Green groups and businesses urge government to rethink planning reforms

MPs are pressing Energy Secretary Ed Miliband and Chancellor Rachel Reeves to accelerate plans for upgrading the energy efficiency of UK homes, calling an end to a decade marked by patchy funding and disjointed, ‘stop-start’ schemes. The cross-party Energy Security and Net Zero (ESNZ) Committee warns that the pace of domestic energy efficiency installations has nearly halved since 2010, a troubling trend with serious consequences.

This slowdown leaves millions of homeowners and tenants vulnerable to soaring energy costs and poor living conditions. Beyond the immediate discomfort, it jeopardizes the UK’s ability to decarbonize its building stock. With 29 million homes requiring retrofitting by 2050, meeting legally binding emissions targets demands urgent, sustained action.

The ESNZ Committee points to a critical problem: a coherent, long-term government strategy. Since 2013, at least ten separate support schemes for home energy improvements have been launched—and shuttered—creating confusion and uncertainty for consumers, installers, investors, and supply chains alike. Without stable, consistent policies, planning for the future becomes impossible.

Workforce shortages compound the issue. The Green Homes Grant, which closed in 2021 with less than a quarter of its £2 billion budget spent, fell victim to a scarcity of qualified tradespeople. Then-Chancellor Rishi Sunak cited this as a key factor, highlighting the lack of skilled labor to meet demand for accredited retrofit work.

ESNZ Committee Chair Bill Esterson said Ministers must now enact “practical, urgent measures” to make up for a “disastrous lost decade.”

“We recognise the legacy this Government inherited and its efforts to move forward, but in an ongoing cost-of-living crisis, time is money, and money that we can’t afford,” added Esterson, who has been Sefton Central’s Labour MP since 2010.

Supply chain hurdles and gaps in consumer protections also plagued these efforts. Homeowners reported long delays and substandard retrofitting, undermining confidence in government-backed programs.

Ministers are set to unveil a comprehensive Warm Homes Plan soon. They are pledging £3.2 billion in public investment over 2025-26 to improve home energy efficiency and expand low-carbon heating. The scheme aims to upgrade around 300,000 homes, prioritizing social housing.

Key details already released include:

• £295 million in grants for replacing fossil fuel boilers with heat pumps through an expanded Boiler Upgrade Scheme.

• Removal of a planning restriction that prevented heat pumps from being installed within one meter of a property boundary.

• Up to £1.29 billion was allocated to social housing operators via the Warm Homes: Social Housing Fund.

• Up to £500 million designated for local authorities through the Warm Homes: Local Grant.

The ESNZ Committee urges that all schemes be simplified for easier access. It’s also pushing the government to create a national Warm Homes Advice Service—a free, central hub to guide consumers toward trusted information and qualified installers. The committee estimates this could deliver a remarkable return of £15 for every £1 invested.

On another front, the committee calls for decoupling wholesale electricity prices from gas prices and shifting legacy policy costs—used to fund past subsidies—from electricity bills to gas. This change would reduce operational costs for electric technologies like heat pumps, making them more affordable for households.

Though the government under Boris Johnson pledged to explore these reforms, progress has been sluggish, hampered by political changes. Finally, the committee stresses the need for a clear public engagement campaign to counter misinformation within the home heating sector. Personal stories from consumer advocates and workforce champions are powerful tools to communicate energy-efficient heating solutions' actual costs and benefits.