Peter Gibson MP Leads Westminster Hall Debate on Energy Efficiency in the North

The Climate Change Committee’s (CCC) annual report on the Government’s progress towards the target of net zero by 2050 was published this month. A key area of concern highlighted was the lack of progress made on reducing emissions from homes where the CCC flagged current plans as insufficient. The report explained that record-high energy prices make the case for energy efficiency and electrification of home heating stronger than ever so the opportunity to act is now. 

In the North, there are high concentrations of older, draughtier homes that need to be upgraded. Currently, more than 60% of homes across tenures in the North do not meet EPC C (the energy efficiency benchmark). Upgrading these homes in the region would reduce carbon emissions, cut energy bills, make homes warmer (and cooler in the summer), reduce reliance on gas, and bring new green jobs to the North.   

On 6th July, Peter Gibson (Conservative MP for Darlington) took the issue of poor energy performing homes in the North to Westminster Hall. Debates in Westminster Hall allow MPs the opportunity to raise issues of local or national importance where they receive a response from the relevant government minister. 

Peter Gibson opened the session by thanking North Star Housing, the Conservative Environment Network, the Northern Housing Consortium and the National Housing Federation “for their insightful and helpful engagement with me on this important issue in preparation for today’s debate”. 

Gibson began the debate by stating improving home energy efficiency is part of the long-term solution to fuel poverty as it would reduce the amount of money spent on wasted energy lost through the fabric of homes. This statement is important as the cost-of-living crisis continues to impact severely on households and communities in the North. With record-high inflation driven largely by high energy costs and with the North having a higher proportion of poorly-insulated homes, the region is experiencing a higher level of inflation than the rest of the country. 

Peter Gibson described energy efficiency as a “win-win” for our homes and the environment. Paul Blomfield (Labour MP for Sheffield Central) later commented that it is actually a “win-win-win-win-win” as energy efficiency can cut carbon, cut bills, improve health, reduce reliance on gas, and create jobs. The NHC agrees with these assessments. 

As the NHC highlighted in a recent briefing, Gibson explained during the debate that upgrading homes in the North from EPC D to EPC C would lead to savings of nearly £3bn per year. Citing the Northern Housing Monitor, he said in the North we need to upgrade around 4 million homes to reach the Government’s energy efficiency targets.  

The brilliant work already being carried out in the Tees Valley was mentioned, with reference to the Social Housing Decarbonisation Fund, of which the region received £2.6m of Wave 1 funding. Peter Gibson said this good work must continue and be rolled out more widely. Wave 2 is expected to open later this summer (guidance published here). 

Connecting housing decarbonisation with net zero will be important, said Peter Gibson, and we need to make it clear to communities how they stand to benefit from more energy efficient homes. This clear communication will be key in the transition away from gas boilers towards new technologies.  

On job potential in the North, Peter Gibson referenced the NHC’s Northern Powerhomes report with IPPR North that found a large-scale programme of housing retrofit in the social sector could lead to 77,000 direct jobs in the region by 2030s. 15,000 of these roles would be in the North East.  

Upfront costs were identified as a key barrier to this work. Gibson said he has had discussions with Angela Lockwood (Chief Executive) and Emma Speight (Executive Director of Assets and Growth) at North Star Housing about prohibitive costs faced by housing associations. He spoke of one of their pilot projects which aims to bring a late-Victorian terraced house up to EPC A and to then monitor its performance. The cost of doing this will be £45,500, with £12,000 of this spent on solid wall insulation alone. The value of the property is estimated at around £70,000, highlighting viability issues for housing providers in parts of the North and the need for further targeted support and assistance from Government. 

The costs are high, but he was clear about the benefits of investing in homes now: healthier places to live and a permanent reduction in household energy bills. He asked the Minister what the Government can do to deliver more. 

Scott Benton (Conservative MP for Blackpool South) supported this, saying Blackpool has received £1.4m through the Social Housing Decarbonisation Fund and said further action is now needed given the pressure on household budgets. 

Navendu Mishra (Labour MP for Stockport) added that several government schemes aimed at improving energy efficiency have been poorly delivered, but noted the direct impact this could have on household bills if done effectively. 

Paul Howell (Conservative MP for Sedgefield and recently appointed as Parliamentary Private Secretary to the Treasury) said energy efficiency is more relevant than ever. He responded to Mishra’s comment to say the Green Homes Grant scheme was not perfect but it was broadly popular. Howell added that such schemes will be vital as not all households will be able to afford upgrades, and highlighted particular issues in rural areas. Howell commented that the innovative solutions for homes already exist, we just need to make sure they reach the households that need them. 

