I remind hon. Members to bob if they wish to speak so that I can see who wants to speak. Some people have written in—I have a list here. Please be patient if I get names wrong, because everybody’s face is new. I will try very hard to get it right.
That this House has considered environmental standards for new housing.
I thank the Minister and all colleagues here for attending. This is the first time I have led a Westminster Hall debate, so please bear with me if I get the procedures wrong. We have lots of time today, so I welcome interventions and hope we can have a useful debate and conversation on this vital topic.
I want to begin by saying that I recognise that there have been some warm words from the Government on this topic. I look forward to hearing more detail from the Minister today. I called for this debate because, although I have heard one or two warm words in the last two and a bit months, I have not heard any detail. In fact, I have been concerned about hearing nothing specific whatsoever in the Secretary of State’s speeches that I have listened to. The Government have made major commitments on building new housing and it is crucial to consider what type of housing, so I wish to start by outlining three reasons why I think this is a really important debate to have.
First, it is absolutely topical. The Government, as we have heard on numerous occasions—indeed, just five minutes ago in the previous debate—have committed to building 1.5 million new houses over the next five years, but what sort of homes will they be? In the Green party we specify that we need to think about the right homes in the right place at the right price. Today I want to talk about what “right homes” means, because it is not just about quantity; it is also about quality and the need to think long term when new homes are built.
The Climate Change Committee did a report on the UK’s housing stock in 2019. It estimated that in 2050 80% of houses in this country will be houses that are already built, so we clearly have a massive job to do when we think about environmental standards and retrofitting the buildings that we already have. However, I am concerned to discuss the 20% of houses that will be new, because the worst possible outcome could be that we build lots and lots of new houses but to poor standards, thus requiring the retrofitting of those houses, too, so let us focus on new build homes.
The second reason why the debate is important is the scale of the issue relating to houses. Our built environment controls or influences roughly half of UK environmental impacts. Domestic housing accounted for more than a quarter of energy use in the UK in the last year for which we have statistics. Heating accounts for the largest single share of emissions from buildings. The fabric of buildings is crucial in controlling the impact of the housing and broader building sector on the natural environment and climate.
Thirdly, this topic is crucial because we have a massive win-win-win opportunity here. This is not just about reducing carbon emissions from housing, which is certainly very important and I will come on to that later. It is also about ensuring that new homes are warm, affordable to heat and not mouldy but great for people to live in. Just this week in the Chamber there was a debate about how people can stay warm in winter. We need to make sure that all new homes are built to the highest possible standards so that we do not have people shivering in their homes and choosing between heating and eating. Of course, this is a fantastic opportunity to give the economy a great big boost, creating thousands of high-skilled jobs. If we get this right, it will be a fantastic opportunity for economic renewal. We know that investing up front is much cheaper than having to retrofit later, so let us do this right from the start.
I thank the hon. Lady for securing this debate and the Minister for being here to respond. I second the hon. Lady’s point about the standards set by local authorities. I represent part of West Oxfordshire district council, where the Salt Cross development was brought forth. It was challenged by the developers because the local authority sought to set forth a net zero standard. The developers were unsuccessful in their appeal, but in a very obliging step, the previous Government issued a written ministerial statement in December 2023 clarifying that no local authority could have the power to set net zero standards. Does the hon. Lady agree that it would be very helpful if the Minister confirmed that this Government intend to issue a new written ministerial statement to make it more possible, until such time as we have new standards, for local authorities to pursue net zero targets in their planning permissions?
Before I call the hon. Lady to resume her speech, this is probably a good opportunity to remind hon. Members that we are all on a learning curve, and interventions should be short and to the point. We do not have a lot of Members here, so it will not be difficult for you to catch my eye if you want to make a speech yourself.
Thank you, Mr Stringer, and I will compensate by being very brief in my response to the intervention by saying that I agree absolutely.
I have talked about the need to maximise energy efficiency. Let me move on to my second point: the need to minimise embodied carbon. In the future homes standard, we have some discussion of minimising operational carbon emissions. There is concern here not just from me. Back in 2022, in its report on the sustainability of the built environment, the Environmental Audit Committee expressed real concern that
“policy has focused entirely on operational emissions”,
and that it does not require the embodied carbon cost of construction to be assessed or controlled in any way. The Royal Institute of British Architects is deeply concerned about this, as are others.
In their response to the Environmental Audit Committee’s report, the previous Government recognised that embodied carbon can account for a very significant proportion of a building’s whole-life carbon emissions. They agreed that a standardised method was needed, and said that they would consult on embodied carbon. In a consultation from November 2023 to March 2024 on the future homes standard, the Government said that embodied carbon was outside the scope of consultation on the future homes standard, but that they would consult on it separately.
