Actions and investments undertaken by the next government will determine whether the UK is able to meet our legally binding net zero target; as well as the statutory obligation to end fuel poverty by 2030. Housing constitutes 14% of UK emissions, largely from heating, and there is little prospect of hitting climate goals if these are not substantially cut. Following Labour’s recent update to the Green Prosperity Plan and the significant cut back to funding for the Warm Homes Plan, industry confidence has been shaken.
The undersigned 33 groups urge Labour, and all political parties with an interest in meeting our statutory climate and fuel poverty targets, to focus on the following areas to ensure that these important targets remain within scope.
- Long-term funding commitment: We were disappointed that the commitment worth up to £6bn per year for upgrading homes has been scaled back. Funding uncertainty is the key issue undermining industry confidence to invest in skills and supply chains. Labour needs to reconfirm and provide details of the 10-year plan, setting out allocations for local authorities, social housing, public sector decarbonisation, and heat electrification. Labour must also confirm it seeks to continue the Energy Company Obligation at least the current levels, which will provide a further £5bn targeted fuel poverty support to 2030 on top of capital spending, while reforming the scheme to boost delivery.
- Regulations to drive action: Regulations will be a major driver of action and investment, ensuring targets remain within reach. Labour must reconfirm the planned uplift to minimum energy efficiency standards in the private rented sector – where one in four homes live in fuel poverty. The party must also move forward with the planned standards for the social rented sector. Labour should continue the development of a stable policy and regulatory environment for clean heat, maintaining and building upon the key pillars of the 2021 Heat & Buildings Strategy.
- Incentives and engagement: Well-designed incentives and public engagement are essential to complement regulation, spurring private investment and ensuring public buy-in to the transition. To support investment in private rented homes, Labour can re-introduce tax incentives to spur landlords to invest, and improve security of tenure to incentivise tenants to apply for grants. Labour should introduce an Energy Savings Stamp Duty to incentivise homebuyers to upgrade properties, and reduce the running costs of clean electric heat to ensure affordability. To maximise the impact and speed of delivery of Labour’s retrofit programme, it should be supported by an independent national and regional advice service to ensure all households have access to trusted and personalised advice.
- Capacity and supply chains: The UK hasn’t always been such a laggard on energy efficiency: industry was delivering over 1 million loft insulations in 2005. But a lack of clear long-term direction has led to a collapse in investment in retrofit supply chains and local authority capacity. With the right long-term plan and funding in place, Britain can once again gear up towards the scale it has achieved previously. Targeted support to local authorities should be combined with a national energy efficiency skills plan, with apprenticeships and support for further education. Current retrofit schemes must be reformed to make them more flexible and accessible.
Supporters:
E3G
Ashden
Blackburn with Darwen Healthy Living
Care & Repair Cymru
Centre for Sustainable Energy
Chartered Institute of Housing
Community Energy England
End Fuel Poverty Coalition
Energy Projects Plus
Energy Saving Trust
Existing Homes Alliance Scotland
Friends of the Earth
Fuel Poverty Action
Generation Rent
Green Alliance
Greenpeace
Hope4u
Medact
National Energy Action
New Economics Foundation
Parents for Future UK
PECTt
Ryecroft NRC
Severn Wye Energy
Sustainability First
Testlands
CIOSO EnergyWise
The Matthew Tree Project
The MCS Foundation
Torus Foundation
UK Green Buildings Council
Walsall Working For Change CIC
Warm Wales
WWF
York Community Energy
