Fixing Britain’s draughty homes could add almost £40bn to the economy by the end of the decade by cutting energy use and improving health, according to research by Citizens Advice.
The consumer group said raising the minimum energy efficiency standards of Britain’s homes could have a profound impact beyond reducing bills and should be the government’s top priority.
Home heating bills could fall by £24bn if the efficiency of 13m homes was upgraded to at least a C rating under the energy performance certificate (EPC) scheme by 2030, according to Citizens Advice’s research.
It also found warmer homes could help to avoid 6,000 unnecessary winter deaths every year, which would have an economic benefit of £6.6bn. Better insulated homes could help save the NHS about £2bn by preventing millions of people from developing respiratory conditions including asthma, it said.
Using less energy could save an estimated £4bn worth of investment in infrastructure such as new electricity networks and substations needed to meet the UK’s growing demand for electricity. It would also reduce emissions from power plants by 5%, thus cutting air pollution, and bring a £2.7bn benefit to society, the report found.
Dame Clare Moriarty, the chief executive of Citizens Advice, said: “The impact of raising minimum energy standards would be profound: giving a boost to household budgets, improving people’s health, increasing energy security and helping the UK reach its net zero targets.”
The government has been criticised for dragging its feet on enacting proposals that would force landlords to improve the energy efficiency of their properties to at least an EPC rating of C by 2028. Privately rented homes are only required to meet an E rating.
Research by the Energy and Climate Intelligence unit thinktank has found that delaying the measures to 2030 could add £1bn to the energy bills of 2.4m of the UK’s leakiest homes.
Moriarty said the Citizens Advice report showed insulating homes was “about so much more than reducing energy bills. It’s a long-term solution that makes running the NHS cheaper and boosts quality of life in areas that need it most.”
“The government must make improving our draughty homes a top priority,” she added.
Ministers began a consultation on raising the minimum EPC requirement for privately rented homes in 2020 – but the government has so far not turned the proposals into legislation.
Elmhurst Energy, which runs an EPC accreditation scheme, said landlords needed clarity on the government’s plans.
Stuart Fairlie, Elmhurst’s managing director, said: “Private landlords are understandably concerned about the property improvement-related regulatory changes coming their way, but most of these fears are not based on fact.
“To calm concerns, we need absolute clarity on the deadline for making energy efficiency improvements to EPC band C, clarity at a policy level on how our housing stock reaches carbon net zero, and clarity on the level of monetary support landlords will receive for making energy efficiency improvements.”
A government spokesman said: “The government’s record on energy efficiency speaks for itself, with the proportion of homes in England with an EPC rating of C or above up from 14% in 2010 to 47% in 2022.
“What’s more, an additional 300,000 of the UK’s least energy efficient homes are in line for improvement under the new Great British Insulation Scheme, and we have committed £6.6bn towards upgrades this parliament, plus a further £6bn from 2025.”
