Lack of new funding dampens GB Insulation Scheme launch

The Energy Company Obligation+ (ECO+) scheme has been rebranded as the Great British Insulation Scheme (GBIS).

The (GBIS) will run alongside ECO4 and will focus on the rollout of home insultation. It is the first scheme to be launched by the recently-formed Department of Energy Security and Net Zero.

Its formation is part of a raft of energy security and net zero measures announced by the government today (Thursday 30 March).

It will form part of the previously announced £1 billion energy efficiency programme running from spring until March 2026.

The GBIS has been set up to accelerate installation measures in people’s homes such as cavity wall insultation or loft insulation.

The government predicts that in the final two years of the scheme, some 2,000 installers will be needed to carry out retrofitting of UK households.

Despite the formation of the insultation-targeted scheme, some have questioned its effectiveness to tackle energy inefficient homes.

The Association for Decentralised Energy (ADE) director of policy and research Caroline Bragg said: “The Great British Insulation Scheme marks an important step forward, but to be truly great, the ADE would have liked to have seen new money committed – the £1 billion it includes has already been pledged.

“Despite this, the scheme will play a critical role in driving much-needed energy efficiency investment up until March 2026, and is a long overdue step towards reducing bills, delivering net zero and boosting energy security.”

Jess Ralston, head of energy at the Energy and Climate Intelligence Unit, added: “With bills still high, no new money for insulation will leave many households in the cold.”

Meanwhile, Insulate Britain spokesperson Zoe Cohen has said that upgrading 300,000 homes is not ambitious enough of a target.

“We need radical changes that go way beyond what is being promised by this government,” Cohen said. “300,000 homes is not even a drop in the ocean.”

She added: “There are 29 million homes in this country, most of which are very bad quality […] and need upgrading.”

A minimum of 20% of the support provided through the scheme will go towards low-income and vulnerable households.

However, unlike previous iterations of the ECO scheme, the GBIS will not solely be available for low-income households. Those living in homes with an EPC rating D-G and within council tax bands A-D in England and A-E in Scotland and Wales will also be eligible for support regardless of their income status.

Each household in the new “general group” will, however, only be able to receive one measure of support. Owner occupied households in the low-income group are eligible for heating controls in addition to an insulation measure.

The cost of delivering GBIS will be included within the Energy Price Guarantee. To facilitate that, an allowance for the scheme has been included by Ofgem in the default tariff cap (the price cap) from April 2023 onwards.

The government announcement of GBIS said that the rebrand had been made “to help with consumer awareness, and recognition of the support available”.

Last week, a report by Citizens Advice’s consumer service warned that consumers are “confused and face numerous problems” with energy efficiency support schemes available to them.