To ask Her Majesty’s Government what progress they have made towards (1) the target for carbon neutral homes by 2050, and (2) improving energy efficiency standards for existing buildings.
Between 2010 and 2019, UK energy consumption per household has reduced by 21 %. Through our energy company obligation, we have upgraded over 2.2 million properties since 2013, and this year we announced a £2 billion green homes grant to help up to 600,000 more homes reduce their emissions.
I thank the Minister for his Answer and I hope he will agree that, with these things, the devil will be in the detail. For example, the Government’s ambition to install 600,000 heat pumps by 2028 is laudable, but how do they intend to incentivise owner occupiers to meet the £10,000 upfront cost of installing them in their homes? The retrofitting of homes, which is a massively significant issue, has actually stalled. Can the Minister explain why the Government believe that this has happened and say how far the £2 billion grant that he just mentioned will actually go, given that a report in 2017 to the energy efficiency group estimated that £5.2 billion would be needed every year until 2035 to get all our homes up to the EPC band C level, which at the moment 75% of our homes fail?
we are making considerable progress towards the target, but we recognise the role that energy efficiency will play in the decarbonisation of buildings. We remain committed to meeting our legally binding carbon budgets and will set out further action in the forthcoming heat and buildings strategy.
My Lords, I declare my interests as set out in the register. The Scottish Government have published proposals for point-of-sale standards to require all owner-occupied homes to meet a rating of EPC band C from 2024. Do the Government plan to implement the Committee on Climate Change’s recommendation that all homes—not just owner-occupied ones—are at least at band C by 2028?
We are constantly improving the number of homes: 34% of homes are now above EPC band C, which is up from 9% in 2009. Our various funding schemes. such as the ECO scheme and the green homes grant scheme, will all contribute towards raising those numbers.
My Lords, I am sure the Minister is well aware that, since 2017, 1 million homes have been built that will need retrofitting. Yesterday, the MCS Charitable Foundation released its Energising Advice Report. It recommends having a publicly funded one-stop shop for advice to homeowners on how to retrofit their homes—something to make it easy for them. Is that sort of advice something the Government might accept?
I thank the noble Baroness for drawing my attention to the report, but we already have a digitally led advice service, Simple Energy Advice, which provides tailored advice to homeowners and landlords on energy performance improvements that they can make to their homes. It also signposts further funding and directs them to suitably qualified tradespeople
I draw attention to my interests in the register. Carbon-neutral homes will require a massive expansion of carbon-neutral electricity. How confident is my noble friend in the optimistic projections of the future cost of renewables and carbon capture and storage, given that most large projects—from the Channel Tunnel through nuclear electricity to HS2—feature enormous cost overruns?
I understand my noble friend’s scepticism on this, but I point him to offshore wind, the cost of which has plummeted over recent years. It is possible that we can meet the standards, but of course we have to be fully aware of the potential for cost overruns in the future.
My Lords, I draw attention to my interest in the register as the CEO of the Energy Managers Association. Covid has led to millions of employees working from home, and while this would not have had a major effect during the first lockdown, due to the lack of heating, the second lockdown is of course during the winter and there has been a marked increase in the amount of gas used by people working from home and putting their heating on at times when they would not have in the past. Have the Minister and BEIS looked into the amount of carbon emissions that this has led to in the UK? Are plans afoot to allow companies to install energy efficiency measures if they are contributing to the fuel cost—as they can under the Treasury rules—so that the home becomes a place of work?
The noble Lord makes some interesting points. I think we are all aware of the limitations of working from home, but companies should be as open and transparent as possible in their reports about the energy and emissions that they are responsible for. This includes employees who work from home.
My Lords, will my noble friend join me in congratulating National Energy Action on all it does on home insulation and warm homes? I have the honour to be the honorary president of National Energy Action. Is it fair that new homes are still being built using gas boilers, which will eventually be banned, given that there will be an enormous cost for the occupiers of those homes in retrofitting new boilers at some future date?
We are consulting on these matters at the moment. The noble Baroness makes a very good point and I happily pay tribute to the work that National Energy Action does.
[Inaudible]—climate change risk assessment concludes that the risks from overheating in residential and public buildings as a result of climate change are a top priority for urgent action. Can the Minister update us on progress in reducing this risk, and explain what the Government meant when the noble Baroness said on Tuesday that the Committee on Climate Change’s recommendations for the most cost-effective path for getting to net zero by 2050 are
“often a bit more ambitious than our plans”?—[Official Report, 8/12/20; col. 1109.]
I did not hear the first part of the noble Lord’s question as he was cut off. On the second part, I have not seen the remarks that he refers to, so I shall write to him on that.