NIA response to SWI report

The National Insulation Association welcomes the Chief Construction Advisers Solid Wall Insulation Report – ‘Unlocking Demand and Driving Up Standards’ and sets out plans to host a meeting of key stakeholders in the new year to consider actions arising.

On 12th November 2015 Peter Hansford, Chief Construction Adviser published an independent report following an eight month review of the solid wall insulation market which involved the consideration of written and oral evidence from a range of stakeholders.

As the lead trade association for solid wall insulation in the UK representing manufacturers, system designers and installers of both external and internal wall insulation, the NIA had considerable input to the report and our CEO Neil Marshall was invited to respond to the report on behalf of the industry at the launch event on 12th November.  

Welcoming the report he said: "For some time now we have been calling for a comprehensive Business Plan to be developed to insulate the UK's solid wall properties in a systematic and cost effective manner and therefore we welcome the review and recommendations carried out by Peter Hansford and his team.  It is extremely encouraging and reassuring to see that Peter has picked up on the key issues raised and suggestions made by the industry through the written and oral evidence provided and that there has been strong cross departmental involvement and support from DECC, DCLG and BIS – this is vital in ensuring a joined up approach to future policies and regulations.

"This report is a crucial first step and provides a platform for the development of an overall business plan to insulate the UKs solid wall properties.  However, the outcome of the forthcoming Comprehensive Spending Review will be extremely important too as it will set out the Governments level of ambition.  We strongly support the current Energy Bill Revolution Campaign for energy efficiency to become a funded infrastructure priority as we need to go allot further than the Governments current stated ambition of insulating 1m homes over five years if we are to make a significant impression on the UK's solid wall insulation housing stock.

  

"A positive response and the adoption of key recommendations from the report by Government is now needed and it is essential that the Government works with the industry in developing the detailed implementation plan – a leadership forum as recommended is a very good idea but we need to make sure that the right people are involved and I for one would like to see a far more ambitious timescale for doing this, 6 months rather than 12.  There are plenty of examples of best practice that can be quickly and easily adopted into a unified approach and at the NIA we have already established a solid wall insulation external stakeholder support group which could be drawn upon."  

In response to specific points contained in the report he added:

• To date a ‘one size fits all’ approach has tended to be adopted to solid wall insulation but this needs to change.   A segmented and targeted approach is needed taking into account building type, tenure, the occupants and the different solutions available external, internal and hybrid wall insulation. 
• The Government now needs to quantify the overall business case for solid wall insulation taking into account the multiple benefits identified in the report using its own analysis and models in order to determine the appropriate level of investment required.
• A significant part of the report is concerned with quality and standards and whilst we recognise that there is scope for further improvement there are some very good companies carrying out some very good work and there are different approaches taken in different market sectors.   We now need to develop a comprehensive industry wide QA framework for the residential retrofit market that sets out clear and consistent standards and practices which are  mandated and subject to robust enforcement.  We need to ensure that all companies operating in our industry in future operate to the same level as the best performers.  To this end we initiated the development of a new industry wide QA framework several months ago with input from industry and key stakeholders and this is now feeding into the Bonfield review.  
• However, whilst the industry can do its bit, there are a number of external factors linked to policy and regulations that contribute to quality and these need to be addressed too; light touch accreditation, variations in practices between energy companies, certification bodies and guarantee providers, rates paid for work and erratic work profiling.
• In terms of delivery, we believe an area based, street by street approach could play an important role as it could deliver significant economies of scale and enables all householders to be engaged and encouraged to act having seen the results that can be achieved in neighbouring properties.
• And last but not least, we need to educate and engage consumers far more effectively than we have to date.  Currently there is a very low level of awareness of the availability of solid wall insulation solutions let alone the benefits provided.  Research has shown that a large number of those people living in solid wall properties do not believe they can be insulated.  We would therefore like to see a high level Government endorsed consumer awareness and engagement programme backed by targeted incentives that will really make a difference.

In terms of next steps it is anticipated that there will be a Government response to the report over the next few months however, Peter Hansford has strongly advised industry not to wait for the Government response and to take the actions arising from the report that it can proceed with on its own. 

To this end, whilst the NIA is already undertaking a number of initiatives to increase the demand for and uptake of solid wall insulation and to further enhance industry standards, acting on the advice from Peter Hansford our CEO will be convening a meeting of a number of key stakeholders who have had input to the review early in the new year in order to identify actions arising from the report that can be taken forward in a co-ordinated and timely manner.  

