Major bank urges government to scale up retrofit support for households

Nearly two-thirds (64%) of respondents said they did not know their current Energy Performance Certificate (EPC) rating, and more than half would not know where to source a trusted tradesperson to carry out work.

The cost of retrofitting an average home would swallow up more than half the average savings of households in the UK, which Santander said was “a price many homeowners are unwilling and unable to pay”.

Large-scale measures such as installing a heat pump or solar panels were deemed unaffordable by nearly three-quarters (73%) of those surveyed. Meanwhile, 61% said they are unlikely to or will not upgrade glazing, loft or wall insulation in their home in the next two years.

The bank called for more upfront grant support that is to be means-tested for lower-income households and delivered by local government. It also said the government should create an online tool to help people learn more about how to retrofit their homes.

Fiona Hyde, head of sustainability at Santander, said homeowners and renters “need government support” to be “better informed about the options available to them.

She added: “This includes access to affordable, skilled tradespeople and, crucially, to be able to benefit from all available financial incentives if we are to help them keep their homes warm and their energy bills low.

“But beyond that, the houses and flats we know today will, in the majority of cases, be the same houses and flats that we are living in for generations to come.

“Failing to retrofit them is simply not an option if we are to truly tackle the climate crisis and achieve the country’s carbon emission targets.”

MP Philip Dunne, chair of parliament’s Environmental Audit Committee, endorsed the report. He said: “The government has introduced some incentives, such as VAT reductions on energy-efficiency installations and the Home Upgrade Scheme for grants to help support heat pumps uptake.

“But there is scope to do more to help households on the journey to decarbonising homes to lower energy costs and cut emissions.”

A Department for Energy Security and Net Zero spokesperson said: “Nearly half of all homes in England now have an EPC rating of C or above, up from just 14% in 2010.

“We have allocated £20bn for energy efficiency over this parliament and next, and our investment will raise insulation standards of around 500,000 homes across the UK.

“We’ve increased our heat pump grants by 50% to £7,500 – making it one of the most generous schemes in Europe.”

Just last month, another major bank pledged to lend £5bn to the UK social housing sector over the next three years.

NatWest Group said its ambition would support housing providers and homeowners amid the current economic pressures.