Does the Minister agree that embodied carbon needs to be part of the future homes standard? We cannot talk only about operational and not embodied carbon. It has been left behind—effectively the poor relation—in the need to assess the carbon impact of new house building. This urgently needs to be rectified. I very much look forward to hearing the Minister’s comments and, I hope, assurance that as much attention will be paid to embodied carbon as to operational carbon, because it is so significant in the whole-life carbon costs of any new housing.
It is a pleasure to serve under your chairmanship, Mr Stringer. I thank the hon. Member for North Herefordshire (Ellie Chowns) for securing this important debate.
To start my remarks, I will reflect on why this is such an important topic for discussion. Clearly the major consideration, and one of the biggest threats facing us, is climate change and the need to decarbonise, but the beauty of improving environmental standards for new housing is in the many other benefits besides. Investing in insulation, heat pumps and solar-panel fitments for new homes would create jobs and stimulate supply chains, with the subsequent benefit of making it far easier to develop the capability to retrofit existing homes.
A significant benefit of such a policy of getting it right would accrue to those on lower incomes, insulating them not just from the cold, but from energy and fuel market price fluctuations and the global effects on those prices. Dare I suggest that had we been building new homes to good environmental standards for the past 15 years, the Government would perhaps have avoided the winter fuel allowance backlash that is dominating my constituency postbag. This is a great example of a policy that benefits not only the planet, but people and the economy. Many people feel that climate change is an abstract topic, something that is preached at them, and we need to consider more policies that achieve that holy trinity of benefit for planet, people and economy.
Many of my constituents are very frustrated on this topic, similarly to those of the hon. Member for North Herefordshire. They feel that there have been years of wasted opportunities to get new homes right, from design through to build. More energy-efficient homes is a rare example of a near universally popular policy. Unlike 20 mph speed limits, low traffic neighbourhoods or, dare I say, vegan sausage rolls, there are no culture wars to be had here.
Thank you for calling me, Mr Stringer. I thank the hon. Member for North Herefordshire (Ellie Chowns) for bringing forward this important debate, and for her extensive speech, which was full of sensible suggestions and thoughts. I thank the Minister for his attendance.
Heating our homes is one of the most pressing issues facing the UK right now. The cost of living crisis has sped up the urgent need to improve the environmental standards of our homes to keep people warm and stop people having to choose between heating and eating.
For far too long, households across Britain have been forced to make impossible choices: heating their homes or putting food on the table. It is a disgrace that in one of the world’s wealthiest nations, millions are living in cold, damp homes that are too expensive to heat and are harmful to their health. Developers are not meeting the environmental standards we need for a sustainable future. That is unacceptable.
The Liberal Democrat manifesto said that all new homes need to be zero-carbon and fitted with solar panels. That rooftop revolution would make use of the vast dead space on roofs across the country, generating clean energy right where it is needed. Yet developers continue to submit plans that ignore these opportunities, and homeowners are the ones who pay the price. In my own constituency of Guildford, a developer recently submitted plans for news homes, without including heat pumps. That is bonkers. We know that there will be no new gas boilers in newly built homes after 2025, so why are developers continuing to insist on submitting plans with gas boilers?
All new homes will require alternative heating systems such as heat pumps. By allowing developers to cut corners today, we are passing the costs of upgrading homes on to future homeowners, who then face the high costs of retrofitting—not to mention the ongoing burden of high energy bills.
It is a pleasure to serve under your chairmanship, Mr Stringer, and to respond on behalf of His Majesty’s loyal Opposition. I add my congratulations to the hon. Member for North Herefordshire (Ellie Chowns) on securing this debate, and I congratulate other Members on their contributions. The issues raised in the debate have helped to illustrate the complexities inherent in housing environmental standards. We know that the UK has probably—or certainly among—the oldest housing stock of any developed country, and we know about the complexity of housing tenure in the United Kingdom. Freeholder-owned buildings that are often occupied by a combination of leaseholders and tenants continue to be a challenge to Governments of all parties, when it comes to introducing the required updates and retrofits. In the context of housing development—1.4 million units of new housing already have planning consent in the United Kingdom—developers’ feedback on, for example, the cost of solar panels as a barrier to bringing forward new housing remains an active part of the debate.
Governments of all parties have made strenuous efforts over the years to improve the quality of housing, including several aspects of its environmental impact. The 2018 update to energy performance certificates, with a view to setting a deadline of 2025 for all rental properties placed on the market to meet a certain minimum standard, was an example of a Government intervention that aimed to raise standards. Some of the challenges for which the housing retrofit and building sectors have advocated have led Governments to feel that it was necessary to think again. No issue illustrates the complexities more clearly than the point that has been made about nutrient neutrality, something for which decision-making is essentially delegated to a third party under legislation that goes back to the mid-2000s. Central Government’s desire to minimise the environmental impact of development on surface water and waterways has led to significant delays in the delivery of new housing projects. I was going to quote the former leader of South Norfolk council—previously in the Public Gallery—who, in his capacity as a councillor, challenged the impact that that was having on the ability of local authorities to deliver new housing through the planning process, because of the delays in getting decisions made and permissions agreed. As the local authority bringing forward housing, if a site is not viable because of its environmental impact, it is clearly necessary then to be able to make a decision to move forward with other sites. It is clear that the planning process does not always support that decision making.
