Can we just remind, again, that prices do work?
Demands that the government must do something:
UK must insulate homes or face a worse energy crisis in 2023, say experts
Cutting heat loss from houses will be more effective in the long term than subsidising bills, according to analysis
The report itself:
An area that could make a real difference, but was entirely absent in the prime minister’s plan, would be tackling the UK’s energy efficiency problem. The UK’s homes and buildings are among the least efficient in Europe, which is making the crisis especially painful for households and businesses. Yet remarkably the Johnson government and now seemingly the Truss government have ignored this so far in their responses. The case for action is even stronger now that the government will be taking such large energy costs directly on to its balance sheet.
We agree, up to a point. Better insulation will reduce heat loss, of course. We would point out that a great deal of this has already been done. For example, the vast majority of houses without cavity wall insulation are those without cavity walls to insulate.
But the point where we disagree - that the case for government action is stronger now. No, it isn’t, the case for government action is ended. Because we’ve already that solution to hand - prices.
It is not true that if something needs to be done then government must do it. It is true that if something must be done then the incentives to do it must be properly aligned. So, the nation faces possibly bankrupting energy bills now and in the near future. They’re faced household by household too. Which means that every household in the country now has the finest incentive possible to find out about - and do - whatever insulation is possible.
We don’t need a government plan simply because we’ve already got a plan. Those prices work because prices do work. If soaring energy bills hitting wallet by wallet don’t incentivise people to insulate the loft - those few who haven’t done that already - then nothing will. It’s precisely because energy bills are soaring that we don’t need any more or other government plan.