Bath MP presses government to ramp up insulation incentives ahead of winter
28 November 2023
Wera Hobhouse, Liberal Democrat MP for Bath, recently wrote to the Secretary of State for Energy Security and Net Zero, Claire Coutinho, to demand that the government considers permitting landlords to offset their spending on insulation and energy saving improvements against their income tax.
It comes after the Bath MP recently called the cancellation of landlords’ responsibility to upgrade properties to EPC grade C by 2028 “unforgivable”, in the debate on reaching Net Zero by 2050. Mrs Hobhouse then asked the Secretary of State to consider allowing landlords to offset spending on insulation against their income tax bills.
In her response, the Energy Security and Net Zero Secretary claimed that the insulation policies had been scrapped because they would put too much pressure on landlords, costing property owners up to £15,000. However, working with E3G, the Bath MP has found that these statistics do not paint the full picture and has written to Claire Coutinho to clarify the government's figures.
Mrs Hobhouse wrote that the government’s proposed increase in minimum energy efficiency standards for the private sector had a £10,000 cost cap baked in, meaning that no landlord would ever have to pay £15,000. In fact, the average property would cost £4,700 to upgrade with energy saving improvements.
While this may be a more manageable sum for landlords, Wera Hobhouse is mindful that many of her constituents are worried about the possible financial outlay to make these needed improvements. For this reason, Mrs Hobhouse proposed to Claire Coutinho that universal financial incentives were needed to enable landlords to insulate their properties. While some subsidy schemes are available to landlords with low-income tenants – including the Energy Company Obligation and the Homes Upgrade Grant – these are not open to all landlords, and can be difficult to access.
The Bath MP notes that this incentive will not only help landlords, but it will also ease financial burdens for tenants struggling to pay their bills. Raising the minimum standard of energy efficiency to a C rating for privately rented homes would save bill payers about £570 a year on energy bills.
Wera Hobhouse also met with the National Residential Landlords Association on the 20th of November, where they discussed the benefits of incentivising landlords to make energy saving improvements to their properties.
Wera Hobhouse, Liberal Democrat MP for Bath, commented:
“It is unforgivable that the Government has rowed back on our commitment to implementing energy saving upgrades by 2028. The least they can do now is to help landlords make these improvements with a financial incentive.
“Many people across Bath are struggling to afford skyrocketing energy bills. Much of what they are paying for is simply wasted because they live in a poorly insulated home. This is not only costing them, but it is costing the planet. The less energy we waste, the less carbon we emit.
“If we are to reach net zero by 2050, insulation measures need to be ramped up at pace. One of the most direct ways to achieve greater energy efficiency in homes is to encourage landlords to make energy saving improvements to their properties.”
Juliet Phillips, Senior Policy Advisor at E3G, said:
“The poor state of many rented homes is a growing national scandal. Tenants are facing sky-high bills in part because so much energy is wasted in cold, leaky homes. Following the government’s U-turn on plans to increase minimum energy efficiency standards for rented properties, it is now imperative that they set out an alternative plan to address this policy gap. Without concerted efforts to boost standards for renters, it will be next to impossible for the UK to achieve its statutory fuel poverty target.”
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