Skip to main content
Category

News

The Homes Decarbonisation Skills Training Competition and the Government’s Energy Bill Relief Scheme

£9.2 million funding available to train in the energy efficiency, building retrofit and low carbon heating sectors

The Department for Business, Energy & Industrial Strategy has announced funding of £9.2 million will be available for training providers to deliver training programmes to support the energy efficiency, retrofit and low carbon heating sector.

Those successful in receiving funding can provide:
  • Installation training to the specific technology standard – for example, National Occupational Standards, PAS 2030:2019 standards, PAS 2035 standards, MCS standards or higher.
  • Training of one or more individual energy efficiency and/or low carbon heating measures so that these can be successfully installed. This includes those with existing construction skills and new to the sector.
  • Support for training in retrofit assessor and retrofit coordinator skills to PAS 2035 standard, leading to the relevant qualification.

How to apply?

1. Read the guidance which is available here. 
2. Complete your application form by 17 October 2022.

If you would like more information, please contact HDTrainingCompetition@nottinghamcity.gov.uk

Government Energy Bill Relief Scheme - key headlines

Yesterday the Government announced the new business energy package, called the Energy Bill Relief Scheme. It will provide a discount on wholesale gas and electricity prices for all non-domestic customers, including all UK businesses, the voluntary sector and public sector whose gas and electricity prices have been significantly inflated due to global energy prices.

The Relief Scheme will apply to fixed contracts agreed on or after 1 April 2022, as well as to deemed, variable and flexible tariffs and contracts. It will apply to energy usage from 1 October 2022 to 31 March 2023, running for an initial six-month period for all non-domestic energy users. The savings will be first seen in October bills, which are typically received in November.

Do customers need to do anything to receive the discount?

No, customers do not need to take action or apply to the scheme to access the support as it will automatically be applied to bills. To administer support, the Government has set a Supported Wholesale Price – expected to be £211 per MWh for electricity and £75 per MWh for gas, less than half the wholesale prices anticipated this winter – which is a discounted price per unit of gas and electricity. This is equivalent to the wholesale element of the Energy Price Guarantee for households. It includes the removal of green levies paid by non-domestic customers who receive support under the scheme.

The level of price reduction for each business will vary

This will vary depending on their contract type and circumstances:

  • Non-domestic customers on existing fixed price contracts will be eligible for support as long as the contract was agreed on or after 1 April 2022. Provided that the wholesale element of the price the customer is paying is above the Government Supported Price, their per unit energy costs will automatically be reduced by the relevant p/kWh for the duration of the Scheme. Customers entering new fixed price contracts after 1 October will receive support on the same basis.
  • Those on default, deemed or variable tariffs will receive a per-unit discount on energy costs, up to a maximum of the difference between the Supported Price and the average expected wholesale price over the period of the Scheme. The amount of this Maximum Discount is likely to be around £405/MWh for electricity and £115/MWh for gas, subject to wholesale market developments. Non-domestic customers on default or variable tariffs will therefore pay reduced bills, but these will still change over time and may still be subject to price increases. The Government is working with suppliers to ensure all their customers in England, Scotland and Wales are given the opportunity to switch to a fixed contract/tariff for the duration of the scheme (if they wish), underpinned by the Government’s Energy Bill Relief Scheme support.
  • For businesses on flexible purchase contracts, typically some of the largest energy-using businesses, the level of reduction offered will be calculated by suppliers according to the specifics of that company’s contract and will also be subject to the Maximum Discount.

Extra information on the Scheme

A parallel scheme, based on the same criteria and offering comparable support, but recognising the different market fundamentals, will be established in Northern Ireland.
If a business is not connected to either the gas or electricity grid, equivalent support will also be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas. Government will announce further details on this shortly.

Government will publish a review into the operation of the scheme in three months to inform decisions on future support after March 2023. The review will focus on identifying the most vulnerable non-domestic customers and how the Government will continue assisting them with energy costs.

For more information, click here.

Reminder: Membership renewals coming soon

All NIA members will soon receive an email regarding your membership renewal, and we hope to see you return once again!

