Retrofit funding for social homes could save NHS £85m a year, research finds

The energy efficiency of homes is a major contributing factor to the development and exacerbation of these illnesses, including respiratory and cardiovascular problems.

Social housing providers have greatly improved the energy efficiency of their homes in the past 15 years, with the number of homes at EPC Band C or better rising from 24% in 2010 to 73% in 2023.

The latest annual Sustainability Reporting Standard for Social Housing report showed that, across 1.9 million social homes, more than 75.6% achieved EPC C or better, 16.2% achieved EPC B and fewer than 1% achieved EPC A. 

However, according to the government’s latest fuel poverty statistics, 980,000 social homes are still equivalent to an EPC Band D, E or F.

Fuel poverty can leave residents with energy debt and arrears, which the energy regulator Ofgem estimated had reached £3.8bn by the end of 2024.

Richard Lane, chief client officer at debt charity StepChange, said: “Our data shows energy arrears continue to rise among our clients seeking debt advice, with the latest figures showing average arrears increased by 15% year on year in April, now standing at £2,669 per client.”

With housing associations facing wider financial pressures, including building safety remediation, repairs and maintenance, and the need to build new homes, the CIH said the government must boost its Warm Homes: Social Housing Fund and its Warm Homes: Local Grant to help the sector meet its 2030 targets. The latest wave of the Warm Homes: Social Housing Fund allocated £1.2bn to housing providers in March for retrofit projects.

Rachael Williamson, director of policy, communications and external affairs at the CIH, said it was becoming increasingly clear that some social housing providers will struggle to meet their 2030 targets without further government support.

She said: “These new figures show that if the government is serious about improving living standards and creating an NHS fit for the future, investing in making homes warmer needs to be high on the priority list at the forthcoming Spending Review.

“[The] CIH has welcomed the investment the government has already made in its Warm Homes capital schemes. However, with this funding only confirmed until 2028, boosting both programmes to take the total investment in social housing retrofit to at least £5bn between now and the end of the decade is the minimum that is required.”

The Department for Energy Security and Net Zero said:

“The energy shocks of recent years have shown the urgent need to upgrade British homes.

“Through targeted grants, up to 170,000 social housing tenants and households on low incomes in England will be helped to lower their energy bills and improve their homes through measures such as heat pumps and insulation, without households having to financially contribute at all.

“Last year’s initial settlement of £3.4bn was a first step – and puts us on a pathway to fixing leaky homes and saving families money.”