ENDS

Response to Amber Rudd Energy Policy Re-set Speech

In a speech this morning the Secretary of State for Energy and Climate Change,  Amber Rudd said that she intended to prioritise energy security and cutting energy bills.

However, there was little mention of energy efficiency which has a key role to play in addressing these issues and the Energy Bill Revolution Campaign has expressed serious concerns stating that: “A commitment to only deliver energy efficiency measures in 1 million homes marks a 78% reduction in the number of homes that received support during the last Parliament.  

So if this pledge is fulfilled it marks a catastrophic fall in the number of households helped. That means  higher energy bills and less energy security.  With £100 Billion due to be spent by Government on infrastructure during this Parliament, energy efficiency must now be made an infrastructure investment priority to provide the funds needed to deliver warm homes for all and boost the economy.”

Neil Marshall CEO of the NIA commented: “With over 5m homes needing cavity wall insulation, over 7m homes needing solid wall insulation and 7m homes requiring loft insulation we share the concerns of the Energy Bill Revolution Campaign and are calling for Government to be far more ambitious in its support for energy efficiency in the forthcoming Comprehensive Spending Review.”

He went on to say: “Making energy efficiency a national infrastructure priority can make a real difference.  Recent research from Frontier Economics shows this would bring an £8.7 billion net economic benefit to the country, comparable to HS2 Phase 1 and Crossrail.  This would boost GDP growth, reduce UK reliance on gas imports and help deliver a net increase in employment across the country.  It would also help keep energy bills down and warm up the homes of the fuel poor."

NIA calls for urgent action by Government as job losses among members nears 2,000

Neil Marshall, Chief Executive of the National Insulation Association has today repeated his call for the Government to fast track the development of its new long term, sustainable policy framework for home energy efficiency and introduce urgent transitional arrangements in the meantime to address the current hiatus within the market and industry. The move comes following a survey which has revealed that around 2,000 jobs have been lost among NIA members as a direct result of cuts to the ECO and Green Deal combined with the current policy void.  

Neil Marshall said: “The changes made to the Energy Company Obligation scheme in 2014 coupled with Government decisions in July 2015 not to provide further funding to the Green Deal Finance Company and to end the Green Deal Home Improvement Fund with immediate effect without alternatives in place has resulted in a collapse in insulation activity levels. 

“Whilst Government has outlined its intention to introduce a new long term policy framework for energy efficiency which we welcome, the insulation industry is currently in a state of crisis as a result of the absence of robust transitional arrangements to bridge the gap until the new polices and schemes are introduced.  Without urgent intervention there will be further casualties, job losses and a loss of confidence to invest among insulation companies all of which will  impact on the industry’s ability to  scale up to support the delivery of the Governments longer term ambitions.   

“The job losses clearly demonstrate the scale of the problems facing the industry at present and we would urge DECC Ministers to work with the industry in putting in place urgent actions to address the crisis.”  

Insulation industry Chief calls for urgent action by Government after Mark Group goes into administration

Neil Marshall, Chief Executive of the National Insulation Association has today repeated his call for the Government to fast track the development of its new long term, sustainable policy framework for home energy efficiency and introduce urgent transitional arrangements in the meantime to address the current hiatus within the market and industry.   The move comes following the announcement yesterday that the Mark Group, one of the UKs largest insulation installers has gone into administration resulting in over 900 job losses.  

“The changes made to the Energy Company Obligation scheme in 2014 coupled with Government decisions in July 2015 not to provide further funding to the Green Deal Finance Company and to end the Green Deal Home Improvement Fund with immediate effect without alternatives in place has resulted in a collapse in insulation activity levels.  The sad news of the Mark Group going into administration is a clear indication of the impact this is now having on the insulation industry”

“Whilst Government has outlined its intention to introduce a new long term policy framework for energy efficiency which we welcome, the insulation industry is currently in a state of crisis as a result of the absence of robust transitional arrangements to bridge the gap until the new polices and schemes are introduced.  Without urgent intervention there will be further casualties, job losses and a loss of confidence to invest among insulation companies all of which will  impact on the industry’s ability to  scale up to support the delivery of the Governments longer term ambitions”    

“Given yesterdays news which clearly demonstrates the scale of the problems facing the industry at present we would urge DECC Ministers to work with the industry in putting in place urgent actions to address the crisis”  

NIA appoints new Solid Wall Insulation Governing Council

The National Insulation Association (NIA) has appointed a new Solid Wall Insulation Council made up of leading industry figures to support its drive to expand the solid wall insulation market and opportunities for its members.  

