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PAS 2030/2035 Draft for Public Comment

The NIA is generally supportive of the revisions to PAS 2035/2030. We believe that high quality standards are essential to safeguard consumers and promote best practice across the industry. However, we recognise that PAS is not perfect and that some revisions are necessary to ensure that PAS works best for insulation businesses on the ground. If we are to deliver high quality, whole house retrofit at scale, it is critical to strike the right balance between quality and efficiency. Therefore, the NIA welcome PAS 2035/2030 as a crucial quality standard and believe that the latest revisions will benefit industry.

While necessary, PAS compliance can be costly and time-consuming for insulation businesses; therefore, we welcome efforts to streamline the PAS process and lessen the administrative burden of compliance. Most of the revisions seek to make the PAS process more efficient, which is something we are broadly supportive of, as long as improved efficiency does not come about by diluting quality standards.

Please see a summary of the revisions below and our response to them on your behalf.

Removal of Risk Pathways

The main change is the removal of risk pathways to simplify the PAS process (as shown below), but the key roles and responsibilities throughout the process remain similar.

The NIA supports removing the risk pathways as it should make PAS compliance easier and remove unnecessary complexities from the process. The key implications of the removal of pathways for different stages of the process is shown below.

  • Assessment: Projects would now follow the same assessment process as the previous Path B route. Thus, assessment would require a basic building assessment and more details to create an accurate RdSAP/SAP/PHPP energy model.
  • Design: The design requirements across different pathways have been standardised to simplify the process. The general design requirements under PAS 2035 are now:Complete and detailed design for the measure(s) + improvement options evaluation + heritage significance assessment + ventilation assessment & upgrade (Annex C) + medium-term improvement plan + protected building design in accordance with BS 7913 + airtightness strategy for some projects
  • Advice: Advice should be given at more points throughout the process, from inception through to handover. Advice requirements have also been standardised across pathways.

Other Amendments

Alongside the removal of risk pathways, there are a number of other minor amendments.

1. Contents of a Medium Term Improvement Plan are now a requirement in all retrofits rather than guidance.

The NIA is generally supportive of this change, as Medium Term Improvement Plans (MTIPs) are valuable and multi-purpose documents that set out a future strategy to improve a building towards net zero. Making MTIPs a requirement rather than guidance will strengthen the role of PAS 2035 in helping the UK to achieve net zero in the buildings sector. 80% of the UK’s housing stock by 2050 is already in existence and many of these properties will require future retrofit down the line to reach net zero.

MTIPs also provide invaluable data on the current environmental performance of a building and what changes should be considered in future to further improve the property. Therefore, they are excellent sources of building-specific data about the housing stock that can be used to inform future retrofits.

2. Removal of the Retrofit Advisor role pending improved qualifications in this area. Retrofit advice has not been removed from the PAS 2035 process and is delivered by other retrofit professionals.

Retrofit advice can easily be given by other retrofit professionals, so the NIA supports removing the Retrofit Advisor role in the interim while improved qualifications are brought forward in this area. We look forward to the timely introduction of improved qualifications.

3. Clauses have been included to facilitate scale retrofit by allowing Retrofit Design to commence based on Assessments of archetypes.

The NIA recognise the economies of scale that can be gained by allowing Retrofit Design based on assessments of archetypes. However, it is important to recognise that each building is different and requires an approach to retrofit that is tailored to its specific needs. It is important that retrofit designs are still building-specific to avoid the risk of unintended consequences that can arise from overly generic retrofit solutions. Hence, while we acknowledge that there are benefits in terms of efficiency to conducting assessments based on archetypes, it is vital that these improvements in efficiency do not at the expense of quality.

4. Requirements and guidance around moisture in buildings has been brought in line with language in BS 5250.

Management of moisture is a central concern for any retrofit project that seeks to improve the thermal performance and airtightness of a building. Therefore, the NIA supports bringing requirements and guidance with BS 5250 which controls condensation in buildings.

5. Explicit inclusion of airtightness as part of insulation retrofit in both PAS 2030 and PAS 2035. Requirements to produce an airtightness strategy for some fabric projects, which may include setting of an airtightness target and air leakage testing. However, airtightness testing is no longer normative as part of the assessment.

The NIA agrees with the increased consideration the revisions give to airtightness and minimising air leakage. Airtightness is a vital measure of the thermal and environmental performance of a property. When complemented with adequate ventilation and moisture control, improved airtightness can significantly improve the condition and thermal comfort of a building.

6. Clarification of what happens in the PAS 2035 process if historic significance is identified. A new Annex E is included, which contains detailed information about how to assess the significance of a building.

Protected buildings and those with historic significance can pose lots of problems when it comes to retrofit. Therefore, the NIA welcome more clarity and detail on how to assess significance and what happens if historic significance is identified. The inclusion of Annex E also contains useful additional detail about assessing significance. Historically significant buildings can be very complex to retrofit and often miss out on energy efficiency upgrades as a result. However, retrofitting them will be necessary as we move towards net zero and is also important to improve the thermal comfort of the residents living within them. As such, more clarity within PAS on how to effectively assess and retrofit significant buildings is much-needed.

7. Clarification of the role of the Retrofit Coordinator, including site visits and recording of non-compliance. There is now a requirement that the Retrofit Coordinator carries out site inspections during the project which should include a minimum of one visit.