The NIA has had a fantastic year, including holding its first Parliamentary event, feeding into numerous consultations, and inputting into governmental discussions. Your input is vital to ensure the good work continues, to promote quality and collaboration across industry, so that the challenge ahead can be possible.

The NIA consists of industry experts, installers, system designers and product manufacturers. It promotes high quality insulation in terms of products and service, so that consumers get what they expect and deserve. One of the ways we do this is through our close relationship with the Department of Business, Energy and Industrial Strategy and actively responding to government consultations. To find out more about the NIA membership, please visit our website here.

Join our Policy Mailing List

NIA members looking to play a part in the drafting of consultation responses are invited to subscribe to our policy mailing list.

Subscribe by emailing Fiona.chestnutt@gemserv.com to be added to the policy mailing list.

NIA News – E-Brief : Liz Truss’ Energy Support Package and an update about ECO4 and SHDF

A Summary of the Support Package

Liz Truss’ announcement for supporting households and businesses has been announced today. Key implications for green policy include the freezing of the green levy on energy bills for two years, lifting of the fracking ban, a new licencing round for North Sea oil and gas, and plans to be a net energy exporter by 2040, through renewable generation, nuclear and fracking.

A review of net zero has been promised, to ensure net zero is achieved whilst supporting economic growth.

The package, live from October, is expected to reduce inflation by 5%, which cuts the current rate of inflation in half.

Is ECO4 or SHDF affected?

BEIS has confirmed that the Energy Company Obligation and the Social Housing Decarbonisation Fund Wave 2.1 will continue to operate as per the regulations and the operation of these schemes, and is not directly affected by today’s announcement.

If you have any questions or concerns please do not hesitate to contact the NIA (details below).

Key Headlines

Households

  • Energy Price Cap to be set at £2500 annually for the average home, saving £1000 annually for households, as agreed with energy price retailers. This is in addition to the £400 previously promised. Those on heat networks, park homes and heating oil will have a separate fund.
  • A new Energy Price Guarantee will enable this by limiting the price which suppliers can charge customers per unit of gas.
  • Applies to Great Britain. Northern Ireland will experience the same level of support.

Businesses 

  • Businesses, charities and public sector organisations will have their energy costs capped for six months. This is to be capped at the same price per unit that households pay. This will be reviewed in three months to see if vulnerable sectors should be targeted.
  • Liz Truss called for businesses to focus on energy efficiency to reduce bills further.

Funding the support

  • There will be no further windfall tax.
  • Kwasi Kwarteng to release the expected costs of the support package later this month. Cost projections are uncertain but are expected to be in the range of £100-£150 billion.

Future energy supply

  • Announcement of a new Energy Supply Taskforce. This includes long-term contracts with gas suppliers, a new licensing round for North Sea Oil and Gas and increased deployment of hydrogen, solar, CCUS and wind. Nuclear is to enter the Contracts for Difference scheme.
  • Energy regulation review to address supply and affordability in the long run.
  • Review of net zero to ensure net zero is achieved whilst growing the economy.
  • Ban on fracking removed. Will pursue fracking where there is local support.
  • Ensure UK is a net energy exporter by 2040. Business security to set out a plan within the next two months. This is to be achieved through the expansion of nuclear, fracking and renewable energy generation.

Reminder: membership renewals coming soon

All NIA members will soon receive an email regarding your membership renewal, and we hope to see you return once again!

The NIA has had a fantastic year, including holding its first Parliamentary event, feeding into numerous consultations, and inputting into governmental discussions. Your input is vital to ensure the good work continues, to promote quality and collaboration across industry, so that the challenge ahead can be possible.

The NIA consists of industry experts, installers, system designers and product manufacturers. It promotes high quality insulation in terms of products and service, so that consumers get what they expect and deserve. One of the ways we do this is through our close relationship with the Department of Business, Energy and Industrial Strategy and actively responding to government consultations. To find out more about the NIA membership, please visit our website here.

Join our Policy Mailing List

NIA members looking to play a part in the drafting of consultation responses are invited to subscribe to our policy mailing list.

