One in four people don’t see the point of energy efficiency improvements

There are concerns of a “clear mismatch between people’s understanding of their homes and the reality” when it comes to energy efficiency, a new report has found.

Energy UK and One Home polled thousands of consumers about what improvements, if any, they made to their homes last year and their reasoning.

A survey, conducted on behalf of the organisations by Public First, revealed that more than two thirds of consumers did nothing to improve their home’s energy efficiency in 2023, despite soaring bill costs.

The survey found that of those who did not make improvements, more than a third (35%) cited concerns over cost. Meanwhile one in ten (11%) said it wasn’t worth the upfront investment.

More than a quarter of people (28%) said their home did not need energy efficiency improvements, this is despite the fact that only 3% of homes in England and Wales have an EPC rating of B or better.

It further found that 10% of people did not install energy efficiency measures because they did not know enough about the options available.

Elsewhere the report examined differences in attitudes according to location and age.

People in London, for example, were most likely to install energy efficiency measures (39%), despite having among the most energy efficient homes in the country. Those in the East of England meanwhile were the least likely (23%).

Those aged over 65 were slightly less likely than average to make their home more energy efficient (28%), with this cohort being most likely to claim they did not make energy efficiency improvements because their home did not need it (48%).

One of the main reasons younger people did not make improvements is due to the fact they were renting their homes, the report said.

“Age groups under the age of 44 are overall more likely to rent their home, so it is not surprising to see the second most common reason for these respondents not making improvements was that they couldn’t make significant changes to their rental property, with those between 25 and 34 years of age mostly likely to say that (38%),” the report explained.

Energy UK has made a number of recommendations that it wants to see adopted by political parties at the next general election.

These include:

• Expanding eligibility and the number of potential measures delivered under the Great British Insulation Scheme and Energy Company Obligation, and working to ensure long-term certainty in the future of subsidy and obligations to enable sustainable growth in the market and supply chain for energy efficiency;
• Delivering measures to improve the energy efficiency of the private rented sector, including introducing a gradually increasing requirement for a minimum EPC rating for rental properties, and improving information and support for landlords and tenants;
• Reviewing taxation and wider fiscal measures to incentivise energy efficiency improvements, including expanding temporary VAT exemptions for energy efficient materials and technologies, reviewing the wider approach to taxation surrounding energy efficiency, and introducing Stamp Duty relief for homes where energy efficiency has been improved.

Other measures include increasing the number of trained installers, collaboration with industry to improve engagement and information for consumers, develop more and better green finance options and increase the level of funding assigned to the Boiler Upgrade Scheme.

Energy UK’s deputy director Charles Wood, said: “Government campaigns and support schemes are welcome, and energy suppliers have delivered measures for many consumers under these existing schemes, but we need to go much further and faster.

“There are many ways that government and industry can work together to ensure people can access accurate advice and information regarding the finance options available to them. Likewise, it is important that it is as easy as possible for individuals to implement the right choices for them – because the sooner action is taken, the more people can save.

“With an upcoming general election, the current and next governments must act on energy efficiency. This is not only vital to maintaining energy security and the UK’s momentum in cutting carbon emissions, but crucial to improving the health and wellbeing of people across the country.”

One Home chief executive, Angela Terry, said: “What people are telling us from this survey is that they are not investing to make their homes warmer and cosier because they don’t believe energy efficiency is worthwhile financially. However, the opposite is true.

“Simple measures, such as draft proofing and hot water cylinder jackets, can pay back in less than a year. Meanwhile loft insulation in a typical home pays back in three years. Even if you plan to sell your house, insulation will improve the EPC and therefore the value of your home, so energy efficiency measures are always worthwhile to cut costs and carbon.”

A Department for Energy Security and Net Zero spokesperson said: “Our record on energy efficiency speaks for itself, with almost half of all homes in England having an EPC rating of C or above, up from 14% in 2010.”

“We expect the rate of installations under the Great British Insulation Scheme to increase over the coming months, and estimate more than 300,000 of Britain’s least energy efficient homes will be improved up to 2026 – helping to heat homes and save families money on their bills.”