CIOB calls for a rethink of government loan-based energy schemes

The Chartered Institute of Building (CIOB) has called for a new loan-based energy scheme to improve efficiency for UK homeowners

According to the CIOB, a loan-based energy scheme would help to reduce energy consumption, cut carbon emissions, and lower consumer bills.

The CIOB is the leading professional body for the construction sector. In response to the recent ‘Heating our Homes’ inquiry from the Energy Security and Net Zero Committee, the CIOB urged the government to support the Construction Leadership Council’s National Retrofit Strategy.

This strategy includes a ‘help to fix’ scheme, which aims to provide homeowners with an interest-free government loan that can be used to cover home improvements.

Why have previous energy schemes failed?

The CIOB has criticised previous government energy schemes, such as the Green Homes Grant and Boiler Upgrade Scheme (BUS), have failed for several reasons. According to the CIOB, this failure was largely because homeowners were required to part-fund energy efficiency work in a lump sum. This ruled many people out of the scheme.

If the current uptake rate of the Boiler Upgrade Scheme (BUS) continues, only half of the intended budget will be used.

The CIOB highlighted the need for more home energy efficiency improvements to be included in the loan

The CIOB highlighted the need for more double glazing, insulation, new heating systems, and even more extensive projects like loft conversions or extensions as part of the loan coverage.

According to the CIOB, if the government genuinely aims to achieve its energy and carbon reduction targets, it must devise and implement a loan-based energy scheme that encompasses these principles.

“We and the wider industry have been calling for a national strategy for retrofitting for years now, but we’re not being listened to. Poorly planned, ad-hoc schemes such as the Green Homes Grant have been failures because homeowners are still expected to find a percentage of the cost of having work carried out on their home,” said David Parry, CIOB’s parliamentary and public affairs officer.

“A long-term initiative where homeowners can borrow the full cost of improvement works would, in our view, incentivise a big upturn in demand which in turn will help improve the energy efficiency and quality of the nation’s housing stock, reduce energy use and associated costs for consumers, while also cutting carbon emissions and accelerating the move to net zero,” he continued.

Public knowledge of energy schemes is low, according to study

The failure of past energy schemes can be attributed to problems with promotion, consumer confidence, and the availability of skilled tradespeople, as well as funding issues.

The House of Lords Environment and Climate Change Committee found a lack of public awareness regarding low-carbon heating systems, and they found the promotion of the BUS to be insufficient.

Similarly, data from the CIOB’s February 2023 poll of 2,000 UK adults revealed that 53% were unaware of the BUS, Home Upgrade Grant, ECO Plus/ECO+ Scheme, or the Social Housing Decarbonisation Fund.

“Factored into a wider strategy, developed with industry experts, which considers the training of a skilled workforce, a “Help to Fix” scheme could go a long way to achieving the goals the Government has set itself but is currently nowhere near meeting,” concluded Parry.