The impact of the government鈥檚 proposed changes to ECO is just becoming clear 鈥� and it鈥檚 not a pretty sight

Joey Gardiner

So now we know. It was always clear, from the moment that David Cameron pledged in prime minister鈥檚 question time to 鈥渞oll back the green taxes鈥� on energy bills, that this political gesture would have an impact on jobs in the broader construction industry - in particular for those involved in domestic retrofit work. But a look at the fine print behind last week鈥檚 consultation on the proposed changes to the Energy Company Obligation (ECO) shows us just : 14,000 jobs; a 拢900m reduction in workload; and a halving of the number of installations of cavity wall insulation in hard-to-treat homes.

As we said at the time Cameron made his announcement, this is an example of populist policy-making at its worst. He cut the 鈥済reen taxes鈥� on energy bills because, though fairly small, they were the quickest and most politically painless way he could respond to Labour leader Ed Miliband鈥檚 taunting over those bills. This ignored the fact that the measures paid for by ECO actually reduce energy bills for those least able to pay them.

The industry now has to dust itself off and prepare for the likely new reality contained in the consultation

There is no point crying over spilt milk. The industry now has to dust itself off and prepare for the likely new reality contained in the consultation. And there is good news too: more measures will be allowed, such as installations in easy to treat homes, and the longer time period for ECO may smooth out the boom-bust effects of this time-limited programme.

But it is a depressing example of what can happen when an issue becomes a political hot potato, and we should hope for better from whoever forms the next government.

Joey Gardiner, assistant editor

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