The research was commissioned for Energy Bill Revolution, an alliance of 180 charities, businesses and unions campaigning to end fuel poverty.
According to the report, installations like cavity, soft wall and loft insulation had dropped to 661,000 in 2013/14 from 1.62 million in 2012.
The decline in installations is expected to continue over the next year with only 507,000 measures likely to be established, representing a total reduction of two thirds.
The report said the fall is down due to flaws in the government’s initiatives such as the Green Deal loan programme, which offers loans to households for installing energy saving measures.
It also blamed the decisions to relax the poorly designed energy efficiency levy scheme, the Energy Company Obligation, and axe the Warm Front scheme, which is claimed as the only Government-funded energy efficiency programme for poor households.
The report warned that the existing programmes were failing to tackle fuel poverty and would miss recommended targets from the Government’s advisory Committee on Climate Change for insulating all remaining cavities and lofts by 2015, and 2.2 million solid walls by 2022.
Energy Bill Revolution director Ed Matthew said the government’s energy efficiency policies are in free fall.
"As a result fuel poverty is getting worse and people are dying. The Government must make home energy efficiency an infrastructure investment priority to put the funding in place to end this scandal once and for all," Matthew added.
