Recommendations & Conclusions
39 items
1
Conclusion
Fourth Report - Energy Efficiency of Ex…
Accepted
The scale of the challenge to retrofit existing homes to tackle the climate crisis is enormous. Energy efficiency is a precursor to the transition to low carbon heat, so action must be taken in the 2020s to set homes on a decarbonisation trajectory to meet our net zero targets. The …
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The scale of the challenge to retrofit existing homes to tackle the climate crisis is enormous. Energy efficiency is a precursor to the transition to low carbon heat, so action must be taken in the 2020s to set homes on a decarbonisation trajectory to meet our net zero targets. The Government’s current targets for domestic energy efficiency are set for an 80 per cent reduction in emissions by 2050 and not the net zero target established in law. Yet the Government is not on track to meet even this.
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Government response AI summary
The government acknowledged the challenge and stated its commitment to improving homes to EPC Band C by 2035, outlining ongoing actions such as consulting on minimum standards for private and social rented sectors and committing to review owner-occupied regulations in 2021.
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2
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
There is a wide variation in the costs for bringing all homes in the UK up to an EPC grade C. We have heard of costs averaging £18,000 to retrofit a property, before addition of a heat pump. Given that there are around 19 million properties in the UK in …
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There is a wide variation in the costs for bringing all homes in the UK up to an EPC grade C. We have heard of costs averaging £18,000 to retrofit a property, before addition of a heat pump. Given that there are around 19 million properties in the UK in need of some energy efficiency upgrade, we consider that the overall cost to meet net zero from domestic buildings could be far more costly than the Government’s estimate of between £35 billion and £65 billion.
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Government response AI summary
The government clarifies that its £35-£65 billion estimate focuses on achieving EPC C where practical, and does not cover full decarbonisation of homes and non-domestic buildings, which would indeed cost significantly more. They reference external estimates from the CCC suggesting much higher costs for full …
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3
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We recommend that the Government review the feasibility of its aspiration to achieve a minimum of EPC band C by 2035, given current progress on improving energy efficiency. As well as setting out how it plans to meet existing targets, it should set out a strategy to increase ambition in …
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We recommend that the Government review the feasibility of its aspiration to achieve a minimum of EPC band C by 2035, given current progress on improving energy efficiency. As well as setting out how it plans to meet existing targets, it should set out a strategy to increase ambition in line with its commitment to net zero through its Heat and Buildings Strategy.
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Government response AI summary
The government acknowledged the recommendation by reiterating its commitment to the existing EPC band C by 2035 ambition, stating it believes it offers good value. It also noted the Heat and Buildings Strategy would set out policies for the 2020s, but did not commit to …
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4
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We recommend that BEIS review its cost projections on energy efficiency and includes the cost of low carbon heating. The Department should consult the building and retrofit sector to ensure that its top-down modelling reflects real-world costs. It should also set out the proportion of efficiency improvements it expects to …
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We recommend that BEIS review its cost projections on energy efficiency and includes the cost of low carbon heating. The Department should consult the building and retrofit sector to ensure that its top-down modelling reflects real-world costs. It should also set out the proportion of efficiency improvements it expects to be paid for from the public purse, and how many homes it considers out of scope for energy efficiency improvements under its definition of “cost effective, practical and affordable”. There is a danger that these homes will be left behind, and this could impact on wellbeing and create permanent blight. The Government should explain in response to this report what its strategy is for those homes that will not achieve its energy efficiency aspirations. (Paragraph 32) Current Government policy on domestic energy efficiency
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Government response AI summary
The government states its cost projections are continually reviewed and informed by consultation, and no homes are considered out of scope under its definitions. It will publish a Heat and Buildings Strategy in due course to address actions for reducing emissions from buildings, including safeguards …
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5
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
While the energy efficiency of two million homes has been successfully upgraded under the ECO, the number of measures installed has reduced significantly in recent years and the Government’s fuel poverty targets are not expected to be met. The inability to use ECO with other sources of funding is hampering …
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While the energy efficiency of two million homes has been successfully upgraded under the ECO, the number of measures installed has reduced significantly in recent years and the Government’s fuel poverty targets are not expected to be met. The inability to use ECO with other sources of funding is hampering the deeper retrofits that are needed in social housing. Since ECO is funded by all energy bill payers, the poorest pay proportionally the most for the benefits from the scheme: this makes it a regressive policy.
