Barclays calls on Government to take bold action to decarbonise homes and reach 2035 emissions reduction target

• New report from Barclays Property Insights outlines five recommendations to inform the Government’s policy approach to decarbonising the UK’s homes
• The Government has set a target of an 81% reduction in carbon emissions compared with 1990 levels by 2035. Homes account for 15% of the UK’s carbon emissions
• Barclays says it is vital that the Warm Homes Plan takes a holistic, strategic approach to tackle the barriers hampering progress

Barclays has called on the Government to follow five recommendations to decarbonise homes or risk missing its 2035 target to reduce carbon emissions by 81% compared to 1990 levels.

Homes account for around 15% of the UK’s carbon emissions¹  The Government has said it will deliver a Warm Homes Plan, providing a national programme to improve the energy efficiency of five million of the 16 million homes with an EPC of below C by the next parliament.  While detail of the plan is still forthcoming, Barclays says more must be done to tackle the structural and behavioural barriers to retrofitting in order to make the plan a success.

The new report from Barclays Property Insights, Electrifying the future: boosting the energy efficiency of UK homes, outlines five recommendations for the UK Government to take in collaboration with the private sector:

1. Set out a clear roadmap: Delivery of the Government’s target for heat-pump adoption and improved efficiency demands a detailed, time-bound plan setting out milestones and an investment timeline to guide key actors in the energy transition. This should also clarify the role for tax breaks and incentives, such as Stamp Duty reform, as part of the agreed public financing envelope, in addition to increased availability of private financing options.
2. Collaboration: To facilitate systematic action, Government should convene a Retrofitting Delivery Authority to address the implementation challenges of retrofitting, allowing the public and private sector to work together strategically.
3. Data: To help consumers and businesses commit to adopting energy efficiency measures, including installing heat-pumps, the Government should complete EPC reform including methodology updates to capture smart meter data as well as steps to increase their utility.
4. Safety: Government should incentivise a consistent consumer protection standard for key energy efficiency installations to reduce installation risks for consumers and increase uptake.
5. Education: Building homeowner support for greater energy efficiency requires a commitment to a bold, systematic public engagement approach that tackles the lack of awareness and builds support for home retrofitting by promoting the consumer benefits of energy efficiency.

Barclays’ research found that consumers continue to find the topic of retrofitting their homes complex. While 70% of homeowners surveyed would like their home to be more energy efficient, more than one-in-three (35%) are dissuaded from making the improvements because they don’t understand which options are right for their property² .

There is also an expectation that financial and logistical support should come from the Government. Some 69% of ‘able to pay’ customers say they would expect help from the Government to fund such activity - after savings, Government grants and schemes were the second most popular funding option. When asked who should be taking action to change how homeowners heat or cool their homes, more than two-thirds (67%) said it should be the Government³.

Mark Arnold, Head of Mortgages and Savings at Barclays said: “The UK is no stranger to taking bold policy and infrastructure decisions to drive a successful energy transition. In the 1970s, government and industry successfully joined forces to transform the nation’s gas supply, making the UK a world leader. It’s ambition and drive on this scale that we’re calling on the Government to employ to electrify the UK’s homes.

“Importantly this is not all about additional public spending commitments. It’s about increasing confidence and momentum. It’s about the Government working hand-in-hand with industry to deliver systematic change to the way we heat and cool our homes.”

Notes to Editors

[1] Climate Change Committee. 2022 Progress Report to Parliament. 2022

[2] Barclays used Opinium to survey a nationally representative sample of 1,229 UK adults aged 18+ between 16 and 20 February 2024. Barclays. Barclays extends partnership with British Gas to offer half price home energy efficiency checks. 2024

[3] Barclays, Ipsos. Retrofitting and Net Zero: A behaviour change dilemma (p30) 

Please see our Barclays Greener Home Reward Terms & Conditions for further information.

About the Electrifying the future report

Click here to view the full report:  

https://home.barclays/content/dam/home-barclays/documents/news/Insights/Barclays_Electrifying_the_future_report_FINAL.pdf

About Barclays research in partnership with IPSOS

• Primary research was conducted by Ipsos on behalf of Barclays. A total of 2,997 interviews were completed among homeowners. All homeowners were aged 18+. All own their property either outright or with a mortgage and own a property built 10+ years ago. The survey was carried out among those thought to be more able to pay for energy efficient home improvements and excluded those currently unemployed or on Universal Credit/Jobseeker’s Allowance. The research also included a sub-set of 493 interviews among amateur landlords aged 18+. All own between one and three buy-to-let properties (built 10+ years ago) either outright or with a mortgage.  Data collection was conducted online across the UK, between 21st April and 18th May 2023.
• Quota sampling was employed with weighting applied to the homeowner sample for an even distribution on gender and tenure (i.e., own their property outright or own with a mortgage).

About Barclays research in partnership with Opinium

• Barclays used Opinium to survey a nationally representative sample of 1,229 UK adults aged 18+ between 16 and 20 February 2024.

About Barclays

Our vision is to be the UK-centred leader in global finance.  We are a diversified bank with comprehensive UK consumer, corporate and wealth and private banking franchises, a leading investment bank and a strong, specialist US consumer bank.  Through these five divisions, we are working together for a better financial future for our customers, clients and communities.

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