Warm homes and cheaper bills as government accelerates Plan for Change

Households across the country are set to benefit from cheaper bills and warmer homes as the government accelerates its Plan for Change.

Families have faced rocketing energy bills as a direct consequence of an overreliance on international gas markets, while at the same time thousands of tenants have been left exposed to cold, draughty homes, pushing bills up even higher.

The government is now calling time on this inheritance by consulting on bold new plans, which could save private renters £240 per year on average on their energy bills, with all private landlords in England and Wales mandated to meet higher energy performance ratings in their properties by 2030.

While 48% of private rented homes in England are already Energy Performance Certificate C or above, ministers now want to ensure this good practice is extended to all properties in the sector, making sure landlords are not undercut, while protecting tenants.

As of 2030 all private landlords will be required to meet a higher standard of Energy Performance Certificate (EPC) C or equivalent in their properties – up from the current level of EPC E.

This will deliver on the priorities of working people, in line with the Prime Minister’s Plan for Change, by requiring landlords to invest in measures such as loft insulation, cavity wall insulation or double glazing, ensuring homes are warmer and more affordable for tenants.

Deputy Prime Minister and Housing Secretary Angela Rayner said: "For far too long we have seen too many tenants plagued by shoddy and poor conditions in their homes and this government is taking swift action to right the wrongs of the past. Through our Plan for Change we are driving up housing standards, improving quality of life, and slashing energy bills for working people and families. Today is just one of many steps we are taking to deliver on our promise to transform the lives of millions of renters across the country, so families can put down roots and raise their children in secure and healthy homes."

Energy Secretary Ed Miliband said: "For years tenants have been abandoned and forgotten as opportunities to deliver warm homes and lower energy bills have been disregarded and ignored. As part of our Plan for Change, these new changes could save renters £240 a year by raising the efficiency of homes to cut the cost of bills. These plans will also make sure that all private landlords are investing in their properties, building on the good work of many to upgrade their homes to Energy Performance Certificate C or higher already."

The government is now seeking views from tenants and landlords on the proposals to boost living standards in the private rented sector and cut the cost of energy bills, which include:

• offering landlords a choice over how to meet energy efficiency standards. This will require them to meet a fabric standard through installing measures such as loft insulation, cavity wall insulation or double glazing, before moving on to
• a range of other options including batteries, solar panels and smart meters
• a maximum cap of £15,000 per property for landlords, with support currently available from the Boiler Upgrade Scheme, and Warm Homes: Local Grant which begins delivery this year
• an affordability exemption, which would lower the cost cap to £10,000 and could be applied based on lower rents or council tax band
• requiring all landlords to meet the new standard by 2030 at the latest, providing an extra 2 years compared with previous proposals. Homes that are already rated A-C before the introduction of new Energy Performance Certificates would be considered compliant until they expire

The government is also consulting on a revised fuel poverty strategy, which will focus on improving the energy performance of homes, supporting low-income households with energy affordability and protecting them from high prices.

Today’s steps mark further progress to deliver the government’s Plan for Change, putting more money in people’s pockets and rebuilding Britain.

This follows planned reforms to empower Ofgem, the energy regulator, to become a strong consumer champion, upgrading up to 300,000 homes through the Warm Homes Plan this financial year, and driving a new era of clean energy through the Clean Power Action Plan.