Select committee: Environmental Audit Committee

Recommendation 12

4th Report - Accelerating the transition from fossil fuels and securing energy supplies Published 5 Jan 2023 Paragraph 70

Environmental Audit Committee Accelerating the transition from fossil fuels and securing energy supplies All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗

Recommendation (the committee's words)

The Government must also urgently bring forward measures to incentivise energy efficiency improvements via the mortgage market. The Department for Business, Energy and Industrial Strategy conducted a consultation on how an obligation on lenders could be introduced to improve the energy performance of domestic properties with mortgages. This consultation closed in February 2021: but more than 18 months afterwards the Government has yet to come forward with concrete proposals to kick-start a retrofit revolution in this part of the housing market. We are disappointed at this delay and recommend that the Department now fast track its response to that consultation and publish detailed policy proposals on green mortgages not later than the end of February 2023. If the Government has not published these proposals by the time the response to this report is due, we recommend that Ministers set out a timetable for doing so by the end of March 2023.

From: Environmental Audit Committee, 4th Report - Accelerating the transition from fossil fuels and securing energy supplies (HC 109), paragraph 70, 5 January 2023

Government response

The government responded to the whole report on 23 March 2023 (deadline 5 March 2023).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report and responds mainly by pointing to existing schemes, targets and planned consultations, while declining several recommendations, including a tax allowance for renewable generators and ringfencing Energy Profits Levy revenue for energy efficiency.

On renewable generators' tax relief, it states it "does not accept this recomsmendation" [sic], citing support through Contracts for Difference. On the Energy Profits Levy, it has "considerable fiscal sustainability concerns" about hypothecating revenue for energy efficiency.
On green mortgages, it agrees lenders have "an important role to play" but will publish a response only once policy is "resolved", giving no date. It intends to consult on Energy Performance Certificate and wider buildings framework reforms in 2023.
On the North Sea, it considers the Transition Deal targets "sufficiently ambitious" and says it does "not propose reopening this deal for negotiation", though it will monitor progress closely, including whether "further steps may be necessary".
On energy efficiency funding, it points to £6.6 billion this Parliament and £6 billion of new funding "from 2025 to 2028". It intends to launch ECO+ in spring 2023, "proposed to be worth £1 billion over three years".

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