Select Committee · Energy Security and Net Zero Committee

Retrofitting homes for net zero

Status: Closed Opened: 19 Nov 2024 Closed: 31 Dec 2025 20 recommendations 11 conclusions 1 report

Building on the evidence received in the previous Committee’s Heating our homes inquiry, the Committee will hold a one-off session on Retrofitting homes for net zero . The Committee will invite two stakeholder panels to consider the policy changes needed to deliver low carbon heating and energy efficient homes.

Reports

1 report
Title HC No. Published Items Response
1st Report - Retrofitting homes for net zero HC 453 22 May 2025 31 Responded

Recommendations & Conclusions

31 items
1 Conclusion 1st Report - Retrofitting homes for net… Acknowledged

Government's stop-start retrofit support schemes undermine long-term sector certainty beyond 2026.

There is a clear and urgent need to provide long-term certainty for the sector through the Government’s retrofit support schemes. Stop-start measures and short funding cycles have undermined the confidence of consumers, installers and the wider supply chain. The Government has not clarified how it will support retrofit beyond 2026, …

Government response. The government acknowledges the need for long-term certainty in retrofit support and outlines its Warm Homes Plan, committing £13.2 billion for 2025/26-2029/30 to upgrade homes, with further details on allocations and program design to be announced.
Department for Energy Security and Net Zero
2 Recommendation 1st Report - Retrofitting homes for net… Accepted

Streamline and simplify government's retrofit support schemes and eligibility requirements.

It is critical that the Government streamlines and simplifies its support schemes, especially their eligibility requirements. Many schemes are too complicated and have failed to support fuel poor households, while also failing to incentivise able-to-pay households to invest their own money. (Conclusion, Paragraph 39)

Government response. The government accepts the need to streamline and simplify support schemes, stating they have already taken steps to simplify eligibility criteria and are learning from previous schemes to reduce administrative burdens. These efforts will inform future programme design within the …
Department for Energy Security and Net Zero
3 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

Announce long-term home retrofit programme beyond 2026, including reduced schemes and relaxed criteria.

The Government must announce a long-term programme for how it plans to support home retrofit beyond 2026 in its Warm Homes Plan. This should include a reduction in the number of schemes offered; significantly relaxed eligibility criteria to prioritise uptake; funding commitments until at least 2035; and a strategy to …

Government response. The government recognizes the need for a long-term retrofit program and has committed £13.2 billion to the Warm Homes Plan for 2025/26-2029/30, addressing simplified eligibility and area-based retrofit, with further details on allocations to be set out by October this …
Department for Energy Security and Net Zero
4 Conclusion 1st Report - Retrofitting homes for net… Acknowledged

Consumers lack awareness and access to impartial information on home retrofit benefits.

Many consumers have a fundamental lack of awareness of the benefits of home retrofit and where to access quality, impartial information and advice. This is preventing them from making informed decisions and delaying the retrofit of their homes. (Conclusion, Paragraph 50)

Government response. The government acknowledges consumers' lack of awareness about home retrofit benefits and is streamlining its digital energy efficiency and clean heat advice services into a single user journey, supported by a national phoneline, with further steps to be detailed in …
Department for Energy Security and Net Zero
5 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

England lacks a single, trusted source for free home retrofit information and advice.

There is a clear need for a single, trusted source of free information and advice on home retrofit that can be accessed via multiple sources. Such provision already exists in Scotland and Wales but does not in England. Consumer advice should also be better embedded within communities and the Government …

Government response. The government acknowledges the need for trusted advice and is streamlining existing digital services and a national phoneline into a single user journey. It is also exploring opportunities to work with local advice services, with further steps to be outlined …
Department for Energy Security and Net Zero
6 Conclusion 1st Report - Retrofitting homes for net… Acknowledged

One-stop-shops prove successful in other countries for low carbon heating rollout.

One-stop-shops have proven successful in many neighbouring countries, especially when affiliated with a workforce accreditation scheme that signposts consumers to trusted installers. There are clear and tangible links between their introduction in countries such as France and the success of their low carbon heating rollouts and high levels of consumer …

Government response. The government acknowledged the importance of trusted advice, stating it is streamlining existing digital and phoneline services for households and exploring smarter work with local advice services, with further steps to be outlined in the Warm Homes Plan.
Department for Energy Security and Net Zero
7 Recommendation 1st Report - Retrofitting homes for net… Acknowledged

Establish national warm homes advice service for England, linking consumers to trusted installers.

