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Net Zero APPG Myth Busting Report – NIA Policy Summary

Net Zero APPG Myth Busting Report - NIA Summary

The Net Zero All Party Parliamentary Group (APPG) has published a report aimed at dispelling myths and misinformation surrounding the Net Zero transition. It highlights the need for accurate information and a shared understanding of the path towards Net Zero among policymakers, industry leaders and citizens. It emphasises the role of education, communication and behaviour change and notes the challenge of effectively communicating climate change issues – and the importance of using language that the general public can understand. Ultimately, the report aims to debunk myths, provide clarity, and drive real behaviour change to accelerate progress towards Net Zero.

The Net Zero APPG – Who are they?

The Net Zero APPG aims to accelerate the transition to a low carbon and affordable future, embed zero carbon solutions and achieve Net Zero growth and innovation, as a well as a carbon-neutral economy in the UK. The APPG promotes cross-party debate, consensus, and support to effectively address the climate change challenges. Their overarching aim is to unlock green innovation investment and incentives while driving better communication and changing the narrative surrounding Net Zero.

Why the narrative needs to change?

In the foreword of the report, Lord Deben summarises why the narrative needs to change:

  • Terms related to climate change are not well understood, such as ‘retrofit,’ ‘modelling,’ and ‘sequestration.’
  • People struggle to grasp concepts like ‘kilowatt-hour’ because it cannot be felt, touched or seen.
  • To engage people, it is more effective to discuss how climate change affects their bills and emphasisethe financial benefits of home improvements that save energy.
  • Statistics need to be translated into relatable experiences for the audience, for example understanding that just over 1°C of warming can have a significant impact on global weather patterns and can cause extremely hot weather.
  • Experts have historically prioritised scientific communication over effective public engagement – this needs to change to build public support for Net Zero.
  • Lack of understanding of climate change terminology can lead to the spread of myths.
  • The language we use to talk about climate change is crucial because it influences people’s actions.

Debunking some Net Zero Myths

In tackling the challenge of achieving Net Zero in the UK, the APPG makes clear that it is important to address the misconceptions, misinformation and myths surrounding the climate change narrative.

To accelerate behaviour change and promote informed decision making, effective communication is paramount and while it may not always be possible to completely dispel every myth, the Net Zero Myth Busting Report aims to provide policymakers with better information. The report seeks to highlight areas of consensus and identify the key areas that warrant greater debate and clarity from Government so that there is a more accurate understanding of the challenges and solutions on the road to Net Zero.

Myths highlighted in the Net zero appg myth busting report

#1 Net Zero is bad for growth and pushes up costs

#2 Getting to net zero costs

#3 We don’t have the green skills and jobs we need to scale up and get to net zero

#4 Our cities are bad for the environment

#5 Carbon capture and storage (CCS) is counterproductive and unnecessary

#6 Nuclear power isn’t a clean energy source too much money

#7 Renewable energy is too reliant on the weather, and too expensive

#8 It’s just not possible to make all homes energy efficient

#9 Tenants jump at the chance to retrofit their homes if it’s free

#10 Heat pumps are too expensive and don’t work in old properties or in cold temperatures

#11 Green hydrogen is the ‘silver bullet’ for Net Zero Homes and buildings

#12 Consumers will always choose the sustainable option

#13 It’s too expensive to electrify our railways

#14 We need more electric vehicle charging points to match demand

#15 We don’t need more road capacity to reach Net Zero

#16 All buses must be Net Zero emission if we are going to reach our decarbonisation target

#17 Hydrogen plans will deliver Net Zero aviation

#18 Jet Zero won’t happen and can’t be delivered by 2050

#19 Focusing on reaching Net Zero by 2050 is enough to tackle the climate emergency

#20 It’s too hard to decarbonise our Ports

#21 The UK will need to import plant- based alternatives to replace its meat and dairy products to reach Net Zero

#22 We just need to reduce carbon to get to Net Zero

#23 Recycling is the best way for me to do my bit for the planet

A Summary of Recommendations

After reviewing the report and examining the myths and recommendations, we have identified the key insights relevant to energy efficiency in buildings. The relevant myths, ‘myth busts’ and recommendations are shown in the table below. Please note that each response reflects the opinion of the author and not the collective view of the Net Zero APPG and its supporters.

Climate Change Committee – 2023 Progress Report to Parliament

Climate Change Committee – 2023 Progress Report to Parliament

On 28th June 2022, the Climate Change Committee published their Annual Progress Report to Parliament. The CCC have reviewed the impacts of the government’s net zero strategy and policies across all sectors and analysed its adequacy. Set out below is a summary of the report.

Energy Efficiency

Overall, the CCC declared that their confidence in the UK meeting its carbon reduction targets has decreased over the last year. The CCC’s Monitoring Framework, which measures the UK’s progress towards net zero, concluded that progress on energy efficiency measures is “significantly off track”. Progress against the CCC’s recommendations from last year has largely been insufficient. In particular, no progress was made in introducing a clear, implementation focused policy to ensure owner-occupied homes reach a minimum energy performance of EPC C by 2035.

Despite the Government detailing its ambition to decarbonise buildings in 2021’s Heat and Building Strategy, the CCC’s Progress Report notes that all major progress indicators are falling behind, with the possible exception of overall emissions reduction. In this area, there has been a 16% decrease since 2022 in emissions from homes. However, the CCC noted that this headline decrease was largely due to high energy prices and milder than usual weather. Adjusting the data to account for temperature-related factors reduces the decrease in residential emissions to just 6%. It also observed that reductions in emissions and energy use are unlikely to continue without further policy interventions.

While the CCC reiterated its support for upcoming changes to regulation, including the implementation of the Future Homes Standard, there is a sense that the current pace of decision making is not fast enough to deliver Net Zero commitments. Slow decision making is creating uncertainty right across the sector, ranging from how to deliver sufficient retrofit measures to investment decisions in skills and building supply chains.

The CCC also point to the need to give greater attention to policy gaps relating to non-residential buildings. Temperature-adjusted emissions show an increase of 5% in emissions from non-residential buildings since 2022. This is partly due to a rebound in the number of people returning to office work after the pandemic, however, there is still an urgent need for more policy certainty in this area. Currently, “There are no convincing plans to decarbonise commercial buildings”, according to the CCC.

Progress reported for specific indicators are as follows:

  • Despite an increase in funding available for social homes, actual numbers of installations have not yet increased, and installations under ECO also lag behind the CCC’s pathway expectations with each iteration of ECO delivering fewer measures, and ECO4 starting slowly.
  • The uptake of energy efficiency measures remains slow, especially in the owner-occupied and private-rented sectors, despite the energy crisis providing an increasingly clear financial incentive to retrofit properties
  • Public sector and commercial buildings also require an increase in the uptake of fabric energy efficiency improvements.

The CCC reported that 77% of building related emissions in the 6th Carbon Budget are judged to be “at significant risk, or with insufficient plans”, highlighting significant policy gaps in this sector. They judged that the greatest policy gap is in dealing with energy efficiency in non-fuel-poor homes. For each sector, a number of specific recommendations have been set out to address the evident policy gaps, which we have summarised below.

Recommendations

The CCC report classes energy efficiency improvements to existing buildings as a “no-regret” option for the decarbonisation of buildings.

As an urgent priority, the CCC has called on the Government to finally respond to the 2020 consultation on requiring that homes in the Private Rented Sector (PRS) meet an EPC C by 2028. This response was promised at the end of 2021. This substantial delay and a lack of policy certainty from Government is holding back progress in this area.

A comprehensive home energy retrofit scheme is required to provide long term funding for consumers and supply chains and support the installation of energy efficiency measures. It is also necessary to consider a whole building approach that will be effective across multiple building archetypes, including those that are traditionally difficult to retrofit, such as large blocks of flats.

Workforce and Skills

‘Workforce and skills’ is another area where the CCC rated progress as being off track for achieving Net Zero. In particular, the CCC has warned that there are insufficient plans in place in terms of the ambition and timelines required in the skills sector to facilitate Net Zero. Progress is being made in specific areas, but a lack of clear strategy means that overall change is slow and fragmented. Clearer plans are needed from government to harness the potential of the transition and manage its risks.

