Three million ‘fuel poor’ households – already struggling with the rising cost of living – are having to pay an extra £250 a year on average on fuel bills because of poorly insulated homes, new analysis by the Local Government Association (LGA) warns.

The LGA said households are wasting £770m a year as expensive heat leaks through walls, roofs and windows of the poorly insulated homes in England’s ‘fuel poor’ households.

The LGA is calling for a redoubling of efforts to insulate all fuel poor homes by 2030, saving millions from energy bills every year.

The LGA analysis shows that 2 million households in fuel poverty will need additional help to implement energy efficiency measures lifting homes up to Energy Performance Certificate (EPC) rating C by 2030.

Councils say additional help for these homes is crucial for hitting the Government’s ambition to retrofit a total of 3.1 million fuel poor homes to EPC C standard by 2030 – almost 900 homes a day.

A quarter of all families are now looking to improve energy efficiency as bills surge, but fuel poor households are least likely to afford the measures and the most likely to be impacted by rising energy prices.

Not only do poorly insulated buildings waste money, but they also increase carbon emissions and leaves homes cold and damp. By focusing on fuel poor households, the LGA said this ambition would save:

  • Up to £770m a year from household energy bills by 2030;
  • £500m in NHS spending a year;
  • 670,000 metric tons of carbon dioxide a year from 2030

Cllr David Renard, environment spokesperson for the LGA, said: “So many homes are leaking more and more money as energy prices increase. This will hit stretched household budgets hard and the public purse, while adding to the climate crisis.

“Investment now will save households further down the line, ease the cost-of-living crisis and mean families have added security and flexibility within their budgets.

“Ensuring homes are well insulated also means fewer people are at risk of the health risks associated with living in cold, damp conditions, and this is work we have to do as part of our drive to net zero.

“Councils are keen to help the Government deliver on this win-win policy and increase the number of buildings insulated by winter.”