The Levelling Up White Paper, published on 2 February 2022, includes plans to improve energy efficiency by providing funding for "the worst performing homes and those least able to pay"1. It also noted the economic opportunities of energy efficiency, stating that upgrading homes and workplaces could support over 240,000 low carbon jobs by 20351.
The White Paper sits alongside a wider set of government plans on home energy efficiency. The Heat and Buildings Strategy and the Net Zero Strategy, both published in October 2021, set out measures including delivering the Future Homes Standard so that new-build homes in England are "ready for net zero" from 2025, upgrading fuel poor homes in England to Energy Performance Certificate (EPC) band C "where reasonably practicable", and consulting on phasing in higher minimum performance standards to ensure all homes meet EPC band C by 2035, "where cost-effective, practical and affordable"1. Long-term regulatory standards to upgrade privately rented homes to EPC band C by 2028 are also set out, alongside consideration of a similar standard for social housing subject to consultation1. The British Energy Security Strategy, published in April 2022, proposed removing VAT on installations of energy saving materials such as insulation and low carbon heating for the next five years, and reviewing the practical planning barriers households can face when installing energy efficiency measures, including in conservation areas and listed buildings, by the end of 20221.
Energy efficiency is measured through the Standard Assessment Procedure (SAP), which assigns one of seven bands to a dwelling from A (most energy efficient) to G (least energy efficient)1. In 2019, Yorkshire and the Humber had the lowest proportion of any English region of dwellings in the top three bands (A to C), while the North East had among the highest share in these bands and the smallest proportion in the two lowest bands (F and G)1. The Energy Company Obligation (ECO) scheme, which started in 2013, requires energy suppliers to fund heating and insulation measures in homes and is funded through a levy on energy bills1. Up to March 2022, the three regions in northern England had received more installations under ECO than any other regions or nations in Great Britain1.
In March 2022, the Energy & Climate Intelligence Unit published analysis showing that households in fuel poverty are disproportionately found in the north of England (one million homes) and the East Midlands, and that these regions have the highest proportion of homes below the Government's EPC target1. The Heat and Buildings Strategy and the British Energy Security Strategy were credited with setting high ambitions but criticised for a perceived "limited focus" on energy efficiency measures1. In its annual Progress Report to Parliament, published 29 June 2022, the Climate Change Committee said:
"Sharply rising fuel costs should have given added impetus to improving energy efficiency, yet the necessary programmes are not in place."
Why it matters for households
The White Paper's funding commitment is aimed at homes with the lowest energy performance and the least ability to pay for improvements, a group the ECIU analysis places disproportionately in the north of England and the East Midlands1. For a household, the EPC band of a property is the measure government policy uses to set minimum standards, and the plans set out in the strategies around the White Paper point to band C as the benchmark for fuel poor homes, privately rented homes by 2028, and all homes by 2035 where cost-effective, practical and affordable1. That matters for energy independence because a home's band reflects how much energy it needs to stay warm, and the cost of that energy is met from the household's own budget. The VAT removal on energy saving materials and the review of planning barriers in conservation areas and listed buildings address two of the practical obstacles to making a property more efficient1. The Climate Change Committee's assessment is that the programmes needed to deliver these improvements were not in place at the time of its June 2022 report1.
What happens next
The British Energy Security Strategy set a review of practical planning barriers to installing energy efficiency measures, including in conservation areas and listed buildings, to be completed by the end of 20221. The privately rented homes standard is set for 2028, and the consultation on minimum performance standards for all homes points to EPC band C by 20351. The White Paper itself does not set out a delivery timetable for the funding for the worst performing homes, and no further detail on that funding has been reported1.
Sources1 cited
- Energy efficiency of homes in the north of England - House of Commons Library, commonslibrary.parliament.uk