The impact of the governmentβs proposed changes to ECO is just becoming clear β and itβs not a pretty sight
So now we know. It was always clear, from the moment that David Cameron pledged in prime ministerβs question time to βroll back the green taxesβ on energy bills, that this political gesture would have an impact on jobs in the broader construction industry - in particular for those involved in domestic retrofit work. But a look at the fine print behind last weekβs consultation on the proposed changes to the Energy Company Obligation (ECO) shows us just : 14,000 jobs; a Β£900m reduction in workload; and a halving of the number of installations of cavity wall insulation in hard-to-treat homes.
As we said at the time Cameron made his announcement, this is an example of populist policy-making at its worst. He cut the βgreen taxesβ on energy bills because, though fairly small, they were the quickest and most politically painless way he could respond to Labour leader Ed Milibandβs taunting over those bills. This ignored the fact that the measures paid for by ECO actually reduce energy bills for those least able to pay them.
The industry now has to dust itself off and prepare for the likely new reality contained in the consultation
There is no point crying over spilt milk. The industry now has to dust itself off and prepare for the likely new reality contained in the consultation. And there is good news too: more measures will be allowed, such as installations in easy to treat homes, and the longer time period for ECO may smooth out the boom-bust effects of this time-limited programme.
But it is a depressing example of what can happen when an issue becomes a political hot potato, and we should hope for better from whoever forms the next government.
Joey Gardiner, assistant editor
No comments yet