Source · Select Committees · Environmental Audit Committee
Recommendation 8
8
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We welcome the clarification provided in the Energy White Paper that Home Upgrade Grants will...
Conclusion
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
Acknowledged
HM Government
Acknowledged
The Home Upgrade Grant scheme aims to upgrade the worst performing off gas grid homes (EPC D- G) that are inhabited by low-income households, providing both energy efficiency measures and low carbon heating. According to the latest fuel poverty statistics around 542,000 off gas grid D-G homes are measured as living in fuel poverty, including 132,000 in the worst-performing homes, those rated F and G. The Home Upgrade Grant seeks to prioritise those homes first, tackling fuel poverty and ensuring that the most Energy efficiency of existing homes: Government Response 7 vulnerable households in the worst performing homes are not left behind in the transition to net zero. £150m has already been committed to the Home Upgrade Grant to commence delivery in early 2022. Further funding is subject to future fiscal events. The Home Upgrade Grant is part of a wide package of support available to upgrade and decarbonise homes. Off-gas grid homes are eligible under the Energy Company Obligation, the next iteration of which will run from 2022 to 2026 with an increase in value from £640m to £1bn per year. For off-grid homes in the rental sector the planned Social Housing Decarbonisation Fund and proposed regulations in the private rented sector will play an important role in upgrading the housing stock. The Clean Heat Grant, launching in April 2022, will provide additional support as an incentive for households that are off gas grid to switch to low carbon heating. The £100m scheme, announced at the March 2020 Budget, will provide upfront capital grants for the installation of low carbon heat systems, primarily heat pumps and in limited circumstance biomass boilers.