Tag: Department for Business and Industrial Strategy

The press release issued by the Department for Business, Energy and Industrial Strategy on 18 October 2022.

New fund to boost the choice of affordable green finance products for homeowners to help them reduce energy consumption
government encourages lenders to innovate in the green finance market so families can lower their energy bills and reduce their carbon emissions
research shows houses with Energy Performance Certificate (EPC) rating C sell for 5% more than less energy efficient ones
New support launched by the government today will help banks, building societies and the wider finance industry to create more green finance products for homeowners.

The new products will be designed specifically for those looking to improve the energy efficiency of their properties.

Ministers are keen to scale up the green finance market and provide households with more choice of affordable finance options to retrofit their homes, helping them spend less on energy. It is part of wider efforts towards ensuring as many homes as possible to EPC band C by 2035 as possible.

Up to £20 million is being made available for lenders and other organisations, through the Green Home Finance Accelerator, to develop new lending products which provide upfront and affordable capital to those who can afford it, to help make their homes more comfortable, cheaper to run and with lower carbon footprints.

The funding will be used to support lenders and other providers to develop, test, and pilot new and innovative green finance products that can help a wide range of homeowners overcome the upfront costs of larger retrofit. It also seeks to boost knowledge and understanding about green finance and how energy efficiency can make homes cheaper to run.

It follows the launch of the new Energy Price Guarantee, which has capped the bill for a typical UK household to an average of around £2,500 a year until April next year. It also comes in addition to the £400 energy bills discount for all UK households.

20% of emissions come from buildings and nearly 2 thirds of owner-occupied homes are below EPC C rating, meaning their energy bills could be hundreds of pounds more than homes with a higher EPC rating.

The average EPC rating of owner-occupied homes is D. Owners of these properties can help push their homes to EPC C through various measures, depending on the property. This can often be by fitting small things like LED bulbs or heating controls. On other properties it might mean installing cavity wall and loft insulation and possibly insulating draughty floors, which together would cost on average £6,500. But these could save households over £300 a year on their energy bills. The financial products today’s funding will help create would ensure households have access to the money they need to make this kind of investment in their homes.

Minister for Business, Energy and Corporate Responsibility, Lord Callanan, said:

Driving up the energy efficiency of homes won’t only reduce our impact on the climate, but will also help houses stay warmer for longer.

Green finance products will allow households with greater means to spread costs over time, empowering them to be able to invest in their properties, improving their energy efficiency and resale value.

Today’s funding will give more companies in the financial sector the opportunity to create and offer these products, and in so doing help households reap the benefits both in the investment to their properties, and in the savings they can make on their energy bills.

Today’s announcement is the latest in a raft of measures designed to help improve the energy efficiency of the country’s housing stock.

The government’s £12 billion Help to Heat schemes includes the £450 million Boiler Upgrade Scheme, which opened to voucher applications in May 2022. This is already incentivising people to move towards low carbon heating, offering grants of £5,000 towards the upfront cost of the installation of an air source heat pump, and £6000 for a ground source heat pump.

The government is providing £4 billion between 2022 and 2026 to improve the energy efficiency of buildings, with 450,000 low-income households having their homes retrofitted with the likes of wall and loft insulation, solar panels and modern heating controls.

Homes Director for Lloyds Banking Group, Andrew Asaam, said:

Around 2 thirds of homes don’t currently achieve an EPC C rating, meaning millions of people are living in colder, draughtier, more expensive to heat homes than they need to.

We are committed to helping people improve their properties, cut their carbon emissions, lower their fuel bills, and live more comfortably in their homes. We will continue to develop, test, and launch products that incentivise, support, and reward energy efficiency home improvements.

It follows the Green Home Finance Innovation Fund in 2019, which supported the likes of Monmouthshire Building Society and Lloyds Banking Group to develop online home energy saving tools and green mortgages. They help customers work out how energy efficient their homes are and create an individualised plan for improving this, with additional borrowing at preferential rates to existing customers and tailored green mortgages to new ones.

The press release issued by the Department for Business, Energy and Industrial Strategy on 17 October 2022.

Science Minister Nusrat Ghani has unveiled a new £15 million fund for UK businesses to revolutionise satellite communications technology.

The competition, running until next spring, is open to organisations developing ambitious technologies across the satellite communications ecosystem. It will prioritise customer needs, support sustainable growth and catalyse further investment into the UK space sector, which already employs 47,000 people.

Ideas can focus on creating entire new satellite constellations, ground systems, or delivering new services to customers, and will be funded through the UK Space Agency’s leading role in the European Space Agency (ESA) Advanced Research in Telecommunications Services (ARTES) programme.

This new funding package is announced as the Science Minister travels to Rome, Italy, in her first space-focused visit overseas to meet ESA Director General Josef Aschbacher.

The meeting comes ahead of the ESA Council of Ministers (CMIN22) next month where the UK and other member states will negotiate their future contributions to ESA for priority space projects and missions.

Science Minister Nusrat Ghani said:

I am proud to be representing the UK space sector as we discuss our ambitions ahead of the ESA Council of Ministers next month. There are a series of important programmes on the table and I want to harness opportunities in space to grow the UK economy, create jobs and inspire young people into STEM careers.

We’re also making new funding available now to strengthen the UK’s position as a world leader in the satellite communications market, and I look forward to seeing the results of the competition.