The sector has clear cross-cutting implications on the transition in the energy efficiency sector, so slow progress in this area poses a serious risk to meeting our net zero targets in terms of decarbonising buildings.

Moving forward, there is potential for the Net Zero transition to create more jobs than will be lost. Between 135,000 and 725,000 net new jobs could be created by 2030 in low-carbon sectors, with the majority of these expected to come in the buildings retrofit sector. However, this is contingent on having a clear green skills strategy in place.

Broadly speaking, there is expected to be increased employment in growth sectors such as the retrofit sector. Low Carbon and Renewable Energy Economy (LCREE) employment across the UK grew 16% from 207,800 in 2020 to

247,400 in 2021, representing the largest year-on-year increase recorded. Over the same period, total UK employment only grew by 6%.

There are a number of key barriers in this sector that need to be overcome to reach Net Zero:

  • Lack of clear strategy from government
  • Inadequate supply of skilled workers
  • Lack of long-term certainty around investment incentives and sector demand
  • Competition from overseas
  • No consistent UK-wide evidence is available for monitoring progress on green skills
  • Low levels of diversity in the Net Zero workforce
  • Potentially disruptive impacts for some communities (i.e. job losses)

Recommendations

The CCC made a series of recommendations on actions the Government must take to ensure that the workforce and skills is in place for us to deliver on our net zero ambitions in the retrofit sector.

Meeting or Missing the Milestones: Committee on Fuel Poverty Annual Report 2023

Policy Summary: Meeting or Missing the Milestones: Committee on Fuel Poverty Annual Report 2023

Introduction

The Committee on Fuel Poverty (CFP) has published their latest annual report today, which assesses progress towards the Government’s 2030 fuel poverty statutory target and 2025 fuel poverty interim milestone. The report also makes a series of recommendations to Government on how they can address fuel poverty in order to meet these targets.

The Government has already declared its intention to review the 2021 Fuel Poverty Strategy, which is vital if it is to meet the 2025 and 2030 targets. This report is expected to inform the Government’s review.

Below is a summary of some of the report’s key findings and recommendations.

You can also read the full report here.

The Government’s Fuel Poverty Targets

The government’s statutory fuel poverty target is to ensure that as many fuel poor homes as is reasonably practicable achieve a minimum energy efficiency rating of Band C, by 2030. The interim milestones are:

  • As many fuel poor homes as is reasonably practicable to Band E by 2020
  • As many fuel poor homes as is reasonably practicable to Band D by 2025

Wider Context

  • The last Annual Report was published in October 2021. Since then there have been a series of shocks to the UK economy which have hindered progress towards the Government’s fuel poverty targets.
  • Since 2021, soaring fuel prices have forced 287,000 more households into fuel poverty. On the other hand, energy efficiency measures have contributed to some 145,000 households being removed from fuel poverty, whilst increased incomes have lifted 48,000 out of fuel poverty. The net effect is an increase of 100,000 more households being in fuel poverty compared to 2021.
  • The Government forecasts a further rise in fuel poverty to 3.53 million this year (a rise of 270,000), and a further widening of the fuel poverty gap to an average of £443 per household, an increase of 31%.

2020 Milestone

  • The 2020 Fuel Poverty milestone has already been missed and an unacceptable number of CFP recommendations have yet to be acted upon.
  • The 2020 milestone to ensure that as many fuel poor homes as is reasonably practicable achieve a minimum energy efficiency rating of Band E has still not been met. This does not bode well for meeting the 2025 milestone.

2025 Milestone

  • The 704,000 properties in England rated E, F and G require urgent upgrading, or the second 2025 milestone will be missed.
  • According to the Government’s own assessments, published in a response of 18 January 2023 to an Environmental Information Regulations request, “Current announced policies are expected to upgrade around 140,000 E-G homes to D+ by 2025. This would result in 515,000 fuel poor households still being rated E-G in 2025.”
  • To ensure that low income households are living in homes that are at least Band D rated by 2025, the Committee has identified two things as essential: o That all such households are easily, cost-effectively, identified.
  • That energy efficiency programmes are well-targeted at those households

2030 Milestone

  • Achieving the 2030 target will involve upgrading approximately 3.26 million D-G rated households to a C rating.
  • To meet the 2030 target, the Government will have to upgrade to a C rating at least 365,000 D rated properties per year from 2023 to 2030.

Key Recommendations

  • The report makes 5 broad recommendations on how the Government can address fuel poverty in England in order to meet its fuel poverty targets. They are:

    1. Ensure a robust Fuel Poverty Strategy and effective measurement of fuel poverty that leaves no one behind.

    2. Improve targeting of payments to support bills and better targeted energy efficiency programmes to meet the government’s milestones.

    3. Improve affordability of bills through fairer pricing and better regulation to protect the fuel poor.

    4. A shared mission to tackle fuel poverty adopted by government, local government and the NHS.

    5. A fair transition to net zero that does not increase fuel poverty.

Table of Recommendations and Calls to Action

These 5 key recommendations are underpinned by 19 calls to action, which are laid out in the table below.

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Ofgem’s Administration Consultation: Great British Insulation Scheme and ECO4 Amendment

Ofgem’s Administration Consultation: Great British Insulation Scheme and ECO4 Amendment

Draft Energy Strategy and Just Transition Plan (www.gov.scot)

Closing Date: 16 June 2023

Response submitted by: National Insulation Association

For more information, please contact: info@nia-uk.org

About the National Insulation Association

The National Insulation Association (NIA) represents the insulation industry in the UK with a member base comprised of installers, system certificate holders, and manufacturers who provide a wide range of insulation solutions for homes and buildings. The NIA and its members are fully committed to maintaining and raising standards within the insulation industry.

Do you agree with our proposed approach to monitoring progress against annual phase targets? If you disagree, please provide alternative suggestions, including any evidence, to support your response?

Yes, the NIA agrees with the proposed approach for annual phase targets, which require suppliers to deliver a minimum number of measures in the first two years and reach at least 90% of the target within the relevant phase year. Ambitious targets are important to drive activity and to ensure that as many insulation measures as possible are delivered to those who need it. The minimum delivery requirement of 90% also provides clarity to suppliers on their obligations and encourages them to pursue a high level of annual delivery throughout the scheme.

The NIA agree that measures delivered on or after 30th March 2023 but before the ECO4A Order has commenced, should be classed as early delivery measures, and still contribute to annual minimum requirements and caps under the scheme, provided they are eligible measures. We recommend that the targets are reviewed on a regular basis to ensure that they are at an appropriate level, and that suppliers are adhering to them. Consequences for not achieving the targets should also be made clear.

Do you agree with our proposed approach for administrating Carry-over? If you disagree, please provide alternative suggestions, including any evidence, to support your response?

We support the proposal to allow unlimited carry-over between annual targets for the first two years of the Great British Insulation Scheme as this could accelerate the delivery of energy efficiency measures. If suppliers have the capacity to overspend on their annual targets, then this should be encouraged as much possible. The NIA are supportive of anything that results in energy efficiency measures being installed at a faster rate.

However, if suppliers have exceeded their targets in Phases A and B of the scheme and are therefore ahead of their overall targets going into Year 3, it is important that there is still an incentive for suppliers to meet their Year 3 targets. Wherever possible, suppliers should be encouraged to exceed their targets, and this includes their whole scheme targets due at the end of Year 3. This could potentially be linked to an extension of the scheme, whereby suppliers that have exceeded their targets over the course of the scheme are allowed to carry over surplus measures into any future phases.

Do you agree with our proposed approach for administrating Carry-under? If you disagree, please provide alternative suggestions, including any evidence, to support your response?

Yes, we agree that some level of carry-under is important to aid with the overall flexibility of the scheme. We believe the carry-under mechanism should be used in exceptional circumstances whereby suppliers must have a valid reason for failing to meet their annual targets.