It is pleasure to serve with you in the Chair, Mr Stringer.
I am grateful for the opportunity to close this important debate on environmental standards for new housing on behalf of the Government. I start by adding my congratulations to the hon. Member for North Herefordshire (Ellie Chowns) on securing this debate and on the way she led it. I thought her speech was a real tour de force. I could not really believe that it was the first debate she has led in this place, because she spoke with admirable clarity and power. I have to say that is not how I remember speaking in my first Westminster Hall debate seven years ago. In the spirit of the clarity with which she spoke, I will seek to address the points she raised in turn.
I also want to mention the contribution from the hon. Member for Didcot and Wantage (Olly Glover), with its thoughtful and well-pitched tone about the importance of bringing people with us, so that people see this as a good and positive thing in their life and are partners in the process, rather than net zero being something that happens to them. That is really important for us, as leaders in our own communities, and for the country.
We are mindful of the fact that the homes we build today will shape the environmental landscape for generations to come. The hon. Member for Guildford (Zöe Franklin) talked about not putting burdens on future generations. The choices we make shape the built environment that our children will inherit. It is with that long-term perspective that the Government remain steadfast in the commitment to achieving net zero by 2050. The energy efficiency of our buildings and the standards we set to drive that efficiency are instrumental in realising that goal.
Of course, we are acting in the context of an inherited housing crisis and our banner commitment, made during the election, to build 1.5 million new homes over the course of this Parliament. Again, ensuring that those homes meet the needs of homeowners and contribute positively to the environment is not a luxury: high environmental standards are a necessity. Those two goals must not be seen as being in competition, but rather as mutually supportive, because the decarbonisation of new buildings is a vital part of net zero efforts.
I am grateful to the Minister for addressing my comments and those of the hon. Member for North Herefordshire (Ellie Chowns). On local authorities’ powers, will he consider issuing a new written ministerial statement in advance of the new housing standards to clarify the one published on 13 December 2023 by the previous Government, which threw some of the efforts by local authorities to raise standards into disarray?
I am grateful for that question. I cannot make that commitment to the hon. Member today. I hope the assurance I have given has demonstrated that there is a pretty clear landing zone for local authorities, but it must work within national standards. I also make the point, as others have, that the future homes standard consultation has come to a close, and we are consulting on the national planning policy framework. So there are some moving plates in the current setting of standards and we must be mindful of them.
The second point that the hon. Member for North Herefordshire made was about embodied carbon. As we make progress on solar panels, heat pumps and all the other ways to reduce operational carbon emissions, we will see emissions fall in buildings, and therefore embodied carbon will make up proportionally more of a building’s whole-life carbon emissions. We are committed to understanding the scale of the challenge as part of our broader efforts to decarbonise the construction sector. It is vital that we encourage industry to reduce embodied carbon by choosing lower-carbon, but still high-quality, materials. That requires a fundamental shift in design and construction, and that is why we are pushing so hard to encourage the adoption of more efficient design practices that minimise waste, which the hon. Member for Guildford mentioned, and make better use of low-carbon materials such as timber. There are some very exciting new technologies in that space. Where it is safe to do so, higher-carbon materials will be gradually replaced along the way.
The third point that the hon. Member for North Herefordshire made was about solar panels, and this is where we may slightly differ. The Government’s judgment is that we should set targets with regard to performance—what is the energy performance of the new home? Solar panels may well be part of that, but for some buildings they will not be suitable. As a result, if the choice is primarily solar, we miss out on a whole array of innovations that can help those homes reduce their carbon footprint, and there is a risk to cost-effectiveness. As I say, we are goal-oriented, rather than method-oriented.
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I wrote to the Minister for Housing and Planning before the recess about the timing of the release of the future homes standard, which has been in the works for quite some time now—we were consulting on it back in 2019-20, and again in 2023-24. In his response to me, the Minister said that the Government will release it in due course. If he is able to do so, I would love the Minister to provide some clarification on the timetable for publication of the standard; it is supposed to start implementation next year, which is only three and a half months away, so time is of the essence. Of course, it is vital that the policy is right, and not just fast, but, as we have had so many years to develop it, I would hope that it could be published ASAP.