The £15 million fund comes as a new report shows every £1 invested in ESA generates an overall return of £11.80 for the UK economy.

The Impact Evaluation of UK Investment in the European Space Agency also shows the UK is in the top three nations in terms of scientific output, with the USA and Germany. This is a measure of the publication rate per every £1 invested among key space-faring countries.

The UK’s role in ESA is an important part of delivering on the government’s ambitious National Space Strategy. The UK committed £374 million per year over five years to ESA in 2019 and this report looks at the impact of that investment in 2020 and 2021.

The ARTES programme is one of the UK Space Agency’s key commercial drivers for UK space sector growth and includes projects such as Eurostar Neo. UK involvement, which is expected to bring a 20:1 return on investment, will see new geostationary satellites developed by UK-based Airbus launched into space to provide better broadcast, internet and communications services around the world.

Dr Paul Bate, Chief Executive of the UK Space Agency, said:

Our ESA membership delivers huge advantages to the UK, by catalysing investment into the sector, backing innovative companies, and providing access to new missions and capabilities such as the James Webb Space Telescope.

As a founding member of ESA, UK space organisations benefit from access to world-class facilities in the UK and Europe, the expertise of ESA’s 3,000 staff, and close links to the wider international space community, including other space agencies like NASA.

This new report demonstrates how our participation in ESA translates into real results for the UK economy and continues to play an important role in meeting our national space ambitions.

The press release issued by the Department for Business, Energy and Industrial Strategy on 11 October 2022.

Consumers will pay a fairer price for their electricity as the UK government introduces new emergency powers that will ensure consumers across the country receive help with their energy bills this winter.

Without the launch of the schemes, businesses and consumers had been left facing increasing financial turmoil, with energy bills estimated to increase to as high as £6,500 before the government stepped in. Recently announced support will see a typical household pay £2,500 a year for energy, while businesses will be paying less than half of predicted wholesale costs this winter.

The Energy Prices Bill, introduced in Parliament today (12 October 2022), provides the legislative footing needed to ensure that people and businesses across the UK receive support with their energy bills this winter through the Energy Price Guarantee for domestic consumers and Energy Bill Relief Scheme for businesses and non-domestic properties. This includes essential measures that enable the UK government to deliver comparable schemes in Northern Ireland and legislation that will require landlords and heat network operators to pass benefits through to tenants.

Low-carbon electricity generation from renewables and nuclear will be key to securing more low-cost homegrown energy and we are supporting continued investment in the sector, including through The Growth Plan.

Currently in the UK market, wholesale electricity prices are set by the most expensive form of generation – presently gas-fired generation, which are significantly higher in light of Russia’s appalling invasion of Ukraine and Putin’s subsequent weaponisation of gas supplies. Low-carbon electricity generators are therefore benefiting from abnormally high prices, while consumers are having to pay significantly more for energy generated from renewables and nuclear, even though they often cost less to produce.

To further protect consumers, new powers to help sever the link between high global gas prices and the cost of low-carbon electricity have also been introduced through a new temporary Cost-Plus Revenue Limit in England and Wales. This will reduce the impact of unprecedented wholesale prices on consumers and the taxpayer by introducing a revenue limit, curbing the amount generators can make.

The precise mechanics of the temporary Cost-Plus Revenue Limit will be subject to a consultation to be launched shortly. The government has been working closely with industry on the detail of the proposal, ahead of it coming into force from the start of 2023. It will ensure consumers pay a fair price for low carbon energy and has the potential to save billions of pounds for British billpayers, while allowing generators to cover their costs, plus receive an appropriate revenue.

Business and Energy Secretary, Jacob Rees-Mogg, said:

Businesses and consumers across the UK should pay a fair price for energy. With prices spiralling as a result of Putin’s abhorrent invasion of Ukraine, the government is taking swift and decisive action.

We have been working with low-carbon generators to find a solution that will ensure consumers are not paying significantly more for electricity generated from renewables and nuclear.

That is why we have stepped in today with exceptional powers that will not only ensure vital support reaches households and businesses this winter but will transform the United Kingdom into a nation that offers secure, affordable and fairly-priced home-grown energy for all.

Chancellor of the Exchequer, Kwasi Kwarteng, said:

Our actions will mean that energy bills for the typical household will be half what they would have been this winter.

We are protecting people, holding down inflation and preventing Putin’s energy price hike from causing long term harm to our economy by supporting businesses.

The Energy Prices Bill forms yet another decisive step taken by the UK government to reform the energy market, giving Britain back control of its own home-grown energy and breaking ties to the ever-increasing volatility and uncertainty of the global gas market.

Energy Prices Bill

The Bill will introduce powers to enable the following:

Energy Bill Relief Scheme

The Energy Bill Relief Scheme will enable the government to provide financial assistance on energy bills for all eligible non-domestic customers, including businesses, charities and public sector organisations. This took effect on 1 October 2022.

Energy Price Guarantee

The Energy Price Guarantee will ensure that a typical household in the United Kingdom pays around £2,500 a year on their energy bill, depending on their use, for the next 2 years, from 1 October 2022.

Alternative Fuel Payment

This scheme is intended to deliver a one-off payment of £100 to UK households who are not on the mains gas grid and therefore use alternative fuels, such as heating oil, to heat their homes. More detail on non-domestic consumers will be set out shortly.

