Social housing residents missing out on energy savings

This article was first published on the Batchelor’s Solicitors website prior to its merger with Birketts.

A new report has revealed that poor insulation and inadequate draft-proofing is leading to social housing tenants paying an extra £700million a year on their heating bills.

The analysis of published EPC and English Housing Survey data, carried out by the National Housing Federation, has estimated that simple retrofitting measures could save residents 42 per cent per annum on their energy costs.

The report acknowledged that, as a result on the retrofitting measures already put in place by many housing associations, social housing tends to be more energy efficient when compared to privately rented and owner-occupied homes.

Despite this, more than 1.2 million energy-inefficient social homes across England still require improvement.

The report found that:

• Social renters in the most inefficient homes will have to spend 15.5% of their income on heating, the equivalent of nearly two months’ worth of their annual income
• A family in an energy inefficient social home (EPC D-G) will spend on average £1,343 a year on heating bills, based on current Price Guarantee tariffs
• Upgrading poorly insulated social rented homes to EPC A, B, or C could save residents more than £700m a year in heating costs
• This equates to an average saving of 42% or £567 per household per year

Commenting on the findings of the report, Kate Henderson, Chief Executive of the National Housing Federation, said: “Not only are poorly insulated homes one of the country’s biggest environmental polluters, they have now become a major culprit of the cost-of-living crisis.

“Whilst the Government’s energy price guarantee is welcome support for now, it is not enough to protect people living in the least energy efficient homes from astronomic price increases, with some social tenants losing as much as two months’ pay on energy costs and forced to make impossible choices – such as risking getting into debt – to afford basic living costs.

“Decarbonising social homes is a win win solution, and the faster it can be done, the greater the benefits for residents and the environment.

“Councils and housing associations have already started retrofitting their homes and the recent announcement of the next wave of the Social Housing Decarbonisation Fund is certainly welcome, but they need the long-term funding in place so they can ramp up the scale and speed of these programmes.

“We urge the Government to prioritise retrofitting social homes, as a long-term solution to the energy, cost of living and climate crises.”

For more information on the specialist legal support we are able to offer the social housing sector, please get in touch with us.