The Insulation Industry Forum (IIF) has welcomed the outcomes of the Jobs, Growth and Warmer Homes report.
The report shows that more jobs and greater economic growth could be generated through energy efficiency programmes than by an equivalent investment in other Government spending programmes, or by cuts in VAT or fuel duty.
It advocates using funds generated by carbon taxes to fund long term energy efficiency retrofit schemes for the fuel poor. Not only would this take the majority of households out of fuel poverty, but would create jobs throughout the UK, improve UK energy security and allow fuel bill savings to be recycled into the wider UK economy.
However, the IIF is concerned that the delayed implementation of the Green Deal and the time it will take for a build up in momentum of solid wall schemes on-site funded by the ECO, will result in a lack of continuity of work from 1st January 2013 and dramatically fewer insulation installations in 2013.
This will lead to a stifling of the insulation industry, and 16,000 job losses, primarily in the loft and cavity wall insulation industry by the end of 2013.
The success of the Green Deal will then be at serious risk, with a direct impact on the Government’s ambitions to reach its carbon budgets, fuel poverty targets and ambitions to retrofit the UK housing stock.
Insulation Industry Forum spokesperson John Sinfield, managing director of Knauf Insulation said: “We are encouraged by the findings of the Jobs, Growth and Warmer Homes report showing that investment in energy efficiency infrastructure is the most effective way to create jobs and boost the economy.
“However, we would encourage the Government to consider the findings of this report, alongside the assessment that 16,000 jobs will be lost, primarily in the loft and cavity wall insulation industry, by the end of 2013.
“This is a great opportunity to encourage UK growth and we would urge the Government to recognise the problems that the insulation industry is facing and take steps to address them.”