Autumn Budget 2024: Breaking down the key energy announcements

As a leading provider of green energy management solutions across the UK, Peterborough-based company Green Energy Switch, is here to break down the key energy announcements and what they mean for your household bills.

What’s the Annual Budget All About? In short, it’s the government’s financial plan for the year ahead. The budget explains how they’ll spend the nation’s finances and make any changes to taxation. This is necessary as most of the government’s income comes from taxes paid by people and businesses, which fund services like hospitals, schools, the military, and police.

Normally, we only get one budget each year, but with a change in government following Labour’s win in the July election, we’re seeing a fresh budget under Chancellor Rachel Reeves.

Green Energy Switch's Hopes for the Budget Support for Vulnerable Households: Doubling the Warm Home Discount to £300 and/ or introducing discounted social tariffs for disabled individuals, those entitled to certain benefits, and households experiencing fuel poverty would help alleviate financial stress. Additionally, expanding the criteria for the Warm Home Discount is essential, as many working individuals and homeowners often miss out on this support despite being in fuel poverty or facing financial hardship. This includes those who may not qualify under the current system yet still struggle to make ends meet.

Expanded Funding for Energy Efficiency: Increasing investment in initiatives that reduce energy consumption, including subsidies for energy-efficient appliances and improved insulation schemes, would be a crucial step towards making sustainable living affordable for all and helping homes meet the EPC rating of at least C by 2030.

Investment in Renewable Energy Solutions: Funding for renewable energy infrastructure and energy efficiency programs. Green Energy Switch’s home energy service exemplifies how targeted interventions can reduce energy consumption, enhance comfort, and lead to long-term savings for families and individuals.

Green Energy Switch had the chance to discuss these points BBC Two’s Politics Live, where Sarah, their Director, highlighted the rise in fuel poverty which has more than doubled since 2020, going from 3 to 6.5 million, and called for more help this winter.

So, What Did the Budget Announce for Energy and Bills? Warm Homes Plan

• A £3.4 billion investment over the next three years to improve household energy efficiency and heat decarbonisation.
• A £1.8 billion investment to support fuel poverty schemes, to help over 225,000 households reduce their energy bills by over £200.
• Increased funding for the Boiler Upgrade Scheme in England and Wales due to high demand and funding to help heat pump manufacturers meet this demand.

The government says this will lift 1 million homes out of fuel poverty and make energy efficiency improvements to 5 million homes.

Winter Fuel Payment and Pension Credit

Changes announced in July now mean only those receiving Pension Credit or certain other income-related benefits will qualify for the Winter Fuel Payment. To boost Pension Credit access, individuals applying for Housing Benefit will be proactively encouraged to apply for Pension Credit from Spring 2025. Household Support Fund

An additional £1 billion investment to extend the Household Support Fund in England, to help low-income households with the cost of essentials like food, energy and water.

What Did the Budget Announce for Energy Efficiency and Green Solutions? Support for EVs

• Over £200 million next year for more EV charge points across England, including on-street points.
• First Year Rates for car tax on EVs will stay at £10 until 2029-30. 
• £120 million to support buying new electric vans and developing wheelchair-accessible EVs.

Active Travel Funding

• £100 million more in 2025-26 for sustainable transport infrastructure like cycling routes.

Increasing windfall tax

• Increasing windfall tax to 38% until 2030 to help pay for the creation of Great British Energy (GBE).

Other Energy and Environmental Investments:

• £5 billion over two years for sustainable agriculture.
• £400 million to support tree planting and peatland restoration.
• £2.4 billion over two years for new and existing flood defences.
• Development of a Clean Power 2030 Action Plan, informed by NESO advice.
• Establishment of GBE with an initial capital fund of £100 million for clean energy projects and £25 million allocated to set up GBE’s headquarters.
• £3.9 billion to launch the UK’s first Carbon Capture and Storage (CCUS) clusters.
• £134 million to support infrastructure to facilitate floating offshore wind.
• £163 million to support existing firms to decarbonise and grow.
• £350 million to support energy efficiency, decarbonisation, and technological innovation.
• £25 million to deliver 3,000 new energy‑efficient and affordable homes.

What Green Energy Switch Would Like to See in the Future While there are promising measures here, we’d still like the government to increase the Warm Homes Discount and expand eligibility to cover more struggling households. Many people fall through the cracks, and immediate help is essential as living costs continue to rise and with winter almost upon us.

How Can Green Energy Switch Help you With Your Energy Bills? Their free home energy service ‘LEAP’ is here to support residents in Peterborough who need help with their energy bills.

After confirming eligibility, one of their friendly advisors will visit your home to conduct an energy assessment, offer advice, and install free energy-saving measures like LED bulbs or draught excluders. LEAP can also help you find better energy tariffs and may refer you onto additional services. Plus, you’ll gain access to the Appliance Scheme offering FREE items such as air fryers and heated blankets, along with other valuable grants to keep you warm this winter.

You’re eligible if:

You have a low income (less than £31,000)You receive universal credit

You receive housing benefit

You receive an income or disability related benefit