Northern Ireland Energy Bills Support Scheme

Powers in the Bill will provide a robust basis to allow the government to make payments and deliver NI EBSS, which will provide £400 of support to households in Northern Ireland this winter. Powers will enable a similar delivery model to the Energy Bills Support Scheme in Great Britain, in respect of using the existing regulatory regime to enforce and provide assurance to the government on delivery.

Energy Bills Support Scheme Alternative Fund

This scheme is intended to provide the £400 of support for households across the UK that would otherwise miss out on the Energy Bills Support Scheme, as they do not have a domestic electricity contract. The Alternative Funding will be made available for this winter, with an announcement on this in due course. The Bill will provide powers to deliver the funding through local authorities.

Heat network support

Powers in the Bill will ensure that heat networks benefiting from the Energy Bill Relief Scheme pass through cost savings to their consumers. The Bill provides for the appointment of an Alternative Dispute Resolution body which will handle complaints raised by consumers against their heat network if it has not complied with passthrough requirements.

Pass-through requirements on intermediaries

This legislation is intended to ensure support from the Energy Price Guarantee, Energy Bill Support Scheme, or Energy Bill Relief Scheme, are received by the end user in cases where intermediaries procure energy on their behalf in accordance with the terms of regulation. For example, the legislation will require landlords to pass benefits to through tenants with further details of the requirements under this legislation to be set out shortly.

Cost-Plus Revenue Limit

The government is taking steps to break the link between abnormally high gas prices and how much revenue low-carbon electricity generators receive. This will allow consumers to pay a fair amount for their electricity, and ensure electricity generators are not unduly profiting from the energy crisis caused in part by Russia’s invasion of Ukraine. The government recognises the importance of dispatchable and baseload generation for security of supply. The low-carbon technologies that can deliver these types of power do tend to have higher input costs (such as biomass and nuclear) and this is being considered as part of the detailed policy design.

Contracts for Difference

We are also legislating for powers that would allow us to consider running a voluntary Contracts for Difference process for existing generators to take place in 2023. A voluntary contract would grant generators longer-term revenue certainty and safeguard consumers from further price rises.

The press release issued by the Department for Business, Energy and Industrial Strategy on 7 October 2022.

The government has today (Friday 7 October) announced £10.65 million in funding to boost the development of RNA technology, the vaccine innovation that protected millions around the world from COVID-19. The funding will support the launch of a new innovation centre by CPI in Darlington, advancing the technology that is currently under development for the treatment of various cancers, flu vaccines and personalised medicines including gene therapy.

The Vaccine Taskforce granted the funding – administered by Innovate UK – for CPI’s RNA Centre of Excellence, which has the potential to make homegrown breakthroughs in the fight against a number of diseases, producing RNA material for clinical trials which will be crucial to future vaccine development.

The Centre is the only site in the UK currently able to develop and manufacture messenger and self-amplifying RNA vaccines and therapies with the capability to manufacture millions of doses of a vaccine, if required for a future healthcare emergency.

It will provide state-of-the-art equipment and world-leading expertise to support industry with the testing, scale-up and clinical production of RNA technologies – showcasing the UK’s capability in this area and helping to promote the UK as an attractive destination for further investment.

Minister for Science and Investment Security Nusrat Ghani said:

The UK’s exceptional capabilities in Life Sciences were showcased on the world stage when we became the first nation globally to approve a working COVID-19 vaccine during the pandemic.

We are now committed to boosting these capabilities even further, ensuring we are thoroughly prepared for future health emergencies and remaining at the forefront of the development of new therapies. This is why we are making this significant investment in CPI’s brilliant RNA facility in Darlington, a site with the potential to make enormous homegrown breakthroughs in the fight against disease.

The Centre will also form an important part of the UK’s commitment to future pandemic preparedness, as the government will retain priority access to the facility for up to 10 years. This will allow vaccine developers to utilise the site as required to provide additional manufacturing capacity in the event of a future health emergency or pandemic.

As part of the Centre, CPI has also established the RNA Training Academy, providing interactive courses in RNA technology alongside bespoke training at CPI facilities to ensure that companies can access the industry skills they require in the UK. The Academy has already gained accreditation to provide continuing professional development.

Tees Valley Mayor Ben Houchen said:

CPI is a fantastic example of a local organisation at the cutting-edge of biosciences and its new Centre of Excellence will be another string to the bow of the growing cluster on Darlington’s Central Park and our world-leading life sciences sector.

This latest boost comes on the back of the amazing work of the sector in the fight against coronavirus. This funding will help our scientists make even more leaps forward and breakthroughs, having a huge impact on lives across the UK and beyond. Funding of our research centres, labs and manufacturing space will help create high-quality, highly-skilled and well-paid jobs in the innovative industries of the future for local people.

While we’re seeing difficulties across the globe which are making times tough for many, our region continues to move forward and make huge progress thanks to investments like these – meaning the long-term future of Teesside, Darlington and Hartlepool is bright.

This funding illustrates the proactive steps the government is taking to realise the 2021 Life Sciences Vision, and to continue furthering its ambitions to secure the UK’s reputation as a life sciences superpower. The investment also delivers on the government’s levelling up agenda, supporting highly skilled jobs and helping bring greater prosperity and productivity in the north-east region.

The Vaccine Taskforce previously supported the construction and development of CPI’s centre with funding of £26.48 million, and to date, the government has invested over £405 million to secure and scale up the UK’s vaccine manufacturing capabilities, supporting the UK’s ability to respond to future pandemics.