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Government response AI summary
The government acknowledges concerns about ECO's impact, stating ECO3 focuses on low-income households, and a £4bn scheme aims to meet fuel poverty targets. It intends to design ECO to complement other funding sources, explains why blending for the same measures is limited, and highlights the …
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6
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted in Part
We support the extension of ECO to 2026 and the extra funding announced in the Fuel Poverty Strategy. The Government must review whether ECO is still delivering Energy Efficiency of Existing Homes 57 value for money and whether the energy bill is the most appropriate, fair and effective means of …
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We support the extension of ECO to 2026 and the extra funding announced in the Fuel Poverty Strategy. The Government must review whether ECO is still delivering Energy Efficiency of Existing Homes 57 value for money and whether the energy bill is the most appropriate, fair and effective means of funding the scheme, since the poorest households pay disproportionately towards its costs.
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Government response AI summary
The government states it will publish an evaluation report for the Energy Company Obligation (ECO) later this year, addressing the recommendation to review its value for money. However, it implicitly defends the current funding mechanism via energy bills, rather than committing to a review of …
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7
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We recommend the Government reviews the way ECO is funded, in common with the other policy costs that are added to consumer electricity bills rather than gas. Disproportionate use of this regressive funding mechanism is hampering the adoption of low carbon heating options such as heat pumps. We recommend that …
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We recommend the Government reviews the way ECO is funded, in common with the other policy costs that are added to consumer electricity bills rather than gas. Disproportionate use of this regressive funding mechanism is hampering the adoption of low carbon heating options such as heat pumps. We recommend that the Government consults on the balance of levies on electricity versus gas/other fossil fuel heating sources, in order to encourage the uptake of electrifying home heating through the adoption of heat pumps.
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Government response AI summary
The government commits to publishing a call for evidence to initiate a strategic dialogue with consumers and industry on affordability and fairness, including the balance of levies on electricity versus gas bills, to address current price signal distortions and encourage decarbonisation.
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8
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We welcome the clarification provided in the Energy White Paper that Home Upgrade Grants will focus on the worst-quality off-gas grid homes with low income households in England. We consider that this focus is the right one. Using the indicative costs for improving energy efficiency and heat pump installation and …
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We welcome the clarification provided in the Energy White Paper that Home Upgrade Grants will focus on the worst-quality off-gas grid homes with low income households in England. We consider that this focus is the right one. Using the indicative costs for improving energy efficiency and heat pump installation and the Government’s pledged £2.5bn, we estimate around 100,000 homes may benefit from the scheme. This is welcome, but represents a fraction of the 1.5 million households off the gas grid who will need further support to upgrade their homes, irrespective of tenure in view of the high costs involved.
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Government response AI summary
The government reiterates the Home Upgrade Grant's focus on worst-performing low-income off-gas grid homes, confirms £150m has been committed, and outlines other complementary schemes like ECO, SHDF, and the Clean Heat Grant that provide broader support for upgrading homes.
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9
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted in Part
We recommend that Home Upgrade Grants are launched in full before the end of 2021, backed by the entirety of the funding pledged for the scheme, to mobilise supply chains for low carbon heating. The Government should also set out how it intends to administer the scheme and what role …
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We recommend that Home Upgrade Grants are launched in full before the end of 2021, backed by the entirety of the funding pledged for the scheme, to mobilise supply chains for low carbon heating. The Government should also set out how it intends to administer the scheme and what role there will be for local authorities who are well placed to identify vulnerable households.