We recommend that the Government establishes a national warm homes advice service for England to signpost consumers to independent advice, trusted installers and financial options. This should be available online, over the phone and in person. While it may be publicly-funded at first, it should be affiliated with a retrofit …

Government response. The government acknowledged the need for trusted advice, stating it is streamlining existing digital services and a national phoneline, and exploring ways to work with local advice. It will set out further steps in the Warm Homes Plan, but did …
Department for Energy Security and Net Zero
8 Conclusion 1st Report - Retrofitting homes for net… Accepted

Energy Performance Certificates deter consumers from low carbon heating due to cost-based bias.

We are deeply concerned that Energy Performance Certificates, as currently calibrated, provide some consumers with poorly conceived advice and have a strong bias against low carbon, but initially more expensive, heating systems. As a cost-based metric, Energy Performance Certificates are not, as they stand, an effective tool for decarbonising UK …

Government response. The government acknowledges the concerns regarding Energy Performance Certificates and is reforming them to better align with net zero objectives, with updated EPC metrics expected to be introduced in 2026 under the Home Energy Model after a consultation.
Department for Energy Security and Net Zero
9 Recommendation 1st Report - Retrofitting homes for net… Accepted

Reform Energy Performance Certificate metric to improve quality and address misuse.

Energy Performance Certificate assessments vary greatly in quality and consistency. It is therefore troubling that they are expected to perform such a range of functions that they were never initially designed for, such as determining eligibility for government support schemes. If the Government is to continue using Energy Performance Certificates …

Government response. The government accepts the need for EPC reform and is already engaged in this process. A consultation has outlined proposals for updated EPC metrics to better reflect a building’s energy performance, emissions, and cost, with changes expected to be introduced …
Department for Energy Security and Net Zero
10 Recommendation 1st Report - Retrofitting homes for net… Accepted

Reform Energy Performance Certificate metric, focusing on emissions and energy costs for recommendations.

This report highlights the high and stagnating levels of energy poverty in the UK and the current disincentive that Energy Performance Certificates have on low carbon heating options due to price concerns. We therefore recommend that the Government reforms the Energy Performance Certificate metric with a renewed focus on both …

Government response. The government accepts the recommendation to reform EPC metrics and is already engaged in this process, with proposals for updated metrics that will reflect a building’s energy performance, emissions, and cost. Changes are expected to be introduced in 2026 as …
Department for Energy Security and Net Zero
11 Conclusion 1st Report - Retrofitting homes for net… Deferred

Government's indecision on hydrogen's role undermines low-carbon heating confidence and rollout

Uncertainty over the UK’s technological direction for decarbonising heat is undermining consumer confidence and supply chain development. In particular, the Government’s failure to decide on the role of hydrogen for home heating is obstructing the rollout of proven electric technologies such as heat pumps. Consumers, installers and the supply chain …

Government response. The government acknowledges the need for strategic clarity on decarbonising home heating and will consult later this year on the role of hydrogen, following the expected conclusions of an independent safety review by the Health and Safety Executive.
Department for Energy Security and Net Zero
12 Conclusion 1st Report - Retrofitting homes for net… Acknowledged

Higher electricity prices significantly disincentivize consumer switch to electric heating systems

Electricity is much more expensive than gas in the UK because gas generation sets the marginal wholesale price and most levies are placed on electricity bills, rather than gas. This is a significant disincentive for consumers switching from fossil fuel to electric heating and a major barrier to decarbonising homes. …

Government response. The government acknowledges the issue of electricity being more expensive than gas as a disincentive for decarbonising homes and states its commitment to work relentlessly to translate cheaper clean power costs into lower consumer bills, though it provides no specific …
Department for Energy Security and Net Zero
13 Conclusion 1st Report - Retrofitting homes for net… Deferred

Public awareness of electric heating systems remains worryingly low, compounded by misinformation

