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Energy bills and growth: what industry demands mean for homeowners

Energy bills and growth: what industry demands mean for homeowners

The UK’s energy bills remain stubbornly high, with the typical household paying around £1,568 a year under the current price cap. Industry bodies have now turned to regional leaders, calling on Greater Manchester Mayor Andy Burnham to make energy affordability a core driver of economic growth. The message is clear: without cheaper power, homes won’t retrofit and businesses won’t invest.

As reported by City AM, the coalition of business and environmental groups argues that reducing household and commercial energy costs is the single fastest route to unlocking investment and improving living standards. For homeowners, the practical question is what you can do while the policy debate plays out.

Why energy bills are a growth problem

UK electricity prices are among the highest in Europe. Industry groups point out that network charges, policy levies, and wholesale costs combine to push bills 50% above the EU average in some regions. That hits homeowners directly, higher standing charges, less disposable income for retrofits, and indirectly, because local businesses pass on costs.

The call to Burnham is part of a broader push for devolved energy strategies. Greater Manchester already has a target to reach net-zero by 2038, but without cheaper power, the cost of heat pumps and insulation remains a barrier for typical households. The groups want the mayor to lobby for a regional energy tariff, faster grid connections for local renewables, and a share of the UK’s £6 billion energy efficiency funding.

But, and this is the catch, none of that will lower your bill tomorrow. Policy shifts take years. What you can do now is more immediate.

What this means for your EPC and bills

Energy Performance Certificate ratings are directly tied to heating costs. A home rated EPC D or E typically costs £1,000–£1,500 more per year to heat than a C-rated property. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.

Industry bodies’ calls for lower bills also highlight a deeper point: the cost of inaction is rising. Ofgem’s latest price cap adjustment shows standing charges still climbing, adding roughly £20 a year to the average bill. If you can cut your energy demand by 20% through loft insulation (costing around £300–£400) or cavity wall insulation (£500–£700), you recoup that spend in two to three winters.

For those considering heat pumps, the upfront cost remains the big hurdle, typically £7,000–£13,000 installed, with the BUS grant covering £7,500 from October 2024. But running costs can be 30% lower than a gas boiler if the home is well insulated. The industry call for lower electricity prices would make that gap even wider.

Who qualifies, and who doesn’t

The existing grants are means-tested or property-specific. The Great British Insulation Scheme is open to households with an EPC rating of D or below, in council tax bands A–D (in England). The Boiler Upgrade Scheme is for any home in England and Wales, but only for replacing fossil fuel heating with a heat pump or biomass boiler.

If you rent, your landlord is responsible for meeting minimum EPC standards (currently E, rising to C by 2028 for new tenancies). The industry call for lower bills could accelerate enforcement of these rules, but tenants should check their rights via the Energy Saving Trust or Citizens Advice.

The real opportunity? Act now while grants are still open. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. If you wait for politicians to bring down bills, you may miss the upfront help.

What to do next

Check your EPC rating first, it’s free on gov.uk. If you’re below C, look at the Energy Saving Trust’s local installer database. Book a survey for loft or cavity wall insulation. If your boiler is over 15 years old, start getting quotes for a heat pump, but only after insulation is done.

For households on prepayment meters or struggling with bills, contact your supplier for hardship schemes or the Energy Company Obligation (ECO4) which can fully fund insulation for low-income homes. The industry call to Burnham is a sign that regional leaders are listening, but the real power to cut your bill starts with a draught-proofing strip and a phone call to an accredited installer.

Frequently Asked Questions

Not immediately. Any regional policy changes would take months to years to implement. However, the pressure could lead to faster grid upgrades and local energy schemes that reduce standing charges over time. Meanwhile, existing national grants remain your best bet for immediate savings.

Loft insulation (if you have less than 270mm) typically costs £300–£400 and can improve your EPC by up to 10 points. Draught-proofing windows and doors costs under £100 and pays back within a year. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing.

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