost each home £340 under new price cap

New research shows that poorly insulated homes will increase residents’ energy bills by around 50% compared to homes that meet government targets.

Analysis by the Energy and Climate Change Intelligence Unit (ECIU) found that a home with an Energy Performance Certificate (EPC) rating of F would have an average annual gas bill of around £340 higher.

The findings were released on Monday as new price caps came into force and involved assessments of some of the country’s most leaky homes, meaning heat generated by gas boilers can quickly escape from buildings.

The additional cost is compared to a home with an EPC rating of C, which is considered to be well insulated. The study found that even for a Class D home, annual bills would rise by around 15%.

ECIU energy analyst Jess Ralston said: “With millions of people living in cold, leaky homes, insulation is vital to keeping their electricity bills down.

“But as well as the cost of living, energy independence remains a top concern for the public and politicians, and insulation is now also key to reducing our need for natural gas.

“Unless we start reducing our use of gas, regardless of new licences, we will have to import more gas from abroad as the North Sea continues its inevitable decline.”

The ECIU says that more than a decade ago, a significant number of homes in the UK were insulated each year. The number of quarantine measures has been reduced by 95% since before then Prime Minister David Cameron made a series of changes. Shortly after the Conservatives took full power in 2015, David Cameron’s government repealed laws passed by the coalition government requiring every new home to be zero-carbon.

In September, current chancellor Rishi Sunak scrapped plans to force private landlords to ensure their properties met minimum levels of insulation.

Ms Ralston said: “Despite the bill and the energy security benefits, the government’s insulation schemes are not performing at target levels and fixing them does not appear to be a priority.

“The next government, regardless of color, will need to rapidly increase the deployment of energy efficiency measures if it wants to gain energy independence and lower electricity bills.”

A spokesman for the Department for Energy Security and Net Zero said: “Almost half of homes in England now have an EPC rating of C or above, compared with just 14% in 2010.

“We have allocated £20 billion for energy efficiency this parliament and the next – helping cut bills for households who need it most.

“Our investment will improve the insulation standards of around 500,000 homes across the UK.”