We recognise that suppliers may experience some difficulties in meeting their Phase A targets due to the significantly delayed start to the scheme. Therefore, we would support a higher level of permitted carry-under between Years 1 and 2 of the scheme to account this delay, and any other issues that may arise during the early stages of the scheme. Under the current proposals, there is a risk that suppliers will be unable to meet their Phase A targets. This situation would not just be detrimental for suppliers, who may face penalties as a result, but it would also be negative for everyone else involved in the scheme. If Phase A targets are missed and not carried over, households will miss out on the opportunity of much-needed insulation measures to improve the thermal comfort of their homes. This will also have damaging consequences for the whole retrofit supply chain who will be prevented from accessing crucial funding to deliver insulation measures.

Therefore, we would urge the Government to allow more flexibility in the level of permitted carry-under between Years 1 and 2 of the scheme, so that suppliers, insulation businesses and consumers are not disadvantaged as a result of targets being missed due to factors out of the industry’s control. Greater flexibility is needed for these initial phases in the context of the current energy crisis and the ongoing climate crisis, as it is imperative that insulation measures are delivered to as many households as possible, as soon as possible.

Do you agree or disagree with our proposed approach to verification of appropriate Council Tax bands for the general household eligibility group? Please provide further information and evidence in relation to your response?

Our members understand the intention behind using Council Tax bands to verify the eligibility of the general group to focus funding support on those households that need it most. However, they raise concerns over relying on Council Tax bands as they are largely out of data having been first valued in 1991 and again in 2003. Though it is possible to request a review of an individual Council Tax band, our members want to raise their concerns in basing eligibility on this when the Government can’t guarantee they are up to date. This could result in unfair exclusion from GBIS funding.

Our members also highlight the potential for delays in the scheme if suppliers are to be involved in collecting evidence on the resident’s Council Tax band for eligibility purposes, as the consultation suggests. This will involve them collecting a council tax bill from residents to prove their banding level. There is a concern that residents won’t keep the annual letter they receive on their council tax and that collecting this information could cause delay in scheme compliance. Our members see this as a potential barrier to delivery.

It was suggested by some members that the use of the Government’s online Council Tax band checker could be useful in facilitating this approach if it is pursued.

Do you agree with our proposed administration of the PRS under the Great British Insulation Scheme? Please provide suggestions for alternative evidence if you disagree with our proposed approach?

We would like to see low-cost measures, like loft and cavity wall insulation (CWI) offered alongside higher-cost insulation measures, such as solid wall insulation (SWI), being offered to private rented households, and as to this degree do not agree with the proposal. According to the English Housing Survey 2021-2022, homes in the private rented sector (PRS) have lower rates of cavity wall insulation (61%) than other tenures of home (71% of owner-occupied homes and 77% of social rented homes),1 and therefore excluding loft and cavity wall insulation for PRS households would restrict the number of eligible insulation measures for this group. Being able to offer both types of measures will mean that homes receive the most suitable measure for that property. Under the current proposals, households in the PRS with uninsulated lofts and cavity walls would be excluded from support. The NIA does not agree with excluding this group of households from accessing crucial energy efficiency upgrades. According to the latest Household Energy Efficiency data from DESNZ, 29% of cavity walls and 33% of lofts in the UK were still uninsulated. Thus, there is still a sizable volume of households that require CWI and insulation to improve their energy efficiency.

The consultation states that landlords are more likely to pass on the cost of installations to their tenants, citing this as a reason not to include lower cost measures in the general group. However, the lower cost options represent a reduced financial burden for both landlords and tenants, and have the potential to deliver significant benefits for both, therefore there is no reason not to include them as eligible measures.

The NIA and our members would like to highlight that landlords in the PRS have varying abilities to invest in their properties through the scheme, as they may be charities or housing associations dealing with multiple landlords in one building. There will also be situations where landlords are not investing in their properties and local authorities are not adequately enforcing this, it is the view of our members that these tenants should not be left without support and should be eligible for GBIS funding. There is also a portion of tenants in the general group that are experiencing fuel poverty but are not classified as fuel poor under the official definition and therefore do not benefit from additional support. This includes tenants living in LSO areas, receiving mid-market rent, and relying on electric heaters for warmth, pointing to the wider issues in the PRS regarding high rates of fuel poverty and a gap in support for energy efficiency improvements2. Until the government respond to the 2019/2020 consultation on Minimum Energy Efficiency Standards, which would mandate landlord investment in their properties, tenants in the PRS need more support to improve the properties they rent.

The private rented sector experiences significantly higher rates of fuel poverty than other tenure types, with 24.1% of PRS households estimated to be in fuel poverty, according to the latest available data.3 As this data is from 2021-22, prior to the steep rise in the energy price cap, it is highly likely that there are now many more PRS households either in fuel poverty or at risk of falling into fuel poverty as a result of the ongoing energy crisis.

Consequently, the NIA believe it is crucial that loft and CWI insulation are included as options for the general eligibility group in the PRS as part of GBIS funding. This would offer an avenue through which fuel poor households can access additional support to cut their energy bills and improve their thermal comfort. Since the PRS suffers from the lowest rates of energy efficiency and highest rates of fuel poverty, it is vital that households in the sector are eligible for all available measures, including loft and cavity wall insulation.

Are there any additional issues you wish to raise regarding interactions between ECO4 and the Great British Insulation Scheme and/or with other existing grant schemes?

The NIA has concerns about the current proposals for the Great British Insulation Scheme and their implications for the scheme’s interaction with the Home Upgrade Grant (HUG).

The scheme includes a 20% uplift for rural off-gas properties. However, under the current proposals, this uplift will apply to Scotland and Wales only, not England. The reason given for excluding England from the uplift is because of the ‘overlap in rural areas with the HUG 2 scheme’.4 However, the markedly different eligibility criteria between HUG 2 and GBIS means that, in practice, the overlap between the two schemes will be limited. While HUG 2 is targeted at low-income households, up to 80% of households targeted by the GBIS are set to come from the general eligibility group, not the low-income group. Therefore, a substantial majority of GBIS households will fall outside of the HUG 2 support framework. A 20% uplift is needed for these properties that cannot access HUG 2 funding because of the scheme’s low-income eligibility criteria.

With the current proposals to only apply an uplift to properties in Scotland and Wales, it is likely that installers may target households in Scotland and Wales at the expense of properties in England. This could result in rural off gas properties in England missing out on essential energy efficiency upgrades. This risks creating geographical inequality in energy efficiency and fuel poverty rates between different nations of the UK.

The NIA suggests that the uplift is extended to apply to England, Scotland and Wales rather than not being provided at all. If the Government does not include a 20% uplift, it risks unfairly penalising rural, off grid homes in the general eligibility group. As well as being more remote, these properties are often hard to treat, meaning installers generally face higher installation costs. If there is no uplift to account for these increased costs, then it might not be viable for installers to deliver insulation measures to rural off gas properties, therefore these homes could miss out on much-needed energy efficiency upgrades. The Government’s annual fuel poverty statistics show that off gas properties suffer from much lower energy efficiency and much higher rates of fuel poverty than on gas properties. Only one-third of off gas properties are EPC band A-C and 20.1% are fuel poor.5 By not applying an uplift to off-gas properties in England, this policy risks excluding some of the most vulnerable people and the least energy efficiency properties from support. Therefore, it is critical that the scheme includes a 20% rural uplift to help cover the additional costs of dealing with rural off gas properties.

Do you agree with our proposal to only have one notification type – measures – instead of having projects and measures separate as in ECO4? If not, please expand on why?

With the scheme in its current proposed format – as a scheme delivering primarily single insulation measures – it is reasonable to only have one notification template for measures. Having separate templates for measures and projects is not necessary for a single measure scheme and would add unnecessary administrative complexity.