The Retrofit Coordinator is an extremely important role within the PAS 2035 framework, so it is good to see more clarification on the requirements and expectations for the role. We support the introduction of a minimum of one site inspection during a project to ensure high quality retrofit and compliance with PAS.

8. Further Monitoring and Evaluation references the new BS 40101 Building Performance Evaluation, and Monitoring and Evaluation is now considered from inception through to completion.

The NIA support the move to consider monitoring and evaluation throughout the project cycle. Adequate evaluation is important to ensure that a retrofit project delivers on its intended outcomes and the building performs as designed once the project is completed. More monitoring throughout the process may enable potential issues to be identified earlier in the project. The reference to BS 40101 brings PAS 2035 into line with the latest improvements in building monitoring and evaluation, which we see as a positive step.

Query for Commenters

The BSI also asked respondents to provide their views on the following question:

What is an appropriate transition period for the adoption of the new PAS 2035:2023 and PAS 2030:2023 standards, allowing sufficient time for businesses and other industry bodies to comply with the updated requirements? Please submit your views as a general comment.

Many PAS-accredited businesses are already delivering long-term retrofit programmes, such as ECO4, SHDF 2, HUG 2, which are due to run until 2025 or 2026. These projects have been procured, designed and delivered to current PAS 2035:2019 standards. Changing mid-programme to new standards may not be feasible or practical, and may add unnecessary complexity to projects. Therefore, the NIA believe that a reasonable transition period is necessary to allow industry, who are already delivering ongoing long-term projects, time to adapt to new delivery standards.

Another issue is that there will be limited capacity within accreditation bodies to facilitate industry-wide updates to certification within a limited timeframe. The current relevant certification for installers is 2030:2019, which would need updating in line with any new standards. Delays in certification updates caused by a lack of capacity within accreditation bodies could leave many installers unable to provide PAS 2030:2023 certification initially and prove their compliance to new standards. This could be very damaging for individual businesses who might miss out, and the industry as a whole.

Draft Energy Strategy and Just Transition Plan

Draft Energy Strategy and Just Transition Plan (www.gov.scot)

Closing Date: 9 May 2023

Response submitted by: National Insulation Association

For more information, please contact: info@nia-uk.org

About the National Insulation Association

The National Insulation Association (NIA) represents the insulation industry in Scotland and across the UK with a member base comprised of installers, system certificate holders, and manufacturers who provide a wide range of insulation solutions for homes and buildings. The NIA and its members are fully committed to maintaining and raising standards within the insulation industry.

What more can be done to support the development of sustainable, high quality and local jobs opportunities across the breadth of Scotland as part of the energy transition?

The NIA believes that the best way to support sustainable, high quality and local jobs in Scotland is through long term policy commitments, and investment in the energy efficiency industry.

With sufficient targeted investment, Scotland can benefit from the substantial employment opportunities presented by the transition to net zero homes. Retrofitting Scotland’s buildings could create as many as 108,000 jobs over the next 12-20 years, according to a report commissioned by the Scottish Trades Union Congress.1 These jobs will be environmentally, economically and socially sustainable because energy efficiency improvements reduce carbon emissions, lower energy bills and create warmer, healthier homes for residents. Insulation jobs are also high quality, skilled trades that pay well. According to Indeed, the average salary for an insulation worker in the UK is £34,2452 – above the national average. Most jobs in the insulation sector do not require a Level 6 qualification (undergraduate degree or equivalent), so employment in this sector will help to level up communities in Scotland by providing high-skilled and well-paid technical employment for school leavers without a degree. In addition, most energy efficiency work tends be localised; therefore, installations will likely be carried out by Scottish installers and businesses, thus ensuring that employment and growth opportunities remain within Scotland. There is also a significant opportunity for job creation in low-carbon manufacturing in Scotland, particularly in the manufacture of energy efficiency products such as insulation materials. In this way, investment in energy efficiency creates sustainable, high quality and local jobs.

Long-term policy certainty is also crucial for creating jobs that are sustainable. In the past, frequent changes in government policy and short-term funding schemes have contributed to a boom and bust culture within the insulation industry. Developing a national retrofit strategy and committing to longer-term funding schemes would create the policy certainty that industry needs to invest in training and skills. It would also instil a level of confidence amongst consumers to make energy efficiency improvements to their homes. This would ensure that employment in the energy efficiency industry is secure, high quality and sustainable.

To benefit fully from the future job opportunities and growth potential offered by the net zero transition in the energy efficiency sector, Scotland will need a robust supply chain with adequate capacity to install the energy efficiency measures needed to meet net zero. In order to grow the supply chain, it is vital that the Scottish Government supports Scottish insulation businesses by investing in skills and training.

This investment must be complemented by targeted information campaigns and careers advice to encourage new entrants into the sector. It is very encouraging that Scottish colleges offer an insulation apprenticeship – something that is not yet available in England. However, uptake has been minimal so far, which highlights the need for better marketing of apprenticeships and other opportunities within the insulation industry. This correlates with research conducted by L&Q which found that only one in ten children between the ages of 16 and 18 would consider a career in construction.3 To address this, the Scottish Government should introduce more signposting in schools and colleges about the opportunities in the insulation sector and the potential routes into the sector for young people. The insulation sector is a highly skilled, well-paid sector with a strong social and environmental purpose – to reduce fuel poverty and mitigate climate change. This should be emphasised more to change perceptions about the industry and attract new entrants. Attracting and training new entrants is critical if the industry is to deliver the volume of installs required to meet net zero.

