In his Summer Economic Statement yesterday chancellor Rishi Sunak announced homeowners would receive vouchers worth up to £5,000 to pay for ‘green’ improvements such as loft, wall and floor insulation.

Sunak said, as well as creating thousands of jobs for tradespeople, it would help households save hundreds of pounds a year on energy bills.

Paul Ellis, chief executive of Ecology Building Society said improving and retrofitting our ageing housing stock was key to meeting our net-zero commitments. It would also create jobs and reduce energy bills.

But while he thought yesterday’s £2 billion package was a ‘welcome start’ he was sceptical the funding would be enough to deliver the whole house retrofits required to decarbonise homes.

What’s more, he warned, there was no evidence this would create the hundreds of green jobs required.

He said: “As we emerge from the disruption wrought by Covid-19, the chancellor needed to think bigger if he really wanted to turn this crisis into a defining moment in the fight against climate change, delivering the economic stimulus to support a green recovery so we can ‘build back better’.”

He added: “We need bold and decisive action, going much further than the well-travelled path of loft insulation and draught proofing.

“The chancellor has missed an opportunity to align the cut in stamp duty to incentivise greener homes and slash VAT on renovations as part of a national home retrofit scheme with a wide ranging package of measures to support green building including: tightening the building regulations underpinning the new Future Homes Standard; building the long term capacity of the retrofit supply chain; and driving the market for green finance so lenders such as Ecology can step up and play our part.

“Without this it’s hard to see how the government is going deliver a truly sustainable, healthy and inclusive recovery.”

Supporting homeowners and landlords

Under the Green Homes Grant the government will provide at least £2 for every £1 homeowners and landlords spend to make their homes more energy efficient, up to a maximum of £5,000 per household.

For low income households, the scheme will fully fund energy efficiency measures up to £10,000. It is thought it could support over 100,000 ‘green jobs’ and strengthen the supply chain, thus helping to meet the nation’s target of net zero greenhouse gas emissions by 2050.

The government said the scheme aimed to upgrade over 600,000 homes across England.

Kate Davies, executive director of the Intermediary Mortgage Lenders Association (IMLA) said it was ‘absolutely right’ to direct resources to making homes more environmentally friendly.

But she said there must be a way to ensure the work carried out is done properly.

“Consumers will need to be confident that that they are dealing with properly qualified and reputable contractors, and that all work will be carried out to an acceptable standard,” she said.

“The government will also want to be sure that public money is not wasted or misappropriated.  A system of accreditation for approved contractors could go a long way towards providing the necessary reassurance and prevent consumers from being scammed by unscrupulous cowboys.”