However, we would reiterate that we do not agree with the proposals to limit households to single insulation measures. We understand why the limit of a single insulation measure applies to low-income households eligible for ECO4 funding, as they can receive a deeper, multi-measure retrofit through the ECO4 scheme. However, for the general eligibility group that cannot access multi-measure funding in other schemes, this encourages a piecemeal approach to retrofitting, which isnot as effective as a multi-measure whole house approach. This is widely recognised as best practice across industry and within the PAS 2035/2030 framework. Insulation measures are far more effective at reducing bills and carbon emissions when installed as part of the same whole house package, rather than individually. For instance, in a draughty property, the energy efficiency benefits of installing cavity wall insulation (CWI) are limited if there is no draught proofing to accompany it because the property will still lose high levels of heat through the doors and windows. Hence, the NIA would like to see a package of multiple measures offered under the scheme, as in many cases, different measures can interact to significantly improve a property’s energy efficiency.

We would urge the Government to consider committing more funding to the GBIS to enable homes to receive a deeper, multi-measure retrofit. As a result of recent price increases, many households, even in the general eligibility group, are struggling to afford high energy costs. Annual fuel poverty statistics in England for 2023 show that the number of households that spend over 10% of their income on energy costs is projected to double in 2023 to 8.83 million households.6 This suggests that there is a need to extend the support offered for households to install energy efficiency measures to prevent further people falling into fuel poverty.

Moreover, investment in home insulation has long-lasting financial benefits not just for consumers, but for government as well. Research by the Energy and Climate Intelligence Unit has shown that, had the Government maintained its support for home insulation instead of cutting it in 2013, it could have saved £18 billion spent on subsidising energy bills over the course of the Energy Price Guarantee.7 In this way, more government investment in insulation in the short-term delivers excellent value for money for the taxpayer in the long-term, as well as safeguarding against the economic and social impacts of future energy price spikes. Therefore, we would like to see the Government provide more funding for the GBIS to facilitate a multi-measure, whole-house retrofit that will see individual households benefit from a much greater reduction in their energy costs.

If the Government decides not to increase the current level of funding for the scheme, then we recognise that some properties will be restricted to single measures due to the limited amount of funding available per household. However, in certain situations, it will still be possible to deliver multiple low-cost measures within the scheme’s current funding constraints. For example, in the case of an easy-to-treat cavity wall property with an uninsulated loft and draughty windows, we believe it should be possible to combine CWI, loft insulation and potentially draught proofing. These are all low-cost measures, and a package that combined them all would still be significantly cheaper than installing a single higher-cost measure. Therefore, we do not agree with only offering single insulation measures in situations where multiple low-cost measures could still be delivered at a low combined cost.

Do you agree with our proposals for the administration of caps? If not, please expand on why?

The NIA does not agree with imposing a cap on innovation measures, as it is important to encourage innovation within the industry, which can drive improved outcomes for businesses and consumers. If the retrofit sector is to meet its deliver on its ambitious net zero targets, then it must continue to evolve and grow. Innovation is key to this.

There are many households that still require insultation as discussed in our response to Question 5 but retrofit businesses can face various barriers when trying to introduce innovative new materials and installation techniques. For our members and other innovators in the sector, innovation measures, via schemes such as GBIS and ECO4, offer a vital route by which they can bring exciting new products to market. If an innovation measure is shown to deliver improved outcomes compared to its standard counterparts, then there should be no cap on the percentage of a supplier’s obligation it can make up.

Innovation is vital to the future growth of the retrofit sector and for addressing the needs of many households in accessing this work; therefore, it is vital that the Government fosters innovation and ingenuity within the industry.

Do you agree with our approach to publish new forms for accessing the Great British Insulation Scheme, to collect eligibility information and measure information? If
you disagree, please provide further comment in your response, and suggest any alternatives?

The NIA agree with this. Our members call for Ofgem to reduce complexity in the scheme and therefore minimise delay by keeping forms similar to those used for ECO. They also point out the importance of allowing the submission of tenures and completed instalments of eligible measures in bulk so that where they are fitting instalments into a high rise block of flats suppliers can submit compliance in bulk rather than individually.

Are there any areas where you think further guidance would be useful?

Our members bring up the need for more specific guidance on work carried out on blocks of flats as currently individual leaseholders must all agree to have it carried out. Often, leaseholders live abroad and rent out their properties making it more difficult to consult with them. A suggestion from our members is the use of a Property Management Company or Committee that could facilitate this rather than relying on individual leaseholders.

Do you have any further comments on our proposed administration for the Great British Insulation Scheme?

We believe that draught proofing is missing from the list of eligible insulation measures.

The effectiveness of other insulation and energy efficiency measures is drastically reduced if a property does not have adequate draught proofing. The primary aim of the ECO+ scheme is to save a large number of households money on their energy bills through the installation of insulation measures. However, there is little point in cavity wall and loft insulation if all the property’s heat escapes through draughty windows and doors. Draught proofing is often the first area of concern for many of the vulnerable households our members engage with on the ground.

For a significant number of UK properties, building regulations mean they are not able to benefit from many energy efficiency improvements. This is particularly true for leasehold flats and listed homes. For many of these properties, draught proofing is one of the only options available to them if they want to lower their energy bills and make their home warmer.

Therefore, we would like to see draught proofing included as a low-cost, high impact measure that can be installed alongside other low-cost measures, as without adequate draught proofing, the financial and environmental benefits of these other measures is greatly reduced.

NIA forms new National Home Decarbonisation Group to drive quality retrofit at scale

Hello and Welcome

Welcome to your regular NIA update.

Read on to find out about some exciting new developments, including the successful formation of our new National Home Decarbonisation Group for Tier 1 Contractor firms. You can also hear about some popular upcoming events that the NIA will present at and find out how you can join and engage at our next Insulation Intelligence Group call. You can also discover how you are being represented via consultation responses which you are encouraged to input. Finally, take a look at some interesting recent policy developments in the sector.

Enjoy the update!

Topics

  • The new National Home Decarbonisation Group
  • The NIA presents at the Installer Show and Housing 2023
  • The Great British Insulation Scheme consultation response – have your say!
  • Our recent consultation responses
  • Get involved: Insulation Intelligence Engagement Calls
  • Supporting consumers through the retrofit journey – CMA report
  • New funding awarded – Green Home Finance Accelerator

The new National Home Decarbonisation Group

You may have seen our recent announcement on the formation of a new group within the NIA known as the National Home Decarbonisation Group (NHDG). This is an extremely exciting initiative and brings together Tier 1 contractors specialising in the delivery of large-scale residential retrofit.

Tier 1 contractors (including some of our existing members) are getting serious about scaling up retrofit delivery under schemes such as SHDF and HUG in the rapidly growing decarbonisation of homes sector. It was felt that a forum was required to discuss key issues and provide an influential voice to government for these companies. As there currently isn’t one in existence, the NIA Board agreed to incorporate a group into our associations’ structure. Together, by representing firms operating at every level within the supply chain we can now offer much more influential representation for the industry as a whole under one roof.

By working closely with the Department for Energy Security and Net Zero (DESNZ) and the devolved governments, this group will push for progress growing the retrofit supply chain and championing innovation – two issues where resource, scale and collaboration can make a real difference.

Though the group is in its’ initial stages of mobilisation, we look forward to hearing more from the new NHDG membership in the coming weeks. To find out more on the NHDG please visit the NHDG website here.

The NIA presents at the Installer Show and Housing 2023

We are delighted to announce that NIA has been invited to speak at the Installer Show in Birmingham on the 28th of June. This is an extremely popular event that attracts 15,000 visitors, including many experts from across the retrofit sector so it’s a great chance to showcase the important work the NIA is doing on your behalf. It will also provide us with a fantastic platform so that we can keep putting across our key messages about the importance of high-quality, whole house retrofit in tackling the energy health, climate, and cost of living crises.

Members of the NIA team will also be attending Housing 2023 in Manchester on the same day (28th June). If you are also going to be there, please let us know (info@nia-uk.org) as the Secretariat team would be delighted to meet you.

Great British Insulation Scheme Consultation – Have your say!

You are invited to provide your comments on the response that we have drafted on your behalf to Ofgem’s consultation on the administration of the Great British Insulation Scheme. Please see our draft response attached to this email.

Valuable input from members to the initial ECO+ consultation has helped us to influence key aspects of the scheme proposals. Therefore, you’re encouraged to provide any comments so we can feed your views back to government once again. This is vital so we can advocate for a final scheme design that is best suited to the needs of the industry.