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Government response AI summary
The government committed £150m to launch Phase 1 of the Home Upgrade Grant after December 2021, addressing the timing and setting out a central role for local authorities in delivery via a competitive bidding process, but notes further multi-year funding is subject to future fiscal …
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10
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We welcome the Government’s introduction of a scheme for owner occupiers to fund energy efficiency improvements. Such a scheme is essential in order to achieve the ambition to reach energy efficient homes by 2030, given this is by far the largest pool of housing stock across the UK. But the …
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We welcome the Government’s introduction of a scheme for owner occupiers to fund energy efficiency improvements. Such a scheme is essential in order to achieve the ambition to reach energy efficient homes by 2030, given this is by far the largest pool of housing stock across the UK. But the Green Homes Grant has been rushed in conception and poorly implemented. In its haste to create a scheme to deliver economic stimulus, the Government failed to consult industry adequately on its delivery, set a timescale which was overly short term and has presided over scheme administration which appears nothing short of disastrous. If the ambition for the scheme to retrofit 600,000 homes envisaged completion of the work by the end of the current financial year, then the Government has been wildly optimistic in its scheme planning and industry engagement. The impact of its botched implementation has had devastating consequences on many of the builders and installers that can do the work, who have been left in limbo as a result of the orders cancelled and time taken to approve applications.
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Government response AI summary
The government acknowledges the Green Homes Grant Voucher scheme did not deliver as hoped, leading to its closure to new applications, and accepts it faced delivery challenges, while defending the initial swift rollout for economic stimulus and industry engagement.
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11
Conclusion
Fourth Report - Energy Efficiency of Ex…
Rejected
It is commendable that the Government has been keen to avoid fraud in administration of the scheme by only allowing Trustmark and PAS registered companies to participate. But the anti-fraud precautions have been so complex that vouchers are simply not being issued. Consumers are frustrated by delays in delivery, and …
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It is commendable that the Government has been keen to avoid fraud in administration of the scheme by only allowing Trustmark and PAS registered companies to participate. But the anti-fraud precautions have been so complex that vouchers are simply not being issued. Consumers are frustrated by delays in delivery, and the industry which the scheme was set up to support has been completely failed. Companies are losing orders, laying off staff and have warned they may close 58 Energy Efficiency of Existing Homes altogether. Extraordinarily, rather than providing an economic stimulus for sector recovery, the scheme’s operation may have reduced its capacity in the short term.
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Government response AI summary
The government rejects the conclusion that anti-fraud protections were complex, stating they have a duty to prevent fraud and that delays often had legitimate reasons, while acknowledging the scheme's closure and efforts to resolve processing issues.
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12
Recommendation
Fourth Report - Energy Efficiency of Ex…
Rejected
We recommend that the Green Homes Grant scheme be urgently overhauled and extended to provide a genuine long-term stimulus to the domestic energy efficiency sector. The scheme should not be scrapped or quietly wound down. The Government must address the design and administration issues with the scheme, and all allocated …
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We recommend that the Green Homes Grant scheme be urgently overhauled and extended to provide a genuine long-term stimulus to the domestic energy efficiency sector. The scheme should not be scrapped or quietly wound down. The Government must address the design and administration issues with the scheme, and all allocated funding that has not been spent by the end of March 2021 should be rolled over into the next financial year. A multi-annual scheme must be delivered to provide the financial support to owner occupiers and build trust within the industry to encourage installers to get accredited and enable companies to hire staff. In its response to this report the Government should set out how it intends to revise the types of measures included in the scheme, streamline the application process, including the number of quotes required for application, and remove unnecessary bureaucracy at every step.
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Government response AI summary
The government rejected the recommendation, explaining that the voucher portion of the Green Homes Grant scheme was closed due to significant challenges, with funding redirected to reform and expand the more successful Local Authority Delivery element.
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13
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted in Part
Sustained delivery of measures to support the transition to a 68 per cent reduction in emissions by 2030, and net zero by 2050, will require strategic planning and thorough engagement with all stakeholders. The Government’s strategic ambitions here require multi-annual spending commitments which may need to supersede Spending Review perspectives. …
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Sustained delivery of measures to support the transition to a 68 per cent reduction in emissions by 2030, and net zero by 2050, will require strategic planning and thorough engagement with all stakeholders. The Government’s strategic ambitions here require multi-annual spending commitments which may need to supersede Spending Review perspectives. Short-term tactical fixes in this sector, designed to deliver quick wins, have been proven to be counterproductive when not designed as part of an overall strategy.