Levels of public awareness of electric heating systems are worryingly low. Many consumers are simply unaware of technologies such as heat pumps, let alone their benefits and support available to them. This is compounded by misinformation and factionalism in parts of the home heating sector, which undermines the credibility of …

Government response. The government states its focus on incentivizing cleaner, affordable heating and has announced measures via the Warm Homes Plan to support investment in heat pumps and energy efficiency, with further details on public awareness strategies to be set out later.
Department for Energy Security and Net Zero
14 Recommendation 1st Report - Retrofitting homes for net… Acknowledged

Reduce policy cost difference between gas and electricity bills by end of 2025

We recommend that the Government, by the end of 2025, considers reducing the policy cost difference between gas and electricity bills, creating an incentive for households to adopt electric heating systems. The Government should do this carefully, recognising that almost all gas use is for essentials such as heating and …

Government response. The government acknowledges the need to address the price disparity between electricity and gas to incentivise clean technologies and commits to working relentlessly over this Parliament to reduce electricity bills, but notes it is a complex issue requiring careful consideration.
Department for Energy Security and Net Zero
15 Recommendation 1st Report - Retrofitting homes for net… Deferred

Produce engagement strategy to build confidence in electric heating for consumers and installers

The Government must produce an engagement strategy to set out the costs and benefits of electric heating and build confidence for consumers, installers and the supply chain. This should include a plan to tackle misinformation and introduce consumer and workforce champions who can share experiences of electric heating systems. Measures …

Government response. The government states its focus on incentivizing cleaner, affordable heating and has announced measures via the Warm Homes Plan to support investment in heat pumps and energy efficiency, with further details on an engagement strategy to be set out later.
Department for Energy Security and Net Zero
16 Recommendation 1st Report - Retrofitting homes for net… Deferred

Continued delay on hydrogen's role in heating creates profound market uncertainty

Delaying a decision on the role of hydrogen for domestic heating until 2026 continues to create profound uncertainty. This means that consumers are delaying their switch to low carbon heating systems and Ofgem is unable to prepare to regulate our future energy networks as effectively 62 as it otherwise could. …

Government response. The government will assess the latest evidence and consult later this year on the role of hydrogen in home heating, awaiting conclusions from an independent HSE safety review expected later this year.
Department for Energy Security and Net Zero
17 Recommendation 1st Report - Retrofitting homes for net… Deferred

Set clear guidelines for ending new fossil fuel heating system installations

We are concerned that the Government has not set clear guidelines for the end of the installation of new fossil fuel heating systems on and off the gas grid. Without certainty, consumers, manufacturers and the wider supply chain lack the confidence that they need to make informed decisions. The Government …

Government response. The government is focused on incentivising moves to cleaner heating through the Warm Homes Plan, having already announced measures, with more detail on specific guidelines for phasing out fossil fuel heating to be set out later this year.
Department for Energy Security and Net Zero
18 Recommendation 1st Report - Retrofitting homes for net… Deferred

Develop an urgent plan for repurposing the national gas network infrastructure

The Government urgently needs to develop a plan for repurposing the gas network. Whether hydrogen plays a role in our future heating system or not, much of the gas network will need repurposing, presenting an enormous and costly infrastructural challenge that is only likely to become more expensive. It is …

Government response. The government acknowledges the urgent need to consider the future of the gas network but states a longer timeline is required to build a comprehensive evidence base. They will publish a Call for Evidence in 2026 to explore optimal operational …
Department for Energy Security and Net Zero
19 Recommendation 1st Report - Retrofitting homes for net… Deferred

Decide on hydrogen's role for domestic heating by summer 2025 with Warm Homes Plan

We urge the Government to take a decision on the possible role of hydrogen for domestic heating no later than summer 2025, alongside the publication of its Warm Homes Plan. This should be informed by the existing evidence gathered through trials and independent analysis. (Recommendation, Paragraph 118)

Government response. The government is assessing the latest evidence and will consult later this year on the role of hydrogen in home heating, pending an independent HSE safety review expected later this year.
Department for Energy Security and Net Zero
20 Recommendation 1st Report - Retrofitting homes for net… Deferred

Provide certainty on future electric home heating and clarify fossil fuel installation dates

The Government must provide consumers, installers and the supply chain with certainty that most home heating will be powered by electricity in future. It must also set out its view on whether new on-grid and off-grid fossil fuel heating systems should continue to be installed in homes from 2035 and …

Government response. The government states its focus on incentivising cleaner heating through the Warm Homes Plan, where more details on these issues are expected later this year, but does not explicitly provide certainty on future electricity use for heating or the status …
Department for Energy Security and Net Zero
21 Recommendation 1st Report - Retrofitting homes for net… Deferred

Require Government to publish plans and cost analysis for gas network repurposing by 2025.