We have produced a helpful summary of the proposed scheme, which you can read here. You can also find the full consultation document here.

Please email your comments to info@nia-uk.org by Thursday 15th June before the final submission deadline on Friday 16th June.

Our recent consultation responses

It’s been a busy time for the policy team with a number of important consultations to respond to in recent weeks. These are:

BSI’s Call for Evidence on revisions to PAS 2035/2030 – We supported the overall aims of the changes to the PAS in terms of reducing complexity and administrative burdens on insulation businesses, so long as this does not compromise the quality of retrofit work.

Scotland’s Draft Energy Strategy and Just Transition Plan – We advised that supporting the energy efficiency industry would see an increase in green jobs in a sector that forms a crucial part of reaching net zero and that, in order to achieve this, there is a real need for investment in retrofit skills.

You are represented in the NIA’s consultation responses, so it is important that your voice is heard, we encourage you to provide your thoughts on the GBIS consultation along with future consultations as they arise.

Please email info@nia-uk.org

Get involved: Insulation Intelligence Engagement Calls

Thank you to everyone who attended our most recent Insulation Intelligence Group engagement call with David Pierpoint from the Retrofit Academy. It was great to hear from David about the current state of the skills landscape within the industry and the exciting training opportunities available to you.

We will be contacting you all shortly with updates on details for our next call, look forward to seeing you there!

Supporting consumers through the retrofit journey – CMA Report

The Competition and Markets Authority (CMA) has published its Consumer protection in the green heating and Insulation sector report. The report is based on findings from its Call for Information which we responded to on your behalf.

The report recognises that many consumers have a positive experience when buying green heating or insulation products. However, it also raised some concerns about how the sector can improve its offering to customers

including where customers can access relevant information, levels of transparency over costs and protections for consumers on quality assurance.

The report noted that, without action to address these concerns, there is a significant risk that people either are put off from installing insulation products or end up making poor decisions if they do go ahead. In the report, the CMA has set out a series of key actions it will be taking to address the issues raised including a guide for consumers on their rights and protections, a guide to businesses on their legal responsibilities and a set of good practice principles for standards bodies and quality assurance schemes.

New funding awarded – Green Home Finance Accelerator

As part of the government’s Net Zero Innovation Portfolio (NZIP) the Green Home Finance Accelerator (GHFA) will receive £20 million in funding to support homes in the owner-occupied and private rented sectors to reach the target of an EPC C by 2035.

The GHFA has just been awarded an initial £4,169,227.42 in grant funding to cover 26 projects across the UK. These projects will support the development of green finance products with the aim of increasing uptake of home energy efficiency improvements, low carbon heating measures and micro-generation.

The project is now in its Discovery Phase meaning that the 26 projects have been identified and will be able to apply to the 15-month Pilot Phase in October 2023. A list of the projects can be found here.

The GHFA offers an opportunity for NIA members to engage in partnerships with the above projects, which include representatives from the housing sector, private lenders and investors as well as representatives from the energy efficiency sector and low carbon heating. We encourage you all to get involved!

For more information on the GHFA please visit the website here.

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org

NIA forms new National Home Decarbonisation Group to drive quality retrofit at scale

NIA forms new National Home Decarbonisation Group to drive quality retrofit at scale

We are delighted to announce the formation of a new membership organisation, the National Home Decarbonisation Group (NHDG), with a core mission to collectively deliver high-quality energy efficiency measures and low carbon technologies at scale across the UK’s housing stock.

The group aims to bring together the major stakeholders from across the retrofit supply chain, so it can provide one coherent voice on the key challenges and opportunities facing the sector going forward. Backed by the country’s leading contractors and residential retrofit specialists and with widescale delivery in mind, the NHDG predicts that in the coming years its members will be at the forefront of large-scale domestic retrofit work in the UK.

With a membership basis comprising of Tier 1 contractors and energy suppliers specialising in retrofit residential decarbonisation at scale, the group will support retrofit installations for all housing tenure types, including social, owner-occupied and private rental homes.

The NHDG will focus on three core areas critical to achieving the government’s ambitious decarbonisation targets for the sector:

1. Growing the retrofit supply chain
2. Advising on policy
3. Stimulating innovation

By focusing on these core areas, the NHDG will support households during the ongoing energy, cost of living, health, and climate crises. The Department for Energy Security and Net Zero (DESNZ), as well as devolved governments and key sector stakeholders, supports the group’s focus on these three core streams.

The NHDG has been founded through the NIA and will build on our existing strengths as a trade association. Our members have a strong track record of delivering large-scale, PAS:2035 compliant installations funded by various government schemes – such as the Social Housing Decarbonisation Fund (SHDF) and Home Upgrade Grant (HUG). Member experience is also vast in the area of home energy efficiency improvements available to the private rental and owner-occupier market, under schemes such as the Energy Company Obligation (ECO). The unrivalled expertise of our members in the energy efficiency space and our strong working relationship with Government makes us ideally placed to facilitate the work of the NHDG.

Our Chairman, Derek Horrocks, will also be chairing the new National Home Decarbonisation Group. He said: “The formation of the group and the commitment already seen from founding members is a defining moment for the residential decarbonisation retrofit industry.

“The industry has seen commitment to retrofit projects diluted or under-delivered in the past and we believe that central and devolved governments need to hear a strong, positive message from experienced industry contractors and stakeholders, confidently confirming the ability of the supply chain to deliver on current and ambitious future targets.

“The continued long-term government commitment for the decarbonisation of 26 million UK homes to meet net zero targets by 2050 is critical, and we have already seen this ramp up significantly with £6.6 billion of Government investment over the current parliament and a further £6 billion pledged between 2025 and 2028 for the sector. As an industry we must ensure we are able to grow and facilitate the long-term far-reaching ambition to achieve net zero.

“NHDG will be spearheading the charge for improvements, especially in skills and innovation, including the digitalisation of retrofit, increased off-site solutions, and the development of finance solutions to support the decarbonisation of the UK’s housing stock.

“This will help create a strong, more efficient industry with robust solutions for the fast-growing demand in the sector. Our links across government and industry are already robust, and the creation of the group will ensure our combined membership will put us in a prime position to move forward as one voice on one mission.”

“We’re aware of our own targets, such as the need for 200,000 more competent retrofitters by 2030, which is why powerful collaboration is needed to create the necessary infrastructure. We’re ready to invest and increase our wider resources collectively to ensure scaling the industry is a success.”

“The stature of our founding members cannot be ignored, and we’re all excited about embracing what the future holds.”

Members of the NIA that already meet the NHDG’s membership criteria will automatically be eligible to join the new group.

The full list of NHDG founding members includes:

  • Baxter Kelly
  • Bell Group
  • British Gas Services
  • E.ON Energy Solutions
  • Equans Regeneration
  • Evolve Home Energy Solutions
  • InstaGroup
  • Mace Group
  • Mears Group
  • Osborne Carbon Neutral Solutions
  • OVO Energy Solutions
  • PHS Home Solutions
  • Saving Energy Ltd
  • SERS Energy Solutions Group
  • Sustainable Building Services (UK) Ltd
  • United Living
  • VINCI Construction

Expert professional services consultancy Gemserv will act as the group’s secretariat.

To learn more about the NHDG, please visit the website at: https://www.nhdg.org/

For media enquiries, please contact Dominic Smith, Matthew Santos or Katie Nelson at Cartwright Communications via nhdg@cartwrightcommunications.co.uk or on 0115 853 2110.

For all other enquiries, please email us at info@nia-uk.org or give us a call on 0121 718 4558

Join our policy mailing list

NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org

PAS 2030/2035 Draft for Public Comment

The NIA is generally supportive of the revisions to PAS 2035/2030. We believe that high quality standards are essential to safeguard consumers and promote best practice across the industry. However, we recognise that PAS is not perfect and that some revisions are necessary to ensure that PAS works best for insulation businesses on the ground. If we are to deliver high quality, whole house retrofit at scale, it is critical to strike the right balance between quality and efficiency. Therefore, the NIA welcome PAS 2035/2030 as a crucial quality standard and believe that the latest revisions will benefit industry.

