Select Committee · Environmental Audit Committee

Energy Efficiency of Existing Homes

Status: Closed Opened: 18 May 2020 Closed: 30 Nov 2021 25 recommendations 14 conclusions 1 report

Homes account for just under 30% of energy use and around 20% of greenhouse gas emissions in the UK. It is one of the few sectors where emissions reductions have stalled. This inquiry will look at the Government's manifesto commitments and proposed strategies on energy efficiency and ask whether they will be enough to meet … Show more

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Reports

1 report
Title HC No. Published Items Response
Fourth Report - Energy Efficiency of Existing Homes HC 346 22 Mar 2021 39 Responded

Recommendations & Conclusions

15 items
2 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

There is a wide variation in the costs for bringing all homes in the UK...

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 … Read more

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...

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 … Read more

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...

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 … Read more

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,...

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 … Read more

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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8 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

We welcome the clarification provided in the Energy White Paper that Home Upgrade Grants will...

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 … Read more

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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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...

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 … Read more

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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15 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

We welcome the Green Homes Grant Local Authority Delivery scheme, and, in particular, the fact...

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. Read more

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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17 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

We welcome the Social Housing Decarbonisation fund and support its aims to retrofit social housing...

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. Read more

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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26 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

Green finance options are essential to encourage owner occupiers to take action on energy efficiency.

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. Read more

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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28 Conclusion Fourth Report - Energy Efficiency of Ex… Acknowledged

Despite the need to make progress in improving energy efficiency of 19 million homes to...

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 … Read more

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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31 Recommendation Fourth Report - Energy Efficiency of Ex… Acknowledged

The Government should work with the financial services sector to devise and implement a communications...

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 Read more

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...

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 … Read more

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...

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 … Read more

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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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...

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. Read more

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...

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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Oral evidence sessions

4 sessions
Date Witnesses
2 Dec 2020 Ben Golding · Clean Power 2030, Emma Fraser · Ministry of Housing, Communities and Local Government, Jon Fuller · HM Treasury, Kemi Badenoch · HM Treasury, Rt Hon Christopher Pincher MP · Ministry of Housing, Communities and Local Government, Rt Hon Kwasi Kwarteng · Department for Business, Energy and Industrial Strategy View ↗
18 Nov 2020 Brian Berry · Federation of Master Builders, George Munson · Leeds City Council and the Core Cities Energy Efficiency Group, Karen Brown · Northern Housing Consortium, Laura McGadie · Energy Saving Trust, Mark Lynn · Eden Renewable Innovations Ltd (Thermafleece), Russell Smith · Retrofitworks, Simon Ayers · TrustMark View ↗
4 Nov 2020 Claire Tracey · Nationwide Building Society, Dr Joanne Wade OBE · The Association for Decentralised Energy, Dr Rhian-Mari Thomas OBE · Green Finance Institute, Gavin Dick · National Residential Landlords Association, Jonathan Ducker · Kingspan, Mr Peter Smith · National Energy Action (NEA), Robert Tiffin · Ecotiffin View ↗
15 Oct 2020 Jan Rosenow · The Regulatory Assistance Project, Jenny Hill · Committee on Climate Change, Jenny Holland · UK Green Building Council, Katie Black · National Infrastructure Commission, Michael Lewis · E.ON UK, Pedro Guertler · E3G, Sarah Kostense-Winterton · Energy Efficiency Infrastructure Group, Simon Bittlestone · National Audit Office View ↗

Who gave evidence

28 witnesses
WitnessOrganisationSessions
Ben Golding · Director Clean Power 2030 1
Brian Berry · Chief Executive Federation of Master Builders 1
Claire Tracey · Chief Strategy and Sustainability Officer Nationwide Building Society 1
Dr Joanne Wade OBE · Chief Strategic Advisor The Association for Decentralised Energy 1
Dr Rhian-Mari Thomas OBE · Chief Executive Green Finance Institute 1
Emma Fraser · Housing Markets and Strategy Director Ministry of Housing, Communities and Local Government 1
Gavin Dick · Local Authority Policy Officer National Residential Landlords Association 1
George Munson · Senior Project Manager Leeds City Council and the Core Cities Energy Efficiency Group 1
Jan Rosenow · Director of European Programmes The Regulatory Assistance Project 1
Jenny Hill · Head of Buildings and International Action Committee on Climate Change 1
Jenny Holland · Public Affairs and Policy Specialist UK Green Building Council 1
Jon Fuller · Deputy Director: Energy, Environment and Agricult… HM Treasury 1
Jonathan Ducker · Head of Regulatory Affairs Kingspan 1
Karen Brown · Senior Policy Advisor Northern Housing Consortium 1
Katie Black · Director of Policy National Infrastructure Commission 1
Kemi Badenoch · Exchequer Secretary HM Treasury 1
Laura McGadie · Group Head of Energy Energy Saving Trust 1
Mark Lynn · Managing Director Eden Renewable Innovations Ltd (Thermafleece) 1
Michael Lewis · Chief Executive Officer E.ON UK 1
Mr Peter Smith · Director of Policy and Advocacy National Energy Action (NEA) 1
Pedro Guertler · Programme Leader E3G 1
Robert Tiffin · Director Ecotiffin 1
Rt Hon Christopher Pincher MP · Minister for Housing Ministry of Housing, Communities and Local Government 1
Rt Hon Kwasi Kwarteng · Secretary of State Department for Business, Energy and Industrial Strategy 1
Russell Smith · Managing Director Retrofitworks 1
Sarah Kostense-Winterton · Chair Energy Efficiency Infrastructure Group 1
Simon Ayers · Chief Executive TrustMark 1
Simon Bittlestone · Director, Value for Money National Audit Office 1

Correspondence

4 letters
DateDirectionTitle
21 Apr 2021 Chair to Secretary of State for Business, Energy and Industrial Strategy on the…
22 Mar 2021 Memorandum to the EAC from the Exchequer Secretary regarding the Green Homes Gr…
8 Feb 2021 BEIS to Chair regarding Green Homes Grant Scheme, 22 January 2021
14 Dec 2020 Chair to BEIS, GHG survey, 11 Dec 2020