Latest announcements regarding retrofit funding, decarbonisation and the ongoing energy crisis (April 2022)

07 April 2022

There have been a number of government announcements recently relating to the funding of retrofit, decarbonisation and the ongoing energy crisis.

Energy Security Strategy 

There are welcome announcements in the Energy Security Strategy published today but we’d like to see far more investment in and support for energy efficiency to bring down bills and improve comfort for residents, and reduce reliance on fossil fuels. Our Policy team is studying the document and we'll be responding more fully in due course.

Boiler Upgrade Scheme

The government has provided further detail on the Boiler Upgrade Scheme, and confirmed that social housing landlords will not be able to access funding from this scheme.

VAT reduction on decarbonisation works

In the Spring Statement, the Chancellor announced that the government would cut VAT on the installation of energy saving materials, heat pumps and biomass boiler to 0%. This reduction is now in effect and will last for five years.

Energy Company Obligation 4 (ECO4)

The government published their response to their 2021 consultation about the Energy Company Obligation round 4. We submitted a response in September. They have since confirmed that £4bn will be available via ECO4 to retrofit homes with energy efficiency measures and heating system upgrades between 2022 and 2026. Social housing properties will be eligible if they have an EPC rating of E-G and residents who meet the criteria of the scheme. In rare cases, social homes rated EPC D may be eligible for ‘innovation measures’. OFGEM have provided guidance on how your residents and homes could benefit from the scheme.  

Warm Homes Discount

The government also published their consultation response regarding reform to the Warm Homes Discount. In short, both the amount of money awarded to eligible households and the number of eligible households will increase from this year. Ensuring residents know about potential access to the Warm Homes Discount is important in the current energy cost crisis.

GAZPROM contracts

Since the Russian invasion of Ukraine, housing associations have been reconsidering their contracts with Russian-owned businesses, particularly Gazprom Energy. We have now published a separate update about Gazprom contracts.

Find out more about our ongoing work on climate change and decarbonisation.

Climate Change and Sustainability in Housing 2022

24-25 May 2022

Join peers from across the housing association sector and beyond to define how we can work together to decarbonise our existing homes and ensure that new homes are built to much higher environmental standards.

Find out more

Who to speak to

Rory Hughes, Policy Officer