Autumn Statement: £6bn extra to reduce energy consumption by 15% by 2030

Insight & comment17.11.224:30 PM by Grainne Cuffe

The UK government is planning to reduce energy consumption by 15% by 2030, the chancellor announced in the Autumn Statement.

Chancellor Jeremy Hunt delivers the Autumn Statement (picture: Parliament TV)

Delivering the budget in the House of Commons, Jeremy Hunt said the government will be doubling funding to improve the energy efficiency of buildings and industry to achieve the target, adding another £6bn from 2025.

The government has already pledged £6.6bn to invest in the energy-efficiency of buildings.

Mr Hunt said the 15% reduction in demand will equate to savings of £28bn on the national energy bill at today’s prices, “or £450 off the average household bill”.

Mr Hunt said earlier that, this year, the country will be spending £150bn more on energy compared with pre-pandemic levels.

He said that was the equivalent of paying for an entire second NHS through energy bills.

“Over the long term, there is only one way to stop ourselves being at the mercy of international gas prices: energy independence, combined with energy efficiency.

“Energy independence, so neither [Vladimir] Putin [the president of Russia] nor anyone else can use energy to blackmail us, and energy efficiency to reduce demand and climate impact as much as possible,” he said.

Mr Hunt added that the business and energy secretary will publish further details on energy independence plans and a new energy-efficiency task force shortly.

These plans are expected to include an expansion of home-insulation programmes.

Bloomberg reported on Wednesday that the government plans to invest billions in insulating homes and upgrading boilers in a bid to reduce energy demand.

Currently, low-income households and people on certain benefits can receive free energy-efficiency improvements through their energy supplier and local council.

The government plans to expand these programmes, meaning hundreds of thousands more households in council tax bands A to D will be eligible to apply for government support for insulation and other improvements.

The energy task force announced by Mr Hunt today will oversee the programme.

There will also be a public information campaign to encourage individuals and firms to reduce their energy consumption.