Private renters face £1bn extra bill due to energy efficiency delays

Under a medium gas price scenario, the delay in confirming new energy efficiency standards could create extra financial pressure on household bills, according to research

The government’s delay in confirming new energy efficiency standards for privately rented homes may result in private renters facing an additional £1 billion in energy bills. 

The proposed standards would increase Minimum Energy Efficiency Standards to meet Energy Performance Certificate (EPC) band C for new tenancies from 2025 and all tenancies from 2028.

Analysis by the Energy and Climate Intelligence Unit suggests more than 2.4 million privately rented homes in England are currently falling below EPC band C.

The poor standards of housing in the privately rented sector mean that a almost quarter of households live in fuel poverty, while 23% of households are classified as ‘non-decent’.

Investing in upgrading the energy performance of homes, including measures like insulation, could lead to bill savings and boost local economies.

For every £1 invested in energy efficiency by the government, £3.20 is returned in GDP, the report estimates.

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