Labour scales back new energy efficiency targets for social homes

The government is to scale back new energy efficiency targets for social housing, after councils and housing associations warned about the multi billion pound cost of potential building upgrades.

Labour plans to introduce minimum energy performance ratings for social homes in England, in a bid to cut tenants' fuel bills and meet climate goals.

But ministers now plan to give social landlords more time and greater flexibility to show they comply with new standards.

The housing department said the revised plans would ensure providers retain "sufficient financial capacity" to build new homes at the same time as overseeing upgrades to their stock.

Labour wants all social homes to achieve an energy performance certificate (EPC) score of at least C by 2030, using a new assessment system that is due to become operational the year before.

The EPC system rates properties according to how efficiently they use energy, with the most efficient properties rated A and the least efficient G.

Around one in four social homes fall below the C rating at the moment, according to latest statistics, meaning 1.1 million properties will require upgrades so they can come up to scratch by the end of the decade.

The new assessment system will rate properties' insulation quality, heating systems and ability to use low-carbon technologies such as smart meters and heat pumps, alongside the longstanding measure of how much a home's energy costs.

Under proposals unveiled last year, councils and housing associations would have to meet the EPC C standard for insulation by 2030, as well as one of either the heating system or low-carbon technology measures.

But the housing department has now said that providers can meet the C rating for any of the three measures by 2030, followed by another by 2039.

In a policy document, it said the change would respond to "concerns raised about deliverability and affordability" in the original proposals, which were not supported by a majority of councils and other social housing providers.

An official assessment of the original plans, published last year, estimated that they would cost between £7.8bn and £8.2bn to deliver in the coming decades, based on a £10,000 cost cap per social property.

It added that that the plans would cost more because of the need to invest in upgrades such as heat pumps or solar panels at the same time as improving insulation through measures such as wall insulation and double glazing.

The National Housing Federation, which represents housing associations, said it welcomed the new staged deadlines for meeting the EPC requirements.

Chief Executive Kate Henderson said the later 2039 deadline would give associations additional time to plan for the installation of devices such as solar panels, as well as allowing supply chains to develop further.

It would also enable associations to "strike the right balance between funding this work and delivering on vital commitments to build much needed new social homes," she added.

However the End Fuel Poverty Coalition, a campaign group, said it wanted the government to ensure "strong consumer protections" and bill reduction guarantees were in force for tenants.

"When done well insulation and home improvements can make homes warmer, safer and cheaper to run," added Simon Francis, a coordinator for the group.

"While it's disappointing that we're not going to see quicker implementation of regulations, which would lead to more households moving more quickly out of fuel poverty, what is absolutely vital is that improvements are done right."