This is not a new topic. One of the helpful briefings I read in preparation for this debate, from the House of Commons Library, which I recommend to everyone—it produces fantastic materials—reminded me that in 2006, the then Labour Government said that they would amend the building regulations to require all new homes to have net zero carbon emissions by 2016. Of course, that policy was scrapped by the Conservatives in 2015, but we are now eight years on from the point at which Labour previously thought that all new homes should be net zero carbon. This is the moment for the new Labour Government to fulfil that promise and put in place regulations to ensure that ambition will actually come to pass—better late than never.
I will speak today about five key aspects of environmental standards for new housing: maximising energy efficiency; minimising embodied carbon; maximising on-site energy generation, particularly rooftop solar; maximising biodiversity in the construction of new homes; and maximising resilience against things like flooding and overheating, which will become more and more important as time goes by and climate change becomes a reality that hits us ever harder.
The first aspect is maximising energy efficiency. To meet the Government’s own carbon targets, almost all buildings will need to fully decarbonise. It is not just me who says that—it was in the Government’s heat and buildings strategy back in 2021. That is what the future homes standard was supposed to ensure. However, the version of the future homes standard that is being consulted on is looking at a 75% improvement on 2013 levels by 2030, which is neither good enough nor strong enough. We need to get to all homes being net zero carbon as soon as possible.
I do not expect the Government to introduce measures whereby every single building has to be built to that standard in 2025, but the industry needs a glide path. We need the Government to set that strategy to provide a framework within which the industry can sort out supply chain issues, both in terms of materials and, crucially, through upskilling, so that we are building zero carbon houses, not ones that are just a bit more efficient than the previous ones. The previous Conservative Government were very pleased to talk at length—I wanted to say “to bang on”—about the fact that more houses are reaching EPC C standard than 15 years ago, and that is indeed true. However, virtually no houses are reaching EPC A or B; that figure has increased from 1% to 3% of houses over the past 15 years. Almost no new houses are being built to those really high standards, which is what we need. Of course, there are major problems with energy performance certificates and the standards assessment procedure that underpins them—I am not pretending that that does not need review, and I commend the moves that are being made in that direction. However, we need to recognise that, flawed as it might be as a metric, it is telling us something really quite serious and worrying, which is that housing quality is not increasing at anywhere close to the rate that it needs to.
Key to reducing energy demand is fabric-first design. That needs to be absolutely integral to the future homes standard. It is deeply concerning that the previous Government claimed that the 2021 changes to building regulations were sufficient, and refused to tighten them any further. It is utterly wrong-headed. In making buildings more energy-efficient, fabric-first must be central. I would welcome a commitment from the Minister that fabric-first will be core to the future homes standard.
I also ask the Minister to lift the restriction placed by the previous Government on local authorities setting higher standards for house building in their areas. I do not think that local authorities setting piecemeal higher standards is the way we will get to a decarbonised housing sector, but we should not hold them back from going further and faster while we wait for Government to show the necessary leadership on a national level. We have too much piecemeal policy on this, both between local authorities and between the four nations of the UK. We need to ensure that we are united in a race to the top for standards, not a race to the bottom.
I move on to my third point: maximising on-site energy generation. I have brought up this topic—the need to ensure that all new homes have solar panels—once or twice in the House already since I have been here. I would be delighted to be known as Mrs Solar Panel by the end of this Parliament. I would be even more delighted if, by the end of this year, we had the regulations necessary to ensure that every roof of a new home had solar panels on it because, frankly, that is what is colloquially known as a no-brainer.
Solar panels are one of the things that residents brought up with me time and again on the doorstep. Constituents of all sorts of political background and none said to me things like, “Why are we still building houses and not putting solar panels on the roofs?” It is something with which people have a real, visceral connection. They see new houses going up around them that do not have solar panels on the roofs, and they know that we need to sort out energy generation. Let’s ensure that we maximise use of these wonderful surfaces that are already there. This is a classic example of where it would be much cheaper to put that technology in place at the point of construction, rather than retrofitting it afterwards. I cannot help but conclude that it has not been done so far only because developers are resisting anything that might increase their costs.
Developers are concerned only with the construction costs; we as lawmakers and as a Government should be concerned with the long-term social, public and environmental costs. Of course, this sort of investment pays for itself many times over during the lifetime of the technology. I warmly invite the Minister to confirm that his Government will bring forward measures to put solar panels on roofs as default, either within the future homes standard, the planning and infrastructure Bill or another appropriate legislative mechanism.
My fourth point is about maximising biodiversity. In the words of the 2021 Dasgupta review,
“Our economies, livelihoods and well-being all depend on our most precious asset: Nature.”