Subscribe by emailing Fiona.chestnutt@gemserv.com to be added to the policy mailing list.

NIA News – E-Brief : Liz Truss appointed as Prime Minister, summary of her policy positions.

Liz Truss has officially been appointed Prime Minister with 57.4% of the vote.

Here is a brief email summary of her policy positions (specifically on decarbonisation, net zero and cost of living) followed by a timeline of upcoming events.

What does Liz Truss say regarding decarbonisation?

  • Truss has announced interest to enforce a temporary moratorium on the green energy levy, and has indicated support to lift the ban on fracking, offshore oil and gas developments. She is expected to issue up to 130 new oil and gas drilling licenses in the North Sea. She has shown interest in investing in new nuclear, and furthermore so with her likely Chancellor, Kwasi Kwarteng who is supportive of new nuclear projects like Sizewell C.
  • Although there have not been any comments on hydrogen policy, Truss has shown support for hydrogen blending within the gas network
  • She has criticised the use of onshore wind and solar power as part of the UK’s energy mix. It has also been reported that her Government will consider capping the price at which wind and solar energy can be sold into the UK grid by produced, with aim of restraining rising costs

And her opinion on Net Zero...

  • Truss has pledged to maintain the commitment to Net Zero by 2050 and is highly supportive of new UK developed technologies and manufacturing related to Net Zero.
  • She has shown interest to review the EU’s habitat directive and develop stronger Britain-focussed biodiversity targets.

And finally, what does Truss say about the cost of living?

  • Cost of living has been considered a key priority and her team is working with officials to make an announcement ahead of October.
  • Truss has shared her intention of a temporary moratorium on the green levy for two years however, she has not committed to matching the spending.
  • In the past week, it has been widely reported that Truss is planning to freeze energy bills. However, it is unclear what this entails. This may include eliminating VAT or extending the existing household handouts.
  • Beyond this, Truss has not provided concrete details of her plans to address the cost of living.

A Timeline of Government’s Upcoming Events

With so much going on, please see the below summary of the upcoming government events.

6th September
Her speech today will provide insight of new government priorities
Appointing of cabinet and senior departmental ministers

7th September
Further ministers to be appointed

11th September 
All ministers to be appointed

Before 2nd October 
A fiscal event to address cost of living and energy challenges

2nd October to 5th October
Conservative Party Conference

17th October
Parliament returns in full following party conferences

Coming soon: Membership Renewal

All NIA members will soon receive an email regarding your membership renewal, and we hope to see you return once again!

The NIA has had a fantastic year, including holding its first Parliamentary event, feeding into numerous consultations, and inputting into governmental discussions. Your input is vital to ensure the good work continues, to promote quality and collaboration across industry, so that the challenge ahead can be possible.

As a gentle reminder, the NIA consists of industry experts, installers, system designers and product manufacturers. It promotes high quality insulation in terms of products and service, so that consumers get what they expect and deserve. One of the ways we do this is through our close relationship with the Department of Business, Energy and Industrial Strategy and actively responding to government consultations. To find out more about the NIA membership, please visit our website here.

Join our Policy Mailing List

NIA members looking to play a part in the drafting of consultation responses are invited to subscribe to our policy mailing list.

Subscribe by emailing Fiona.chestnutt@gemserv.com to be added to the policy mailing list.

Fiona Chestnutt, Policy Advisor, featured on BBC Radio 4 ‘You & Yours’ Energy Special

Fiona Chestnutt, Policy Advisor, featured on BBC Radio 4 'You & Yours' Energy Special

I was delighted to join Winifred Robinson on Radio 4’s ‘Yours and Yours’ on Monday 15th August, to speak on behalf of the National Insulation Association and talk about insulation.

The cost of energy prices has never been spoken about as much, and with rises of energy costs expected to further rise in October, and potentially into 2023, there is warranted concern amongst the population. Insulation is relevant to this debate, as it is one way to significantly reduce the energy demand of a property. This brings benefit to the homeowner, who needs less energy to heat the building, but also contributes to net zero and decarbonisation targets.