The NIA is already working with the Energy Skills Partnership (Construction) to explore how the insulation industry can help Scottish colleges improve apprenticeship uptake. We believe the Scottish Government also has a central role to play in supporting Scottish colleges to market these apprenticeships, along with other training opportunities in the insulation sector. The NIA would like to offer our support to facilitate the Scottish Government’s work in this area.

What further government action is needed to drive energy efficiency and zero emissions heat deployment across Scotland?

The main action required from the Scottish Government to drive energy efficiency and zero emissions heat deployment across Scotland is to commit to further investment and action on retrofit skills.

Skills is one of the biggest issues currently facing the insulation sector. In their Building Skills for Net Zero in Scotland report, the Construction Industry Training Board found that more than three quarters (78%) of respondents believe there will be a shortage of skills in their specific occupation when it comes to decarbonisation work. Lack of training and lack of funding for training were some of the most regularly cited reasons for the absence of appropriate skills in specific roles.4 Therefore, the NIA would like to see the Scottish Government work with retrofit employers and training providers to widen the provision of retrofit training across the country. This could involve helping employers and training providers to offer subsidised technical training courses, such as SVQs in Insulation and Building Treatments. The Home Decarbonisation Skills Training Competition exists in England to fund subsidised training courses for employees in the energy efficiency, retrofit and low-carbon heating sectors. The NIA recommends that the Scottish Government introduce a similar scheme in Scotland to encourage energy efficiency businesses to invest in upskilling existing employees and training new entrants.

Investment in skills and training is crucial to guarantee quality within the industry, which is vital to ensure the best outcomes for customers. The NIA and our members are dedicated to maintaining and raising quality standards across the insulation industry. Hence, we would support greater investment in skills, so that the industry has the large, highly-skilled workforce it needs to deliver high-quality retrofit at scale. Long-term policy certainty from government is also important as it gives insulation businesses the confidence to invest in their skills needs. Frequent changes in government policy and short-term funding schemes have contributed to a boom and bust culture within the insulation industry. Developing a coherent national retrofit strategy and committing to longer-term funding schemes would create the policy certainty that industry needs to invest in training and skills.

It is excellent that Scottish colleges offer an insulation apprenticeship – something that is not yet available in England. However, uptake has been very low so far; therefore, the NIA is working with ESP (Construction) to explore how the insulation industry can help Scottish colleges improve uptake. We believe the Scottish Government also has a key role to play in supporting Scottish colleges to market these apprenticeships, along with other training opportunities in the insulation sector. The NIA offers our support to facilitate the Scottish Government’s work in this area.

There is also a need for targeted information campaigns and careers advice to encourage new entrants into the sector. At the moment, the retrofit and wider construction sector have an image problem, particularly among young people, which prevents them from attracting sufficient new entrants. Research by L&Q has found that only one in ten children between the ages of 16 and 18 would consider a career in construction.5 To address this, the Scottish Government should introduce more signposting in schools and colleges about the opportunities in the insulation sector and the potential routes into the sector for young people. The insulation sector is a highly skilled, well-paid sector (with wages above the national average6) with a strong social and environmental purpose – to reduce fuel poverty and mitigate climate change. This should be emphasised more to change perceptions about the industry and attract new entrants. Attracting and training new entrants is critical if the industry is to deliver the volume of installs required to meet net zero.

To meet its decarbonization targets, the vast majority of Scotland’s 2.62 million existing dwellings, 20,000 public buildings, and 180,000 other buildings will need to be retrofitted.7 This will require a significant expansion of the retrofit sector over the next 10-15 years, which will bring increased demand for retrofit skills and training. Significant investment in skills and training from devolved government will be necessary to ensure that the retrofit supply chain has sufficient capacity to meet future increases in demand. Without the right support for industry, there is a risk that the transition to net zero in the energy efficiency sector will be held back by a shortage of labour and skills.

The NIA welcomes the support that the Scottish Government already provides for households to install energy efficiency measures through policies such as its Area Based Schemes and Warmer Homes Scotland.8 The NIA would like to see these schemes extended and more funding committed to them, so that we can continue to tackle fuel poverty in Scotland. In addition to these fuel poverty schemes, we would like to see further support offered to incentivise able-to-pay households to make energy efficiency improvements to their properties. This is a huge market for energy efficiency improvements and one that must be addressed if Scotland is to meet its ambitious energy efficiency targets.

Is there any further action that we, or other organisations (please specify), can take to protect those on lower incomes or at risk of fuel poverty from any negative cost impact as a result of the net zero transition?

The most effective way for the Scottish Government to protect those at risk of fuel poverty would be to offer more support for households to install insulation measures. While the Scottish Government has already committed substantial resources towards this issue, the recent cost of living and energy crises has exacerbated the problem and highlighted the need to provide further support to struggling households. According to ONS figures, 35% of properties in Scotland were in fuel poverty, as of October 2022.9 Since low energy efficiency is a key contributor to fuel poverty, the delivery of energy efficiency measures, such as insulation, to fuel-poor households is one of the key levers at the Scottish Government’s disposal to tackle the fuel poverty crisis.