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Government response AI summary
The government is undertaking a Net Zero Review and plans to publish a Heat and Buildings Strategy shortly to outline its long-term strategic approach. It has also made specific multi-annual spending commitments, including increasing the Energy Company Obligation to £1 billion per year from 2022, …
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14
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We recommend that BEIS and the Treasury undertake a joint review of the preparation, launch, funding and delivery of the Green Homes Grant programme, and that the recommendations of that review be applied to all cross-Government working on programmes to deliver net zero objectives.
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We recommend that BEIS and the Treasury undertake a joint review of the preparation, launch, funding and delivery of the Green Homes Grant programme, and that the recommendations of that review be applied to all cross-Government working on programmes to deliver net zero objectives.
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Government response AI summary
The government states the National Audit Office is currently undertaking a comprehensive review of the Voucher scheme with Treasury participation, due in early July, in addition to an independent evaluation by Ipsos MORI.
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15
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We welcome the Green Homes Grant Local Authority Delivery scheme, and, in particular, the fact that it can be used to deliver improvements across all tenures. We consider that it has real potential to help build local authority capacity and energy efficiency supply chains by supporting area based approaches.
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We welcome the Green Homes Grant Local Authority Delivery scheme, and, in particular, the fact that it can be used to deliver improvements across all tenures. We consider that it has real potential to help build local authority capacity and energy efficiency supply chains by supporting area based approaches.
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Government response AI summary
The government acknowledges the committee's positive assessment of the Green Homes Grant Local Authority Delivery scheme and local authorities' role, confirming it is closely monitoring project delivery.
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16
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We recommend that, following an evaluation of Phase Two, the scheme is expanded with a larger budget, over a multi-year period, and a greater role for BEIS’s local energy hubs to supplement local authority capacity.
Government response AI summary
The government has allocated an additional £300 million to the 5 Local Energy Hubs to deliver energy efficiency upgrades to 30,000 homes by December 2021, expanding funding and local authority involvement.
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17
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We welcome the Social Housing Decarbonisation fund and support its aims to retrofit social housing at scale. However, to date only a fraction of the funding has been made available for demonstrator projects that may well not deliver the efficiencies that larger schemes could achieve.
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We welcome the Social Housing Decarbonisation fund and support its aims to retrofit social housing at scale. However, to date only a fraction of the funding has been made available for demonstrator projects that may well not deliver the efficiencies that larger schemes could achieve.
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Government response AI summary
The government details the Social Housing Decarbonisation Fund (SHDF) Demonstrator project, confirming £62m funding was awarded to 19 projects to improve over 2300 social homes, and explains that insights from this will inform the design of the longer-term SHDF.
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18
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted in Part
The Government should bring forward the allocation of the £3.8bn of funding pledged before the 2019 general election. This would deliver cost savings at scale. This funding should be frontloaded to reap the benefits of cumulative emissions savings towards net zero. The Government should also allow housing associations to lead …
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The Government should bring forward the allocation of the £3.8bn of funding pledged before the 2019 general election. This would deliver cost savings at scale. This funding should be frontloaded to reap the benefits of cumulative emissions savings towards net zero. The Government should also allow housing associations to lead bids, so as to ensure that the available funding is used quickly and effectively. (Paragraph 86) Energy Efficiency of Existing Homes 59
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Government response AI summary
The government has allocated £60m and an additional £300m for energy efficiency schemes in 2021/22, with the Social Housing Decarbonisation Fund (SHDF) intended to be open to all social housing landlords, but will continue to seek further funding.