The Government must set out comprehensive plans and an analysis of the costs and benefits for repurposing the gas network and clarifying who would bear the costs. It should set out a preliminary analysis by the end of 2025, including a clear timeline and a progressive approach to funding the …

Government response. The government acknowledges the need to consider the gas network's future but states a longer timeline is needed due to the complexity and need for evidence gathering. They will publish a Call for Evidence in 2026 to explore optimal operational …
Department for Energy Security and Net Zero
22 Recommendation 1st Report - Retrofitting homes for net… Accepted

Review clean heat market measures for effectiveness in increasing heat pump uptake.

The Government should review and assess measures designed to shape and influence the clean heat market, including but not limited to the Clean Heat Market Mechanism, to determine if they remain the most effective ways to increase heat pump uptake. (Recommendation, Paragraph 121) Workforce and skills

Government response. The government states it closely monitors the clean heat market and the impact of its measures through regular monitoring, third-party evaluations, and consultations, detailing existing schemes and increased funding in the Warm Homes Plan.
Department for Energy Security and Net Zero
23 Conclusion 1st Report - Retrofitting homes for net… Accepted

Slow transition of skilled home heating workforce to low carbon retrofit, compounded by ageing.

The UK has a skilled home heating workforce but its transition to work on low carbon retrofit is not happening at the pace required to upgrade homes at scale. This is compounded by a twin underlying crisis: few new entrants to the sector and an ageing workforce. (Conclusion, Paragraph 135)

Government response. The government recognises the need for a skilled workforce, highlighting £13.2bn committed to the Warm Homes Plan, plans to train up to 18,000 workers, extended training grants, new skills programmes, and the development of several retrofit apprenticeships.
Department for Energy Security and Net Zero
24 Conclusion 1st Report - Retrofitting homes for net… Accepted

Low demand for low carbon retrofit training due to inadequate grants and uncertain sector future.

Training providers are reluctant to invest in courses on low carbon retrofit due to low demand for training. This is underpinned by the uncertain future technical direction of the sector, inadequate training grants, weak promotion of careers in retrofit and low consumer demand for low carbon energy home improvements. (Conclusion, …

Government response. The government acknowledges the need for a skilled supply chain and has committed £13.2 billion to the Warm Homes Plan. They announced plans to train up to 18,000 workers, extended the Heat Training Grant, launched the Warm Homes Skills Programme, …
Department for Energy Security and Net Zero
25 Conclusion 1st Report - Retrofitting homes for net… Rejected

Heat Training Grant inadequately compensates workers for lost earnings during low carbon retrofit upskilling.

The Heat Training Grant does not adequately incentivise workers to take time off work to upskill on low carbon retrofit or compensate them for lost earnings. Many workers in the retrofit sector are self-employed and cannot afford to take time off work to commit to a multi-day course. (Conclusion, Paragraph …

Government response. The government acknowledged ongoing work to ensure the Heat Training Grant offers value for money but explicitly rejected the idea of compensating installers for lost earnings due to concerns about complexity and fraud risks.
Department for Energy Security and Net Zero
26 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

Publish Net Zero and Nature Workforce Action Plan by 2025 for home retrofit skills.

We recommend that the Government resumes work undertaken by the previous Government to prepare a Net Zero and Nature Workforce Action Plan. This should be published by the end of 2025 and include a specific roadmap for meeting the skills needs of the home retrofit sector, including via the Growth …

Government response. The government acknowledges the need for a skilled supply chain and highlights significant investment through the Warm Homes Plan, plans to train 18,000 workers, new apprenticeships, and collaboration with Skills England and the Office for Clean Energy Jobs to address …
Department for Energy Security and Net Zero
27 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

Increase Heat Training Grant to fully compensate workers for lost earnings during retrofit upskilling.

