Warm Homes Plan

Rachael Maskell Excerpts

Tuesday 18th November 2025 Commons Chamber

[Dr Chowns]

I am not an engineer, and I must confess to having some doubts, certainly about HVO, so I would need to engage in a bit more conversation on that subject. As for ground source heat pumps—yes, absolutely, although I understand that air source is normally more efficient. In my constituency we have some water source heat pumps as well, so all sorts of wonderful technologies are possible.

My hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella) drew attention to the excellent work done by charitable organisations in this sector, but fundamentally none of it is a substitute for a decent, proper, national, strategic, well-funded and long-term programme of home insulation to tackle the problem at its root. If we have delivery routes based only on profitability for private contractors, whole swathes of the country will be left behind. We have had problems, such as those highlighted by the National Audit Office recently, that are related to short-termism and profiteering by some rogue contractors.

Retrofitting homes is central to solving fuel poverty. Insulation and proper energy efficiency measures reduce bills and cut emissions. Upgrading a typical home from an energy performance certificate rating of D to EPC C— I recognise that EPCs are not perfect, but I will leave that aside for the moment—would save households around £210 a year. That is a significant amount of real money for families who need it, and it is also good economics for the country. Investments in innovation and home energy efficiency pay back in lower bills, reduced pressure on the NHS, health savings, which are related to better health outcomes, and, of course, jobs created up and down the supply chain. We want to be investing in these new green industries.

It is important to acknowledge that there is a history in this sector; we have been here before. Past retrofit schemes have been structured in ways that prioritised speed and profit over quality and need, allowing cowboy contractors to exploit the system. That was in significant part due to the short-termism of those programmes, which limped from year to year with single-year funding allocations. It was utterly counterproductive, and I saw that myself as I wrestled with such programmes when I was working as a councillor and as a cabinet member with responsibility for energy and environment. We need long-term policy certainty. The colleges providing the skills training, the businesses wanting to support apprentices and take them on, and the companies wanting to join the supply chain need that long-term policy certainty, which is in the gift of the Government.

The National Audit Office recently reported very serious quality failures in recent ECO4 retrofit installations, leading to significant health risks for thousands of households. The Government absolutely must not allow the same mistakes to be repeated in the warm homes plan. The plan must commit not only to making homes warmer and bringing down bills for the millions struggling across the country, but to ensuring that no one ends up in a worse financial situation through having used a Government retrofit scheme. That is why the warm homes plan must promise homes that are not only warmer, but retrofitted properly by those with appropriate certification, and must be subject to independent checks.

The Treasury is tempted by immediate headline reductions in bills, but if the Government reduce or eliminate the ECO scheme and use the warm homes plan money to backfill those losses, the result will be fewer homes upgraded, fewer people protected from fuel poverty, and a greater long-term cost to the public purse and to our national health.

[Rachael Maskell (York Central) (Lab/Co-op)]

I am really grateful to the hon. Lady for raising this issue, because the two things are intrinsically linked. It is absolutely vital that we have a strategic plan that brings together the issues that cause fuel poverty, including poorly insulated homes. Does she agree that the Government need to have a strategic plan that looks at geography as well as degree of poverty, in order to ensure that people’s homes and their finances are insulated?

[Dr Chowns]

I absolutely agree with the hon. Member, who is a fantastic champion for health. She pays attention to the needs of the most vulnerable in our society, and ensures that policy really addresses the root issues that people face. I agree, and that is why I am so deeply concerned that the Government are flying this kite, and suggesting that they will start plugging gaps in the cost of their energy bills policy by using the warm homes plan money. Instead, they should introduce a wealth tax; that could be another source of funding for this endeavour.

In plain language, taking money out of the warm homes plan to fill a gap that would be created by abolishing ECO is robbing Peter to pay Paul. It is completely short-sighted. We absolutely need to cut energy bills, and we need as much investment as possible—as much as is needed—in the home insulation programmes that will provide the long-term solution to the problem of fuel poverty. This is not an either/or choice. We can and must make bills more affordable, and must at the same time invest in home upgrades to create future savings. We do not need to choose between warmth today and efficiency tomorrow. I mentioned a wealth tax; a 1% tax on wealth above £10 million, and a 2% tax on wealth above £1 billion, would raise at least £14.8 billion. That is way more than enough to pay for the cost of electricity bills policy, and to scale up, not down, the warm homes plan.

I want to set out briefly what a responsible warm homes plan must contain. First, it must treat the worst affected first, as hon. Members from across the House have said. It must prioritise low-income and vulnerable households and the coldest and least energy efficient homes, and treat warmth as a basic human right.