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CCC annual progress report criticises energy efficiency programmes

The Climate Change Committee's annual progress report, published on 29 June 2022, said sharply rising fuel costs should have accelerated home energy efficiency work, but the necessary programmes are not in place.

A newspaper on a kitchen table beside a model of rules and regulation

The Committee on Climate Change (CCC) said in its annual Progress Report to Parliament, published on 29 June 2022, that energy efficiency programmes for homes are not in place despite sharply rising fuel costs. The finding was set out in a House of Commons Library briefing on the energy efficiency of homes in the north of England1.

"Sharply rising fuel costs should have given added impetus to improving energy efficiency, yet the necessary programmes are not in place."
Committee on Climate Change, annual Progress Report to Parliament, 29 June 20221

The briefing records that the government published the Heat and Buildings Strategy and the Net Zero Strategy in October 2021, and the British Energy Security Strategy in April 20221. It says those strategies were credited with setting high ambitions but criticised for a perceived "limited focus" on energy efficiency measures1.

The stated plans rest largely on Energy Performance Certificate (EPC) ratings, which run from band A (very efficient) to band G (inefficient)1. They include:

MeasureStated target
Future Homes StandardNew-build homes in England "ready for net zero" from 20251
Fuel poor homes in EnglandEPC band C "where reasonably practicable"1
All homesEPC band C by 2035, "where cost-effective, practical and affordable"1
Privately rented homesEPC band C by 20281
Social housingEPC band C, subject to consultation1

The British Energy Security Strategy added plans to remove VAT on installations of energy saving materials such as insulation and low carbon heating for five years, to support retail lenders offering low-cost finance, to launch an energy advice service, and to review practical planning barriers by the end of 2022, including in conservation areas and listed buildings1.

On the regional picture, the briefing says that 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 those bands and the smallest proportion in bands F and G1. The Energy Company Obligation (ECO), which started in 2013 and requires energy suppliers to fund heating and insulation measures through a levy on energy bills, had by March 2022 delivered more installations in the three northern regions of England than in any other regions or nations of Great Britain1. Analysis published by the Energy & Climate Intelligence Unit in March 2022 found households in fuel poverty are disproportionately found in the north of England, at one million homes, and the East Midlands, and that these regions have the highest proportion of homes below the government's EPC target1. The Levelling Up White Paper of 2 February 2022 included funding for "the worst performing homes and those least able to pay" and noted that upgrading homes and workplaces could support over 240,000 low carbon jobs by 20351.

Why it matters for households

The report's central point is that the framework of targets exists but the delivery programmes do not. For a household, the practical effect is that the routes to a warmer, cheaper-to-run home, whether insulation, low carbon heating or the standards that apply at the point of sale or rent, depend on schemes that the CCC says are not operating at the required scale. The Future Homes Standard governs what new homes must achieve, while the EPC regulations and reform set the bands that existing homes are measured against. The 2035 band C ambition for all homes, and the 2028 standard for privately rented homes, are the dates that would shape when work becomes mandatory rather than voluntary. The briefing does not report how the VAT removal, the low-cost finance or the energy advice service have performed, and no figures for take-up of those measures are given1. The regional data indicates where the housing stock is least efficient and where ECO funding has concentrated, which is the context in which any future programme would have to operate.

What happens next

The briefing records one dated commitment: a review of practical planning barriers to installing energy efficiency measures, including in conservation areas and listed buildings, by the end of 20221. The social housing standard remains subject to consultation, and the 2035 band C requirement for all homes is described as a consultation on phasing in higher minimum standards1. No further timetable for the programmes the CCC said were missing has been reported1.

Sources1 cited
  1. Energy efficiency of homes in the north of England - House of Commons Library, commonslibrary.parliament.uk