While necessary, PAS compliance can be costly and time-consuming for insulation businesses; therefore, we welcome efforts to streamline the PAS process and lessen the administrative burden of compliance. Most of the revisions seek to make the PAS process more efficient, which is something we are broadly supportive of, as long as improved efficiency does not come about by diluting quality standards.

Please see a summary of the revisions below and our response to them on your behalf.

Removal of Risk Pathways

The main change is the removal of risk pathways to simplify the PAS process (as shown below), but the key roles and responsibilities throughout the process remain similar.

The NIA supports removing the risk pathways as it should make PAS compliance easier and remove unnecessary complexities from the process. The key implications of the removal of pathways for different stages of the process is shown below.

  • Assessment: Projects would now follow the same assessment process as the previous Path B route. Thus, assessment would require a basic building assessment and more details to create an accurate RdSAP/SAP/PHPP energy model.
  • Design: The design requirements across different pathways have been standardised to simplify the process. The general design requirements under PAS 2035 are now:Complete and detailed design for the measure(s) + improvement options evaluation + heritage significance assessment + ventilation assessment & upgrade (Annex C) + medium-term improvement plan + protected building design in accordance with BS 7913 + airtightness strategy for some projects
  • Advice: Advice should be given at more points throughout the process, from inception through to handover. Advice requirements have also been standardised across pathways.

Other Amendments

Alongside the removal of risk pathways, there are a number of other minor amendments.

1. Contents of a Medium Term Improvement Plan are now a requirement in all retrofits rather than guidance.

The NIA is generally supportive of this change, as Medium Term Improvement Plans (MTIPs) are valuable and multi-purpose documents that set out a future strategy to improve a building towards net zero. Making MTIPs a requirement rather than guidance will strengthen the role of PAS 2035 in helping the UK to achieve net zero in the buildings sector. 80% of the UK’s housing stock by 2050 is already in existence and many of these properties will require future retrofit down the line to reach net zero.

MTIPs also provide invaluable data on the current environmental performance of a building and what changes should be considered in future to further improve the property. Therefore, they are excellent sources of building-specific data about the housing stock that can be used to inform future retrofits.

2. Removal of the Retrofit Advisor role pending improved qualifications in this area. Retrofit advice has not been removed from the PAS 2035 process and is delivered by other retrofit professionals.

Retrofit advice can easily be given by other retrofit professionals, so the NIA supports removing the Retrofit Advisor role in the interim while improved qualifications are brought forward in this area. We look forward to the timely introduction of improved qualifications.

3. Clauses have been included to facilitate scale retrofit by allowing Retrofit Design to commence based on Assessments of archetypes.

The NIA recognise the economies of scale that can be gained by allowing Retrofit Design based on assessments of archetypes. However, it is important to recognise that each building is different and requires an approach to retrofit that is tailored to its specific needs. It is important that retrofit designs are still building-specific to avoid the risk of unintended consequences that can arise from overly generic retrofit solutions. Hence, while we acknowledge that there are benefits in terms of efficiency to conducting assessments based on archetypes, it is vital that these improvements in efficiency do not at the expense of quality.

4. Requirements and guidance around moisture in buildings has been brought in line with language in BS 5250.

Management of moisture is a central concern for any retrofit project that seeks to improve the thermal performance and airtightness of a building. Therefore, the NIA supports bringing requirements and guidance with BS 5250 which controls condensation in buildings.

5. Explicit inclusion of airtightness as part of insulation retrofit in both PAS 2030 and PAS 2035. Requirements to produce an airtightness strategy for some fabric projects, which may include setting of an airtightness target and air leakage testing. However, airtightness testing is no longer normative as part of the assessment.

The NIA agrees with the increased consideration the revisions give to airtightness and minimising air leakage. Airtightness is a vital measure of the thermal and environmental performance of a property. When complemented with adequate ventilation and moisture control, improved airtightness can significantly improve the condition and thermal comfort of a building.

6. Clarification of what happens in the PAS 2035 process if historic significance is identified. A new Annex E is included, which contains detailed information about how to assess the significance of a building.

Protected buildings and those with historic significance can pose lots of problems when it comes to retrofit. Therefore, the NIA welcome more clarity and detail on how to assess significance and what happens if historic significance is identified. The inclusion of Annex E also contains useful additional detail about assessing significance. Historically significant buildings can be very complex to retrofit and often miss out on energy efficiency upgrades as a result. However, retrofitting them will be necessary as we move towards net zero and is also important to improve the thermal comfort of the residents living within them. As such, more clarity within PAS on how to effectively assess and retrofit significant buildings is much-needed.

7. Clarification of the role of the Retrofit Coordinator, including site visits and recording of non-compliance. There is now a requirement that the Retrofit Coordinator carries out site inspections during the project which should include a minimum of one visit.

The Retrofit Coordinator is an extremely important role within the PAS 2035 framework, so it is good to see more clarification on the requirements and expectations for the role. We support the introduction of a minimum of one site inspection during a project to ensure high quality retrofit and compliance with PAS.

8. Further Monitoring and Evaluation references the new BS 40101 Building Performance Evaluation, and Monitoring and Evaluation is now considered from inception through to completion.

The NIA support the move to consider monitoring and evaluation throughout the project cycle. Adequate evaluation is important to ensure that a retrofit project delivers on its intended outcomes and the building performs as designed once the project is completed. More monitoring throughout the process may enable potential issues to be identified earlier in the project. The reference to BS 40101 brings PAS 2035 into line with the latest improvements in building monitoring and evaluation, which we see as a positive step.

Query for Commenters

The BSI also asked respondents to provide their views on the following question:

What is an appropriate transition period for the adoption of the new PAS 2035:2023 and PAS 2030:2023 standards, allowing sufficient time for businesses and other industry bodies to comply with the updated requirements? Please submit your views as a general comment.

Many PAS-accredited businesses are already delivering long-term retrofit programmes, such as ECO4, SHDF 2, HUG 2, which are due to run until 2025 or 2026. These projects have been procured, designed and delivered to current PAS 2035:2019 standards. Changing mid-programme to new standards may not be feasible or practical, and may add unnecessary complexity to projects. Therefore, the NIA believe that a reasonable transition period is necessary to allow industry, who are already delivering ongoing long-term projects, time to adapt to new delivery standards.

Another issue is that there will be limited capacity within accreditation bodies to facilitate industry-wide updates to certification within a limited timeframe. The current relevant certification for installers is 2030:2019, which would need updating in line with any new standards. Delays in certification updates caused by a lack of capacity within accreditation bodies could leave many installers unable to provide PAS 2030:2023 certification initially and prove their compliance to new standards. This could be very damaging for individual businesses who might miss out, and the industry as a whole.

Draft Energy Strategy and Just Transition Plan

Draft Energy Strategy and Just Transition Plan (www.gov.scot)

Closing Date: 9 May 2023

Response submitted by: National Insulation Association

For more information, please contact: info@nia-uk.org

About the National Insulation Association

The National Insulation Association (NIA) represents the insulation industry in Scotland and across the UK with a member base comprised of installers, system certificate holders, and manufacturers who provide a wide range of insulation solutions for homes and buildings. The NIA and its members are fully committed to maintaining and raising standards within the insulation industry.

What more can be done to support the development of sustainable, high quality and local jobs opportunities across the breadth of Scotland as part of the energy transition?

The NIA believes that the best way to support sustainable, high quality and local jobs in Scotland is through long term policy commitments, and investment in the energy efficiency industry.

With sufficient targeted investment, Scotland can benefit from the substantial employment opportunities presented by the transition to net zero homes. Retrofitting Scotland’s buildings could create as many as 108,000 jobs over the next 12-20 years, according to a report commissioned by the Scottish Trades Union Congress.1 These jobs will be environmentally, economically and socially sustainable because energy efficiency improvements reduce carbon emissions, lower energy bills and create warmer, healthier homes for residents. Insulation jobs are also high quality, skilled trades that pay well. According to Indeed, the average salary for an insulation worker in the UK is £34,2452 – above the national average. Most jobs in the insulation sector do not require a Level 6 qualification (undergraduate degree or equivalent), so employment in this sector will help to level up communities in Scotland by providing high-skilled and well-paid technical employment for school leavers without a degree. In addition, most energy efficiency work tends be localised; therefore, installations will likely be carried out by Scottish installers and businesses, thus ensuring that employment and growth opportunities remain within Scotland. There is also a significant opportunity for job creation in low-carbon manufacturing in Scotland, particularly in the manufacture of energy efficiency products such as insulation materials. In this way, investment in energy efficiency creates sustainable, high quality and local jobs.

