Source · Select Committees · Energy Security and Net Zero Committee
1st Report - Retrofitting homes for net zero
Energy Security and Net Zero Committee
HC 453
Published 22 May 2025
Recommendations
2
Accepted
Streamline and simplify government's retrofit support schemes and eligibility requirements.
Recommendation
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 …
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Government Response Summary
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 £13.2 billion Warm Homes Plan.
Department for Energy Security and Net Zero
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3
Accepted in Part
Announce long-term home retrofit programme beyond 2026, including reduced schemes and relaxed criteria.
Recommendation
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; …
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Government Response Summary
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 year.
Department for Energy Security and Net Zero
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5
Accepted in Part
England lacks a single, trusted source for free home retrofit information and advice.
Recommendation
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 …
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Government Response Summary
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 in the Warm Homes Plan.
Department for Energy Security and Net Zero
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7
Acknowledged
Establish national warm homes advice service for England, linking consumers to trusted installers.
Recommendation
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 …
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Government Response Summary
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 not commit to establishing a new national service as recommended or piloting by winter 2025.
Department for Energy Security and Net Zero
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9
Accepted
Reform Energy Performance Certificate metric to improve quality and address misuse.
Recommendation
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. …
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Government Response Summary
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 in 2026 under the Home Energy Model.
Department for Energy Security and Net Zero
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10
Accepted
Reform Energy Performance Certificate metric, focusing on emissions and energy costs for recommendations.
Recommendation
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 …
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Government Response Summary
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 part of the Home Energy Model.
Department for Energy Security and Net Zero
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14
Acknowledged
Reduce policy cost difference between gas and electricity bills by end of 2025
Recommendation
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 …
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Government Response Summary
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
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15
Deferred
Produce engagement strategy to build confidence in electric heating for consumers and installers
Recommendation
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 …
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Government Response Summary
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
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16
Deferred
Continued delay on hydrogen's role in heating creates profound market uncertainty
Recommendation
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 …
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Government Response Summary
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
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17
Deferred
Set clear guidelines for ending new fossil fuel heating system installations
Recommendation
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 …
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Government Response Summary
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
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18
Deferred
Develop an urgent plan for repurposing the national gas network infrastructure
Recommendation
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 …
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Government Response Summary
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 transition and future uses of the gas system.
Department for Energy Security and Net Zero
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19
Deferred
Decide on hydrogen's role for domestic heating by summer 2025 with Warm Homes Plan
Recommendation
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 …
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Government Response Summary
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
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20
Deferred
Provide certainty on future electric home heating and clarify fossil fuel installation dates
Recommendation
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 …
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Government Response Summary
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 of fossil fuel systems from 2035.
Department for Energy Security and Net Zero
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21
Deferred
Require Government to publish plans and cost analysis for gas network repurposing by 2025.
Recommendation
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 …
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Government Response Summary
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 transition and future uses of the network.
Department for Energy Security and Net Zero
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22
Accepted
Review clean heat market measures for effectiveness in increasing heat pump uptake.
Recommendation
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. …
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Government Response Summary
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
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26
Accepted in Part
Publish Net Zero and Nature Workforce Action Plan by 2025 for home retrofit skills.
Recommendation
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 …
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Government Response Summary
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 workforce challenges in net zero sectors, including retrofit. However, it does not explicitly commit to resuming or publishing a Net Zero and Nature Workforce Action Plan by the specified deadline.
Department for Energy Security and Net Zero
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27
Accepted in Part
Increase Heat Training Grant to fully compensate workers for lost earnings during retrofit upskilling.
Recommendation
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 …
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Government Response Summary
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 due to concerns about complexity and fraud risks.
Department for Energy Security and Net Zero
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29
Deferred
Consumer protection gaps and lacking standards permit rogue traders in non-grant retrofit work.
Recommendation
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 …
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Government Response Summary
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
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30
Accepted in Part
Introduce national workforce accreditation and contractor licensing schemes for all retrofit work, ensuring consumer redress.
Recommendation
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 …
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Government Response Summary
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 insights from models like the Gas Safe Register, and will provide an update in the Warm Homes Plan.
Department for Energy Security and Net Zero
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31
Accepted in Part
Seriously improve the Energy Company Obligation policy to clarify installer accountability for poor quality retrofit work.
Recommendation
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, …
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Government Response Summary
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 of energy company obligations post-2026.
Department for Energy Security and Net Zero
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Conclusions (11)
1
Conclusion
Acknowledged
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 Summary
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.
4
Conclusion
Acknowledged
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 Summary
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 the Warm Homes Plan.
6
Conclusion
Acknowledged
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 Summary
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.
8
Conclusion
Accepted
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 Summary
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.
11
Conclusion
Deferred
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 Summary
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.
12
Conclusion
Acknowledged
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 Summary
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 actions or timelines.
13
Conclusion
Deferred
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 Summary
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.
23
Conclusion
Accepted
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 Summary
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.
24
Conclusion
Accepted
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 Summary
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, and are developing apprenticeships and working with Skills England to address skills gaps.
25
Conclusion
Rejected
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 Summary
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.
28
Conclusion
Accepted
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 Summary
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, with an update to follow in the Warm Homes Plan.