In parts of the North East, weighing up the cost of upgrades with the value of properties can be difficult, but the reduction in energy costs are worth it, argued Howell, echoing Gibson’s earlier points. He said there are concerns that private landlords will not make the investments needed and instead will choose to sell properties. BEIS are expected to respond to a consultation on updating the Minimum Energy Efficiency Standards (MEES) for the PRS that would require landlords to upgrade homes for new tenancies to EPC C from April 2025, and for all tenancies by April 2028. NHC local authority members have highlighted that improving the quality of PRS homes is essential for communities and tenants but there are concerns around the lack of capacity to enforce new standards. We will be monitoring MEES when it comes forward, as well as the challenges being faced by members to implement changes. 

Mike Amesbury (MP for Weaver Vale) outlined there are 35,000 homes in Halton alone that need to be upgraded and 96,000 across Cheshire West and Chester area. Amesbury said the potential for 77,000 homes in the North that Peter Gibson cited from Northern Powerhomes is a strong case for Government action. He asked the Minister about their plans to work with education and training providers to make sure we have the skills we need to fill these roles. 

Margaret Greenwood (Labour MP for Wirral West) highlighted worries about this coming winter, warning the impact of rising energy bills on households should not be underestimated. The NHC has joined the #WarmThisWinter campaign to call for the next Prime Minister to set out an urgent plan ahead of winter to support households, insulate homes, and drive up renewable energy. 

Alan Whitehead (Labour MP for Southampton Test and Shadow Minister for Energy and the Green New Deal) said the North East has one of the largest gaps between emissions from new and existing properties. Per new home, there are 1.5 tonnes of carbon dioxide emitted per year from a new property, compared with 3.6 tonnes per year from an existing property. Whitehead added there will need to be a different approach to different housing tenures to bridge this gap, but highlighted the private rented sector as a particular challenge, with current MEES regulation (requiring landlords to have a minimum of EPC E) “grossly insufficient”. 

Labour’s plan on retrofit, Alan Whitehead explained, would be to upgrade 19 million homes across tenures over a ten-year period through a combination of loans, grants and direct local authority schemes. The focus would be on area-based schemes where local authorities can concentrate resources where they are needed the most. 

In response to the debate, Greg Hands MP (Minister of State for Business, Energy and Clean Growth) said the Government has an “unwavering commitment” to decarbonising buildings, saying: 

“Improving the wellbeing and living conditions of northern communities is a key part of the levelling up of all our towns, cities and regions as we build a green Britain that works for every part of the country”. 

The Minister outlined the work undertaken since the Heat and Buildings Strategy was published last year, saying the North has received £226m through the most recent phases of the Local Authority Delivery scheme and Home Upgrade Grants.  

He noted the “striking sums” reported by North Star Housing to retrofit homes and acknowledged there is still a lot of work to do to upgrade homes in the region. 

On renewable energy, Greg Hands said the energy generated from renewable sources in the energy mix has been increased from 7% in 2010 to 56%. It is important that this continues to rise as we transition to electrified heating in homes to ensure homes are powered by clean, cheap energy. 

On fuel poverty, the Minister claimed the level “is actually falling”, saying “we need to keep bearing down on fuel poverty but that situation is improving”. We think the data he may be looking at has not been updated to reflect the spiralling costs of gas pulling more and more households into fuel poverty this year. This is expected to rise in October and again in January in line with price cap rises. 

Government’s response to the MEES consultation to raise energy efficiency standards in the PRS will be published in “due course”, the Minister confirms. And on social housing, he references Wave 2 of the Social Housing Decarbonisation Fund, with Wave 1 already supporting the upgrading of around 8,000 homes in the North. 

Scaling up the supply chain and building a skilled workforce is a long-term challenge, Hands said, but the North is in a “key position at the centre of net zero innovation, growth and opportunities for green jobs”. 

The Minister ended by saying the Government has a duty to protect those who are most vulnerable and support consumers and businesses as we decarbonise homes so the benefits of improved health, lower emissions and lower bills can be realised. 

You can read the Hansard entry for the full debate here. 

The NHC will continue to work with BEIS and DLUHC on behalf of our members as the political environment shifts this year to ensure the new Prime Minister and their Cabinet prioritise improving the energy efficiency of homes in the North. We would also be happy to support our members to engage with local MPs on this topic to help create sustainable homes and communities in the region. 

Please do not hesitate to follow up on any of this with the NHC by contacting Anna Seddon (Policy and Public Affairs Manager) at anna.seddon@northern-consortium.org.uk.