Warm homes and cheaper bills as government accelerates Plan for Change
Households across the country are set to benefit from cheaper bills and warmer homes as the government accelerates its Plan for Change.
- Up to half a million households could be lifted out of fuel poverty by 2030 in major boost to standards in the private rental sector
- Tenants in poor energy performance properties to be hundreds of pounds better off as part of government’s Plan for Change
- Energy saving measures to be installed in properties to cut the cost of bills and protect the pounds in renters’ pockets
Families have faced rocketing energy bills as a direct consequence of an overreliance on international gas markets, while at the same time thousands of tenants have been left exposed to cold, draughty homes, pushing bills up even higher.
The government is now calling time on this inheritance by consulting on bold new plans, which could save private renters £240 per year on average on their energy bills, with all private landlords in England and Wales mandated to meet higher energy performance ratings in their properties by 2030.
While 48% of private rented homes in England are already Energy Performance Certificate C or above, ministers now want to ensure this good practice is extended to all properties in the sector, making sure landlords are not undercut, while protecting tenants.
As of 2030 all private landlords will be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E.
This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing, ensuring homes are warmer and more affordable for tenants.
Deputy Prime Minister and Housing Secretary Angela Rayner said:
For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past.
Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families.
Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes.
Energy Secretary Ed Miliband said:
For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored.
As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills.
These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already.
The government is now seeking views from tenants and landlords on the proposals to boost living standards in the private rented sector and cut the cost of energy bills, which include:
- offering landlords a choice over how to meet energy efficiency standards. This will require them to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to a range of other options including batteries, solar panels and smart meters
- a maximum cap of £15,000 per property for landlords, with support currently available from the Boiler Upgrade Scheme, and Warm Homes: Local Grant which begins delivery this year
- an affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band
- requiring all landlords to meet the new standard by 2030 at the latest, providing an extra 2 years compared with previous proposals. Homes that are already rated A-C before the introduction of new Energy Performance Certificates would be considered compliant until they expire
The government is also consulting on a revised fuel poverty strategy, which will focus on improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices.
Today’s steps mark further progress to deliver the government’s Plan for Change, putting more money in people’s pockets and rebuilding Britain.
This follows planned reforms to empower Ofgem, the energy regulator, to become a strong consumer champion, upgrading up to 300,000 homes through the Warm Homes Plan this financial year, and driving a new era of clean energy through the Clean Power Action Plan.
Stakeholder reaction
Rt Hon Caroline Flint, Chair of the Committee on Fuel Poverty, said:
Private rented sector tenants have far greater risk of being in fuel poverty particularly in low-cost older homes. The lack of investment by some landlords to end the scandal of cold homes has gone on for too long.
In the last 5 years the efforts to reduce fuel poverty flatlined. I welcome the focus on improving standards in the private rented sector and the opportunity to reset and re-energise England’s Fuel Poverty Strategy.
Adam Scorer, Chief Executive of National Energy Action said:
Alleviating fuel poverty means ensuring everyone can afford to keep their homes warm and healthy. It is about addressing high energy bills and inefficient homes, but it also contributes to other government missions, supporting efforts to reach net zero, preventing ill-health and tackling child poverty. A more vigorous, ambitious approach is very welcome to get back on track to lift millions out of the daily despair of a cold home and unaffordable bills.
Millions of households are struggling to pay their bills. A disproportionate number of these live in privately rented properties. Working towards stronger energy efficiency standards for landlords is the level of ambition needed to meet legal fuel poverty commitments. The private rented sector includes some of the worst quality housing, lived in by some of the most vulnerable people. We hope that these steps signal an end to fuel poor renters enduring in cold, leaky homes.
The UK government must now seize the opportunity that this new strategy and regulations bring, fortifying them with new spending to improve the homes of fuel poor households.
Charles Wood, Deputy Director at Energy UK, said:
This announcement marks a welcome recommitment from the government to improving energy efficiency standards in rented properties by strengthening Energy Performance Certificate (EPC) requirements. The most affordable energy is the energy we don’t use - yet too many households still lose money and warmth due to inefficient homes. With some of the least energy-efficient housing in Western Europe, there are serious financial and health consequences, particularly for renters who have little control over improving their homes.
With energy bills remaining high, it’s vital that the government prioritises measures that bring real savings to households and give clarity to the market to ramp up supply chains and training. Boosting energy efficiency is the most effective way to lower energy bills and system costs, and to create warmer, healthier homes for everyone.
Ben Twomey, Chief Executive at Generation Rent, said:
One in four private renters live in fuel poverty, the highest rate of any tenure. If we can’t afford to heat our homes properly that makes us vulnerable to ill-health and other problems in the home like damp and mould. Therefore, we encourage renters across the country to respond to this consultation to make sure the benefits of the Warm Homes plan are felt by tenants.
Madeleine Gabriel, director of sustainable future at Nesta, said:
Private renters too often face steep energy bills without a clear way to make their home more energy efficient. Private rented properties have worse energy efficiency ratings than both owner-occupied and social rented homes, while private renters are less confident taking energy efficiency measures like turning down boiler flow temperature than homeowners. The government is right to set a clear target for improving energy efficiency in the private rented sector and provide landlords with flexibility to achieve this.
Stew Horne, Head of policy at Energy Saving Trust, said;
With energy bills still high, it’s great to see the publication of the much anticipated consultation to get England closer to making the homes of private renters warmer and more affordable to heat.
With almost a fifth of homes across England being privately rented and around a quarter of these households living in fuel poverty, improving the energy efficiency of these properties is key to supporting a fair transition to a low carbon society. It will also be important to facilitate the changes landlords can make to upgrade private rented homes, including providing access to attractive green finance options.
We look forward to helping to shape the Warm Homes Plan so it encourages the retrofit of the private rented sector, creating more comfortable homes and lowering bills for renters.
Notes to editors
The average cost to landlords of complying with the proposals to upgrade their properties is estimated to be between £6,100 and £6,800 by 2030.