Cut in green levies could result in mass job loss

This is according to the UK Green Building Council, which is urging Government to retain a strong Energy Company Obilgation (ECO).

Construction firms installing energy efficiency measures through ECO and manufacturers, which make products such as solid wall insulation, fear over 10,000 jobs could be lost if ECO is scrapped or scaled back.

Prime Minister David Cameron has signalled his desire to “roll back” green levies following the public debate on the cost they add to household energy bills. Government is expected to announce its intentions in the Autumn Statement on 5 December.

The Association of the Conservation of Energy (ACE) estimate up to 33,000 people are currently employed delivering ECO and the Green Deal. This should have risen to 60,000 jobs in 2015, according to Government’s own projections.

Paul King, Chief Executive of the UK Green Building Council, says: “The Prime Minister needs to realise that going after ECO in a bid to cut household energy bills could end up costing 10,000 construction and insulation jobs. That will decimate the very industry that is helping people – including some of the most vulnerable in society – reduce their bills in the long-term.”

The National Audit Office recently released a report claiming that consumers will face 17 years of household utility bill price increases to pay for new infrastructure. However, the report adds that Government departments should consider the implications for consumer bills and their overall affordability, as well as the impact on fuel poor households, before making policy commitments.

The cost on domestic energy bills via the Energy Company Obligation (ECO), which provides free and subsidised energy efficiency measures, is £47 a year. However, the National Insulation Association (NIA) points out that the savings available to householders through installing energy efficiency measures can far outweigh this cost with cavity wall and loft insulation saving around £320 per year and solid wall and loft Insulation around £670 per year, according to the Energy Saving Trust.

Neil Marshall (pictured), Chief Executive of the NIA, says: “The ECO is the only Government policy specifically designed to reduce energy bills by improving the energy efficiency of our housing stock and therefore it is vital that it is retained and not rolled back or cut as part of the Governments review of green levies.

“In addition to reducing energy bills and tackling the cost of living, there are other benefits to be derived from the scheme including tackling climate change, reducing cold related winter deaths, security of energy supply and job creation. It is important that rather than simply talking about the costs of green schemes, the public are made aware of the savings and benefits the ECO can provide.”

Rob Lambe, MD of Willmott Dixon Energy Services, adds: “We have invested heavily in establishing a business to respond to the projected market opportunities of energy efficiency under ECO. Over the next year we anticipated employing more than 400 tradesmen installing insulation to solid walled properties. But if ECO funding is cut, this work will simply come to a grinding halt and these jobs will be lost, with thousands more at risk in the wider industry.”

Sally Hancox, Director at Gentoo, comments: “The position the industry currently finds itself in is extremely serious and we are calling for urgent action to be taken before more jobs are put at risk and vulnerable households left to choose between eating or heating their home this winter.

"We believe that the Coalition’s brave, strong initial commitment to ECO remains right; the large scale installation of green measures actively stimulates economic activity, it creates jobs, and addresses the growing issue of fuel poverty.”