The press release issued by the Department for Business, Energy and Industrial Strategy on 7 October 2022.

3D printing at record scale, AI to make steelmaking more productive and using big data to make century-old baking machinery more efficient are among the projects awarded a combined £13.7 million in government funding to help improve energy efficiency, productivity and sustainability of manufacturing processes.

The Sustainable Smart Factory Competition, led by UKRI, provides funding for projects that harness digital innovations, such as AI, big data and virtual reality, to boost energy and carbon efficiency, while driving growth for manufacturers. The projects awarded funding aim to optimise the use of materials, reduce and reuse waste, or lower energy consumption to increase sustainability in production.

Among the 12 projects awarded funding today as part of the Made Smarter Innovation Challenge are:

• Smart and Sustainable Manufacturing for Baking Industry, led by Rakusen Limited – using AI to improve the consistency of the products produced by their century old baking machinery and helping reduce energy consumption by 60%
• LEAD Factory, led by Photocentric – the first technology that will enable products to be 3D printed at scale using recycled materials
• WasteMap, led by Topolytics – using machine learning to develop a visual map of useful, reusable manufacturing products that can be extracted from our waste system
• Reducing Energy Consumption and Material Loss in Steel Production Using Predictive Machine Learning, led by Deep.Meta – using machine learning to boost sustainability in the production of steel by predicting where inefficiencies lie before they happen
• INSPIRE by Pragmatic Semiconductor – tackling global semiconductor shortages by using AI to optimise manufacturing productivity and efficiency
• Smart People + Smart Process = Smart Factory, led by Raynor Foods Limited – turning sustainability into a game at the Raynor Foods sandwich factory to enable staff to see and then act on their energy use and CO2 footprint in real time

Industry Minister Jackie Doyle-Price said:

Creating and adopting the latest in digital technology solutions will be key to the continued success of our manufacturing sector. It is now critical that companies in industries as varied as baking to advanced robotics are maximising their potential using technology such as AI and virtual reality.

The projects awarded funding today will cut energy consumption and boost growth for businesses in regions right across the UK, while helping our world leading manufacturers keep pace with ever growing global competition.

It is estimated the projects could create 1,000 jobs in the 3 years after their completion, while reducing manufacturing CO2 emissions by 300,000 tonnes a year – the equivalent to taking nearly 65,000 cars off our roads.

The successful project consortiums range from 2 to 10 participant organisations each, making a combined 55 organisations taking part. These included participants stretching from Scotland to the South West and from Northern Ireland to East Anglia. They are made up of both SME and large manufacturers as well as technology developers, Universities and Research & Technology organisations.

Chris Needham, Innovation Lead in the Made Smarter Innovation Challenge said:

Effective digital technologies can have a substantial impact on the manufacturing sector, bringing outdated, inefficient and unproductive products and processes up the standards needed for a net zero industry of the future. It’s clear from the wide range of applications we received just how far waste and energy issues extend across different industries.

The successful applicants clearly demonstrated real innovation and showed just how the right use of data and technology can make a significant difference to businesses. We now look forward to working alongside them to deliver successful outcomes.

The £147 million Made Smarter Innovation Challenge supports the transformation of UK manufacturing by pioneering the development and integration of new and existing industrial digital technologies, including artificial intelligence and virtual reality. The challenge helps take the risk out of innovation for UK manufacturers and supports the development of technologies that can be exploited commercially.

Science Minister Nusrat Ghani said:

The digital innovations we are backing today could help manufacturers of products as diverse as steel to semiconductors boost growth, create high quality jobs and enhance energy efficiency.

Through collaboration between leading UK researchers, technology firms and manufacturers, these innovations will ensure British industry remains internationally competitive, while bringing benefits to businesses in regions across the UK.

The press release issued by the Department for Business, Energy and Industrial Strategy on 6 October 2022.

The Environment Agency has today agreed to changes to the environmental permit for Hinkley Point C nuclear power station near Bridgwater.

This results from a change to the way radioactive waste will be stored at the site.

Pressurised water reactors at Hinkley Point C will use uranium fuel to create heat and generate electricity when operating. Once used within the reactor, nuclear fuel will undergo a period of cooling in a fuel pool. It will then be stored on-site before being sent off-site to a Geological Disposal Facility (GDF).

NNB Generation Company (HPC) Limited was originally issued a radioactive substances environmental permit in 2013. In the original design radioactive spent fuel was to be stored on-site in ‘wet storage’ – a method of submerging and storing in water.

The operator earlier this year applied to the Environment Agency for a variation to its permit. This was to reflect the change in the technology by which it will store spent nuclear fuel, from wet storage to ‘dry storage’. Dry storage will see used nuclear fuel stored in sealed containers within a facility before it is sent to the GDF. The permit covers the associated discharges, not the storage of waste. However, a change to the permit was required to remove or amend specific conditions related to the previous wet storage technology that are no longer relevant.

The operator has said altering the storage method will not change the expected radiation dose from discharges to the general public or the wider environment. Such doses will remain extremely small.

Following a 4-week public consultation over the proposed change, the Environment Agency has today agreed to amend the permit. More than 40 organisations and members of the public responded to the consultation.

A spokesperson for the Environment Agency said:

We agree with the applicant’s demonstration that the proposed change to spent nuclear fuel storage represents Best Available Technique (BAT) for Hinkley Point C. We are satisfied that the change will not lead to an increase in radioactive discharges and will not cause adverse radiological impact on people and the environment.