This Government have talked a great deal about growth. Unfortunately, the way we currently measure growth does not take account of the costs of the destruction of the natural assets we have. There have been some welcome moves towards recognition of the need to take account of impacts on biodiversity during construction, with the introduction of biodiversity net gain and so on, but so much more could be done. We could specify having bird and bat boxes for the 1.5 million new houses—wouldn’t it be wonderful to have 1.5 million new bird and bat boxes for the creatures with whom we share this beautiful natural environment? Ponds are good for drainage and for wildlife. Let us take into account lighting design and how light pollution impacts nature if we are building these 1.5 million new houses. We could specify hedgehog highways—little holes cut in fences so that hedgehogs can get from one garden to the next—as well as bee-friendly plants, green roofs and walls, trees, hedges and so on.
We have a real opportunity. People are rightly concerned about the effects on the natural environment of the construction of lots of new homes. We certainly need new homes constructed—they should be affordable and accessible to the people who really need them—but let’s not make it an either/or. Let’s not plaster the country with tarmac in some places while keeping less and less space free for nature. Let’s ensure that whatever new housing we are building recognises that we can also create space for nature to live alongside us and to thrive in those areas, too.
A classic example, and a personal favourite, is swift bricks. For just £30, we could put in place a swift brick in every new house to ensure that these beautiful creatures, whose populations have sadly declined by 60% over the past 30 years, can thrive again. I am not just saying this because both my sons grew up playing for Ledbury Swifts football club, meaning that these birds have a special place in my heart; they should have a special place in all our hearts. Let’s make sure that every new house has a swift brick.
My fifth point is on maximising resilience. We must face up to the fact that the climate crisis means that some extremes of weather will be baked in. We must recognise that adaptation has to be part of what we do, as well as mitigation of the climate impact.
I have seen that very personally. I represent North Herefordshire, and in early 2020 Herefordshire was affected by the worst floods that we have had in 400 years of records. Last winter, we had the wettest 18 months on record in the UK. Such events have major impacts on people’s homes, and we have to take them into account when we build new homes. So, please, may we ensure that the future homes standard and the regulations that go alongside it recognise the reality of the need to be more resilient with issues such as flooding and overheating?
Overheating does not occur much in my constituency, but it is certainly an issue in urban constituencies. Former office blocks are converted into housing through permitted development, but often that entails terrible conditions for the people who end up living in those places. Personally, I think that that should not be allowed to happen. Overheating is a significant issue in such buildings. Let us ensure that overheating and flooding are recognised in resilience planning in new housing.
Finally, water scarcity and efficiency—it is not just energy that we need to use efficiently, but water. That was the topic of my doctorate, although not in this country. Let us ensure that we use these pure resources as carefully and efficiently as possible. Again, that needs to be built in, baked in, right at the start of building new houses.
I have a present for the Minister to take away. A few years ago, in Herefordshire, we developed a thing called “Herefordshire Future Homes”, in which we assessed a whole range of building standards, because of the bewildering array of initiatives in place. The industry is now coalescing around the net zero housing standard, which is good news, but we also looked at things such as water efficiency, biodiversity and so on. I will give this document to the Minister after the debate to feed into his work.
Let me remind the Minister what the Government could and should do. They could ensure that all new homes had ultra-high levels of energy efficiency and were built to an EPC A standard right now, with a glide path through to net zero housing standards as soon as possible. Let us resist the pressure from developers to water down the standards, and let us give local authorities the freedom they need to put in place higher standards initially. Let us incorporate embodied carbon in the future homes standard, and set regulations for whole-life carbon limits aligned with the industry’s building standard of net zero carbon.
I have not mentioned this much, but waste and recycling in construction is a core and enormous part of our waste economy. There are significant opportunities for a more circular economy approach. Let us also specify that all new homes should have solar panels on top and swift bricks everywhere. Let us ensure that all new homes are climate change-resilient.
Now is such an important opportunity for the Government to show leadership. As I said at the beginning of the debate, I confess to being somewhat frustrated that they have not taken the opportunity of their major, high-attention speeches on planning and infrastructure—nothing whatever about building quality. There is an opportunity to rectify that, and I would love to hear not only the Minister’s response, but even more, the Secretary of State integrating building quality into everything that she says about building new houses going forward. I look forward to the Minister’s response.
I read that the logic of the last Conservative Government, in delaying solar panel mandates for new homes, was optimism about a fully decarbonised electricity grid, which was indeed too much optimism. We also need to work quickly to create a new electricity grid with good storage capability, so that we can capitalise on surpluses of locally generated solar and wind power.