Long-term policy certainty is also crucial for creating jobs that are sustainable. In the past, frequent changes in government policy and short-term funding schemes have contributed to a boom and bust culture within the insulation industry. Developing a national retrofit strategy and committing to longer-term funding schemes would create the policy certainty that industry needs to invest in training and skills. It would also instil a level of confidence amongst consumers to make energy efficiency improvements to their homes. This would ensure that employment in the energy efficiency industry is secure, high quality and sustainable.

To benefit fully from the future job opportunities and growth potential offered by the net zero transition in the energy efficiency sector, Scotland will need a robust supply chain with adequate capacity to install the energy efficiency measures needed to meet net zero. In order to grow the supply chain, it is vital that the Scottish Government supports Scottish insulation businesses by investing in skills and training.

This investment must be complemented by targeted information campaigns and careers advice to encourage new entrants into the sector. It is very encouraging that Scottish colleges offer an insulation apprenticeship – something that is not yet available in England. However, uptake has been minimal so far, which highlights the need for better marketing of apprenticeships and other opportunities within the insulation industry. This correlates with research conducted by L&Q which found that only one in ten children between the ages of 16 and 18 would consider a career in construction.3 To address this, the Scottish Government should introduce more signposting in schools and colleges about the opportunities in the insulation sector and the potential routes into the sector for young people. The insulation sector is a highly skilled, well-paid sector with a strong social and environmental purpose – to reduce fuel poverty and mitigate climate change. This should be emphasised more to change perceptions about the industry and attract new entrants. Attracting and training new entrants is critical if the industry is to deliver the volume of installs required to meet net zero.

The NIA is already working with the Energy Skills Partnership (Construction) to explore how the insulation industry can help Scottish colleges improve apprenticeship uptake. We believe the Scottish Government also has a central role to play in supporting Scottish colleges to market these apprenticeships, along with other training opportunities in the insulation sector. The NIA would like to offer our support to facilitate the Scottish Government’s work in this area.

What further government action is needed to drive energy efficiency and zero emissions heat deployment across Scotland?

The main action required from the Scottish Government to drive energy efficiency and zero emissions heat deployment across Scotland is to commit to further investment and action on retrofit skills.

Skills is one of the biggest issues currently facing the insulation sector. In their Building Skills for Net Zero in Scotland report, the Construction Industry Training Board found that more than three quarters (78%) of respondents believe there will be a shortage of skills in their specific occupation when it comes to decarbonisation work. Lack of training and lack of funding for training were some of the most regularly cited reasons for the absence of appropriate skills in specific roles.4 Therefore, the NIA would like to see the Scottish Government work with retrofit employers and training providers to widen the provision of retrofit training across the country. This could involve helping employers and training providers to offer subsidised technical training courses, such as SVQs in Insulation and Building Treatments. The Home Decarbonisation Skills Training Competition exists in England to fund subsidised training courses for employees in the energy efficiency, retrofit and low-carbon heating sectors. The NIA recommends that the Scottish Government introduce a similar scheme in Scotland to encourage energy efficiency businesses to invest in upskilling existing employees and training new entrants.

Investment in skills and training is crucial to guarantee quality within the industry, which is vital to ensure the best outcomes for customers. The NIA and our members are dedicated to maintaining and raising quality standards across the insulation industry. Hence, we would support greater investment in skills, so that the industry has the large, highly-skilled workforce it needs to deliver high-quality retrofit at scale. Long-term policy certainty from government is also important as it gives insulation businesses the confidence to invest in their skills needs. Frequent changes in government policy and short-term funding schemes have contributed to a boom and bust culture within the insulation industry. Developing a coherent national retrofit strategy and committing to longer-term funding schemes would create the policy certainty that industry needs to invest in training and skills.

It is excellent that Scottish colleges offer an insulation apprenticeship – something that is not yet available in England. However, uptake has been very low so far; therefore, the NIA is working with ESP (Construction) to explore how the insulation industry can help Scottish colleges improve uptake. We believe the Scottish Government also has a key role to play in supporting Scottish colleges to market these apprenticeships, along with other training opportunities in the insulation sector. The NIA offers our support to facilitate the Scottish Government’s work in this area.

There is also a need for targeted information campaigns and careers advice to encourage new entrants into the sector. At the moment, the retrofit and wider construction sector have an image problem, particularly among young people, which prevents them from attracting sufficient new entrants. Research by L&Q has found that only one in ten children between the ages of 16 and 18 would consider a career in construction.5 To address this, the Scottish Government should introduce more signposting in schools and colleges about the opportunities in the insulation sector and the potential routes into the sector for young people. The insulation sector is a highly skilled, well-paid sector (with wages above the national average6) with a strong social and environmental purpose – to reduce fuel poverty and mitigate climate change. This should be emphasised more to change perceptions about the industry and attract new entrants. Attracting and training new entrants is critical if the industry is to deliver the volume of installs required to meet net zero.

To meet its decarbonization targets, the vast majority of Scotland’s 2.62 million existing dwellings, 20,000 public buildings, and 180,000 other buildings will need to be retrofitted.7 This will require a significant expansion of the retrofit sector over the next 10-15 years, which will bring increased demand for retrofit skills and training. Significant investment in skills and training from devolved government will be necessary to ensure that the retrofit supply chain has sufficient capacity to meet future increases in demand. Without the right support for industry, there is a risk that the transition to net zero in the energy efficiency sector will be held back by a shortage of labour and skills.

The NIA welcomes the support that the Scottish Government already provides for households to install energy efficiency measures through policies such as its Area Based Schemes and Warmer Homes Scotland.8 The NIA would like to see these schemes extended and more funding committed to them, so that we can continue to tackle fuel poverty in Scotland. In addition to these fuel poverty schemes, we would like to see further support offered to incentivise able-to-pay households to make energy efficiency improvements to their properties. This is a huge market for energy efficiency improvements and one that must be addressed if Scotland is to meet its ambitious energy efficiency targets.

Is there any further action that we, or other organisations (please specify), can take to protect those on lower incomes or at risk of fuel poverty from any negative cost impact as a result of the net zero transition?

The most effective way for the Scottish Government to protect those at risk of fuel poverty would be to offer more support for households to install insulation measures. While the Scottish Government has already committed substantial resources towards this issue, the recent cost of living and energy crises has exacerbated the problem and highlighted the need to provide further support to struggling households. According to ONS figures, 35% of properties in Scotland were in fuel poverty, as of October 2022.9 Since low energy efficiency is a key contributor to fuel poverty, the delivery of energy efficiency measures, such as insulation, to fuel-poor households is one of the key levers at the Scottish Government’s disposal to tackle the fuel poverty crisis.

Insulation measures alleviate fuel poverty by reducing household energy demand and lowering energy bills for fuel-poor residents across Scotland. Research by the Energy and Climate Intelligence Unit has found that annual gas bills for homes with an EPC of C could be almost £1000 lower than homes with an EPC of F. Hence, upgrading the energy efficiency of properties byinstalling insulation measures can deliver significant, much-needed cost savings to low-income households.10 Delivering subsidised insulation measures to households in fuel poverty will ensure that the net zero transition benefits the poorest and most vulnerable in Scottish society. Therefore, the NIA would like to see the Scottish Government commit to a national insulation programme as the best and most cost-effective way to lift households out of fuel poverty.