The changes will not impact our ability to effectively regulate the site and activities. We will continue to assess spent fuel storage and its impact at Hinkley Point C to ensure that discharges are minimised and that BAT is applied.

Separately, NNB Generation Company (HPC) Limited will be seeking the necessary changes to its Development Consent Order for Hinkley Point C later this year.

The press release issued by the Department for Business, Energy and Industrial Strategy on 3 October 2022.

Today (3 October 2022), the government announced that the West Burton power station site in Nottinghamshire has been selected as the home for ‘STEP’ (Spherical Tokamak for Energy Production), the UK’s prototype fusion energy plant which aims to be built by 2040.

Fusion is based on the same physical reactions that power the sun and stars, and is the process by which 2 light atomic nuclei combine while releasing large amounts of energy. This technology has significant potential to deliver safe, sustainable, low carbon energy for future generations.

The government-backed STEP programme will create thousands of highly skilled jobs during construction and operations, as well as attracting other high tech industries to the region, and furthering the development of science and technology capabilities nationally.

The ambitious programme will also commit immediately to the development of apprenticeship schemes in the region, building on the success of the UK Atomic Energy Authority’s (UKAEA) Oxfordshire Advanced Skills centre in Culham. Conversations with local providers and employers have already begun, with schemes to start as soon as possible.

The UK government is providing £220 million of funding for the first phase of STEP, which will see the UK Atomic Energy Authority produce a concept design by 2024.

The press release issued by the Department for Business, Energy and Industrial Strategy on 29 September 2022.

People up and down the country will have the chance to give their views on how the UK can eliminate carbon emissions in a way that grows the economy, under plans announced today (29 September) by Chris Skidmore MP.

This is the first stage of the rapid three-month review by the former Energy Minister, examining how the country’s legally-binding net zero 2050 target can be met while also maximising growth, increasing energy security and in a way that is affordable for consumers and businesses.

Speaking at the Business Green ‘Net Zero Festival’ in London later today, Mr Skidmore, will announce a broad month-long call for evidence aimed at the public, businesses and local authorities, giving them a chance to share their views on the green transition.

People will have the chance to offer their views on a range of topics, on everything from how cutting people’s carbon footprint will affect their everyday lives, to how reaching net zero will be paid for and what more can be done to capitalise on it to grow the UK’s economy.

Other topics will include:

• the opportunities and measures needed to support the transition to net zero, in a way that also supports economic growth and job creation;
• the challenges and obstacles to decarbonising, for households and businesses;
• what more can be done to support consumers and businesses to cut their emissions

Chair of the Net Zero Review, Chris Skidmore MP, said:

Everyone in the country has a stake in the UK’s transition to net zero. It doesn’t matter if you live in Argyle or Aberystwyth, Carlyle or Canterbury, our lives will need to change, whether that means the way we travel to work, heat our homes or run our factories.

The decisions and actions we take today will impact consumers, employees and businesses alike, in cities, town and rural communities all over the country. That’s why I want to hear the views of as many people as possible over the next month.

I want to ensure that net zero isn’t just viewed as the right thing to do for our environment, but becomes an essential driver of economic growth – and a win-win for Britain and the world.

While the UK’s world-leading target to reach net zero by 2050 remains in place, the review comes in response to major changes to the economic and political landscape, with Russia’s illegal invasion of Ukraine, historically high global energy prices and high inflation; all placing huge pressures on British households and businesses.

Chris Skidmore’s rapid review aims to identify new ways to deliver the legally binding target by 2050 in a way that is pro-business and pro-growth. It will examine the most economically efficient path to reaching net zero, while maximising innovation, investment, exports and jobs.

The UK has already managed to grow its economy by 76%, while cutting its emissions by over 44% since 1990 – decarbonising faster than any other G7 country.  Official statistics also show there are already around 400,000 jobs in low-carbon businesses and their supply chains across the UK, with turnover estimated at £41.2 billion in 2020. Both the British Energy Security Strategy and Net Zero Strategy aim to leverage an additional and unprecedented £100 billion of private investment, while supporting an additional 480,000 British jobs by 2030.

Alongside today’s call for evidence, Mr Skidmore is touring the UK to speak to as many consumers, investors and industrial leaders as possible. He will also consult with experts in areas including energy, land use and transport to help inform his review. This includes his first roundtable events this week, with one taking place tomorrow (Friday 30 September), organised by the Aldersgate Group, with more scheduled for around the country over the coming weeks.

He will report to the government with a set of recommendations by the end of this year to help turbocharge the UK’s transition to net zero by identifying key economic opportunities.

The press release issued by the Department for Business, Energy and Industrial Strategy on 29 September 2022.

Around 130,000 low-income households across England could see bills slashed by around £400 to £700 a year as their homes receive energy efficiency upgrades through the government’s latest Help to Heat funding.

Up to £1.5 billion is being made available through the Social Housing Decarbonisation Fund and Home Upgrade Grant schemes, allowing social housing providers and local authorities to submit bids for funding to upgrade the properties of around 130,000 low-income and social households.

Today’s funding will see the installation of measures such as external wall and loft insulation, energy efficient doors and windows, heat pumps and solar panels, with multiple measures often being installed in a single home to considerably improve the energy performance.

