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Chancellor Rachel Reeves has announced the abandonment of ECO and GBIS in the Budget, saying the costs of the schemes are not sustainable.
DESNZ is seeking cross-party support for an extension of nine months to enable delivery for the remainder of ECO and carry out remediation work where required. According to Ofgem, energy companies still have to deliver 10% of that obligation. There is no new scheme planned to replace ECO.
The government has instead committed to additional grant funding of £1.5bn which will be directed to upgrading low-income households, benefitting those in fuel poverty. The details of this will be set out in the Warm Homes Plan, which is expected soon.
The good news for the industry is free apprenticeship training for under-25s and a greater focus on opportunities for jobs and skills creation in all sectors. The government has emphasised skills, training and labour supply as necessary to support growth and construction - acknowledging the need to prepare the workforce to meet demand.
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