Insulation measures alleviate fuel poverty by reducing household energy demand and lowering energy bills for fuel-poor residents across Scotland. Research by the Energy and Climate Intelligence Unit has found that annual gas bills for homes with an EPC of C could be almost £1000 lower than homes with an EPC of F. Hence, upgrading the energy efficiency of properties byinstalling insulation measures can deliver significant, much-needed cost savings to low-income households.10 Delivering subsidised insulation measures to households in fuel poverty will ensure that the net zero transition benefits the poorest and most vulnerable in Scottish society. Therefore, the NIA would like to see the Scottish Government commit to a national insulation programme as the best and most cost-effective way to lift households out of fuel poverty.

NIA Members Newsletter 27/04/2023

Hello and Welcome

Welcome to your regular NIA update.
Read on to find out where you can download the slides presented by Scottish Government, the Energy Saving Trust and the Energy Skills Partnership at our successful Supply Chain Capacity event in Edinburgh last week. Also read about how important it is that you’re making the most of your membership, so please take 5 minutes to complete our survey! You can also find recaps of the recent funding announcements and the consultations we are responding to on your behalf. Enjoy the update!

Make the most of your NIA membership

The ‘find an installer’ page on our website has an average of 2,000 views per month and is a fantastic way for NIA installers to generate business leads. A new contact form has been generated so that you’ll be made aware when a referral has come from the NIA. It is therefore vital that your contact details are up-to-date and you can do this by completing the short survey here.

Thank you to those who have taken part so far! If you have any questions, please contact info@nia-uk.org

Success at our Scotland Supply Chain Capacity Event

Thank you to all who joined our hotly anticipated Scotland Supply Chain Capacity Event in Edinburgh on 19 April. The event was a huge success with many members joining to discuss the current skills and training challenge we face, and the opportunity it presents for the industry.

A big thank you to our speakers – Pilar Rodriguez from Energy Saving Trust, Ed Chapman from Scottish Government and John Renwick from ESP (Energy Skills Partnership). You can find what they presented here, which covers the support available to industry to tackle skills and supply chain challenges.

It was fantastic to discuss the challenges and opportunities facing the insulation industry in Scotland and across the UK. The event was also an opportunity to emphasise the importance for the NIA and our members that we continue to put high quality installation and customer service at the heart of our work in paving the way to net zero.

The NIA Board then met afterwards and it was wonderful to gather in person to discuss our progress and plans for the rest of the year! Board meetings are important to make sure that we best represent our members. Thank you to all Board members for your valuable contributions.

Revisions to PAS 2030/2035 – Have your say!

You are invited to provide your comments on the response that we have drafted on your behalf to the BSI’s consultation on revisions to PAS 2030/2035.

For businesses that already adhere to PAS standards, the revisions are fairly minor and should not have a significant impact on your project delivery. We would not expect you to experience much difficulty adapting to the latest version of PAS. The main change is the removal of pathways to simplify the risk assessment process. Most of the other changes are relatively minor alterations intended to streamline the delivery of the scheme and reduce its administrative burden on businesses.

Your input is vital so we can advocate for PAS standards that will help industry in its mission to deliver high quality, whole house retrofit at scale. Please see the draft attached.

Please email your comments to info@nia-uk.org by Wednesday 3rd May.

Get involved in our Insulation Intelligence Engagement Call

Thank you to everyone who attended the Insulation Intelligence Group engagement call last week! It was great to hear from Ruth Richmond from DESNZ on the topic of Supply Chain Skills and Capacity – what can we do to grow the supply chain to achieve net zero buildings? The call was an unrivalled opportunity for members to put across views directly to government on the challenges holding back supply chain growth and how industry and government can work together to overcome these. Ruth found your input very valuable to understand what government can do to better support you and grow the supply chain.

If you couldn’t join and would like to feed in your thoughts, please see the attached presentation along with questions, and email either the NIA (info@nia-uk.org) or Ruth directly (ruth.richmond2@beis.gov.uk).

Join our next call!

Join us on 16 May to hear from David Pierpoint from the Retrofit Academy. He will speak about How to engage a retrofit coordinator and how does it increase an NIA Member’s opportunity? You will find out more about what the Retrofit Academy does, what their aims and objectives are, how you as NIA Members can get involved, and why they are play an important role in our path to net zero. We look forward to seeing you there!

New energy efficiency funding awarded

Last month, the Government awarded £1.8 billion of funding to boost energy efficiency and cut emissions in homes and public buildings across England. The funding is being delivered through the next phases of the Home Upgrade Grant, Social Housing Decarbonisation Fund and Public Sector Decarbonisation Scheme and will cover the financial years 2023-24 and 2024-25. Combined, the schemes will upgrade over 115,000 homes across England and support around 20,000 jobs in the construction and retrofit sectors.

Home Upgrade Grant Phase 2

  • £630m of funding delivered via local authorities.
  • Will deliver energy efficiency upgrades to over 25,000 private households.
  • Eligible households must be:
      • Low-income
      • Off the gas grid
      • EPC D-G
  • Expected to support 7,000 jobs.
  • For a list of successful applicants, click here.

