The House of Commons Energy Security and Net Zero Committee published its report, Retrofitting homes for net zero, on Friday 9 May 20251. It recommends that the Government announce a long-term programme for supporting home retrofit beyond 2026 in its Warm Homes Plan, including funding commitments until at least 20351. The Government has two months to respond to the report1.
The committee found that most witnesses said government retrofit schemes had lacked the long-term funding commitments needed to give consumers, installers and the supply chain confidence1. It also said consumers lack access to impartial advice and are poorly informed by Energy Performance Certificates, and called on the Government to launch a national warm homes advice service and introduce a carbon metric to certify the energy performance of homes1.
"Most witnesses told us that government schemes to support home retrofit have lacked the long-term funding commitments needed to provide consumers, installers and the supply chain with confidence."
The report sets out the scale of the task. At least 80% of buildings that will be occupied in 2050 have already been built, and 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 with 1990 levels, and has committed to delivering a clean power system by 20301.
On cost, the committee cites the Climate Change Committee's estimate 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 cites Citizens Advice evidence that the average cost of retrofitting an individual home, such as installing 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 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 decade1.
| Benefit of upgrading all homes to EPC Band C, to 2030 | Value |
|---|---|
| Total benefit to the UK economy | around £40bn |
| Consumer bill savings | almost £24bn |
| Societal savings | more than £9bn |
| Energy system savings | around £4bn |
| Savings to the NHS | around £2bn |
Source: Energy Security and Net Zero Committee, citing Citizens Advice research1
The report also notes that more than a third of households in England spent over 10% of their income after housing costs on home energy in 2023, and that two thirds of households live in draughty, damp or overheated homes1. It records that the Government consulted on EPC reform in 2024, and that in April 2025, while the report was being agreed, the Government launched a consultation on proposals to expand the Boiler Upgrade Scheme1. The report does not set out the Government's response to its recommendations, which has not been reported1.
Why it matters for households
The report's central argument is about certainty. Support for home retrofit currently comes through a set of separate schemes, including the Boiler Upgrade Scheme, ECO4 and the Great British Insulation Scheme, each with its own eligibility rules and end dates. The committee's view is that funding commitments running to at least 2035 would let a household plan work over years rather than around whichever scheme happens to be open, and would let installers and suppliers invest in skills and stock. For a home's energy independence, the practical effect is on what can be installed and when: insulation and a low carbon heating system are long-lived decisions, and the report treats the current pattern of short schemes as a barrier to householders committing to them. The report also flags that electricity is around four times more expensive than gas in the UK, which it says deters many consumers from switching to low carbon heating, and it recommends rebalancing policy costs so electricity is cheaper relative to gas1. It adds that measures must focus on supporting low income households least able to afford a transition1.
What happens next
The Government has two months from publication to respond to the committee's recommendations1. The report was published ahead of the Government's promised Warm Homes Plan, which had not been published at the time of the report1. The committee also calls for a prompt decision on hydrogen heating to provide certainty1.
Sources1 cited
- Retrofitting homes for net zero, publications.parliament.uk