The NIA consists of industry experts, installers, system designers and product manufacturers. It promotes high quality insulation in terms of products and service, so that consumers get what they expect and deserve. One of the ways we do this is through our close relationship with the Department of Business, Energy and Industrial Strategy and actively responding to government consultations. To find out more about the NIA, please visit our website here.

I spoke to Winifred about the benefits of insulation, the various types, and how consumers go about making sure they are installing the right measure for their property, at the right level of quality so that they achieve the desired outcome. Step one would be for a consumer to find an accredited installer. The NIA has a postcode locator, where installers nearby can be located, many of which are accredited. The second step to add extra surety, would be to accrue a retrofit coordinator. This is an accredited professional who will undertake an audit of your property and advise of the correct measure that should be installed, as well as making sure the materials and service is accredited to the PAS 2035 standard. This essentially means that the necessary standards are being followed so that the homeowner experiences the desired outcome. To find a retrofit coordinator, please visit the Retrofit Academy website here.

Insulation is only set to become a more important form of energy efficiency measure for homeowners, and the NIA will support government to ensure that it is a viable means to deliver benefit to home owners and occupiers.

Click below to listen back to the episode on BBC Sounds.

BBC Radio 4 Energy Special

NIA News – E-Brief

The Public Sector Decarbonisation Scheme Phase 3B: Applications due to open in September

Phase 3b of the Public Sector Decarbonisation Scheme (PSDS) is due to open to applications in September 2022 and up to £635 million is available. This is to be spent across financial years 2023/24 (£402 million of funding) to 2024/25 (£233 million of funding).

PSDS 3D Guidance

What is it? 

The PSDS provides grant funding for heat decarbonisation and energy efficiency measures for organisations within the public sector. It should be noted that heat decarbonisation remains the primary focus of the scheme.

How does it differ to Phase 3a? 

There have been refinements, namely: a proportion of funding is available for projects delivered over multiple years or more; a focus on cost effective heat decarbonisation; and emphasis on achieving savings in carbon emissions. There are also new additions to the guidance.

What are the new additions? 

  • Sector soft caps – these are to ensure the fair allocation of funding across the public sector. This is based on carbon emission distributions across sub-sectors (find more information in Phase 3b PSDS Technical Annex here. See Page 3 in the PSDS Phase 3b Guidance for how the sector soft caps will work.
  • Multi-year applications. PSDS Phase 3b funding is available across financial years 2023/24 and 2024/25.
  • Planning year. PSDS Phase 3b funding can be applied for projects requiring expenditure in 2024/25, by using 2023/24 as a year to plan. This is to improve certainty in funding commitments.
  • Applicant contribution. Applicant funding should be equivalent to the like-for-like costs of replacing their fossil fuel heating systems. This cost must be 12% of total project costs as a minimum and evidenced. If the cost is below this percentage, the applicant must make up the funding to 12%. If the cost percentage is above, the applicant must still contribute the full like-for-like replacement costs. For example, if 20% of total project costs is like-for-like, the applicant must fund the full 20%.
  • ‘Whole building’ approach. This applies only to the buildings and parts which are being heated by the proposed low-carbon heating system, and the building expected to host the system. Buildings not served by the proposed low-carbon heating system are not eligible for measures under PSDS Phase 3b.
  • Energy efficiency cap. The maximum grant proportion is 58% of total grant costs per application for energy efficiency measures.

 

Where does insulation fit in? The primary focus remains heat decarbonisation, however it promotes a whole building approach, and a fabric first approach is supported particularly where the low-carbon heating system is serving.

It also says that if the building’s heat or electricity demand can be reduced by energy efficiency measures and other enabling works, they can be included in an application for funding.

The guidance does support that heat demand within the building should be reduced, where cost-effective and practical, before installing new low-carbon heating measures.

To read the guidance, please click here

Key Dates

  • September 2022: Application Portal opens. This will close when the budget has been met through the applications.
  • January 2023: Outcomes of funding, including the announcement of successful projects.
  • 31 March 2024: Projects awarded funding for a single year must be completed.
  • 31 March 2025: Projects awarded funding for multiple years must be completed.

Thank you for your feedback!