NIA Members Newsletter 27/04/2023

Hello and Welcome

Welcome to your regular NIA update.
Read on to find out where you can download the slides presented by Scottish Government, the Energy Saving Trust and the Energy Skills Partnership at our successful Supply Chain Capacity event in Edinburgh last week. Also read about how important it is that you’re making the most of your membership, so please take 5 minutes to complete our survey! You can also find recaps of the recent funding announcements and the consultations we are responding to on your behalf. Enjoy the update!

Make the most of your NIA membership

The ‘find an installer’ page on our website has an average of 2,000 views per month and is a fantastic way for NIA installers to generate business leads. A new contact form has been generated so that you’ll be made aware when a referral has come from the NIA. It is therefore vital that your contact details are up-to-date and you can do this by completing the short survey here.

Thank you to those who have taken part so far! If you have any questions, please contact info@nia-uk.org

Success at our Scotland Supply Chain Capacity Event

Thank you to all who joined our hotly anticipated Scotland Supply Chain Capacity Event in Edinburgh on 19 April. The event was a huge success with many members joining to discuss the current skills and training challenge we face, and the opportunity it presents for the industry.

A big thank you to our speakers – Pilar Rodriguez from Energy Saving Trust, Ed Chapman from Scottish Government and John Renwick from ESP (Energy Skills Partnership). You can find what they presented here, which covers the support available to industry to tackle skills and supply chain challenges.

It was fantastic to discuss the challenges and opportunities facing the insulation industry in Scotland and across the UK. The event was also an opportunity to emphasise the importance for the NIA and our members that we continue to put high quality installation and customer service at the heart of our work in paving the way to net zero.

The NIA Board then met afterwards and it was wonderful to gather in person to discuss our progress and plans for the rest of the year! Board meetings are important to make sure that we best represent our members. Thank you to all Board members for your valuable contributions.

Revisions to PAS 2030/2035 – Have your say!

You are invited to provide your comments on the response that we have drafted on your behalf to the BSI’s consultation on revisions to PAS 2030/2035.

For businesses that already adhere to PAS standards, the revisions are fairly minor and should not have a significant impact on your project delivery. We would not expect you to experience much difficulty adapting to the latest version of PAS. The main change is the removal of pathways to simplify the risk assessment process. Most of the other changes are relatively minor alterations intended to streamline the delivery of the scheme and reduce its administrative burden on businesses.

Your input is vital so we can advocate for PAS standards that will help industry in its mission to deliver high quality, whole house retrofit at scale. Please see the draft attached.

Please email your comments to info@nia-uk.org by Wednesday 3rd May.

Get involved in our Insulation Intelligence Engagement Call

Thank you to everyone who attended the Insulation Intelligence Group engagement call last week! It was great to hear from Ruth Richmond from DESNZ on the topic of Supply Chain Skills and Capacity – what can we do to grow the supply chain to achieve net zero buildings? The call was an unrivalled opportunity for members to put across views directly to government on the challenges holding back supply chain growth and how industry and government can work together to overcome these. Ruth found your input very valuable to understand what government can do to better support you and grow the supply chain.

If you couldn’t join and would like to feed in your thoughts, please see the attached presentation along with questions, and email either the NIA (info@nia-uk.org) or Ruth directly (ruth.richmond2@beis.gov.uk).

Join our next call!

Join us on 16 May to hear from David Pierpoint from the Retrofit Academy. He will speak about How to engage a retrofit coordinator and how does it increase an NIA Member’s opportunity? You will find out more about what the Retrofit Academy does, what their aims and objectives are, how you as NIA Members can get involved, and why they are play an important role in our path to net zero. We look forward to seeing you there!

New energy efficiency funding awarded

Last month, the Government awarded £1.8 billion of funding to boost energy efficiency and cut emissions in homes and public buildings across England. The funding is being delivered through the next phases of the Home Upgrade Grant, Social Housing Decarbonisation Fund and Public Sector Decarbonisation Scheme and will cover the financial years 2023-24 and 2024-25. Combined, the schemes will upgrade over 115,000 homes across England and support around 20,000 jobs in the construction and retrofit sectors.

Home Upgrade Grant Phase 2

  • £630m of funding delivered via local authorities.
  • Will deliver energy efficiency upgrades to over 25,000 private households.
  • Eligible households must be:
      • Low-income
      • Off the gas grid
      • EPC D-G
  • Expected to support 7,000 jobs.
  • For a list of successful applicants, click here.

Social Housing Decarbonisation Fund Wave 2:1

  • £778m of government funding, in addition to £1.1bn in match funding provided by local authorities and housing associations.
  • For local authorities, social housing providers and charities to upgrade their housing stock.
  • 90,000 homes are expected to be upgraded under the scheme.
  • Properties must have an EPC of D to G to be eligible for improvements.
  • Expected to support 13,000 jobs.
  • For a list of successful applicants, click here.

Public Sector Decarbonisation Scheme Phase 3b

  • £409m of funding
  • 144 public sector organisations have been awarded funding to decarbonise public sector buildings, such as schools and hospitals.
  • The scheme supports the Government’s commitment to reduce emissions from public sector buildings by 75% from 2035 (compared to 2017 levels).
  • This is expected to save the public sector an estimated £650m per year to 2037.
  • For a list of successful applicants, click here.

We are delighted to attend the SHDF and HUG Retrofit Ready launch event being organised by DESNZ today (27 April). We will be at the networking breakfast (9.45-10.45) to meet successful Grant Recipients and facilitate connections with NIA member organisations. We hope to see some of you there!

We know that many of you have been instrumental to the delivery of previous phases of these schemes. Good luck to those of you that will also be involved in the upcoming phases. Keep up the good work!

Great British Insulation Scheme – Government responds

The Government has released their response to the ECO+ consultation, which has been renamed as the Great British Insulation Scheme to help with consumer awareness. The Government received 176 responses to the consultation, which were generally supportive of the proposals. The plans for the scheme’s design remain broadly the same as set out in the initial consultation. You can read NIA’s response here.

The £1 billion energy efficiency programme runs from April 2023 until March 2026 and aims to improve 300,000 of the country’s least efficient homes (council tax bands A-D in England, and A-E in Scotland and Wales), saving households on average around £300-400 a year on energy bills. The government’s strategic aims for the scheme are to help tackle fuel poverty, achieve Net Zero, and reduce total UK energy demand by 15% from 2021 levels by 2030.

The main significant change from the initial consultation proposals is that all measures delivered under the Scheme will be installed in accordance with PAS 2035/2030. This was something we argued for in our response, so we are delighted that the Government has taken our comments on board. PAS has played a critical role in raising the standard of installations and customer service across the industry. Therefore, it is important to see all ECO+ measures being delivered to PAS rather than reduced standards.

Suppliers may begin delivering measures ahead of the legislation coming into force, and Government will take steps to facilitate this. Scheme targets will be confirmed when the Final Impact Assessment is published but the Government response indicates that the first-year target will be no higher than £8,850,000 in notional Annual Bill Savings (ABS).

You can find a helpful summary of the proposed scheme here. We will shortly be posting our own summary of the Government’s response on our website.

Thank you to our members for their crucial inputs to our consultation response. This is a great example of how we can work together to shape policy in the sector. Now we look forward to industry delivering the scheme successfully! If you encounter any challenges, please contact info@nia-uk.org and we can see if we can raise it.

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NIA members are vital to help shape our consultation responses. If you would like to receive draft consultations for you to provide your input, please email info@NIA-uk.org

NIA’s Supply Chain Capacity Event | 19th April 2023

Thank you all of those who came along the NIA’s Supply Chain Capacity event on 19 April 2023.

It was fantastic to hear from our speakers, Pilar Rodriguez from Energy Saving Trust, Ed Chapman from The Scottish Government and John Renwick from ESP (Energy Skills Partnership), on how industry is being supported to progress the energy efficiency agenda. This was followed by a very interesting and thought-provoking Q&A session with our expert panel, which saw some fascinating points raised.

The event reiterated how important it is that the National Insulation Association (NIA) and our members continue to promote high quality installs that deliver the best outcomes for both residents and the planet.

Thank you to everyone for attending and a special thanks to the speakers for your informative and engaging presentations. We hope everyone had a great time! Please download the slides by clicking the link below.

Download the presentation