Ed Miliband Outlines Plan for Social Housing Upgrades at Labour Conference
Ed Miliband, Labour’s Shadow Secretary for Energy and Climate Change, has announced ambitious plans to improve the energy efficiency of social housing across England, aiming to reduce tenants’ fuel bills and contribute to climate targets. Speaking at the Labour Party Conference in Liverpool, Miliband unveiled the proposal that all social homes should reach an Energy Performance Certificate (EPC) rating of at least C by 2030.
The proposal marks an extension of a pre-existing Labour pledge, which initially targeted private landlords. Under the new plan, the same energy efficiency standards will apply to councils and housing associations, broadening the scope of the initiative.
Current Energy Efficiency Gaps in Social Housing
Currently, approximately one-third of social housing, representing around 1.2 million homes, falls below a D rating. These homes will require significant upgrades, including enhanced insulation, modern windows, and new heating systems, to meet the new standards.
In comparison, energy efficiency is generally higher in the social rental sector compared to private rentals, with about 70% of social housing currently rated between A and C, while only 44% of private rental properties achieve the same rating. However, the target still means substantial work lies ahead for millions of properties.
Past Government Plans and Labour’s Revised Approach
The Conservative government initially planned to mandate that private landlords bring their properties up to a minimum EPC rating of C by 2028. However, this plan was scrapped by Prime Minister Rishi Sunak last year, citing concerns over the financial burden potentially pushing rental prices higher.
Labour has now pledged to reintroduce this requirement, but with an extended deadline for private landlords, giving them until 2030 to comply. Additionally, the proposed requirement will also extend to the social housing sector, encompassing both council properties and those managed by housing associations.
In his address, Miliband emphasised that this plan could help lift a million people out of fuel poverty, highlighting the practical impact of Labour’s approach. “This demonstrates the difference a Labour government can make,” he remarked.
Financial Challenges of Retrofitting Homes
The process of upgrading homes to a higher EPC rating comes with significant costs. Faithorn Farrell Timms, a surveying consultancy, estimated that the average cost of bringing a social housing property up to a C rating would be between £3,000 and £4,000. However, for particularly challenging homes, such as those with outdated heating systems and minimal insulation, costs could exceed £25,000.
The National Housing Federation, representing housing associations, has stressed the necessity of government support in the form of long-term funding commitments. Kevin Garvey, Head of Member Relations, pointed out that achieving the 2030 target would necessitate doubling the current pace of retrofitting, along with comprehensive plans to address properties that are more difficult to decarbonise.
Similarly, the Local Government Association has underscored the need for “adequate long-term funding” to meet these ambitious targets, noting the wider financial constraints facing the social housing sector.
Funding and Support for Insulation Upgrades
To meet the proposed 2030 deadline, Labour has pledged £13.2 billion in grants and low-interest loans over the next five years, with the aim of upgrading five million homes. Although this figure is roughly double the funding allocated by the previous Conservative government, it represents a reduction from Labour’s earlier proposal, which called for £60 billion over a decade.
There are also plans to consult on capping the cost to landlords at £10,000 for energy efficiency upgrades, aligning with a similar limit proposed under the Conservative government’s scrapped 2028 deadline. Property consultancy Savills has estimated that the overall cost for landlords to meet these requirements could total around £25 billion, with the bulk of expenses needed to bring older properties up to the necessary standard.
Broader Impact and Outlook
If implemented, Labour’s energy efficiency overhaul could have significant social and environmental benefits. Beyond reducing carbon emissions, the plan aims to address fuel poverty by making homes warmer and more economical to heat. However, meeting these goals will require substantial investments, coordination, and policy backing to ensure landlords—both public and private—have the resources needed to undertake the necessary upgrades.
The next steps involve a period of consultation, as Labour seeks input on how best to implement these ambitious targets. Miliband’s announcement signals a clear intent to bring housing up to modern efficiency standards, with the ultimate goal of tackling climate change while improving living conditions for millions of tenants across the country.
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