Agenda item

Report attached.

Members considered a report of Councillor Zak Khan, Portfolio Holder for Economic Development and Sustainability, which provided:

• An overview of the Government’s expectations and the national picture for reducing carbon emissions from residential dwellings to help the country move to net zero;
• Information about the energy efficiency measures installed in domestic properties in Hyndburn through various energy funding programmes and grant schemes; and
• A summary of the approach taken by the Council to promote funding opportunities and to support residents to apply for funding

Councillor Khan spoke to introduce this report and to outline the work currently being undertaken by the Housing Strategy and Policy Manager and the Home Energy Reduction Officer.  The Council had looked at the national picture and Government expectations.  He emphasised that there were numerous challenges ahead, particularly around lack of knowledge and awareness and arising from existing levels of fuel poverty.  The report identified what was missing, what was currently being done and what was needed for the future.

Councillor Munsif Dad BEM JP indicated that he had met with Tim Brodest, Home Energy Reduction Officer, and that pamphlets were being prepared for householders which would increase awareness.  Councillor Noordad Aziz added that retrofitting Hyndburn properties would be challenging and a long term issue.  This was a common problem for towns along the M65 corridor.  He asked if the sub-region could lobby Government to be a pilot for energy efficiency measures.  Councillor Khan responded that he was liaising closely with Rossendale Borough Council who were piloting a Net Zero Terrace Street project.  He also hoped to establish an East Lancashire group to discuss common issues.

Approval of the report was not considered to be a key decision.

Reasons for Decision

Government Expectations

On the 20^th September 2023, the Government had reaffirmed its position to reduce total carbon emissions by 68% from 1990 levels by 2030, with the view to reaching its overall net zero target by 2050.

So far, between 1990 and 2022, UK carbon dioxide emissions had decreased by 45.1%.  The overall reduction in emissions was being driven by many different sectors, however, for the purposes of the report to the Cabinet it was noted that – in 2021, the residential housing sector had been responsible for 16% of all Greenhouse Gas Emissions in the UK.  (In Hyndburn the figure was far higher at around 30%).

The main source of emissions in residential dwellings was natural gas for heating.  Therefore, to make a meaningful reduction in emissions it was imperative that alternative sources to heat homes were found as well as making them more energy efficient to cut down on the amount of heating required and cost.

Most progress was being made in the new-build sector of the housing market, where Building Regulations had been increasingly tightened with regards to energy efficiency and carbon reduction.  Modern houses had far tighter restrictions than ever before, meaning that all new homes must now produce 30% less carbon dioxide emissions than current standards.  Installing low carbon technology, such as solar panels and heat pumps, and using materials in a more energy efficient way to retain heat helped to cut emissions – lowering the cost of energy bills for families and helping deliver the UK’s climate change ambitions.

In addition to regulations, the Government had introduced funding programmes, to try and help with the introduction of new, low-carbon measures such as air source heat pumps.  As Government built towards the ban of new fossil fuel boilers, they had introduced the Boiler Upgrade Scheme which paid households up to £7,500 towards the cost of replacing gas/fossil fuel boilers with low-carbon alternatives.  Along with schemes such as Eco 4, Eco 4 Flex, Home Upgrade Grant, Great British Insulation Scheme and others, the Government was providing opportunities for households to improve the energy efficiency of their homes.

Hyndburn’s Housing Stock

The housing sector across Hyndburn contributed a third of all C0₂ emissions (120 kilotons [kt]) per annum) with only 24% of the current housing stock classed as energy efficient and an Energy Performance Certificate (EPC) of ‘C’ and above (the Government’s target).  It would cost approximately £250 million to convert all Hyndburn properties (those currently non-compliant) to Government ECO target levels removing 100kt of C0₂ emissions per annum from the Hyndburn housing sector.

A significant number of the 37,000 residential dwellings in Hyndburn were older properties and, in 2020, 15% of households were classified as being in fuel poverty.  The challenge was to find ways to increase energy efficiency in older buildings through ‘retrofit’ of newer technologies whilst providing access to funding for those that needed it.  Given there were a lot of older, lower value homes, it might be economically unviable to retrofit all of these properties to a required standard.

Terraced houses in particular could be difficult to retrofit to a higher energy efficiency standard.  These properties were often built with solid walls with a ‘breathable’ design, which might rule out ‘easy wins’ such as cavity wall insulation and, due to a lack of outside space, preclude the installation of heat pumps (air and ground source).

In addition to the practical challenges of improving the energy efficiency of a significant proportion of the Borough’s housing stock, there was evidence that monetary and non - monetary factors influenced residents’ decisions on undertaking energy efficiency measures in their homes.  Hyndburn Borough Council was providing energy efficiency advice and information to support and help resident decision-making in relation to accessing funding to improve the energy efficiency of their homes.

In order to assist the most vulnerable households to try and increase energy efficiency, as well as helping them to overcome issues affecting their housing, there were currently a number of Government funding programmes and grant funding schemes which supported energy interventions in domestic properties.  Eligibility criteria differed for each funding programme and grant scheme, so advice and support was available to residents from the Council, Homewise and Cosy Homes in Lancashire (CHiL), which included help with completing applications, explaining eligibility criteria and what energy measures could be installed.  This approach would not only help the Council to meet its carbon reduction aims, it would also help with the comfort, health and wellbeing of local residents.

The report provided further information about the following programmes and initiatives:

• Cosy Homes in Lancashire (CHiL);
• Affordable Warmth and Energy Efficiency Funding Programmes and Grant Schemes, including:

o  Home Upgrade Grant;

o  Energy Company Obligation 4 (ECO 4) and Energy Company Obligation 4 Flex (ECO 4 Flex);

o  Lancashire County Council (LCC) Affordable Warmth Funding;

o  Hyndburn’s Better Care Affordable Warmth Grants;

• Resident and Stakeholder Engagement;
• Energy Measure Installation Monitoring; and
• Initial analysis of engagement activities.

There were no alternative options for consideration or reasons

Resolved                                    -    That Cabinet:

(1)    Notes the challenges of reducing carbon emissions in Hyndburn’s housing stock and the steady progress made in delivering energy efficiency measures to residential properties in Hyndburn through energy funding programmes and grant schemes.

(2)    Notes the steps being taken to engage and improve household awareness about energy efficiency, affordable warmth, and reducing carbon emissions