Source · Select Committees · Environmental Audit Committee
Recommendation 44
44
Accepted
Paragraph: 219
A lack of consumer awareness regarding retrofitting solutions, the perception that retrofit work is costly...
Conclusion
A lack of consumer awareness regarding retrofitting solutions, the perception that retrofit work is costly and/or disruptive, and consumer mistrust in the retrofit sector’s ability to deliver quality housing solutions, is creating further barriers to investment in retrofit. In our view there is a clear role for Government to support the industry in promoting retrofit installations, in particular at a time when energy costs are rising rapidly, and the running cost of heating homes and businesses could be reduced by improving energy efficiency of buildings.
Government Response Summary
The Government acknowledges the cost of living pressures and highlights existing support packages. They claim to be stimulating demand for retrofit through direct investment, VAT reduction, strengthening minimum energy performance standards, supporting green finance, and improving consumer understanding, and outline existing quality assurance mechanisms.
Paragraph Reference:
219
Government Response
Accepted
HM Government
Accepted
The Government recognises the pressures people are facing with the cost of living. This is why we have set out a £22 Billion package of support, including a £150 council tax rebate and a £400 energy Bill discount in October to cut energy Bills quickly for the majority of households. We know that energy efficiency improvements can cut energy costs, delivering an average Bill savings of £300. We have, therefore, committed to spend £6.6 Billion in this Parliament to further improve the energy performance of our buildings. The Government is stimulating demand for retrofit through direct investment in energy efficiency and decarbonisation measures, introducing a zero-rate of VAT for the next five years on energy efficiency measures, strengthening minimum energy performance standards for existing properties, supporting the development of the green finance market, and improving consumer understanding and awareness of ways to improve the energy performance of their homes. In our Public Attitudes Tracker, we asked respondents who they would trust to provide advice on which heating system to install in home. In Winter 2021, trust was highest among tradespeople (46%), low carbon heating specialists (37%), official websites such as GOV.UK (36%), heating manufacturers (29%) and energy advice websites (29%). This demonstrates the importance of extensive co-operation and collaboration from government, industry and consumers. We also found that the most common barriers to installing each type of insulation for respondents living in owner-occupier households included cost, feeling it was unsuitable for their home, or that it entailed too much hassle or disruption. Cost was the main barrier for double glazing (48%), whereas perceived unsuitability for their home was the main barrier for installation of cavity or solid wall insulation (47%), loft insulation (33%), and under floor insulation (24%).1 To reduce consumer mistrust of retrofit, the Each Home Counts (EHC) Review, an independent review of consumer advice, protection and standards, called for a technical code of practice and standards to ensure that the risk of poor-quality insulations was minimised. As a result of this review, PAS 2035, which must be used in conjunction with PAS 2030, was established as the standards framework document for the end-to- 1 https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1080043/ BEIS_PAT_Winter_2021_Heat_and_Energy_in_the_Home_REVISED.pdf (Figure 6.3) end delivery of domestic retrofit work. These British Standards Institution published standards represent an industry wide approach to ensuring quality in the retrofit of people’s homes and are a requirement for those installing energy efficiency measures in government funding schemes (MCS standards or equivalent are required for low carbon heat installations). The EHC Review also called for a quality mark against which all those engaged in design and installation of measures will be assessed and certified against. This function is undertaken by TrustMark. PAS certified and TrustMark registered installers have been thoroughly vetted for technical competence, customer service and trading practices, and will be operating in accordance with the TrustMark Customer Charter. This ensures customers are financially protected in the event of remediation works required or should the installing company go into financial administration, as well as being provided with appropriate guarantees. The Government is currently determining how best to partner with industry, local actors and other stakeholders to help consumers make cost-effective energy efficiency improvements through high-quality installers.