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19
Recommendation
Fourth Report - Energy Efficiency of Ex…
Rejected
The proposed extension to the Warm Home Discount provides no apparent incentive to poor or vulnerable customers to invest in improving the energy efficiency of their homes. Energy efficiency is the most sustainable long-term solution to fuel poverty. The money earmarked for additional years of the scheme could be better …
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The proposed extension to the Warm Home Discount provides no apparent incentive to poor or vulnerable customers to invest in improving the energy efficiency of their homes. Energy efficiency is the most sustainable long-term solution to fuel poverty. The money earmarked for additional years of the scheme could be better applied to support energy efficiency objectives more directly, through Home Upgrade Grants or the Energy Company Obligation, to improve energy efficiency and to lower energy bills in perpetuity for those struggling to pay. (Paragraph 89) Stimulating further progress in energy efficiency
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Government response AI summary
The government agrees that energy efficiency is a long-term solution but defends the Warm Home Discount as a key policy for immediate support, stating they will continue the scheme with increased spending and will consult on improving its targeting. They do not commit to reallocating …
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20
Conclusion
Fourth Report - Energy Efficiency of Ex…
Accepted
Stop-start Government policies and intermittent funding streams have resulted in a dearth of installers of energy efficiency measures. A lack of accredited tradespeople has hampered the initial delivery of the Green Homes Grant, and there is a significant risk that the Government will not meet its heat pump installation targets …
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Stop-start Government policies and intermittent funding streams have resulted in a dearth of installers of energy efficiency measures. A lack of accredited tradespeople has hampered the initial delivery of the Green Homes Grant, and there is a significant risk that the Government will not meet its heat pump installation targets due to a lack of qualified tradespeople.
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Government response AI summary
The government acknowledged the need for long-term certainty for industry and households, stating that the upcoming Heat and Buildings Strategy will outline its approach. It also highlighted ongoing efforts to address the skills gap, including the Green Homes Grant Skills Competition and plans to upskill …
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21
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
Whilst we welcome the launch of the Green Jobs Taskforce and the Green Homes Grant Skills Training Competition, the Government must create a visible, long- term market that makes energy efficiency and heat pump installation a stable and desirable profession. The Department for Business, Energy and Industrial Strategy, working with …
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Whilst we welcome the launch of the Green Jobs Taskforce and the Green Homes Grant Skills Training Competition, the Government must create a visible, long- term market that makes energy efficiency and heat pump installation a stable and desirable profession. The Department for Business, Energy and Industrial Strategy, working with the Department for Education, should commit to the funding of a dedicated training programme to support a long-term strategy for education and training in green jobs. Training is also required to develop the networks of advisers and coordinators which will underpin the successful growth of employment opportunities in the sector.
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Government response AI summary
The government stated its commitment to creating 2 million green jobs by 2030, highlighting the Green Jobs Taskforce and existing significant funding for training initiatives, including the Green Homes Grant Skills competition and various educational programmes.
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22
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We recommend that as part of the forthcoming Heat and Buildings strategy a national retrofit strategy is developed with colleges and other education providers to provide the training and re-training needed to prepare our homes for a low-carbon future. The strategy must address the much-needed increase in certified heat pump …
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We recommend that as part of the forthcoming Heat and Buildings strategy a national retrofit strategy is developed with colleges and other education providers to provide the training and re-training needed to prepare our homes for a low-carbon future. The strategy must address the much-needed increase in certified heat pump installers to meet expected demand including through recruitment incentives, with support for apprenticeships and reskilling.
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Government response AI summary
The government is working with the Green Jobs Taskforce to produce an Action Plan for Net Zero skills and is actively collaborating with industry and education providers to increase the number of trained heat pump installers. They expect industry to be able to upskill over …
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23
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We support the introduction of minimum energy performance standards across all tenures. Without these minimum standards, it is unlikely the Government’s overall ambitions on retrofitting energy efficiency will be achieved.
Government response AI summary
The government welcomes the Committee's support for minimum energy performance standards across all tenures and lists specific actions taken or committed to, including consulting on strengthening standards for the Private Rented Sector (2025/2028), committing to consult on social housing standards, and committing to consult in …
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24
Recommendation
Fourth Report - Energy Efficiency of Ex…
Deferred
We recommend that the social rented sector should be subject to the same standards as the private rented sector.
Government response AI summary
The government committed to reviewing the Decent Homes Standard for social housing, with part one underway, and stated that the level of ambition for a new standard will be set as part of this review, taking into account other tenure standards.
