National Housing Federation urges Government to recommit to £3.8bn Social Housing Decarbonisation Fund

The National Housing Federation (NHF) has urged the Government to recommit to its net zero manifesto pledge in the upcoming Autumn Statement and release the full £3.8bn social housing decarbonisation fund, in order to “help decarbonise the country’s social housing”.

In open letters to both the Chancellor, Jeremy Hunt and the Secretary of State for the Department for Energy Security and Net Zero, Claire Countinho, the NHF asked for a “clear regulatory roadmap” for minimum energy efficiency standards, and “crucial” funding to enable the housing association sector to “lead the transition to net zero”.

The letter stated that the sector plans to invest £70bn by 2050 in the fabric, heating systems and components of their existing homes.

“However, analysis from Savills estimates that decarbonising all existing housing association homes will require at least an additional £36bn of investment, in addition to the £70bn already planned”, it added.

Noting that the social housing decarbonisation fund (SHDF) provides a “strong start to filling that gap”, the organisation said it would like to see Wave 3 of the SHDF come forward “imminently”, to enable social housing providers to continue the work they are doing to decarbonise their properties.

The NHF also welcomed a consultation on minimum energy efficiency standards (MEES) in the social housing sector.

The letter said: “Any legislative targets proposed will need to be aligned with housing associations’ current decarbonisation strategies and matched with adequate levels of funding to ensure social housing providers have the resources to meet any new obligations.”

This comes as the Government announced yesterday (20 September) that a ban on the sale of petrol and diesel cars will be moved back to 2035, and new policies forcing landlords to upgrade the energy efficiency of their properties will be scrapped.

A Department for Energy Security and Net Zero spokesperson said: “The UK is a world leader on net zero, cutting emissions faster than any other G7 country, and we will press forward with our ambitions while protecting families from rising costs. 

“Thanks to government support, the proportion of homes in England with an EPC rating of C or above is up from 14% in 2010 to 47% in 2022.

“An additional 300,000 of the UK’s least energy efficient homes are in line for improvement under the new Great British Insulation Scheme and we have committed £6.6bn towards upgrades this parliament, with a further £6 billion from 2025.”

Lottie Winson