The independent Westminster based think tank ResPublica have launched a report this week, in partnership with Age UK, The Mineral Wool Insulation Manufacturers Association and the Energy Bill Revolution, setting out new recommendations for energy efficiency policy
ResPublica writes:
Homeowners should be offered low interest loans, guaranteed by the government, to pay for energy efficiency improvements to their homes, according to a radical new report from the leading independent think tank ResPublica.
The innovative report called ‘After the Green Deal: Empowering people and places to improve their homes’ says ‘Help to Improve’ loans would operate in a similar way to the ‘Help to Buy’ scheme. Loans would be offered by banks and building societies but guaranteed by the government.
In the first report on energy efficiency since the government announced it was cutting Green Deal funding ResPublica says the current, failing, system needs a complete overhaul because it does not provide value for money or engage with local communities.
ResPublica’s report also suggests a ground breaking system for reducing the amount of stamp duty paid on homes that make energy improvements. The report says homeowners who make their homes more energy efficient before selling them should pay less in stamp duty. It also calls for city regions to have a portion of the national infrastructure fund devolved so they can invest in energy efficiency schemes.
Director of ResPublica Phillip Blond said: ‘Consumers need help to improve the energy efficiency of their homes. This report outlines workable ways to help homeowners take control of improving the energy efficiency of their homes. It also gives details of how devolved powers can incentivise city regions to improve efficiency of homes in their local areas ensuring they are allowed to keep the money generated from energy improvements and carbon taxes. A centralised, top-down approach to government infrastructure spending needs to be replaced by more devolution to City Regions,’ he added.
Other recommendations include:
- A minimum energy efficiency standard for all domestic properties being sold or let. This would gradually increase in line with carbon reduction targets set out by Committee on Climate Change carbon budgets.
- Enable city regions to retain revenues generated from Stamp Duty Land Tax. Allowing cities to keep the stamp duty would give them greater flexibility to create their own incentives to stimulate the market and encourage positive behaviour among consumers.
- Revenues generated from carbon taxes and levies on energy bills should be retained locally. City regions should be able to invest this money in local home energy efficiency projects.
- Local Authorities should designate ‘Warm Home Zones’ to help target areas where there are few energy efficient homes and poor health outcomes. Homeowners and landlords would have to adhere to strict regulations to improve energy efficiency in these zones.