The new Council is as follows:

Derek Horrocks - Sustainable Building Services (UK) Ltd - Chair

David Lawrence - Lawtech Ltd – Vice Chair

Mike Easdon - InBuild Solutions Ltd

Sean Stevenson - Westville Ltd

Tony Hardiman - Dyson Energy Services Ltd

David Robson - InstaGroup Ltd

Pádraig Barry - Saint-Gobain Weber Ltd

Gary Bundy - Sto Ltd

Bob Deane - Wetherby Building Systems Ltd
Paul Winwood - SPS Envirowall Ltd

Neil Marshall, Chief Executive of the NIA commented; “I very much look forward to working with the new Council over the coming two years in driving forward our ambitious plans to grow the market, strengthen quality and standards across the industry and support our members in maximising business opportunities.

The NIA is the leading trade association for solid wall insulation in the UK with its members including the major manufacturers, system designers and installers of both external and internal wall insulation.

Companies wishing to join the NIA should contact Bev Coombe by email

bev.coombe@nia-uk.org or call 01525 383313

Negative Reporting on Cavity Wall Insulation by the BBC

Last week both BBC Radio 4 You & Yours and BBC Wales Today featured negative programmes on Cavity Wall Insulation based on an incomplete draft report from BRE.

The insulation industry welcomes scrutiny and the publication of robust research which helps to identify areas for improvement. That’s why we have been working to support BRE as it develops its research, and will continue to do so.

However, BRE has been clear that the report referenced by the BBC is an early draft of a scoping report which carries no status and the reporting of this draft study now risks alarming and seriously misleading consumers.

The reality is that there is a very low rate of problems with cavity wall insulation in the UK. Just 0.21% of all 6 million installations guaranteed by CIGA, the UK’s largest cavity wall insulation guarantee agency, result in a claim. When something does go wrong, that guarantee acts as a back-stop to protect consumers and ensure they have access to redress. In Wales, that rate is slightly higher at 0.59% of all installations but still significantly below the rate suggested in the draft study seen by the BBC.

The NIA responded to both programmes expressing our concern at the use of content from the BRE draft report which we consider to be both irresponsible and misleading and setting out details of the very low rate of problems with CWI. 

Insulation is an exceptionally reliable product which keeps energy bills down and homes warm

NIA Responds to the announcements made by Secretary of State Amber Rudd on 23rd July

Yesterday, Secretary of State Amber Rudd announced that there would be no further public funding to the Green Deal Finance Company, the Government would stop any future funding releases of the Green Deal Home Improvement Fund (GDHIF) and wanted to work with the industry and consumer groups on a new value-for-money approach.

Whilst it was widely recognised that the Green Deal and GDHIF could be improved upon, to put an end to both of them so abruptly without any warning or anything to replace them is a major issue and concern for both householders and the supply chain and will only add to the current hiatus in the energy efficiency market.

Recent figures published by DECC and Ofgem on the Energy Company Obligation showed that the energy companies have already made significant progress towards their targets for ECO2 (April 2015 - end March 2017) and that based on the installation rates in 2014/15 the target could be achieved one year early in Q1 2016. This is reflected in the major slowdown in ECO activity where just 29,000 measures were installed in April 2015, a 2 year low and compares to 51,000 measures in March 2015 and 58,000 in April 2014.

The Green Deal and GDHIF provided an important means of supplementing ECO activity so their removal is a major blow for both householders and industry - working to build on these frameworks rather than pulling the rug from under them would have been the best approach.

DECC are aiming to develop and establish a more stable, long-term, coherent framework for home energy efficiency, we welcome Amber Rudd’s announcement that she wants to work with industry in doing this and we look forward to contributing towards it.  However, the decision to pull Green Deal and GDHIF without first developing alternatives will seriously undermine consumer confidence and also the confidence of industry and its ability and willingness to support whatever replacement framework is developed.    

Therefore we would urge the Secretary of State to set out a clear timeline for the delivery of the proposed new framework as soon as possible to provide much needed clarity for consumers and the industry, whilst putting in place an urgent transitional mechanism to fill the void left by Green Deal and GDHIF and help address the current hiatus whilst the new framework is developed.