Four elements of energy efficiency policy were announced alongside the government's Energy Security Strategy, according to an assessment published by the UK Green Building Council (UKGBC) on 1 April 2022. The measures cover an energy advice service, new energy performance standards, green finance products and a heat pump manufacturing competition1.
The UKGBC, an independent industry body, said the strategy itself was "deeply disappointing" and that home energy efficiency was "largely missing" from it, despite covering what it describes as the UK's 29 million homes1. It set out the four announced elements as follows1:
| Announced element | Detail given |
|---|---|
| Energy advice service | To be launched by the summer, for households and small businesses upgrading their homes; replaces a scheme the government previously scrapped |
| Energy performance standards | Details to be published in May |
| Green finance products | Banks encouraged to develop products for homeowners, with an additional £10 million |
| Heat Pump Investment Accelerator Competition | Worth £30m, aimed at UK manufacturing jobs and revenues |
On the heat pump competition, the UKGBC said it "is welcome but won't significantly reduce prices for consumers"1. On energy performance standards, its roadmap analysis states that minimum standards at point of sale for owner-occupied homes by 2028 would be needed to hit climate commitments1.
The UKGBC also reported that Rishi Sunak refused to fund £200m for expansion of the ECO scheme, and that £2bn promised in the 2019 manifesto for energy efficiency measures for the worst-off households remained outstanding1. It cited analysis from the government-chaired Construction Leadership Group showing that for every £1 invested in energy efficiency there is a £2 return to the economy, and said installation numbers have collapsed by 70% over the last nine years1.
"Four elements of policy were announced"
The UKGBC's assessment followed widespread criticism of the strategy from industry bodies and the media, which it said amounted to a wake-up call1. The government's own framing of the strategy, and any response to the UKGBC's criticism, has not been reported here.
Why it matters for households
The four measures touch different parts of a home's path to lower energy use. An advice service addresses the point at which households and small businesses try to work out what to install and in what order, replacing a scheme that had been scrapped1. Energy performance standards, whose detail is due in May, set the benchmark against which a home's efficiency is judged, and the UKGBC argues point-of-sale minimum standards for owner-occupied homes would be needed by 20281. Green finance products concern how upgrades are paid for, with £10 million offered to encourage banks to develop them1. The heat pump competition concerns manufacturing capacity rather than installed cost, which is why the UKGBC expects no significant consumer price effect1.
For a household, the practical weight sits in whether advice, standards and finance arrive together. The UKGBC's figures on ECO funding and the 70% fall in installations describe the backdrop against which these four elements were announced1. The UK Home Energy Regulation and Policy guide covers how standards and schemes fit together, and the heat pump policy and targets guide sets out the rules and targets for heat pumps.
What happens next
The energy advice service is due by the summer of 2022, and the details of new energy performance standards are due in May 20221. The UKGBC names the forthcoming Energy Bill and the Autumn Budget as the next major tests for the government on this agenda1.