My constituency has seen some of the fastest housing growth in the country, with 8,000 new houses built between 2011 and 2021, at Didcot Great Western Park, Wantage Kingsgrove, Wallingford Highcroft and Grove Wellington Gate, among others. My constituents are baffled by the fact that these houses have been built—and continue to be built—without solar panels, heat pumps or similar. Another development under construction at the moment, Valley Park near Didcot, of more than 4,000 homes, will also not be so equipped. That is despite the efforts of our Lib Dem-led Vale of White Horse and South Oxfordshire district councils, who have done what they can within the current rules to promote positive environmental measures. They do not have the powers to compel developers to meet net zero requirements as part of the scrutiny of planning applications. That also needs to change, all the more so if there is going to be further delay in implementing national environmental standards and effective requirements.
We need to make climate change action meaningful and beneficial for people. Designing new homes to the right standards has the potential to have universal appeal, and rather than solar panels’ only being accessible to those on high incomes, it could benefit people across income ranges. Investing in solar, heat pumps and insulation will make that difference, and stimulate the economy. As the hon. Member for North Herefordshire said, we also need to think about designs that will keep our homes cool in the hotter weather expected in the future.
If we do not create the homes of the future now, there is a risk that we will need to retrofit the homes built now in only a decade or two’s time, at much greater expense, in order to reach our net zero targets. We cannot wait any longer. I hope the new Government will treat the issue with the urgency it deserves, to help planet, people and economy.
Developers need to take responsibility, and this House must put the onus on them to do so. Developers are putting homeowners in the position of having to foot the bill for improvements that should have been made when the buildings were first built. Building for the future is not an option; it should be a requirement. We need to incentivise developers to act now, but we must also back up those incentives with strong legislation to ensure that new homes meet zero-carbon standards.
This about more than just the build cost; we need to consider the lifetime cost of these homes. How efficient are they for homeowners over time? For example, a house might be cheaper for the developer if it is built to lower standards, but if it is inefficient, the homeowner is left paying high energy bills for years. Making improvements at the building stage—for example, installing solar panels and domestic energy storage, and ensuring that the home has proper insultation—means that the fear of opening energy bills becomes a thing of the past.
The Liberal Democrats have shared our plan for a fairer deal on new homes and heating. We want homes that do not make people sick, where heating bills are not thought of with fear, and we want every new home to be built to the highest environmental standards. We have two key policies that we encourage the Minister, and his colleagues in the Labour Government, to consider seriously. The first is our 10-year energy upgrade programme, which will begin with free insulation and heat pumps for those on low incomes, and then ensure that every new home is built to zero-carbon standards. We, as Members of this House, know that local authorities play an integral role in our society, so let us give them the power to deliver that, ensuring that it is rolled out efficiently and where it is needed most. Councillors and local residents understand local need, so if there is local need, let Parliament make it work for local residents.
That raises the question of why we are discussing this, when it should have been sorted out many years ago. Conservative failure in government has left households high and dry during a cost of living crisis. Families are struggling to pay their bills, and, instead of support, they are met with rising energy costs and poor-quality housing. Britain’s “warm homes” infrastructure has dry rot, and this plan will cut it out.
The evidence is clear: UK homes are among the least energy-efficient in Europe, with some of the oldest housing stock on the continent. Nearly 40% of our homes were built before 1946, compared to 21% in Italy and just 11% in Spain. Many of our homes are expensive to heat, and inefficient at that. This is not just a financial burden or an environmental issue; it is a public health crisis. The NHS spends an estimated £1.4 billion every year treating illnesses related to living in cold or damp homes, with wider societal costs reaching a staggering £15.4 billion. By upgrading homes with free insulation for low-income households, we can ensure that no one must choose between a warm house and a full stomach. By installing heat pumps and making homes zero-carbon, we will not only reduce emissions but make our homes greener, fairer and more affordable to live in.
The second idea that we encourage Labour colleagues to get behind is getting landlords to upgrade the energy efficiency of their properties. We would require landlords to upgrade it to EPC C or above by 2028, because British tenants are living in housing that is making them ill. It is unacceptable that 35% of fuel-poor households are in the private rented sector, where more than 1 million people struggle with fuel poverty, and an ever-increasing number of private renters live with dangerous mould and damp. I am ashamed to say that that is also causing children to die each year. Inaction from the previous Conservative Government has left people trapped in homes that are harmful and costly to heat. It is appalling that last year, more than 8,000 new homes were built in England with an EPC rating below band C. That cannot be allowed to continue, and I strongly advise the Government to remember the promises they made on it while electioneering earlier this year.
Our plans for landlords are a fair and green message: under Liberal Democrat proposals, Parliament would be able to ensure that children and vulnerable families did not have to suffer because of poor housing standards. We want legislation that requires landlords to upgrade properties to EPC grade C or above, and we want homes to be built with higher EPC ratings from the start. Let me be clear: these measures are about not just improving homes, but restoring dignity and health to those who live in them. Alongside these proposals, we want social tariffs, and we need to decouple electricity prices from wholesale gas. We need to address the fact that we are building homes that do not meet environmental standards that look to the future instead of the past.