Social Housing Decarbonisation Fund Wave 2:1

  • £778m of government funding, in addition to £1.1bn in match funding provided by local authorities and housing associations.
  • For local authorities, social housing providers and charities to upgrade their housing stock.
  • 90,000 homes are expected to be upgraded under the scheme.
  • Properties must have an EPC of D to G to be eligible for improvements.
  • Expected to support 13,000 jobs.
  • For a list of successful applicants, click here.

Public Sector Decarbonisation Scheme Phase 3b

  • £409m of funding
  • 144 public sector organisations have been awarded funding to decarbonise public sector buildings, such as schools and hospitals.
  • The scheme supports the Government’s commitment to reduce emissions from public sector buildings by 75% from 2035 (compared to 2017 levels).
  • This is expected to save the public sector an estimated £650m per year to 2037.
  • For a list of successful applicants, click here.

We are delighted to attend the SHDF and HUG Retrofit Ready launch event being organised by DESNZ today (27 April). We will be at the networking breakfast (9.45-10.45) to meet successful Grant Recipients and facilitate connections with NIA member organisations. We hope to see some of you there!

We know that many of you have been instrumental to the delivery of previous phases of these schemes. Good luck to those of you that will also be involved in the upcoming phases. Keep up the good work!

Great British Insulation Scheme – Government responds

The Government has released their response to the ECO+ consultation, which has been renamed as the Great British Insulation Scheme to help with consumer awareness. The Government received 176 responses to the consultation, which were generally supportive of the proposals. The plans for the scheme’s design remain broadly the same as set out in the initial consultation. You can read NIA’s response here.

The £1 billion energy efficiency programme runs from April 2023 until March 2026 and aims to improve 300,000 of the country’s least efficient homes (council tax bands A-D in England, and A-E in Scotland and Wales), saving households on average around £300-400 a year on energy bills. The government’s strategic aims for the scheme are to help tackle fuel poverty, achieve Net Zero, and reduce total UK energy demand by 15% from 2021 levels by 2030.

The main significant change from the initial consultation proposals is that all measures delivered under the Scheme will be installed in accordance with PAS 2035/2030. This was something we argued for in our response, so we are delighted that the Government has taken our comments on board. PAS has played a critical role in raising the standard of installations and customer service across the industry. Therefore, it is important to see all ECO+ measures being delivered to PAS rather than reduced standards.

Suppliers may begin delivering measures ahead of the legislation coming into force, and Government will take steps to facilitate this. Scheme targets will be confirmed when the Final Impact Assessment is published but the Government response indicates that the first-year target will be no higher than £8,850,000 in notional Annual Bill Savings (ABS).

You can find a helpful summary of the proposed scheme here. We will shortly be posting our own summary of the Government’s response on our website.

Thank you to our members for their crucial inputs to our consultation response. This is a great example of how we can work together to shape policy in the sector. Now we look forward to industry delivering the scheme successfully! If you encounter any challenges, please contact info@nia-uk.org and we can see if we can raise it.

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org

NIA’s Supply Chain Capacity Event | 19th April 2023

Thank you all of those who came along the NIA’s Supply Chain Capacity event on 19 April 2023.

It was fantastic to hear from our speakers, Pilar Rodriguez from Energy Saving Trust, Ed Chapman from The Scottish Government and John Renwick from ESP (Energy Skills Partnership), on how industry is being supported to progress the energy efficiency agenda. This was followed by a very interesting and thought-provoking Q&A session with our expert panel, which saw some fascinating points raised.

The event reiterated how important it is that the National Insulation Association (NIA) and our members continue to promote high quality installs that deliver the best outcomes for both residents and the planet.

Thank you to everyone for attending and a special thanks to the speakers for your informative and engaging presentations. We hope everyone had a great time! Please download the slides by clicking the link below.

Download the presentation

Budget 2023 Summary

Budget 2023 Summary

The Budget’s focus was around delivering on the Government’s key commitments to halve inflation and increase energy security. The Chancellor also committed to continuing the Government’s support for households struggling with the cost of living crisis. Below is a summary of some of the most relevant announcements for the energy efficiency industry and the wider net zero sector.

Energy Bills

  • The Government is maintaining the Energy Price Guarantee at £2,500 for the typical household for a further 3 months until July 2023. This is expected to save households an average of £160 on their energy bills.
  • It is also aligning charges for direct debit and Pre-Payment Meter (PPM) customers to ensure that the more than 4 million households on PPMs no longer pay a premium for their energy costs.

Call for Evidence – VAT Energy Saving Materials Relief

In the Budget 2022, the Government announced plans to expand the VAT energy saving materials (ESM) relief in Great Britain, providing tax incentives worth approximately £280 million to improve the energy efficiency of homes over a five-year period to 31 March 2027.

They have released a call for evidence seeking views on two further potential areas of reform to make the VAT relief more effective.

  • The first area concerns the inclusion of additional technologies. o Other than wind and water turbines, the list of qualifying materials has remained the same since 2006, so the Government is assessing whether it is up to date.
  • The main potential reform is a proposal to include electrical battery storage within the VAT relief for ESMs.
  • The second area proposes extending VAT relief to ESMs installed in charitable buildings. At the moment, the relief only applies to domestic and residential accommodation.