The Government should increase the value of the Heat Training Grant to provide workers with full compensation for lost earnings when taking time off work to upskill on low carbon retrofit. This should take effect until market demand provides sufficient incentives for the workforce, supply chain and employers to self-fund …

Government response. The government announced an additional £5 million in funding for the Heat Training Grant this financial year and continues to work on ensuring its value for money. However, they are sceptical about plans to fully compensate installers for lost earnings …
Department for Energy Security and Net Zero
28 Conclusion 1st Report - Retrofitting homes for net… Accepted

Complicated consumer protection and accreditation landscapes undermine trust in home retrofit sector.

The consumer protections and workforce accreditation landscapes are excessively complicated, which makes it challenging for consumers to know who to trust. Many consumers are simply unaware of which schemes they can rely upon and what avenues for redress they have if things go wrong. Recent home insulation scandals, including measures …

Government response. The government acknowledges the complexity and trust issues in consumer protection for retrofit. They announced an intention to conduct a sweeping overhaul of the system of standards, oversight, and consumer protections, exploring various models to ensure quality and clear redress, …
Department for Energy Security and Net Zero
29 Recommendation 1st Report - Retrofitting homes for net… Deferred

Consumer protection gaps and lacking standards permit rogue traders in non-grant retrofit work.

We are especially concerned about the lack of consumer protections and mandatory standards for retrofit work not covered by government grants. This is allowing rogue traders to operate unimpeded. We believe that those who fail certification to carry out government-funded retrofit work should not be allowed to operate in the …

Government response. The government announced its intention to conduct a sweeping overhaul of standards and consumer protections for retrofit, exploring options and promising an update in the Warm Homes Plan.
Department for Energy Security and Net Zero
30 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

Introduce national workforce accreditation and contractor licensing schemes for all retrofit work, ensuring consumer redress.

We recommend that the Government introduces a national workforce accreditation scheme and a national contractor licensing scheme as a prerequisite for carrying out any retrofit work. These should be granted powers to revoke licenses or impose financial penalties for poor quality work and provide consumers with clear avenues for redress. …

Government response. The government announced an intention to conduct a sweeping overhaul of the system of standards, oversight, and consumer protections for retrofit. They are exploring a full range of options for a new system that ensures quality and clear redress, drawing …
Department for Energy Security and Net Zero
31 Recommendation 1st Report - Retrofitting homes for net… Accepted in Part

Seriously improve the Energy Company Obligation policy to clarify installer accountability for poor quality retrofit work.

We found it incredible that the Residential Property Surveyors Association has reported that around 250,000 homes could be un-mortgageable due to spray foam insulation and that the accountability to remedy things remains unclear. We recommend that the Energy Company Obligation, as a policy to put responsibility on installers and commissioners …

Government response. The government acknowledges the need for fundamental reform in quality assurance and consumer redress, stating that work is underway, and plans for root and branch reform will be set out in the Warm Homes Plan, including considering the future role …
Department for Energy Security and Net Zero

Oral evidence sessions

2 sessions
Date Witnesses
12 Feb 2025 Amanda Hoyles, Andy Manning · Citizens Advice, Damian Mercer · Cavity Extraction Ltd, Ian Rippin · Microgeneration Certification Scheme Service Company, Shabir Hussain · Luton Council, Simon Ayers · TrustMark, Zak Ashraf View ↗
4 Dec 2024 Andy Prendergast · GMB, Jessica Skilbeck · Department for Business, Energy and Industrial Strategy, Joanne Wheeler · UK Green Building Council, Madeleine Gabriel · Nesta, Maya Fitchett · National Energy Action, Miatta Fahnbulleh MP · Department for Energy Security and Net Zero, Mike Foster · Energy and Utilities Alliance, Olivia Haslam · Department for Energy Security and Net Zero, Robert Panou · Stonewater View ↗

Correspondence

1 letter
DateDirectionTitle
26 Mar 2025 Correspondence from Nigel Donohue, CEO, CIGA Group, to Chair and Minister for E…