Thank you to those who provided their feedback on the consultation response for the Welsh Housing Quality Standard 2023. This has now been submitted. Your feedback is much appreciated and helps to shape and influence industry.

Join our policy mailing list!

NIA members looking to play a part in the drafting of consultation responses are invited to subscribe to our policy mailing list.

Subscribe by emailing Fiona.chestnutt@gemserv.com to be added to the policy mailing list.

NIA News – E-Brief

22nd July 2022 - Competition Guidance is released for the Social Housing Decarbonisation Fund: Wave 2.

As promised, the Department for Business, Energy and Industrial Strategy (BEIS) has released guidance for the Social Housing Decarbonisation Fund Wave 2.

The £800m two year scheme aims to install energy performance measures in social homes in England. It was developed as part of the 2021 Spending Review Settlement and will look to tackle fuel poverty, reduce carbon emissions, improve comfort in the home whilst also developing the retrofit sector and supporting the green economy.

What does the guidance say?

The guidance provides an overview of the key headlines of Social Housing Decarbonisation, outlines the differences between Phase one and Phase two, talks about the funding available, and also gives additional considerations and an indicative timescale.

The next key date to be aware of is early August, when BEIS intends to release Application forms, further FAQs, Grant Funding Agreements, Grant Offer Letters and Data Sharing Agreements. The competition is then set to launch at the end of August, closing 8 weeks after it launches.

To read the guidance, please click here.

What are the performance and delivery considerations?

These are as follows:
  • Homes must reach EPC rating C (with exceptions for F/G rated homes that cannot reach this level
  • Installers must be TrustMark accredited
  • PAS2035 must be used to ensure quality and safety

Feedback to the NIA’s response on Welsh Housing Quality Standard 2023

Thank you to those who have provided their feedback on the draft consultation response for the Welsh Housing Quality Standard 2023. The deadline for those who have yet to respond is 27th July 2022. Your feedback helps to shape and influence industry, and your input is much appreciated.

If you haven’t received this but would like to, please email Fiona.chestnutt@gemserv.com to be added to the policy mailing list. Any questions please let me know.

NIA News – E-Brief

8th July 2022

There has been much going on in Parliament this week. Read on for a summary of certain topics you may have missed.

Updated Approved Document F1 – Ventilation 

Building Regulation Approved Document F (AD F) has been updated for England and Wales. It concerns ventilation to maintain indoor air quality and is specific to ‘Existing Dwellings’ only. It came into effect in England on 15th June 2022, and will later come into effect in Wales on 23rd November 2022.

What has changed?

The equivalent areas for background ventilation in specific locations  in an ‘Existing Dwellings’ has increased. These are as follows:

Notes

  1. Background ventilators are required in any replacement windows which are not wet rooms, if the dwelling has, or is planned to have continuous mechanical extract ventilation. The minimum equivalent area is 4000mm² in each habitable room.
  2. Additional background ventilation will not be required if the dwelling has, or plans to have continuous mechanical extract ventilation with heat recovery
  3. Additional requirements for specific scenarios include the addition of a “conservatory” or “wet room”.
The changes have been proposed to implement best practice and to ensure product and property compliance with AD F. Technical guidance is found in:
Although the changes came into effect in England on 15th June 2022, they won’t apply where a building notice or initial notice has been give to, or full plans have been deposited with a local authority before 15th June, provided that the building work is started before 15th June 2023.

What are the potential implications?

There are several potential implications such as:
  • Increased number of ventilators
  • Increased length of ventilators
  • Property / window design specific with a requirement for a ventilator to be in the sash and the head
  • The addition of window frame extensions to clear plaster lines, increased head rail size and/or a change of design

What if the existing design won’t be able to achieve regulation compliance?

There are a few options to consider:
  1. Alter the design so that it complies with regulation
  2. Specify additional vent-to-head (only one window within a wet room, two smaller vents required due to size of the window. Additional vent added to head, dependent on plaster lines a frame extender may be required)
  3. Specify over frame / glass vent
  4. Install vents to the size and quantity as is technically feasible to achieve as close to the requirements

Ofgem draft ECO4 guidance

Ofgem has published draft guidance; Draft Energy Company Obligation (ECO4) Guidance: New Measures and Products (NMAP) V0.1 | Ofgem for stakeholders who want to know about applying for and delivering new measures and products under ECO4. The document is shared on a comment basis alongside its ECO4 Administration Consultation Part 2.

