Lib Dems unveil plan for energy-efficient households

Party's pledge puts pressure on government over its own environmental plans
Allegra Stratton, political correspondent
guardian.co.uk, Thursday 12 February 2009 09.07 GMT

Every UK home will be made energy-efficient within 10 years in a compulsory revamp of British housing stock equivalent to the "digital switchover", the Liberal Democrats will promise today.
The launch of the strategy, entitled Warm Homes, was immediately denounced by the Conservatives who accused the Lib Dems ofimitating a Tory policy.
The party's ambitious pledge increases pressure on the government, which will today announce its own plans to offer voluntary eco-makovers to one in four British homes.
The renewed cross-party push on the energy-efficiency of households comes after the housing minister, Margaret Beckett, admitted that "less than 1%" of British homes meet the industry standard. It was the first time the government had made such an estimate.
It is estimated that carbon emissions from British homes account for a quarter of the country's total. Under EU agreements, the government has 42 years to cut emissions by 80%.
The issue of energy-efficient households has been targeted by fuel poverty activists and climate change campaigners alike, but while the government's plans would see emissions from homes cut by a third, campaigners believe a cut of two-thirds is needed if the government is to hit its target.
Announcing his party's plans today, Simon Hughes, the Lib Dems' climate change and energy spokesman, said: "One per cent of our current stock being energy-efficient is pathetic. The trouble with the government's proposals so far is that they are mere pimples on the surface."
Last week the National Audit Office reported that as much as half of Britain's poorest households were ineligible for help from the £852m Warm Front scheme to cut fuel bills with grants for home insulation and heating.
In the announcement today Hughes will propose that the government underwrites renovation work worth £6,500 per household, adopting as party policy a recommendation that was originally made by the independent Energy Saving Trust, which was also adopted as party policy recently by the Conservatives.
This morning the Conservatives accused the Liberal Democrats of"copying" their figure. The Tories said the trust had respondedwith "bewilderment" at the idea their it had ever recommended a figure of £6,500. The Conservatives said the Liberal Democrat policy was a "pure copy".
Within what the Lib Dems are calling the national green loans scheme, householders would apply for commercial loans to revamp their homes, with the cost being repaid through energy bills that should fall because of improved energy efficiency of the renovated house.
Of the total, £5,000 would pay for the cost of the renovation work, and £1,500 would cover administration.
The roll-out would be advertised in the manner of the TV digital switchover and houses targeted for renovation that year would have to opt out if the householder did not want to proceed with the energy improvements.
The party would aim at upgrading more than two million homes a year for 10 years, and would award the contracts to regional building companies rather than large national companies such as Wimpey and Barratt.
Hughes said: "The national bill will be very expensive – almost £1.5bn – but annually we spend £200bn on house building across the country and £80bn collectively doing DIY in our homes."
The energy and climate change secretary, Ed Miliband, is expected to announce financial incentives such as grants or cheap loans that could be passed on to the owner should the property be sold.
A Department of Energy and Climate Change spokesperson said: "Our ambition is real and practical - we can't leave this to the enthusiasts and the wealthy. Our plans will break down the barriers by offering advice and financial packages that will help people save money and prepare for a low-carbon future."