We have a cost of living crisis and a climate emergency, and we need to invest in a future where homes are energy-efficient, affordable to heat and zero carbon. Given that the Government intend to remove winter fuel payments to pensioners, it is all the more pertinent that we insulate people’s homes from the very start to prevent them from struggling with their bills and to prevent elderly people from freezing during the winter. If we had insulated homes when they were built, as we are advocating, perhaps we would not have needed this debate. We should ensure that everyone’s home is warm. These changes would make a real difference to people’s lives by lowering energy costs, improving public health and tackling the climate crisis head-on.
It is time we delivered homes fit for the future and homes for the heatless, supporting those who are struggling to make ends meet. It is time, through our environmental standards for the building of new homes, to make our isles greener, fairer and thriving for everyone. I emphasise that, as the hon. Member for North Herefordshire said, we must think about the long-term cost of the homes that we build, not the cost of building them today.
It is also noteworthy that the Innovate UK study, which looked at the real-world emissions of properties versus the intended emissions and those expected from the design estimates, identified that emissions were on average between two and three times higher than those that would have been expected from the design. I appreciate that Ministers in the new Government, like Ministers in previous Governments, face the challenge that we can do things that sound brilliant in theory, only to discover that how they operate in the real world does not meet the aspirations we all strive for.
I know the hon. Member for North Herefordshire previously served as a Member of the European Parliament. It is worth referring to the recent decision, outlined in a written ministerial statement, that from this period the intended deadline by which all building materials had to meet UK standards updated in 2018 would be set aside, and that products that met the CE standard would instead remain able to be sold into the UK market for an indefinite period. That may be an issue for fire standards; because the European Union standards on fire performance were last updated in 2015, they form part of that regulation, whereas the UK standards were updated in 2018.
Those standards also draw on a wide range of different studies and regulations in respect of performance, from damp resistance to energy efficiency. Again, it would be helpful for the Minister to set out for the benefit of Members present his expectation that those standards will meet the aspirations set out in the 2018 update of UK standards—I have confidence that that will be the case. Then we can be confident that the products sold into the UK market will meet the energy efficiency aspirations that Members have set out, and ensure that those products and materials contribute towards creating high-quality homes that fulfil the important expectations of warmth, absence of damp and the accessibility of fresh air that have been set out.
The national planning policy framework updates in prospect afford a further opportunity to consider how those requirements can be better enshrined in planning law. I appreciate that Ministers have a difficult challenge: the national planning policy framework has something like 19 chapters of detailed guidance. Each local authority is then required to put together its local plan, following public examination, in detailed conformity with each of those 19 chapters. The impact of that, its interaction with local environmental impacts such as surface water runoff, and any requirements for the design and nature of the materials used, in conformity with established local practices, all combine to create a significant challenge.
If the aspirations set out by Members are to be seen in practice, we must make it as straightforward as possible for local authorities to exercise their community leadership role. Rather than having to go through lengthy and expensive processes to demonstrate in planning law that that conformity is present, we must ensure that the standards can be implemented as quickly as possible.
I know the Minister, and other Members who have been in office for some time, will be aware that past Government initiatives, such as those around green homes, although sensible in principle in seeking to make Government funding for retrofit available to households as quickly as possible, have led to significant challenges in their administration. That is especially true where, for example, a business that has been licensed and approved to carry out the retrofit of those initiatives then loses that licence between the time when it has done work on a constituent’s home and the point when the invoice is paid.
The rules and regulations around that area need to ensure that it is as straightforward as possible for all constituents to make the right choice in buying a home, knowing that it meets the highest possible environmental standards, or in deciding to invest in their home in a way that will genuinely reduce running costs and improve the quality of the insulation. In practice, that must fulfil the aspirations the Government set out in allocating the funding.
Finally, it is a source of pride that under Governments of all parties, the UK has seen the biggest per capita carbon reduction from its residents—our constituents —since the carbon reduction target was first brought forward in the 1990s. It is very good that we have managed to achieve that. We have done it through a variety of measures, not just in the housing sector, but, given the significant part that emissions from the housing sector play in our carbon emissions, there is a clear opportunity for the environmental standards that have been thoroughly aired in this debate to play a significant role in how we address this challenge in future.
I can undertake that the Opposition will work constructively over this Parliament, where we can see the opportunity, with Government and other parties to support the implementation of standards and measures that will help to deliver that agenda.
From homes to offices, the UK’s built environment is responsible for about 30% of our greenhouse gas emissions. By improving energy efficiency and moving to cleaner sources of heat, we can reduce those emissions now and in the future and, as the hon. Member for Didcot and Wantage said, create warmer, healthier homes, protecting future generations from the impacts of climate change. But there are very real consequences of rising energy costs in the here and now, and the job of Government is to find the balance between getting those homes built, as the hon. Member for Ruislip, Northwood and Pinner (David Simmonds) said, and doing so in a way that is realisable. In many ways, that is our challenge.