It seek views on their proposed format and administration of the NMAP routes on ECO4. Please see the Ofgem ECO4 Administration Consultation Part 2 for further information on the type of feedback Ofgem are seeking, and on how to respond to the consultation.

If you have any questions, please contact Andy Morrall, Senior Technical Policy Manager Email: ECO@ofgem.gov.uk

For more information click here.

Draft Energy Company Obligation (ECO4) Guidance: New Measures and Products (NMAP) V0.1

Ofgem’s Engagement Event

Ofgem are keen to hear from industry about their proposed administration for the Energy Company Obligation (ECO) 4 scheme as set out in their consultation which closes on 18th July 2022.

ECO4 intends to launch in summer 2022, to continue its support of low-income households to make their homes more energy efficient. ECO4 is intended to launch in summer 2022.

The event will provide an overview of Ofgem’s proposals as set out in the consultation. The event will be held on:
12th July 9:30am – 11:30am

For more information click here.

Join Ofgem's Engagement Event

Energy Security Bill

With so much going on in Parliament this week it has been a challenge to keep up. However, on 6th June, the Energy Security Bill was introduced to Parliament. It aims to deliver a more affordable, cleaner and secure energy system.

The date to consult on the powers is expected later on this year, and we will keep you up-to-date. For more information please see the below factsheet:

Energy Security Bill factsheet: Power to review the energy performance of buildings regulations energy certificates (publishing.service.gov.uk)

The Energy Security Bill
Join our Policy Mailing List

NIA members looking to play a part in the drafting of consultation responses are invited to subscribe to our policy mailing list.

Subscribe by emailing fiona.chestnutt@gemserv.com

NIA celebrate the work of the insulation sector at its Parliamentary Day 2022

Energy efficiency industry gathers for the National Insulation Association’s first Parliamentary Event at the prestigious Pavilion Terrace, House of Commons.   

It was fantastic to see over 130 attendees join the National Insulation Association’s (NIA) first ever Parliamentary event on 6th June 2022. The event aimed to bring people together across the insulation sector, celebrating the hard work that industry has done so far, and to look ahead at the priorities and opportunities. Government and Industry speakers covered an array of important topics, such as the role of insultation in reaching net zero and helping to alleviate fuel poverty, and the subsequent challenges faced. A clear message was communicated throughout the day, highlighting the importance for collaboration amongst industry to uncover solutions to challenges, and it is an exciting time of unprecedented opportunity for the sector. 

The NIA would like to thank the sponsors for supporting the event; PermaRock Products Ltd, Sustainable Building Services (UK) Ltd and Sto Ltd. 

The day started at Broadway House in Westminster, where Derek Horrocks, Chairman of the NIA opened the event by welcoming everyone, advising that the day should be seen as an opportunity to celebrate the hard work of industry. Fiona Chestnutt, Policy Lead for the NIA Secretariat next spoke about the intention of the Secretariat to produce a policy paper to put to government in Autumn, to understand the role of insulation in the road to net zero and in lowering fuel bills to help mitigate the fuel poverty crisis.  

Ffiona Hesketh from the Department for Business and Energy and Industrial Strategy (BEIS) spoke about current energy efficiency and decarbonisation funding available, its lessons learned from previous schemes and a look ahead to the next three years, noting the importance for a reliable supply chain. We also heard from Simon Ayers at Trustmark, who conveyed a positive message about the progress made by industry so far in delivering quality products and services. He also presented the scale of opportunity ahead to focus on whole house retrofit to provide healthier, better efficient, and lower cost to heat homes. The first part of the day was rounded off by David Pierpoint from the Retrofit Academy who presented a roadmap of how we can reach the goals and targets needed to deliver their mission of 27 million professionally installed domestic retrofits by 2050, highlighting the importance that skills, training and qualifications will play 

Attendees then made their way to the prestigious Houses of Parliament to the Pavilion Terrace where we soaked in the atmosphere and views. MP Bim Afolami was first to speak and presented a powerful and clear message that government is committed to a net zero carbon future and emphasised the importance for industry to engage and provide clear, realistic solutions to help government pave the way to meet its ambitious targets. 