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25
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted in Part
In its forthcoming Heat and Buildings Strategy, the Government, acting on the advice of the Climate Change Committee, should set an ambitious and realistic trajectory for owner occupiers to achieve minimum EPC C standards. The CCC recommends that by 2028 all properties achieve EPC level C at the point of …
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In its forthcoming Heat and Buildings Strategy, the Government, acting on the advice of the Climate Change Committee, should set an ambitious and realistic trajectory for owner occupiers to achieve minimum EPC C standards. The CCC recommends that by 2028 all properties achieve EPC level C at the point of sale. This is a hugely ambitious target and the Government must set out how it plans to raise public engagement and revise its delivery mechanisms to achieve this target and specify where exemptions may be necessary. These measures may include cost caps to be applied to such work and exemptions from the requirement to meet these standards: for instance, on the grounds of affordability or for properties recognised as hard to treat. It should also 60 Energy Efficiency of Existing Homes ascertain the risks of creating a two-tier mortgage market and long-term blight for owner occupiers and the private rented sector of hard-to adapt properties and identify and implement measures to avoid this impact.
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Government response AI summary
The government is committed to the aspiration of upgrading as many homes as possible to EPC Band C by 2035 and will consult on regulatory measures this year, recognizing the need for exemptions and for addressing risks of a two-tier mortgage market.
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26
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
Green finance options are essential to encourage owner occupiers to take action on energy efficiency. We welcome the ambition of some leading lenders to make green mortgages available, and the Government consultation on how mortgage lenders can help householders to improve the energy performance of their homes.
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Green finance options are essential to encourage owner occupiers to take action on energy efficiency. We welcome the ambition of some leading lenders to make green mortgages available, and the Government consultation on how mortgage lenders can help householders to improve the energy performance of their homes.
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Government response AI summary
The government agrees green finance is critical for improving home energy performance, confirms their consultation on improving home energy performance through lenders closed in February 2021, and states they will review responses to develop further proposals.
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27
Recommendation
Fourth Report - Energy Efficiency of Ex…
Rejected
Alongside an extension of the Green Homes Grant, other financial incentives, such as low interest loans, will need to be made available to owner occupiers and landlords to achieve the thorough retrofit of domestic housing stock the Government envisages. The Green Finance Institute has identified 21 possible products. It is …
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Alongside an extension of the Green Homes Grant, other financial incentives, such as low interest loans, will need to be made available to owner occupiers and landlords to achieve the thorough retrofit of domestic housing stock the Government envisages. The Green Finance Institute has identified 21 possible products. It is therefore disappointing that the Green Home Finance Innovation Fund only looked at green mortgages and did not pilot stamp duty rebates and low interest loans which have shown considerable success in other parts of the world. We look forward to hearing more details from the Government on how the proposed National Infrastructure Bank will be used to finance domestic energy efficiency.
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Government response AI summary
The government agrees on the need for various financial products and is exploring options for the UK Infrastructure Bank, whose mandate is under development. However, trials of Stamp Duty rebates for energy efficient homes are explicitly not under active consideration due to concerns about tax …
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28
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
Despite the need to make progress in improving energy efficiency of 19 million homes to achieve net zero Britain objectives, no mention was made in the Budget statement on 3rd March by the Chancellor of energy efficiency, nor any steps taken to improve delivery of the Green Homes Grant, his …
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Despite the need to make progress in improving energy efficiency of 19 million homes to achieve net zero Britain objectives, no mention was made in the Budget statement on 3rd March by the Chancellor of energy efficiency, nor any steps taken to improve delivery of the Green Homes Grant, his flagship measure announced by him in July 2020, which has so far signally failed to deliver its targets.
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Government response AI summary
The government acknowledged the conclusion, explaining that it was inappropriate to comment on the Green Homes Grant scheme in the Budget due to ongoing performance issues, and subsequently announced the closure of the voucher scheme on March 27th.
