Fourth Report - Energy Efficiency of Existing Homes
Select Committee
Environmental Audit Committee
HC 346
22 March 2021
Government Response (AI assessment · 39 of 39 classified)
Accepted
9
Acknowledged
15
Deferred
2
Rejected
6
Government response
First Special Report - Energy efficiency of existing homes: Government Response to the Committee’s Fourth Report of Session 2019–21 · published 13 May 2021
Recommendations & Conclusions
6 results
11
Conclusion
Rejected
Para 70
It is commendable that the Government has been keen to avoid fraud in administration of...
Conclusion
It is commendable that the Government has been keen to avoid fraud in administration of the scheme by only allowing Trustmark and PAS registered companies to participate. But the anti-fraud precautions have been so complex that vouchers are simply not …
Read more
Government Response Summary
The government rejects the conclusion that anti-fraud protections were complex, stating they have a duty to prevent fraud and that delays often had legitimate reasons, while acknowledging the scheme's closure and efforts to resolve processing issues.
12
Recommendation
Rejected
Para 71
We recommend that the Green Homes Grant scheme be urgently overhauled and extended to provide...
Recommendation
We recommend that the Green Homes Grant scheme be urgently overhauled and extended to provide a genuine long-term stimulus to the domestic energy efficiency sector. The scheme should not be scrapped or quietly wound down. The Government must address the …
Read more
Government Response Summary
The government rejected the recommendation, explaining that the voucher portion of the Green Homes Grant scheme was closed due to significant challenges, with funding redirected to reform and expand the more successful Local Authority Delivery element.
19
Recommendation
Rejected
The proposed extension to the Warm Home Discount provides no apparent incentive to poor or...
Recommendation
The proposed extension to the Warm Home Discount provides no apparent incentive to poor or vulnerable customers to invest in improving the energy efficiency of their homes. Energy efficiency is the most sustainable long-term solution to fuel poverty. The money …
Read more
Government Response Summary
The government agrees that energy efficiency is a long-term solution but defends the Warm Home Discount as a key policy for immediate support, stating they will continue the scheme with increased spending and will consult on improving its targeting. They do not commit to reallocating funds to Home Upgrade Grants or the Energy Company Obligation as recommended.
27
Recommendation
Rejected
Para 130
Alongside an extension of the Green Homes Grant, other financial incentives, such as low interest...
Recommendation
Alongside an extension of the Green Homes Grant, other financial incentives, such as low interest loans, will need to be made available to owner occupiers and landlords to achieve the thorough retrofit of domestic housing stock the Government envisages. The …
Read more
Government Response Summary
The government agrees on the need for various financial products and is exploring options for the UK Infrastructure Bank, whose mandate is under development. However, trials of Stamp Duty rebates for energy efficient homes are explicitly not under active consideration due to concerns about tax revenue.
29
Recommendation
Rejected
Para 132
We recommend that the Chancellor of the Exchequer look again at proposals to reduce to...
Recommendation
We recommend that the Chancellor of the Exchequer look again at proposals to reduce to five per cent the rate of VAT on the labour element of refurbishment and renovations. The Government should also bring forward proposals to reinstate the …
Read more
Government Response Summary
The government rejected the recommendation to reduce VAT on refurbishment labour and expand the scope of reduced VAT on Energy Saving Materials, citing significant additional pressure on public finances and the need to balance tax revenue with public spending or other taxation.
30
Recommendation
Rejected
Para 133
We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a...
Recommendation
We support and reiterate the Green Finance Taskforce recommendation that the Government should pilot a stamp duty rebate for homeowners that improve the efficiency of their homes within the first year of purchase. We recommend that the Government work with …
Read more
Government Response Summary
The government rejects piloting stamp duty rebates for homeowners, reiterating previous reasons. While agreeing on the need for various green finance products, they refer to existing support through the Green Home Finance Innovation Fund, ongoing engagement with lenders to consider additional support, and exploring options for the UK Infrastructure Bank. They also commit to consulting on regulatory measures for owner-occupied homes this year.