Once enacted, the Windsor Framework will mean that VAT relief for the installation of energy saving materials (ESMs) in residential accommodation is expanded to Northern Ireland. This means that VAT relief will apply in Northern Ireland as it currently functions in Great Britain.

The call for evidence closes on 31 May 2023.

Consultation – Climate Change Agreement Scheme

The Government is extending the Climate Change Agreement scheme by two years, meaning that participants who meet agreed energy efficiency targets will be entitled to reduced rates of Climate Change Levy in 2025-26 and 2026-27. The support offered over the course of the two-year extension is expected to be worth approximately £600 million. The current scheme was due to finish in March 2025.

DESNZ has released a consultation seeking views on the details of the extension and proposals for any potential future Climate Change Agreement scheme.

Climate Change Levy – Changes to Rates from 1 April 2024

From 1 April 2024, the Government will increase the main rate of Climate Change Levy (CCL) for gas to meet the frozen electricity rate, with the main rate for solid fuels being increased proportionally to gas. The main rate on LPG will continue to be frozen in 2024-25. The measure fulfils the Government’s commitment in Budget 2016 to equalise the main rates of CCL on electricity and gas in £ per kilowatt hour (kWh) by 2025.

Please see a table below outlining the main changes to the levy.

Fuel Duty Freeze

The Government is freezing fuel duty for a further 12 months, meaning the planned 11p inflationary rise in fuel duty will not take place. This will save the typical driver £100.

Energy Profits Levy – Decarbonisation Allowance

The Government is introducing a decarbonisation allowance within the Energy Profits Levy, which will provide an 80% investment allowance rate for qualifying expenditure spent on decarbonising upstream oil and gas production.

Electric Vehicles

The Government has announced that it will extend the availability of the 100% first-year allowance for qualifying expenditure on plant and machinery for electric vehicle charge-points by two years. The extension will come into force next month (April 2023) and continue until the end of the 2024-25 financial year. The allowance aims to incentivise businesses to install charging points and purchase zero emission vehicles.

Plastic Packaging Tax

The rate of Plastic Packaging Tax will increase from 1 April 2023 in line with the Consumer Price Index (CPI).

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org

NIA Members Newsletter 10.03.23

Hello and Welcome

Welcome to your regular NIA update, which comes at an exciting and busy time for the NIA and our members.

Read on for your invitation to attend our much anticipated in-person event in Edinburgh. We also remind you to complete our membership survey and why it is important you take part. We reflect on the success of our most recent Insulation Intelligence Group Engagement call and look forward to our next call with Ruth from DESNZ on supply chain skills and capacity. You can also hear about the NIA’s visit to a retrofit construction site last week.

Enjoy the update!

Energy Bills

  • The Government is maintaining the Energy Price Guarantee at £2,500 for the typical household for a further 3 months until July 2023. This is expected to save households an average of £160 on their energy bills.
  • It is also aligning charges for direct debit and Pre-Payment Meter (PPM) customers to ensure that the more than 4 million households on PPMs no longer pay a premium for their energy costs.

Join us! Supply Chain Capacity Event in Edinburgh

You are invited to attend the NIA’s Supply Chain Capacity Event in at the Novotel Edinburgh Park, Edinburgh on 19 April. The event will focus on the current skills and training landscape within the industry. It will also explore how you can make use of available funding to tackle skills and supply chain challenges.

We have an exciting and jampacked itinerary planned, giving you the opportunity to meet one another and hear from industry experts, plus a networking 3 course buffet lunch. The following confirmed speakers are:

  • • Pilar Rodriguez, Green Heat Installer Engagement Programme Manager at Energy Savings Trust, to discuss funding mechanisms.
  • • John Renwick, Sector Manager of Construction ESP, will discuss the challenge of the skills and training gap and how industry can support its progress.
  • • George Donaldson, NIA Board Member, and representative of Scottish NIA, speaking on how industry can positively step up to the challenges faced and how they can help to influence policy in Scotland.

Places are limited to two per organisation. To secure your place, please email info@nia-uk.org.

Your input matters – have your say to make the most of your membership

Thank you to those who have taken part in our short 5-minute survey. If you haven’t already done so, please click here to take part now! It will help make sure you get the most out of your NIA membership.

The postcode locator page on our website has an average of 2,000 views per month, and is a fantastic way for installers to generate business leads. A contact form has been produced so that you’ll be made aware when a referral has come from the NIA and therefore it is vital that you complete the survey to ensure your contact details are up-to-date. The survey will also provide you with an opportunity to share your thoughts on how the NIA can best represent you going forward.

Please complete the survey by 14 March 2023. If you have any questions, please do let us know. We look forward to hearing from you.

Get in the know - Join our Insulation Intelligence Group Calls

Thank you to everyone who attended the Insulation Intelligence Group engagement call last week! It was wonderful to hear from Robert Cartwright, Director of Energy Services & Solutions at CoreLogic, who gave an informative and insightful presentation about PAS2035, ECO4 & ECO+.

You are encouraged to attend our next call on 20 April, which offers you an amazing opportunity to feed in directly with government. Ruth Richmond from the Department for Energy Security and Net Zero will be speaking on the topic of Supply Chain Skills and Capacity – what can we do to grow the supply chain to achieve net zero buildings?