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29
Recommendation
Fourth Report - Energy Efficiency of Ex…
Rejected
We recommend that the Chancellor of the Exchequer look again at proposals to reduce to five per cent the rate of VAT on the labour element of refurbishment and renovations. The Government should also bring forward proposals to reinstate the reduced rate of VAT payable on Energy Saving Materials at …
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We recommend that the Chancellor of the Exchequer look again at proposals to reduce to five per cent the rate of VAT on the labour element of refurbishment and renovations. The Government should also bring forward proposals to reinstate the reduced rate of VAT payable on Energy Saving Materials at its former level of five per cent and to expand its scope to cover energy storage, heat pumps and electric vehicle charging.
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Government response AI summary
The government rejected the recommendation to reduce VAT on refurbishment labour and expand the scope of reduced VAT on Energy Saving Materials, citing significant additional pressure on public finances and the need to balance tax revenue with public spending or other taxation.
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30
Recommendation
Fourth Report - Energy Efficiency of Ex…
Rejected
We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a stamp duty rebate for homeowners that improve the efficiency of their homes within the first year of purchase. We recommend that the Government work with the financial sector and major landlords, including local authorities and …
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We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a stamp duty rebate for homeowners that improve the efficiency of their homes within the first year of purchase. We recommend that the Government work with the financial sector and major landlords, including local authorities and other social landlords, to stimulate renovation through the introduction of green mortgages, green finance and low cost loans. These instruments would help to address the barriers to energy efficient renovation and retrofit in the form of high upfront costs of energy efficiency measures. The Government should consider how the national infrastructure bank could be used as a vehicle to finance energy efficiency given the scale of success achieved in Germany through its state funded low interest loan scheme.
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Government response AI summary
The government rejects piloting stamp duty rebates for homeowners, reiterating previous reasons. While agreeing on the need for various green finance products, they refer to existing support through the Green Home Finance Innovation Fund, ongoing engagement with lenders to consider additional support, and exploring options …
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31
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
The Government should work with the financial services sector to devise and implement a communications strategy to raise awareness about, and to encourage the uptake of, appropriate types of financing measures already on the market being offered, such as green mortgages. (Paragraph 134) Energy Efficiency of Existing Homes 61
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The Government should work with the financial services sector to devise and implement a communications strategy to raise awareness about, and to encourage the uptake of, appropriate types of financing measures already on the market being offered, such as green mortgages. (Paragraph 134) Energy Efficiency of Existing Homes 61
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Government response AI summary
The government agrees consumer awareness is vital and has engaged with stakeholders and consulted on improving access to information, stating they will consider responses for ongoing policy development.
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32
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
Energy Performance Certificates have a range of flaws, with their inability to reflect real-world energy performance being the biggest challenge. Desk-based assessments with out-of-date software are doing nothing to improve the market value of decarbonised homes and do not accurately reflect the progress the country is making in improving the …
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Energy Performance Certificates have a range of flaws, with their inability to reflect real-world energy performance being the biggest challenge. Desk-based assessments with out-of-date software are doing nothing to improve the market value of decarbonised homes and do not accurately reflect the progress the country is making in improving the energy efficiency of housing stock. Given their role underpinning Government policy and targets, EPCs should nevertheless be retained but thoroughly overhauled to ensure that they represent an accurate assessment of the improved energy performance of buildings.
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Government response AI summary
The government agrees on the importance of ensuring Energy Performance Certificates (EPCs) align with policy objectives and legally binding targets, but the response is incomplete regarding specific overhaul actions.
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33
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We recommend the EPC methodology is fundamentally overhauled to support low carbon heating measures by indicating, in its headline rating not only the fuel cost of heating a property but also its energy and carbon metrics. The measures in the Government’s EPC action plan are not enough to achieve what …
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We recommend the EPC methodology is fundamentally overhauled to support low carbon heating measures by indicating, in its headline rating not only the fuel cost of heating a property but also its energy and carbon metrics. The measures in the Government’s EPC action plan are not enough to achieve what is needed to support the decarbonisation of homes: we recommend that Ministers look at this again with far greater urgency. Well in advance of 2025, while the energy market is rapidly decarbonising, we would like to see the introduction of EPCs more reflective of real-world performance, and the publication of regular updates on the developing methodology behind EPC assessments. Those carrying out EPC assessments should be suitably qualified and trained in energy modelling and assessment.
