New Insulation Saves Households Nearly £200 Per Year on Gas Bills

New Insulation Saves Households £200 Per Year on Gas Bills
(Image credit: Getty Images)

Insulation fitted in six million UK homes over 10 years will have saved households around £200 on their annual gas bills as of April, new research shows.

With energy price rises impacting homeowners ahead of April’s 54% average increase to energy bills, these findings highlight the financial benefits of making energy-efficient improvements to your home, such as insulating a wall.

The Energy and Climate Intelligence Unit (ECIU) research revealed that £1.15bn will have been saved per year from new loft insulation, cavity wall insulation and heating controls, or a similar package of measures, being installed in six million homes between 2009-2019, whereby Energy Performance Certificates (EPC) were upgraded to band C. 

This upgrade from band D - the average EPC band in England and Wales - will have reduced gas demand in homes by 20%, meaning bills will be cut by £194 per year on average from April 2022. 

The ECIU says that these savings could make homeowners more likely to take action to lower their gas bills. Jess Ralston, ECIU analyst, said: “If we want to increase security of supply and reduce bills at the same time, the only answer is to use less gas. That means insulation.

“Insulation cuts the energy being wasted from leaky roofs and walls, and cuts the amount of gas we need to keep warm, bringing down bills.”

Government Faces Insulation Grants Pressure

Energy price rises will see average bills rise by £1,977 under the new energy price cap from April, and further increases are expected. Russia’s invasion of Ukraine is set to send energy prices even higher, meaning Ofgem could again increase the price cap in October. 

To address the crisis, the government has announced £200 council tax rebates for many properties and a £200 loan to cut energy bills. And Boris Johnson will soon publish a wider energy strategy to tackle the energy crisis. But industry groups are campaigning for the government to do more ahead of next week’s Spring Statement. 

Civil society groups have called for £3.6bn to be spent on insulation grants for all households, and an extra £4bn by 2025 to install heat pumps in place of gas boilers.

These 33 groups include Greenpeace, Friends of the Earth, Save the Children and Age UK, which have written to Mr Johnson, chancellor Rishi Sunak, and business secretary Kwasi Kwarteng to request this funding be actioned. 

Low-income households struggling to pay their bills can benefit from the Energy Company Obligation, which provides funding to improve their energy efficiency. And schemes such as the Renewable Heat Incentive and forthcoming Boiler Upgrade Scheme can provide homeowners with financial assistance to have heat pumps installed, which could cut £260 off your heating bills

Jack Woodfield
News Editor

Jack has worked in journalism for 11 years and is the News Editor for Homebuilding & Renovating, a role he has had since 2019. He strives to break the most relevant and beneficial stories for self builders, extenders and renovators, including the latest news on the construction materials shortage and hydrogen heating. In 2021 he appeared on BBC's The World at One to discuss the government's planning reforms. 

He enjoys testing new tools and gadgets, and having bought his first home in 2013, he has renovated every room and recently finished a garden renovation.