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Sunak scraps energy efficiency targets in move dubbed ‘hugely disappointing’ by housing sector
Rishi Sunak has scrapped energy efficiency targets in an overhaul of net zero pledges dubbed “hugely disappointing” and a “colossal error” by the sector.
In a speech from Downing Street outlining a new approach to achieving net zero, the prime minister scrapped the plan for new private rental properties to have at least an Energy Performance Certificate (EPC) rating of ‘C’ by 2025, and all PRS properties by 2028, saying “we will never force any household to do it”.
He said that energy efficiency is “crucial to making our homes cheaper to heat”, but that “under current plans, some property owners would have been forced to make expensive upgrades in just two years’ time”.
“That’s just wrong. So those plans will be scrapped and while we will continue to subsidise energy efficiency, we’ll never force any household to do it,” he said.
The prime minister also announced a 50% increase in grant funding through the government’s boiler upgrade scheme, “far more time” to transition from gas boilers to heat pumps, as well as a delay on banning the sale of diesel and petrol cars.
His speech followed a BBC report that he was planning to weaken green policies.
Responding to the statement last night, Mr Sunak said he would achieve net zero in a “more proportionate way” after reports that key targets on heat pumps and home energy efficiency will be ditched.
He said the government remains “committed to net zero by 2050 and the agreements we have made internationally – but doing so in a better, more proportionate way”.
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Today he denied that he was watering down key pledges on climate change and said he is not “abandoning any of our targets and commitments” and is “unequivocal” that the UK will meet its international agreements, “including the critical promises in Paris and Glasgow to limit global warming to 1.5 degrees”.
He said he is “proud” that the UK “leads the world on net zero with the most ambitious 2030 target of any major economy”.
“But we can do all of this in a fairer, better way,” Mr Sunak said.
On heat pumps he said he does not want to impose costs on “hard-pressed families” at a time “when technology is often still expensive”.
“So I’m announcing today that we will give people far more time to make the necessary transition to heat pumps, we will never force anyone to rip out their existing boiler and replace it with a heat pump.
“You’ll only ever have to make the switch when you’re replacing your boiler anyway, and even then, not until 2035 and to help those households for whom this will be the hardest.
“I’m introducing a new exemption today so that they will never have to switch at all.”
He said this “doesn’t mean” he is “any less committed to decarbonising our homes”.
“But rather than banning boilers before people can afford the alternative, we’re going to support them to make the switch.
“I’m announcing today that the boiler upgrade scheme, which gives people cash grants to replace their boiler, will be increased by 50% to £7,500. There are no strings attached – the money will never need to be repaid.”
The prime minister announced that the government is going to “ease the transition to electric vehicles”, delaying a ban on the sale of new petrol and diesel cars from 2030 to 2035.
“You’ll still be able to buy petrol and diesel cars and vans until 2035. Even after that, you’ll still be able to buy and sell them second-hand,” he said.
Response from the sector
Kate Henderson, chief executive of the National Housing Federation, said it is “hugely disappointing” to see the government “row back from its commitments to net zero, particularly on improving the energy efficiency of our homes”.
She added: “England’s homes are among the oldest and draughtiest in Europe. Making homes more energy efficient is a win-win, not only helping to save our planet, but also boosting our economy by creating jobs and, crucially, saving money.
“Our research found that retrofitting homes would save social housing residents on average 40% on heating bills. Scrapping targets on this could lead to people facing higher bills for years to come.”
Ms Henderson said housing associations are committed to carrying out this work and “ensuring residents on low incomes benefit from homes that are affordable to heat”.
“It’s a commitment that will help people across the country. However, they cannot do this alone and need leadership, policy certainty and long-term investment from government,” she added.
Rachelle Earwaker, senior economist at the Joseph Rowntree Foundation, said relaxing the regulations on energy-efficient homes is “ill advised and ill considered”.
She added: “Tenants, who have seen their energy prices skyrocket in the past year, and are watching the Renters’ Reform Bill be further delayed, may think the prime minister is more concerned about their landlord’s pocket above all.
“UK households will continue to live in cold, draughty and damp housing, which puts their health at risk.
“If we don’t invest in energy-efficient housing and more sustainable and affordable energy solutions, the only certainty is frighteningly high energy bills and poor health outcomes.”
Dan Wilson Craw, deputy chief executive of Generation Rent, said that cancelling higher standards for rented homes is a “colossal error” by the government.
“Leaving the impact on the climate to one side, it makes the cost of living crisis worse and damages renters’ health.
“One in four private renters lives in fuel poverty and without targets for landlords to improve their properties, they face many more years of unaffordable bills.
“Energy efficiency is also an essential part of a home’s quality.”
He added: “The government’s dithering over these standards in recent years has led to the housing sector being unprepared for the original 2025 deadline.
“Ditching it completely is both cruel and out of proportion to what the prime minister wants to achieve.”
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