UK homes will remain least energy efficient in Europe without government support

The industry has criticised Prime Minister Rishi Sunak after he announced plans to scale back key green policies.

Despite spearheading a series of initiatives to reach Net Zero and create a more sustainable construction industry, key stakeholders, trade bodies, architects and manufacturers have been left dumbfounded by the Government’s abrupt u-turn on so many key policies and programmes.

In response to last week’s speech, RIBA President Muyiwa Oki said: “The built environment is the UK’s second highest carbon emitting sector. Despite concerted effort from architects, and our partners across the built environment, yesterday’s announcement signals that the Government has no real intention to lead the charge towards net zero – and it is generations to come who will pay the heavy price.

“Millions of people in the UK are living in draughty, damp homes that are leaking energy and money. This announcement reverses the little policy progress the Government has made in upgrading our ageing and inefficient housing stock. Without consistent government signal, policy and investment, our homes will remain the least efficient in Europe for years and decades to come.

“It’s time for leadership and ambition.”

The CIOB has long campaigned for a national retrofit strategy alongside others in the built environment sector.

Eddie Tuttle, Director of Policy, Research and Public Affairs at CIOB, said: “Decarbonising homes and the wider built environment is vital to reach net zero so it’s disappointing to hear the Prime Minister scaling back energy efficiency targets and the commitments made in the Government’s own net zero growth plan published only six months ago, which refers to minimising reliance on fossil fuels.

"The Office for Budget Responsibility has previously concluded that a late and abrupt transition to net zero would cost more. It has also noted that 'continued dependence on gas could be as expensive fiscally as completing the transition to net zero.'

“Energy consumption in buildings accounts for almost half of the UK’s carbon emissions so to deprioritise this issue is baffling when the government should instead be finding ways to support homeowners to retrofit their properties and improve their energy efficiency for the lowest possible cost.

“The Boiler Upgrade Scheme has had very low take up and in our view, increasing the grant available to homeowners will make little difference, as the remaining cost will still be unaffordable for many households amidst a cost of living crisis.

“If government remains committed to reaching net zero by 2050, as they say they are, then they must set out how they plan to achieve this without reducing the reliance on carbon-based fuels to heat homes on the scale and at the pace required.”

BRE has similarly long argued that we urgently require a clear, long-term plan to transition our homes and buildings away from fossil fuel boilers and on to clean heat, and the announcements made by the Prime Minister could set us back substantially on this ambition.

Nearly a quarter of the UK’s carbon emissions come from heating buildings – and tackling this will be crucial to achieving net zero by 2050. Heat pumps are likely to be the technology that will dominate the transition to net zero, but today’s delay to the phase out of gas boilers will discourage the public and industry from supporting this drive over the long-run.

“The Government’s U-turn on introducing tighter energy efficiency targets for landlords is similarly concerning,” explained BRE’s CEO Gillian Charlesworth.

“Our recent analysis shows that the privately rented homes represent a quarter of all poor housing in England: excess cold caused by poor heating and low energy efficiency is the number one health and safety hazard in these properties. Failing to address this hazard head-on will have an immediate impact on the health of householders and pressure on our public services.”

BRE added that it hoped the announcements were not a sign that the Government will water down the forthcoming Future Homes Standard as we need ambitious standards for new homes.

Simon McWhirter, UKGBC’s Deputy Chief Executive said the anger and frustration at this latest policy U-turn has reverberated across industry.

“Delaying green policies just means they’ll have to be implemented much faster, later, pushing up the cost for everyone – householders and businesses alike,” he continued “The Prime Minister’s change in approach will also have a chilling effect on investment and skills training across green industries as they’re faced with yet another pull on the policy handbrake, just as our members and wider business were scaling up their pro-green activities across the economy.

“To really tackle this problem, the best way to bring down costs for households is to insulate homes, but the Prime Minister pulled the plug on measures to ensure landlords upgrade the draughty homes of renters – the group most affected by fuel poverty. Apart from an increase in the heat pump grant, no other measures were announced to incentivise and help households to insulate and make the transition from fossil fuel heating.

“We’re awaiting the long-overdue national strategy to upgrade all of our homes and buildings. But all we’ve had today is a further erosion of commitment and clarity from government.”

A number of UKGBC members have also responded to the Prime Minister’s announcements, demonstrating the strong appetite for robust net zero policy amongst the UK’s business community.