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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

6 items
11 Conclusion Fourth Report - Energy Efficiency of Ex… Rejected

It is commendable that the Government has been keen to avoid fraud in administration of...

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 … Read more

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...

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 … Read more

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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19 Recommendation Fourth Report - Energy Efficiency of Ex… Rejected

The proposed extension to the Warm Home Discount provides no apparent incentive to poor or...

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 … Read more

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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27 Recommendation Fourth Report - Energy Efficiency of Ex… Rejected

Alongside an extension of the Green Homes Grant, other financial incentives, such as low interest...

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 … Read more

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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29 Recommendation Fourth Report - Energy Efficiency of Ex… Rejected

We recommend that the Chancellor of the Exchequer look again at proposals to reduce to...

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 … Read more

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...

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 … Read more

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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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