Fourth Report - Energy Efficiency of Existing Homes

The government clarifies that its £35-£65 billion estimate focuses on achieving EPC C where practical, and does not cover full decarbonisation of homes and non-domestic buildings, which would indeed cost significantly more. They reference external estimates from the CCC suggesting much higher costs for full decarbonisation.

The government acknowledged the recommendation by reiterating its commitment to the existing EPC band C by 2035 ambition, stating it believes it offers good value. It also noted the Heat and Buildings Strategy would set out policies for the 2020s, but did not commit to reviewing feasibility or increasing ambition.

The government states its cost projections are continually reviewed and informed by consultation, and no homes are considered out of scope under its definitions. It will publish a Heat and Buildings Strategy in due course to address actions for reducing emissions from buildings, including safeguards for properties that cannot reach energy efficiency aspirations.

The government acknowledges concerns about ECO's impact, stating ECO3 focuses on low-income households, and a £4bn scheme aims to meet fuel poverty targets. It intends to design ECO to complement other funding sources, explains why blending for the same measures is limited, and highlights the expanded Warm Home Discount and Social Housing Decarbonisation Fund as additional support.

The government reiterates the Home Upgrade Grant's focus on worst-performing low-income off-gas grid homes, confirms £150m has been committed, and outlines other complementary schemes like ECO, SHDF, and the Clean Heat Grant that provide broader support for upgrading homes.

The government acknowledges the Green Homes Grant Voucher scheme did not deliver as hoped, leading to its closure to new applications, and accepts it faced delivery challenges, while defending the initial swift rollout for economic stimulus and industry engagement.

The government acknowledges the committee's positive assessment of the Green Homes Grant Local Authority Delivery scheme and local authorities' role, confirming it is closely monitoring project delivery.

The government details the Social Housing Decarbonisation Fund (SHDF) Demonstrator project, confirming £62m funding was awarded to 19 projects to improve over 2300 social homes, and explains that insights from this will inform the design of the longer-term SHDF.

The government agrees green finance is critical for improving home energy performance, confirms their consultation on improving home energy performance through lenders closed in February 2021, and states they will review responses to develop further proposals.

The government acknowledged the conclusion, explaining that it was inappropriate to comment on the Green Homes Grant scheme in the Budget due to ongoing performance issues, and subsequently announced the closure of the voucher scheme on March 27th.

The government agrees consumer awareness is vital and has engaged with stakeholders and consulted on improving access to information, stating they will consider responses for ongoing policy development.

The government agrees on the importance of ensuring Energy Performance Certificates (EPCs) align with policy objectives and legally binding targets, but the response is incomplete regarding specific overhaul actions.

The government agreed with the committee on the importance of aligning Energy Performance Certificates (EPCs) with policy objectives and legally binding targets, but the provided response is truncated and does not detail specific actions to overhaul the methodology.

The government acknowledged the growing use of its Simple Energy Advice service, stating that any future development will be based on an iterative process of user testing, but did not commit to upgrading it to a specialist bespoke service similar to Home Energy Scotland.

The government recognises the importance of reducing embodied carbon and increasing the use of low-carbon materials in construction. They refer to the Industrial Decarbonisation Strategy, which outlines how industry can decarbonise and includes consideration of new policy approaches to support the market for low-carbon industrial materials.