The Sustainable Energy Association today responded to the Chancellor’s budget with heavy criticism of the decision to end the Energy Company Obligation with effect from March 2026.

Ending the ECO scheme so abruptly without fully funding its activity by other means is the wrong way to achieve reductions in energy bills. The Chancellor’s decision to reduce bills by funding renewables legacy costs from the exchequer is sensible, but it is perplexing she is not doing likewise for the country’s largest energy efficiency programme, and the one most focussed on relieving fuel poverty.

This is a cut of around 25% of the total funding promised in the Government’s election manifesto across public expenditure plus ECO, and the notion that the same delivery of 5 million home upgrades can be achieved at a much lower cost per dwelling completely unrealistic.

Unless more credible alternatives are put in place, it is society’s most vulnerable consumers who now stand to lose access to measures that can reduce their energy bills while keeping their homes warm across the winter months.

Cutting the UK’s largest home insulation scheme also sends the wrong message to industry, will result in thousands of job losses, and prevent vital investment in the retrofit supply chain.

The reduction in electricity prices in today’s announcement does not go far enough to incentivise consumers to switch away from fossil fuel systems, and alternative means of funding all other electricity levies must be found. This should happen while implementing wider electricity market reform, a rebate for consumers on the electricity costs for clean heating systems, and increasing recognition of demand side response and flexibility within policy.

Contact michael.williams@sustainableenergyassociation.com for further details or to request an interview.