Ruth invites you to share the challenges you feel are holding back supply chain growth, and how government and industry can work together to address these challenges. This is a fantastic chance to directly engage and influence policymakers about the issues facing the industry.

On 16 May, you will have the opportunity to join the engagement call with David Pierpoint from the Retrofit Academy for Building retrofit capacity and capability – how can you support a growing energy efficiency workforce? More details to follow in due course.

NIA visits retrofit construction site

Last week, our Policy Advisers Fiona Chestnutt and Matt Rudd visited NIA member Sustainable Building Services at one of their retrofit sites in Reading. It was wonderful to see such a fantastic example of how industry can deliver retrofit projects to high standards and in line with industry best practice.

We came away with some fascinating insights on the challenges facing retrofit projects on the ground and how policy can address these to make the retrofit process as effective and efficient as possible. We will be sharing these thoughts with you via a thought leadership piece. We will continue to advocate for policies that will make the retrofit process work better for insulation businesses and their customers.

It is very important that you, as NIA members share your personal experience delivering retrofit schemes and working in the industry, so that we can better understand your challenges to help influence our discussions with government. Please do reach out to share any insights you may have, by emailing info@nia-uk.org or calling 0121 716 4558.

Massive thank you to Sustainable Building Services (UK) Ltd for letting us visit and keep up the good work!

NIA responds to the Just Transition Plan to Net Zero Wales Consultation

The NIA will respond to the Welsh Government’s Just Transition to Net Zero Wales consultation. It seeks views on the best approach for Wales to achieve net zero by 2050. The evidence gathered will inform the development of the country’s decarbonisation pathway.

You can view the consultation documents here, and the submission will shortly be posted on our consultations webpage.

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org.

New Government Departments and Reshuffle

Today (7th of February) the Prime Minister has created four new government departments. These changes are focused on the Prime Minister’s five promises (to halve inflation, grow the economy, reduce debt, cut waiting lists and stop the boats).

The new departments are:

  • Department for Energy Security and Net Zero
  • Department for Science, Innovation and Technology
  • Department for Business and Trade
  • Department for Culture, Media and Sport

Rishi Sunak pledged to create a new government department devoted to energy security as part of his summer leadership campaign. The UK had a separate energy department before it was merged with the business department by Theresa May in 2016 to create BEIS.

There is an urgent need to develop low carbon technologies and deliver the Net Zero Strategy by the end of March. The new Department for Energy Security and Net Zero is a positive change for government, allowing for a focused approach to develop low carbon policy.

Currently, BEIS have confirmed there is no action for us to change BEIS branding across our projects in Gemserv.

Department for Energy Security and Net Zero

This department has been tasked with securing long-term energy supply, bringing down bills and halving inflation. The move recognises the rise in energy bills, as a result of Russia’s war in Ukraine, and the need to secure ‘home grown’ energy from nuclear and renewable sources to achieve net zero in the UK.

Rt Hon Grant Shapps MP appointed Secretary of State.
During his time at BEIS, Shapps made reforms to the onshore wind farm planning regime, investment in energy efficiency, and support for clean technology innovation as priorities.

Department for Science, Innovation and Technology

This department will drive innovation for improved public services, creating new and better-paid jobs and grow the economy. It will focus on scientific and technical innovations, turning them into practical, appliable solutions to the challenges faced in the UK.

There could be some cross over between this department and the Department for Energy Security and Net Zero, with the Department for Science, Innovation and Technology covering “technical innovations”

Rt Hon Michelle Donelan MP appointed Secretary of State.

Department for Business and Trade

The department will support growth by backing British businesses nationally and abroad, promoting investment and championing free trade.

Rt Hon Kemi Badenoch MP appointed Secretary of State.

NIA Members – E-Brief 23/01/2023

NIA Members – E-Brief 23/01/2023

Hello and Welcome

Welcome to your first NIA update of 2023, which comes at the beginning of what is set to be an exciting year for the NIA and you as members! Read on for more information about the first Board meeting of the year and our new Insulation Intelligence Group engagement calls, which you are invited to. On the policy front, hear how our Policy Advisors James and Fiona got on at Number 10 Downing Street last week, as well as a summary of Scotland’s Draft Energy Strategy and Just Transition Plan, which is now out for consultation. Plus, lots more in this jampacked edition.

We hope you enjoy the update!

First Board Meeting of 2023!

The first Board meeting of the year took place on Tuesday 10 January. It was wonderful to see all the board members in person again to discuss and prioritise plans for the year ahead. Board meetings are vital to ensure that you and wider industry are best represented, and we thank all Board members for their valuable input to the productive session.

Your newest board members, Danielle Belton, Paddy Leighton, and Joe Kelly bring a wealth of knowledge in the insulation industry to the table, which you can read more about below.

Danielle Belton, Saving Energy UK:
‘Having worked in the Energy Efficiency industry since 2003 I have a wealth of knowledge from the ground up. I sit on a number of boards and committees helping to shape our vital industry. Since 2019 I have been active in Local Politics holding a number of positions at Town and District Level including cabinet member for Climate and Economy. I am very much looking forward to representing members of the NIA’

Paddy Leighton, Icynene:
‘I welcome the opportunity to represent the insulation industry as a Board member for the NIA. Having worked within the construction industry for the last 46 years, I’ve gained a broad depth of knowledge. My own construction business began in 2005 which branched out into external wall insulation, where I assisted the Insta Group to develop their own external wall insulation system, to now being more focussed on spray foam. Since 2014, I am the UK Distributor for Icynene (now owned by HBS), dealing with U value calculations, condensation risk analysis and offering technical advice relating to foam insulation on a daily basis.’

