Retrofitting, and increasing the repair, maintenance and improvement (RMI) of the existing housing stock is one the most significant challenges (and opportunities) to reaching net zero, reducing energy bills and improving public health, says David Barnes, policy and public affairs manager at the Chartered Institute of Building
The UK’s “mini-Budget” on Friday 23 September represented a significant change in the direction for economic policy. It included the much-criticised abolition of the 45% additional rate of income tax rate, which the now former Chancellor Kwasi Kwarteng reversed on, citing that it “had become a distraction from the overriding mission to tackle the challenges facing our country”.
The plan was also heavily criticised for including plans to scrap curbs on bankers’ bonuses at a time when many households face a cost of living crisis. To help combat rising energy costs, the chancellor announced a package of measures to reduce energy bills, costing £60bn over the next six months.
Government energy strategies can only go so far
The government’s new “Energy Price Guarantee” will limit the unit price on the electricity and gas bills of domestic customers. Additionally, businesses will receive the “Energy Bill Release Scheme”, which will act in a similar way to the domestic system.
Both measures are set to last six months, from October 2022. However, questions remain about what happens next. Are those that need the support the most getting it? How will the government recoup the costs and does it get to the bottom of the energy crisis?
A combination of “don’t know” and “no” are the most likely answers to all these questions. However, subsidies such as the £60bn over the next six months are simply not sustainable long term. In addition to this, the conflict in Ukraine has clearly had a significant impact on oil and gas supply, with energy prices rising. With no end in near sight, there is consensus from world leaders that the global energy system needs reshaping.
The UK is required to bring greenhouse gas emissions to net zero by 2050
This is why the Chartered Institute of Building (CIOB) has long campaigned for retrofitting existing housing stock as one of the most significant challenges (and opportunities) to reaching net zero, reducing energy bills and improving public health.
CIOB is a supporter of the Construction Leadership Council’s (CLC) National Retrofit Strategy – a 20-year blueprint for how the construction industry can work with the government to retrofit the UK’s existing homes.
The strategy also calls on the government to invest an initial £5.3bn over the next four years to stimulate the retrofit market, having positive impacts not only on the environment but also in terms of job creation and retention, healthier homes and a reduction in consumer spending.
Retrofitting the UK’s homes would require significant government intervention
This monumental task would require significant government intervention, investment and, most importantly, long-term, cross-party commitment. However, a strategy on this scale would indicate a real commitment to tackling net zero objectives, while having a positive impact on local economies and reducing inequalities, such as the cost of energy bills.
The Labour Party has broadly committed to a mass programme of domestic insulation during its party conference in Liverpool a few weeks ago and the Conservatives could look to match this ambition and use the construction sector and the retrofit opportunity as a mechanism to solving numerous policy challenges it faces.
Lastly, should the government decide to pursue retrofit, it will need to give the construction sector time to build capacity and the necessary skills to deliver on scale. Historically, a lack of confidence in long-term policy direction has impeded the built environment sector’s ability to invest in low carbon technologies and skills and weakened the resilience of the construction supply chain. This has been exacerbated by stop-start policy and eroded consumer and industry trust due to the failure of past initiatives such as the Green Deal and most recently, the Green Homes Grant.
CIOB held a joint event on retrofitting with the Federation of Master Builders (FMB) at the recent Conservative Party Conference, where the minister of state for local government and building safety, Paul Scully MP, joined the panel. His attendance shows some industry suggestions are being listened to, but it remains to be seen if retrofitting will be a solution of choice for this or future governments when it comes to tackling the energy, cost of living and climate crises the nation faces.
David Barnes
Policy and public affairs manager
Chartered Institute of Building
Tel: +44 (0) 1344 630700