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Government response AI summary
The government agreed with the committee on the importance of aligning Energy Performance Certificates (EPCs) with policy objectives and legally binding targets, but the provided response is truncated and does not detail specific actions to overhaul the methodology.
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34
Conclusion
Fourth Report - Energy Efficiency of Ex…
Deferred
Building renovation passports have the potential to provide much more accurate data on energy usage and could be used to unlock green finance. They provide homeowners with long-term renovation strategies which can minimise disruption to their properties and thereby encourage more extensive retrofitting of energy efficiency measures.
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Building renovation passports have the potential to provide much more accurate data on energy usage and could be used to unlock green finance. They provide homeowners with long-term renovation strategies which can minimise disruption to their properties and thereby encourage more extensive retrofitting of energy efficiency measures.
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Government response AI summary
The government acknowledged the potential of Building Renovation Passports, stating it is open to considering them and is currently engaging with industry stakeholders to explore potential mechanisms for their development.
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Recommendation
Fourth Report - Energy Efficiency of Ex…
Not Addressed
We recommend the Government develop an approved, standardised methodology and data framework for Building Renovation Passports and supports their roll-out, with a view to the eventual replacement of Energy Performance Certificates.
Government response AI summary
The government's response discusses embodied carbon and the Industrial Decarbonisation Strategy, but does not address the recommendation to develop a methodology and data framework for Building Renovation Passports or their proposed replacement of EPCs.
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36
Conclusion
Fourth Report - Energy Efficiency of Ex…
Not Addressed
We have heard of the benefits of a bespoke advice service on energy efficient retrofitting. We consider that such a service will be essential in order to achieve the pace of change needed to meet the net zero target.
Government response AI summary
The government's response discusses public procurement reforms and the Industrial Decarbonisation Strategy, which does not address the conclusion about the essential nature of a bespoke advice service on energy efficient retrofitting.
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37
Recommendation
Fourth Report - Energy Efficiency of Ex…
Acknowledged
We recommend the Government’s present basic energy advice service available in England is upgraded to a specialist bespoke advice service similar to the Home Energy Scotland network. This should include measures to identify the most appropriate financing programme for each consumer.
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We recommend the Government’s present basic energy advice service available in England is upgraded to a specialist bespoke advice service similar to the Home Energy Scotland network. This should include measures to identify the most appropriate financing programme for each consumer.
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Government response AI summary
The government acknowledged the growing use of its Simple Energy Advice service, stating that any future development will be based on an iterative process of user testing, but did not commit to upgrading it to a specialist bespoke service similar to Home Energy Scotland.
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38
Conclusion
Fourth Report - Energy Efficiency of Ex…
Acknowledged
Sustainable building materials are not being utilised to anywhere like their full potential in the UK. The use of natural fibre insulation could have significant benefits for the UK’s older housing stock.
Government response AI summary
The government recognises the importance of reducing embodied carbon and increasing the use of low-carbon materials in construction. They refer to the Industrial Decarbonisation Strategy, which outlines how industry can decarbonise and includes consideration of new policy approaches to support the market for low-carbon industrial …
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39
Recommendation
Fourth Report - Energy Efficiency of Ex…
Accepted
We recommend that within its Heat and Buildings Strategy, the Government consider stipulating the use of sustainable materials in public sector energy efficiency contracts as a first incentive to drive the UK’s domestic supply chain of these materials. (Paragraph 159) 62 Energy Efficiency of Existing Homes
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We recommend that within its Heat and Buildings Strategy, the Government consider stipulating the use of sustainable materials in public sector energy efficiency contracts as a first incentive to drive the UK’s domestic supply chain of these materials. (Paragraph 159) 62 Energy Efficiency of Existing Homes
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Government response AI summary
The government is reforming public procurement policy through new legislation and a National Procurement Policy Statement to embed national priorities like tackling climate change. This framework, alongside actions from the Industrial Decarbonisation Strategy, will enable the public sector to drive demand for green products, including …
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