Lord Callanan, Parliamentary Under Secretary of State (BEIS) then spoke about the important role that insulation has to play in the transition to net zero, and in helping to lower energy bills highlighting the need for a fabric first approach.  

‘We all know that we have a lot more still to do, but we are putting in the foundations and we have made some measurable progress so far with a clear path of where we need to get to. We know that with the support of organisations which are committed to excellence, we will be able to pass the finish line and reach net zero in 2050.’ 

The NIA are in talks to hold a further event this year in Scotland. Until then, this event was one to remember for the NIA being its first.    

NIA members have the opportunity to influence policy and have their voice heard to drive higher levels of quality and professionalism. For more information about the NIA and how to become a member, please click here, or contact the NIA at info@nia-uk.org 

Updated Government VAT Guidance

Updated Government VAT Guidance

From 1st April 2022 until 31st March 2027, a zero rate VAT applies to the installation of certain specified energy-saving materials.

The new rules, effective from 1st April 2022 in Great Britain, remove both the social conditions test and the 60% test for all installations of qualifying energy-saving materials in England, Scotland and Wales.

What Does This Mean?

Heat pumps and the installation of certain specified energy-saving materials with ancillary supplies are zero-rated in Great Britain. For example, installing loft insulation but having to cut a new loft hatch in the ceiling and making good to access the loft. The cutting of the loft hatch and making good is, in itself, a simple construction supply, but as the services have been carried out solely in support of the loft insulation, they become ancillary.

However, if you replace your existing roof with a new insulated one, the insulation clearly is a better way of enjoying the new roof and so the insulation is ancillary to the new roof. As the supply of the roof is standard-rated, this applies to the whole supply, including the insulation.

Click Here to Find Out More: https://www.gov.uk/guidance/vat-on-energy-saving-materials-and-heating-equipment-notice-7086

Industry Calls on Government to Do More to Prevent Homes From Falling into Fuel Poverty

Industry Calls on Government to Do More to Prevent Homes From Falling into Fuel Poverty

Following the lack of focus on Energy Efficiency in the Government’s Energy Security Strategy yesterday, the National Insulation Association has signed a cross-industry letter sent to HM Treasury today. Issued by the Sustainable Energy Association, the letter calls on the Government to expand the eligibility of the Energy Company Obligation scheme to prevent homes from falling into Fuel Poverty.

View letter: https://www.sustainableenergyassociation.com/resources/eco-letter-from-the-sea/

The Government has provided support for energy efficiency measures since 2013 under the Energy Company Obligation (ECO), which has since seen over 3 million energy efficiency measures installed in more than 2 million homes. However, while the tried and tested scheme targets vulnerable households, support for homes that fall outside this definition are not eligible.

Two million more UK households could in fact be plunged into fuel poverty due to the price cap increase this April according to National Energy Action (NEA), with the cost of living crisis expected to worsen in Autumn.

Backed by leaders across the energy efficiency industry, including the NIA, the letter calls on the Government to strengthen its Energy Security Strategy by expanding the eligibility criteria for ECO.

The proposed solution is an ECO + Scheme, which would run adjacent but separate to ECO to ensure the key support the scheme brings to vulnerable households is not impacted, whilst helping those who will soon be at risk.

It is proposed that the ‘ECO+ Scheme’ would build upon the success of the current ECO scheme, bringing its benefits to the ‘able-to-pay’. It would run adjacent, but separate to, the current iteration of ECO to ensure the key support ECO brings to vulnerable households is not impacted.

A key difference is that whilst energy bill payers fund the current ECO scheme to support action to benefit vulnerable householders, ECO+ would have to be funded utilising taxpayer funding as additional costs could not be placed on energy bill payers at the current time.