Local authorities and social housing providers will be able to submit bids for funding and will deliver upgrades from early next year until March 2025, building on more than 30,000 homes already being upgraded under the Social Housing Decarbonisation Fund and Home Upgrade Grant schemes.

Today’s announcement comes ahead of unprecedented government support which kicks in this weekend, helping to protect households, businesses and public sector organisations from rising energy costs following Putin’s illegal war in Ukraine.

Thanks to the government’s Energy Price Guarantee, for the next two years, the typical annual household bill will be £2,500, a saving of at least £1,000 a year based on current prices and energy usage. This is on top of existing government plans to give all households £400 off bills this winter. This direct and decisive action means households will receive significant protection from an 80% rise in the Energy Price Cap and won’t see average household bills increase to over £3,500 annually, with some reports predicting bills could have risen as high as £6,500 next year.

There was also no price cap in place for businesses, meaning British companies were also experiencing significant increases in energy costs – in some cases of more than 500% – but thanks to government intervention through the Energy Bill Relief Scheme, businesses, public and third sector organisations will pay wholesale energy costs well below half of expected prices for this winter.

Business and Energy Secretary Jacob Rees-Mogg said:

Putin’s illegal war in Ukraine, would have had dire consequences on the energy bills of both households and businesses this winter, without the government’s decisive action. Today I am cutting costs even further for the most vulnerable households for years to come.

By making homes warmer and cheaper to live in, we are not only transforming the lives of households across England, we are creating huge growth in the economy, backing the green energy sector and supporting thousands of high-skilled jobs.

As part of the government’s Growth Plan, which was announced by the Chancellor this week, the schemes could together support 19,000 green energy sector jobs.

Social housing with an Energy Performance Certificate (EPC) rating of D or lower will be eligible to receive Social Housing Decarbonisation Fund (SHDF) upgrades, while the Home Upgrade Grant (HUG) funding will help people who are most vulnerable to fuel poverty, living in privately-owned – both rented and owner-occupied – off gas-grid homes and on low incomes.

The cash boost forms part of £12 billion combined funding under the government’s ‘Help to Heat’ schemes, which also include the Local Authority Delivery and Energy Company Obligation schemes, targeting support to lower income and more vulnerable households.

The HUG funding will see up to £700 million available for local authorities to install energy efficiency measures in around 30,000 properties. Estimates for average annual energy bill savings for low-income households in HUG are around £700 at current prices.

Up to £800 million SHDF wave 2 grant funding will see around 100,000 social homes receiving energy efficiency upgrades, with estimated average energy bill reductions of around £400 a year at current prices. The grant funding provided by the government will have to be matched by those applying, doubling the investment being made under the SHDF scheme to around £1.6 billion.

The wave 2 funding builds on the £179 million funding announced through SHDF wave 1 in February 2022, which is upgrading up to 20,000 social housing properties.

Minister for Business and Energy Lord Callanan said:

The cheapest form of energy is the energy we do not use. Our Help to Heat schemes are already bringing real benefits to tens of thousands of low-income households across the country by improving the energy performance of their homes and saving them hundreds of pounds on their bills.

Together with the unprecedented support government is putting in place to help households and businesses with rising energy costs, this latest funding will extend that assistance even further, targeting help to those who need it most by making their homes warmer and cheaper to run.

It is set to deliver further on the huge progress that has already been made to increase the energy efficiency of UK homes.

In 2010, just 14% had an Energy Performance of C or above, however it is now at 46% and rising, with the social housing sector up from 18% in 2008 to around 66%. Energy efficiency improvements are one of the most effective ways to save money on energy bills at a time of rising global gas prices.

Kate Henderson, Chief Executive of the National Housing Federation, said:

The launch of the second wave of the Social Housing Decarbonisation Fund is hugely welcome. This vital funding will enable housing associations across the country to make significant progress in retrofitting and decarbonising their homes – work that not only cuts carbon emissions but saves residents money on their heating bills.

We know that England’s homes produce more carbon each year than the average annual use of the country’s cars, so decarbonising social homes has a pivotal role to play to meeting the country’s net zero target.

The National Housing Federation and our members look forward to continuing to work with BEIS to demonstrate the benefits that decarbonising homes has on residents’ lives.

Tracy Harrison, Chief Executive, Northern Housing Consortium said:

We welcome the opening of this important funding, which gives the North the opportunity to scale-up social housing retrofit programmes, creating good, skilled, green jobs and helping to tackle fuel poverty in our communities.

The North is ambitious for this Wave – some significant collaborations are under way and councils and housing associations are looking forward to working with BEIS to build on the momentum we’ve already established together.

This latest funding is in addition to government action to protect UK households from the costs of energy that are being pushed up by pressures on global markets following Russia’s illegal invasion of Ukraine.

The Energy Price Guarantee will limit the amount consumers can be charged for each unit of gas and electricity you use in their home and will apply from 1 October, fixing the unit cost at the equivalent of a £2500 annual bill for a typical household with average gas and electricity use.

This will save the average household £1,000 a year based on current energy prices from October. It comes in addition to the announced £400 energy bills discount for all households and together they will bring costs close to where the energy price cap stands today.

Taken together, the government is cutting energy bills by an expected £1,400 this year, and millions of the most vulnerable households will receive additional payments, taking their total savings this year to £2,200.

