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<p>Government policies supported investment of around £7.4bn on energy efficiency
measures<sup>1</sup> over the last parliament.</p><p> </p><p>This included spending
of:</p><p> </p><p>£2.9bn on ECO and the Green Deal<sup>2</sup></p><p>£3.8bn on CERT</p><p>£0.7bn
on CESP<sup>3,4</sup></p><p> </p><p>During the course of this parliament, Government
policies are expected to support investment of around £3.6bn. This includes spending
of<sup>5</sup>:</p><p> </p><p>£1.7bn on ECO<sup>6</sup></p><p>£1.9bn on ECO’s successor<sup>7</sup></p><p>£0.1bn
on the Green Deal<sup>8</sup></p><p> </p><p>The planned level of spend this parliament
reflects Government’s desire to minimise the impact of energy efficiency policies
on consumers’ energy bills, reduce reliance on subsidies, and set long-term policy
frameworks. Government intends to focus investment on the households that need it
most, with the aim of tackling the root causes of fuel poverty.</p><p> </p><p>We are
working to deliver our schemes more efficiently by reducing administrative complexity.
This will improve the overall value for money and ensure as much of the cost of the
schemes as possible goes towards delivery.</p><p> </p><p>A reformed domestic supplier
obligation (ECO) from April 2017 will upgrade the energy efficiency of over 200,000
homes per year for the 5 years to 2022, tackling the root cause of fuel poverty. Our
extension of the Warm Home Discount to 2020/21 at current levels of £320m per annum
will also help vulnerable households with their energy bills.</p><p> </p><p>Together
through ECO and Warm Home Discount we will be spending nearly £1 billion a year helping
with energy bills. We expect to increase our spending focused on fuel poverty from
April 2017 and again in April 2018.</p><p> </p><p>We intend to focus our efforts through
ECO and WHD more effectively on the fuel poor, and will be consulting on our future
approach in the forthcoming months.</p><p> </p><p><em>Footnotes: </em></p><p><em>[1]
Supporting costs by measure type are not available, so it is not possible to provide
spend on insulation measures specifically. </em></p><p><em>[2] Source: Green Deal
and ECO stats <a href="https://www.gov.uk/government/statistics/household-energy-efficiency-national-statistics-headline-release-february-2016"
target="_blank">https://www.gov.uk/government/statistics/household-energy-efficiency-national-statistics-headline-release-february-2016</a>
</em></p><p><em>[3] Please note that as CERT ran from April 2008 – December 2012,
and CESP from Sept 2009 – December 2012, these include some spend prior to 2010. </em></p><p><em>[4]
Source CERT Evaluation <a href="https://www.gov.uk/government/publications/evaluation-of-the-carbon-emissions-reduction-target-and-community-energy-saving-programme"
target="_blank">https://www.gov.uk/government/publications/evaluation-of-the-carbon-emissions-reduction-target-and-community-energy-saving-programme</a>
(figures adjusted for inflation)</em></p><p><em>[5] Figures may not add up to £3.6bn
due to rounding. </em></p><p><em>[6] Estimated ECO spend (April 2015- March 2017),
as reported Future of the energy supplier obligation IA <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/373650/ECO_IA_with_SoS_e-sigf_v2.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/373650/ECO_IA_with_SoS_e-sigf_v2.pdf</a>.
Note that suppliers over delivered against their ECO 1 targets (January 2013- March
2015), so actual spend by suppliers may be lower than estimated in the IA. Figures
are adjusted for inflation. </em></p><p><em>[7] Supplier spend consistent with the
2015 Spending Review announcement <a href="https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/479749/52229_Blue%5b_Book_PU1865_Web_Accessible.pdf"
target="_blank">https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/479749/52229_Blue[_Book_PU1865_Web_Accessible.pdf</a>
(page 39). </em></p><p><em>[8] Based on estimated Green Deal plans, Green Communities,
and Green Deal Home improvement Fund spending from May 2015 to April 2020. </em></p>
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