The Home Upgrade Commission report Upgrade: How to deliver better homes by 2030 is Public First research co-sponsored by Octopus Energy, Energy UK, Nesta, Citizens Advice, ROCKWOOL, Mineral Wool Insulation Manufacturers Association (MIMA), Kensa Group, and Santander. In it we outline the challenges and decisions facing the new government, and set out a politically relevant, feasible route for delivering a Home Upgrade Plan.

In its 2024 manifesto, the Labour government committed to upgrading 5 million homes this parliament, doubling the planned spend by the previous government to a total of £13.2bn. Labour is right to make upgrading homes a core feature of their governing mission. For too long, energy-efficiency and clean heat has struggled to gain sustained political attention and funding. But, in practice, delivering on this pledge requires politicians to make difficult decisions.

Two statutory targets for fuel poverty and Carbon Budgets 4 and 5 also require public investment to be achieved this parliament. Public First research finds that Labour’s pledged budget is not enough to meet both of those targets, which would require a fiscal envelope of £30.6bn over the next five years. However, there is limited fiscal headroom for more money. Ministers must decide early on not only how to deploy the £6.6bn towards statutory targets, but also to incentivise private investment, reform existing underperforming schemes and stimulate demand among homeowners.

Capacity to upgrade homes for energy efficiency and clean heat is developing from a low-base. The supply chain currently lacks the skills capacity to deliver at scale either through local authorities, central government or the private sector. Key frameworks for planning and delivering upgrades are either not fit for purpose (for example, household EPCs) or have yet to be developed (for example, neighbourhood level interventions). Additionally, although consumers want more efficient homes, they do not feel equipped to take action due to a lack of information and financial incentives.

Building capacity in the supply chain takes years not months. The government must resist the temptation to overhaul the current system. Instead, policymakers must stay focused on improving it for a public-private partnership approach towards funding and delivery. Actions taken this term can build an ecosystem for delivering at scale in 2029-34.

The ‘to do’ list for this parliament includes:

– Build public knowledge and trust by strengthening consumer protections and using the role of government as a trusted communicator to advocate for the benefits of home upgrades.

– Set a clear roadmap for decarbonising heat and buildings to instil confidence in the market, incentivise private investment, and enable plans for more efficient, scalable delivery models.

– Improve the performance of existing schemes for households in need. New guidance on local authority and supplier obligation schemes are required to reduce complexity and underspend, with over £415m returned to the Exchequer since 2020.

– Pump-prime the market to unlock private finance with publicly-funded grant schemes, attractive loan terms and incentives to encourage uptake among ‘able to pay’ households.

– Grow the home upgrade workforce by reskilling existing workers and attracting new recruits.
To achieve this, there are several key actions the new Labour government will need to take in 2024, and across the next parliament – both clearly set out in the report.

You can read the full report here.

Polling Tables

Public First conducted consumer polling of 4,028 respondents in an anonymous, online poll. Fieldwork ran from 17th April 2024 to 30th April 2024. All results are weighted using Iterative Proportional Fitting, or ‘Raking’. The results are weighted by interlocking age & gender, region and social grade to Nationally Representative Proportions.

Public First is a member of the BPC and abides by its rules. For more information please contact the Public First polling team: polling@publicfirst.co.uk

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