Meanwhile, the Energy Bill Relief Scheme will reduce wholesale gas and electricity prices for all UK businesses, charities and public sector bodies, such as schools and hospitals, meaning they will pay wholesale energy costs below half of expected prices for this winter. The next wave of the Public Sector Decarbonisation Scheme will also soon open for new applications, with up to £635 million in funding to further support bill savings in the public sector.

The press release issued by the Department for Business, Energy and Industrial Strategy on 27 September 2022.

The government has published a Growth Plan aimed at delivering higher, sustainable economic growth with an ambitious target of 2.5%, with plans that will boost investment, create skilled jobs, improve living standards and make Britain an even better place to do business. The Department for Business, Energy and Industrial Strategy (BEIS) will have a key role to play in working towards this target.

The plan lays out the biggest package of tax cuts and reforms in a generation, to encourage investment and make work pay. The planned rise in corporation tax has been cancelled, keeping it at 19%, while changes to income tax and national insurance will see over 30 million people receive a tax cut. Stamp Duty cuts will also help people on all levels of the property market.

Alongside addressing the immediate challenges of high energy costs through support for households and businesses, the government recognises the importance of acting now to grow the economy. Ultimately, growth means more jobs, higher pay and more money to fund public services, like schools and the NHS.

Cutting energy bills for households and businesses

Support for Households: Energy Price Guarantee

On 8 September, the Prime Minister announced the Energy Price Guarantee.

The Energy Price Guarantee will ensure that a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next 2 years, from 1 October 2022, with an equivalent scheme in Northern Ireland from November.

The consumer saving will be based on usage, but a typical household is expected to save at least £1,000 a year (based on current prices from October). Energy suppliers will be fully compensated for the cost of the Energy Price Guarantee. Based on 2019 median consumption, houses will save around £1,000 a year, and flats will save £700 a year.

£150 of this saving will be delivered by temporarily transferring the cost of environmental and social costs, including green levies, to the Exchequer for 2 years. This will mean customers don’t bear the costs, but benefit from the low-carbon electricity generation.

This support is in addition to the £400 Energy Bills Support Scheme available to all households. This will be paid in 6 instalments from October.

An additional payment of £100 will be provided to compensate for the rising costs of alternative heating fuels for those UK households who are not able to receive support for heating costs through the Energy Price Guarantee.

The most vulnerable UK households will continue to receive £1,200 of support (including £400 from the Energy Bills Support Scheme) provided in instalments over the year.

Support for businesses and non-domestic properties

Through the new Energy Bill Relief Scheme (EBRS), the government will provide support with energy bills for all non-domestic consumers in Great Britain and Northern Ireland (including charities and public sector organisations).

This 6-month scheme will protect them from soaring energy costs by providing a discount on wholesale gas and electricity prices.

It will apply to energy usage for all non-domestic energy users from 1 October 2022 to 31 March 2023.

Equivalent support will be provided for non-domestic consumers who use heating oil or alternative fuels instead of gas (further detail on this will be announced shortly).

In Northern Ireland, the scheme will be established on the same criteria and offering comparable support, but recognising the different market fundamentals

We will publish a review into the operation of the EBRS in 3 months to inform decisions on continued support after March 2023.

Reform to tackle root causes in the energy sector

While the interventions for households and businesses will be funded by the government, action is being taken to significantly reduce the cost over time.

A new Energy Supply Taskforce – The new Taskforce will seek to negotiate long-term agreements with major gas producers. BEIS is also working with low carbon electricity generators to reduce the link between gas and electricity prices. Successful action should smooth the price of wholesale gas and electricity over time. Such action should also increase security of supply over time, reducing the likelihood of similar energy price crises in the future.

Energy Markets Financing Scheme – Together with the Bank of England, HM Treasury are providing further details around a £40 billion scheme announced on 8 September to address extraordinary liquidity requirements faced by energy firms, due to variation margin calls. The Energy Markets Financing Scheme will improve resilience in energy markets, and the economy. To deliver the scheme, there will be a 100% guarantee to commercial banks covering additional lending they extend to firms. The scheme will provide short term financial support and will be designed to be used as a last resort, with pricing and conditions reflecting this. The EMFS will only be available to firms who are able to meet eligibility requirements.

Energy Company Obligation (ECO) – This scheme requires medium and large energy suppliers to achieve bill-savings for low-income and vulnerable households, by delivering energy efficiency improvements such as insulation. We will expand this existing obligation by a further £1 billion over 3 years, beginning from April 2023. Support will be targeted at those most vulnerable, but will also be available for the least efficient homes in lower council tax bands. This will help hundreds of thousands of customers take action to reduce their energy bills, delivering an average saving of around £200 a year through measures such as cavity wall insulation and loft insulation.

Moving to a simpler, lower tax economy

The Growth Plan reduces the tax burden by delivering tax cuts worth around £45 billion per year by 2026/27, which is the biggest tax cut in generations.

A pro-growth tax system:

• creates the conditions for business to invest, innovate and create jobs
• allows hard working families to keep more of what they earn
• is simple and fit for the future

Tax cuts for businesses

We are cancelling the planned rise of the Corporation Tax rate from 19% to 25%, which puts £19 billion back into the economy by 2026/27 and will make the UK tax system one of the most competitive in the world.

The increase in the Diverted Profit Tax rate will remain at 25%. The Bank Corporation Tax Surcharge cut will also be cancelled. Super-deduction technical rules will also be amended to ensure it works as intended at the new Corporation Tax rate.

