A major new coalition of 20 organisations from the construction, housing and environment sectors is calling on the Government to make energy efficiency in UK homes a “national infrastructure priority” and to commit to a target of retrofitting a million homes a year by 2020.

In an open letter to Lord Deighton, Commercial Secretary to the Treasury, the heads of environmental groups, charities, membership organisations and trade associations are warning that the UK’s homes are among the “coldest and draughtiest in Europe” resulting in high energy bills and “one of the worst records on fuel poverty and preventable winter deaths”.

The groups argue that the Government should direct £3-4bn a year in capital investment to fund a significant programme of energy efficiency to transform the UK’s ageing housing stock. This investment would address market failures and leverage substantial additional private investment. Treasury estimates annual capital investment in infrastructure at £45bn per year.

The letter says: “Domestic energy efficiency is one of the most cost effective ways to achieve the Government’s three strategic priorities for energy infrastructure: controlling energy bills, tackling climate change and unlocking investment to support economic growth. No other investment can achieve so much for individual householders and for UK Plc.”

The letter comes as the group of organisations publishes a short report, entitled A housing stock fit for the future, which sets out the strong economic benefits for improving home energy efficiency.

Speaking on behalf of the coalition, chief executive of the UK Green Building Council, Paul King, said: “There’s a gaping hole at the heart of the Government’s plan for infrastructure, and that gaping hole is the energy efficiency of our ageing housing stock. Government has so far failed to recognise the huge opportunities it presents.”

He continued: “But it’s not too late. Making home energy efficiency a national infrastructure priority – and offering it significant support alongside transport, energy generation or communications projects - would not only cut households’ rocketing energy bills and help tackle climate change, but would create thousands of new jobs and strengthen the UK’s energy security.

“Government spends £45billion a year on capital infrastructure investment - our bricks and mortar deserve to be included.”