The Energy Saving Trust published its response to the Treasury's interim report into the costs of net zero on 19 February 2026, setting out how the cost of decarbonising homes should be shared1. The charity, which is authorised and regulated by the Financial Conduct Authority, said its response focuses on homes1.
Its central argument rests on a Climate Change Committee finding that a decarbonisation pathway built on energy efficiency with a high degree of electrification would reduce household energy bills1. The Trust said it "strongly support[s] an overarching policy goal of delivering lower consumer bills alongside net zero emissions"1. It identified two areas for consideration: reducing overall investment, through a pathway based on improving fabric standards, providing policy certainty to investors and markets, and regulating to deliver net zero outcomes faster; and distributing costs and benefits fairly1.
On who pays, the Trust listed five mechanisms: homeowner self-funding, energy bill levies, general taxation, carbon pricing and new borrowing1. It said that where costs are moderate and homeowners are likely to recoup the investment, it is reasonable for homeowners to self-fund work, and that where this is not the case it supports financial options to spread the cost between subsequent owners and approaches to partially or wholly socialise costs1. It stated that fuel-poor households should not face upfront costs, and that their retrofit costs should instead be met by grants, along with long-term, low interest loans where appropriate1.
The response opposes new or expanded energy bill levies and calls for the current levy package to shift to general taxation1. The Trust said removing this cost from electricity bills would stimulate take-up of low carbon heating in the most equitable way and without reducing heating affordability for low-income households1. It also pointed to an opportunity for the proposed National Infrastructure Bank to support households with the upfront cost of home upgrades1.
"We do not support new or expanded energy bill levies."
The Trust described consumer engagement as "the ultimate challenge to decarbonising homes", adding that more consideration and resources need to be directed into engaging consumers and supporting them to act1.
Why it matters for households
The response addresses where the money for home upgrades comes from, which determines whether a household pays upfront, through bills, or through taxation. The Trust's position is that the current levy package on electricity bills should move to general taxation, on the argument that this would lower the running cost of low carbon heating without cutting heating affordability for low-income households1. For fuel-poor households, it argues against upfront costs entirely, favouring grants and low interest loans1. For others, it treats self-funding as reasonable where costs are moderate and the investment is likely to be recouped1. The distinction matters for a home's energy independence because the cost of low carbon heating and the fabric standards that reduce demand are both shaped by who bears the upfront cost. The Trust also frames policy certainty and faster regulation as ways to reduce the overall investment required1.
What happens next
The response is a consultation submission to the Treasury's interim report into the costs of net zero1. No decision, timetable or government response is set out in the published document. The Trust's stated next step is that more resources should be directed into consumer engagement1. The Energy Saving Trust's role and funding are separate from this submission, and the wider policy framework it responds to has not been reported as changing as a result.
Sources1 cited
- Response to Treasury net zero costs report - Energy Saving Trust, energysavingtrust.org.uk