We are introducing an investment package designed to supercharge the ability of small British businesses to raise money, attract talent and ultimately grow and succeed

The level of the Annual Investment Allowance (AIA) at is remaining at £1 million permanently, which is a tax cut for businesses of around £1.3 billion a year.

At £1 million, the AIA covers the investment needs of over 99% of the UK’s businesses.

From April 2023, the amount companies can raise under Seed Enterprise Investment Scheme (SEIS) will increase by £100,000 to £250,000, and the gross asset limit will increase from £200,000 to £350,000.

The company age limit will increase from 2 to 3 years, and the annual investor limit will be doubled to £200,000. This package will help over 2,000 start-up companies raise the capital they need to grow.

The Company Share Option Plan (CSOP) scheme options limit is doubling from £30,000 to £60,000, and the rules which restrict use of the scheme when companies have more than one class of ordinary shares (the ‘worth having’ restriction) is being relaxed from April 2023.

We are introducing a new VAT-free shopping scheme for overseas visitors, which will boost our high streets and help create jobs for those working in the travel and retail sectors.

Growth

Driving greater private capital investment

The growth plan will unlock billions of pounds of long-term investment, helping our pioneering British businesses developing new technologies, accelerate their growth and to scale up.

We are bringing forward draft regulations to reform the pensions regulatory charge cap, giving defined contribution pension schemes the clarity and flexibility to invest in the UK’s most innovative businesses and productive assets creating opportunities to deliver higher returns for savers

Building on this, the government is also introducing the Long-Term Investment for Technology and Science (LIFTS) initiative, providing up to £500 million to mobilise billions of pounds of investment into pioneering UK businesses.

Getting more people into work with the right skills

In addition to making work pay and helping working families keep more of what they earn, the government is introducing further reforms to incentivise and support people into more and better paid work.

Government will set Minimum Service Levels (MSLs) for transport, to ensure some services run during industrial action and unions cannot prevent the public making journeys that are essential for day-to-day life.

Unions will be obliged to put employer pay offers to member vote. This requires defining the calling of a strike as a breakdown in negotiations, allowing employers to engage employees directly.

In addition, the government will set out further measures relating to flexible childcare and ensuring the immigration system supports growth in due course.

Allowing business to get on with business

A simple tax system is critical for growth. Instead of having a separate arms-length body oversee simplification, the government will embed tax simplification into the institutions of government. It will therefore abolish the Office of Tax Simplification and set a mandate to the Treasury and HMRC to focus on simplifying the tax code.

The reforms to off-payroll working, known as IR35, have added complexity and cost for many businesses. To achieve a simpler tax system and reduce burden on businesses which engage contractors, the government must be ready to change course. That is why the government is repealing the reforms introduced in 2017 and 2021.

This will free up time and money for business. Businesses can now focus on the services they receive and invest time and resources in core activities that stimulate growth and productivity.

The government is reforming alcohol duty to reduce the administrative burden on businesses and tax alcohol according to its strength. This will encourage growth in the lower ABV market and incentivise product innovation.

The government will introduce a modern, digital, VAT-free shopping scheme as soon as possible, with the aim of providing a boost to the high street and creating jobs in retail and tourism.

Later this autumn, the government will bring forward a set of measures to reduce the burden of business regulation and remove barriers to growth.

The government will also set out its strategy for maximising the long-term productivity, resilience and competitiveness of the UK’s agricultural sector.

Building High quality infrastructure

The Growth Plan announces that new legislation will be brought forward in the coming months to address barriers that restrict the growth potential of the government’s landmark public investment in high quality infrastructure. This includes;

• reducing the burden of environmental assessments
• reducing bureaucracy in the consultation process
• reforming the existing habitat and species regulations
• increasing flexibility to make changes to the Development Consent Order (DCO) once it has been submitted
• reviewing the spending control framework, including the business case process, to accelerate decision making across government

The Growth Plan also announces further sector specific changes to accelerate delivery of infrastructure, including:

• prioritising the delivery of National Policy Statements for energy, water resources and national networks, and of a cross-government action plan for reform of the Nationally Significant Infrastructure planning system
• supporting deployment of onshore wind, by bringing planning policy in line with other infrastructure to allow it to be deployed more easily in England

Investment zones

The government is announcing Investment Zones, and is in early discussions with 38 Mayoral Combined Authorities and Upper Tier Local Authorities who have already expressed an initial interest in having a clearly designated, specific site within their locality.

Investment Zones will drive growth and unlock housing right across the UK. Areas with Investment Zones will benefit from tax incentives, planning liberalisation, and wider support for the local economy. Investment zones will benefit from:

• Lower taxes – businesses in designated sites will benefit from time-limited tax incentives
• Accelerated development – there will be designated development sites to deliver growth and housing. Where planning applications are already in flight, they will be streamlined and we will work with sites to understand what specific measures are needed to unlock growth, including disapplying legacy EU red tape where appropriate. Development sites may be co-located with, or separate to, tax sites, depending on what makes most sense for the local economy
• Wider support for local growth – for example, through greater control over local growth funding for areas with appropriate governance. Subject to demonstrating readiness, Mayoral Combined Authorities hosting Investment Zones will receive a single local growth settlement in the next Spending Review period

The government will announce further supply side growth measures in October and early November, including changes to the planning system, business regulations, childcare, immigration, agricultural productivity, and digital infrastructure.