Making healthy homes? A pilot study of the return on investment from an external wall insulation intervention

Heather Brown,Clare Bambra,Gulnar Fattakhova,Paul Taylor

doi:10.1186/s13104-017-3067-x

Abstract

ObjectivesExternal Wall Insulation (EWI) insulates and protect homes against damp. The Energy Company Obligation (ECO) scheme incentivised large energy providers in the UK delivering energy efficiency measures such as EWI to fuel impoverished households. Return on Investment (ROI) analysis is utilised to determine if EWI is a cost-effective procedure in terms of improving health related quality of life (HRQOL) measured using the EQ-5D-3L™, reducing health care expenditure, and fuel costs. Data comes from Stockton-On-Tees council, health care costs data, and information collected from households in the most socially deprived areas in Stockton-on-Tees.ResultsThe total cost of installation across all 2252 that received EWI was £10,222,954 in 2016 GBP. Annual total benefits were extrapolated across all 3265 households that received EWI. Total benefits were differences between the control and treatment groups in fuel costs, health care costs, and HRQOL multiplied by the National Institute for Health and Care Excellence Quality Adjusted Life Year threshold (£20,000). Total benefits for all households that received EWI were £1,519,045. The ROI of EWI is − 41%. 7.9 years are needed to recoup the costs of the initial investment.

Highlights

Poor housing has a detrimental effect on health costing the National Health Service (NHS) at least £600 million per year [1]
In this study we report on a pilot study to evaluate the Energy Company Obligation (ECO) scheme in Stockton-on-Tees an area level installation of External Wall Insulation (EWI) of 3265 homes in eight of the most socially deprived lower super output areas (LSOAs)1 with high incidence of fuel poor and fuel poverty households in
Annual total benefits which were comprised of adjusted differences in fuel expenditure, health related quality of life (HRQOL), and health expenditure between the early cladders and control group were £1,519,045 measured in 2016 Great British Pounds (GBP)

Summary

Introduction

Poor housing has a detrimental effect on health costing the National Health Service (NHS) at least £600 million per year [1]. More than 45% of all fuel poor households live in solid wall properties and approximately 20% of all households living in solid wall housing are living in fuel poverty. In this study we report on a pilot study to evaluate the ECO scheme in Stockton-on-Tees an area level installation of EWI of 3265 homes in eight of the most socially deprived lower super output areas (LSOAs) with high incidence of fuel poor and fuel poverty households in. We perform a Social Return on Investment Analysis (ROI) to evaluate if EWI is costeffective in terms of the return to health related quality of life (HRQOL) measured using the EQ-5D-3LTM2 [5], health care expenditure, and fuel spending

Objectives

Results

Discussion

Conclusion