Joe Kelly, Baxter Kelly:
‘With a successful career in business ownership, I am keen to join the NIA Board and lend my support to the work of the association and sustainable growth across the insulation industry. Baxter Kelly have been members of the NIA for many years. They provide customers with a full range of energy efficiency solutions, working for individual homeowners nationwide along with construction companies, local authorities, housing associations, insurance companies and loss adjusters.’

The NIA Board, meeting on 10 January 2023

Invitation to Number 10 Downing Street

The NIA is pleased to be recognised for its busy involvement in helping to address the skills gap (more on this to follow in a couple of weeks!). Our very own James Higgins and Fiona Chestnutt attended an energy efficiency workshop at Number 10 on 19 January 2023. It was a fantastic opportunity for around 40 key stakeholders to discuss the supply chain challenges facing the energy efficiency industry. Working with government is vital to ensure that the supply chain is ready to meet increased future demand for energy efficiency measures, and it is promising to see this as one of government’s priorities. It was a great chance for NIA to put across the views of members and the insulation industry, and we will be sure to keep you updated with any outcomes.

Join our new Insulation Intelligence Group engagement calls

You are invited to join our new Insulation Intelligence Group engagement calls. It is important that the NIA represent you and your views, and that you are kept up-to-date with key topics from industry. These calls aim to improve your knowledge by hearing from experts in industry, and to provide you with an opportunity to share your views on some of the biggest issues and opportunities currently facing the insulation sector. They will be held online for 45 minutes and we look forward to seeing you there!

You will receive an Outlook invitation over the coming week to join calls on the following topics:

Government SHDF and HUG funding: what benefit will you see, and how to best make use of the opportunity, held 2 February 2023 12.00-12.45.
NIA members will hear from Ruth Richmond, BEIS, about the details of Government funding that is aimed to accelerate decarbonisation, along with further information to help NIA members be aware of their associated opportunities.

• PAS2035, ECO4 and ECO+ – find out more: how do these link together and what do you need to know? Held 1 March 2022 12.00-12.45.
Join the NIA and Rob Cartwright who will cover these key topics, presenting how industry can make the most of the opportunity they offer.

• Supply Chain Skills and Capacity – what does industry need and what solutions could meet the challenge, held 16 April 2023 12.00-12.45.
NIA members will hear from Ruth Richmond, BEIS, who is seeking to understand from Members what supply chain challenges are felt by industry, and what solutions they believe Government can help with.

If you have any questions, please contact info@nia-uk.org

ECO+ Consultation – Our response on your behalf

Thank you to those who joined the constructive working group held in December to contribute to the ECO+ consultation, and to those who provided feedback. Your advice and insights helped to inform and enhance the response, which was submitted on 23 December 2022.

Please find a full copy of our consultation response here

If you would like to be made aware of future consultations, please join our Policy Group by emailing info@nia-uk.org.

Scotland’s Draft Energy Strategy and Just Transition Plan

The Scottish Government have released their Draft Energy Strategy and Just Transition Plan. The plan is currently out for consultation and the consultation closes on 4 April 2023. The plan sets out policy positions and a route map of actions that the Scottish Government will take to deliver a just transition to Net Zero.

On the energy efficiency front, the Scottish Government referenced several actions they are already taking, along with some future commitments, to help improve energy efficiency nationally. These actions include:

Bringing forward a new Heat in Buildings Bill to regulate energy efficiency and zero direct emissions heat in buildings.

Investing over £1.8 billion in decarbonising homes and buildings, through Heat and Energy Efficiency Scotland, over the course of this parliament.

➢ Publishing a Public Engagement Strategy for Heat in Buildings in 2023.

Introducing a Home Energy Scotland Grant and Loan Scheme in 2022/23 to help people afford the upfront cost of energy efficiency upgrades. This includes enhanced support for rural off-gas households.

Dedicating almost £9 billion for environmental sustainability and the net zero transition though the 2021-22 to 2025-26 Infrastructure Investment Plan.

Providing capital to support green industries and the green jobs associated with them via their £100 million Green Jobs Fund.

➢ Mandating that all local authorities in Scotland must publish Local Heat and Energy Efficiency Strategies by the end of 2023 and update them every 5 years.

The Big Loft Insulation Drive

Our partner One Home is leading the Big Loft Insulation Drive, in conjunction with the Energy Savings Trust and Trustmark, to help people insulate their loft, save money on energy bills and keep the heat in this winter.

You’re encouraged to raise awareness of this worthwhile campaign to share the importance of a properly insulated loft. Please see some information from One Home below about how you can support the campaign.

Members may use One Home’s partner toolkit shared folder to help share the campaign. It includes template messages, graphics, and a fabulous video for social media. If you wish to use social media, you are encouraged to use the hashtag #KeepTheHeat.

If you’re supporting the campaign or would like further information, please email info@onehome.org.uk

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org