The Energy Security and Net Zero Committee published its First Report of Session 2024-25, Retrofitting homes for net zero, on Friday 9 May 20251. The report makes recommendations to government, which has two months to respond1.
The committee found that at least 80% of buildings that will be occupied in 2050 have already been built, and that the UK housing stock accounts for around 13% of national greenhouse gas emissions1. Natural gas still accounts for around 85% of fuel used for domestic heating and cooking, and just 5% of homes use low carbon heating systems1. Around 29 million homes will need to be retrofitted by 20501. The UK has a legally binding target to reduce carbon emissions by 78% by 2035 compared to 1990 levels, and has committed to delivering a clean power system by 20301.
On cost, the committee cites Climate Change Committee estimates that around £250bn of investment will be needed to decarbonise the UK's homes between 2020 and 2050, equating to £8bn each year until then1. It also cites Citizens Advice evidence that the average cost of retrofitting an individual home, such as to install a low carbon heating system and energy efficiency upgrades, is just under £15,0001. Research cited in the report found that upgrading all homes to Energy Performance Certificate (EPC) Band C would deliver around £40bn in benefits to the UK economy in the period to 2030 and up to £100bn in further benefits over the following decade, including almost £24bn of consumer bill savings, more than £9bn in societal savings, around £4bn in energy system savings and around £2bn in savings to the NHS over the years leading to 20301.
The committee's summary states:
"We call on the Government to provide far longer-term certainty for its retrofit support schemes, launch a national warm homes advice service and introduce a carbon metric to certify the energy performance of homes."
The report also recommends rebalancing policy costs to reduce the cost of electricity relative to gas, measures to encourage low carbon heating installations and make new fossil fuel heating systems less attractive in homes, a prompt decision on hydrogen heating, and a national workforce accreditation scheme as a prerequisite for carrying out retrofit work1. It notes that the Government consulted on EPC reform in 2024, that the previous Government consulted on a new Home Energy Model in 2023, and that in April 2025, while the report was being agreed, the Government launched a consultation on proposals to expand the Boiler Upgrade Scheme1.
Why it matters for households
The report sets out the scale of the task for the UK's housing stock and the costs attached to it. More than a third of households in England were spending over 10% of their income after housing costs on home energy in 2023, and two thirds of households live in draughty, damp or overheated homes1. For a household, the practical questions are what a retrofit involves, what it costs and who can be trusted to carry it out. The committee's evidence puts the average cost of retrofitting an individual home at just under £15,000, and identifies consumer confidence and workforce accreditation as barriers1. Its recommendations on a national advice service and a carbon metric go to how households receive information about their home's performance, currently delivered through EPCs, which the report says poorly inform consumers1. Policy on energy performance certificates and rented sector standards differs across the UK, with separate regimes in Wales and Scotland, and the Future Homes Standard sets the direction for new-build emissions. The report also notes that the Government department responsible, DESNZ, holds the fuel poverty statistics cited in it1. Quality assurance for retrofit work is covered by the government-endorsed TrustMark scheme, referenced in the wider policy landscape rather than in the report's recommendations1.
What happens next
The Government has two months to respond to the report1. The report notes that the Government launched a consultation on proposals to expand the Boiler Upgrade Scheme in April 2025, and that it consulted on EPC reform in 20241. No date has been reported for the publication of the Government's promised Warm Homes Plan1.
Sources1 cited
- Retrofitting homes for net zero, publications.parliament.uk