I turn to the five points the hon. Member for North Herefordshire raised. First, with regard to future homes and building standards, we are clear in our commitment to introduce new standards next year that will set homes and buildings on a path away from the use of volatile fossil fuels. Those homes will be future-proofed, with low-carbon heating and high levels of building fabric standards, which I know she is interested in. That will ensure that they do not require retrofitting to become zero carbon as the electricity grid continues to decarbonise, which speaks again to the point made by the hon. Member for Guildford.
The previous Government published a consultation in December, which closed in March. We are a new Government—I hate to say it, but it is true—and have been going for only a little more than two months, so we are looking at that very carefully. In her written question to my hon. Friend the Minister for Housing, Planning and Building Safety and her contribution today, the hon. Member for North Herefordshire stressed the need for a response and was keen to know when it will be. I am afraid I have to tell her that it will be in due course. We are talking to the industry and the public, and we want to ensure the standards we set are ambitious and achievable.
The hon. Lady mentioned local authorities, and I can give her clarity on that point. Plan makers’ powers have not been restricted. The Planning and Energy Act 2008 allows plan makers to set energy efficiency standards at a local level that go beyond national building regulation standards, but that must be done in a way that is consistent with national policy. That is the balance that local decision makers will have to strike, but they have that ability.
The hon. Lady also mentioned the written ministerial statement and said that she wants clarity about its future. I am afraid that it is currently subject to judicial review, and as a result I cannot say very much about it at this time.
The hon. Lady mentioned biodiversity net gain. We should recognise and build on the work that the previous Government did in this space. We see this—I think they did too—as a real opportunity as we address our urgent housing needs. We owe it to future generations to ensure that development leaves the natural environment in a measurably better state than it was. That is now mandatory for new applications for developments: all new developments, with limited exceptions, will be required to deliver at least 10% measurable net gain. The hon. Lady spoke about 1.5 million bird and bat boxes, but I would not want to be quite as prescriptive as that. We expect to see net gain, whether through the creation or enhancement of habitats on or off site, or through the purchase of registered biodiversity units on the new open market. We are working very hard with the sector to make sure that it realises those brilliant opportunities.
Let me turn to the hon. Lady’s fifth point, which was on resilience and water. As the Minister for local resilience, among a number of things, that was of particular interest to me. Immediately prior to the debate, I took part in the inaugural meeting of the flood resilience taskforce, which seeks to bring together partners to reduce the number and the impact of floods. I know from having dealt with constituents that having your house flooded is one of the very worst things that can happen to you, short of losing your life or losing a loved one, because you live with the impact of it for so long.
We have a responsibility to make sure that development does not contribute to greater flooding, and the planning system is at the heart of that. We must ensure that development is in areas at the lowest risk of flooding and that it uses sustainable drainage systems to mimic natural systems and to slow the flow of surface waters. The current consultation on proposed reforms to the NPPF is seeking views, and we would be interested to hear from colleagues on that. It is a big opportunity.
The hon. Lady also mentioned water. Safeguarding the water supply is crucial to meeting our climate obligations. As we undertake consultations, we are actively looking at options relating to water efficiency in planning and building regulations. We are developing guidance on water-positive and net zero water developments and on how to integrate water efficiency into energy efficiency and retrofit programmes.
To make a quick point about the NPPF, the planning system is critical to delivering sustainable development that aligns with climate goals. Our NPPF reform marks an important milestone in that journey. Our consultation is seeking views on how planning policy can better support the industry to adapt. We hope to get that feedback, and we will consider any and all contributions.
The Opposition spokesperson, the hon. Member for Ruislip, Northwood and Pinner, made a point about product standards to me for the fourth time in the past 24 hours. I can give him clarity that nothing in that statement from 2 September is about the reduction of standards—far from it. I reiterate the commitment I made yesterday that the Minister for building safety, my hon. Friend the Member for Bethnal Green and Stepney (Rushanara Ali), will write to him with further detail.
While building the homes this country needs to tackle the housing crisis, we will ensure that our climate change commitments are met. We will set high energy-efficiency standards, ensure water efficiency, secure biodiversity net gain and deliver flood-resilient developments as we lay the foundations of a sustainable future. We will ensure that everyone has access to a decent, warm and affordable home. That will be one of the standards by which this Parliament is measured and one of the ways in which our adherence to the manifesto on which we were elected is measured, too. We are actively doing that work. I am grateful to colleagues who want us to go further and faster, and that pressure is welcome. I look forward to working with all colleagues as we go along that journey.