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"The UK government must increase investment in upskilling for the housing sector to implement retrofit and drive net zero"

The UK is at a pivotal moment in its journey towards achieving net-zero by 2050. The evidence shows that over the coming decade, we need to accelerate our efforts to decarbonise our economy, specifically the built environment, with a substantial amount of progress hinging on the housing sector meeting its targets. 

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Nik Flytzanis, is a director and global head of marketplace at Plentific

This has been brought into focus in recent weeks by a number of Government announcements. We’ve seen positive announcements such as the new £80 million Social Housing Decarbonisation Fund, but also news that has raised some concern such as the decision to delay the phase out of gas boilers.

The built environment generates 40% of annual global C02 emissions and according to the UN’s 2022 Status Report, the industry is not on track to meet net zero targets by 2050. Furthermore, in 2022, existing houses were responsible for approximately 26% of the country’s carbon emissions.  Little of the progress we seek can be made without having a workforce with the skills to deliver decarbonisation solutions. 

The maths are simple: to meet our net-zero commitment, we need to retrofit 26 million homes by 2050. To do that, the UK needs an additional 500,000 trades professionals and currently a significant gap exists in both skills and investment in the housing industry. This monumental task can only be accomplished if we begin the process of developing a skilled workforce that can rapidly and effectively retrofit homes to meet the highest energy efficiency standards now. This challenge is compounded by an ageing workforce with fewer young people being attracted to trades as a profession.

Upskilling is essential to ensure that retrofitting is done right the first time. Inadequate or subpar retrofitting work can lead to costly mistakes and, ultimately, a failure to achieve the desired energy efficiency improvements. 

This work can be complex. From installing insulation to upgrading heating systems, such tasks demand specialised skills and knowledge. Without widespread local workforces equipped to tackle these challenges effectively, the adoption of retrofitting solutions will be limited to certain regions and cities across the UK. 

Addressing the skills gap will require significant investment in training and certification programmes tailored to the specific needs of the retrofitting industry. By providing accessible and high-quality training opportunities, the government can cultivate a new skilled workforce capable of delivering on our net-zero ambitions, whilst simultaneously benefitting local economies. 

This also brings new economic and social advantages. The number of young people not in employment or education (NEET) has been rising in the UK since the pandemic, hitting 794,000 in the second quarter of 2023. Job creation is vital for post-pandemic economic recovery, particularly in regions that have been disproportionately affected by unemployment. 

Furthermore, upskilling programmes can be designed to prioritise inclusivity and diversity, creating opportunities for underrepresented groups within the housing sector. Currently, women represent just 2% of the skilled trade workforce in the UK which is something we’re trying to address through Plentific’s Women’s Trade Network. We’re partnering with large organisations like L&Q, Peabody and the Chartered Institute of Housing to help bridge the gender gap and increase the opportunities for different demographics to train in the industry. This will only lead to a better and more diverse workforce. Retrofit is a great opportunity for these underrepresented groups to be retrained for an in-demand specialism whilst having a tangible impact on reaching net-zero. Lack of education across the board is also a huge barrier. Most people in the UK don’t really understand what retrofit is. There’s a significant branding issue. When consumers understand the benefits, they understand the importance and the urgency. There’s a lot to be done in this space to educate the population and encourage young people to get involved.

This will also benefit residents and homeowners. In the social housing industry, we’ve seen the disproportionate impact that the cost-of-living crisis has had on residents. Government initial findings on damp and mould found that 6% of council owned homes have some kind of damp or mould presence, 4% of which was ‘notable’. This equates to a quarter of a million homes in the council owned sector alone. Retrofitting will be key to addressing widespread issues like damp and mould and supporting those most impacted by soaring energy bills. 

Ensuring that retrofitted homes are genuinely energy-efficient and comfortable for residents, particularly within the social housing sector requires a highly skilled workforce. This, in turn, leads to increased property values and reduced energy bills for homeowners, further stimulating economic activity and improving living standards. A recent report commissioned by Peabody suggests that improving the energy efficiency of historic properties could generate £35 billion of output in the economy, while making homes warmer and cheaper to run. Low-income households are disproportionately affected by high energy bills due to poorly insulated and inefficient homes. Retrofitting these homes and lowering energy costs, will reduce energy poverty that many vulnerable communities are facing. These are the issues residents really care about and retrofit is unique in that the social value it delivers is just as substantial as the environmental value. Additionally, the Building Research Establishment (BRE) recently published a report that suggests poor housing could be costing the NHS £540m a year.

Retrofitting existing homes is fundamental for the UK’s decarbonisation strategy and without a skilled workforce, this strategy will remain a mere aspiration. The housing sector is one of the UK’s largest emitters, so the investment in helping it decarbonise needs to reflect this if we want to make real progress towards the 2050 net zero target. Retrofit has huge potential to address some of the biggest social issues facing the sector. Unemployment, damp and mould, and soaring energy bills can all be addressed through retrofitting when the UK has the right resources in place. The government needs to recognise the immense potential of upskilling and take bold action to ensure that we can turn our net-zero ambitions into a reality.

Nik Flytzanis, is a director and global head of marketplace at Plentific

 

At Unlock Net Zero Live on the 22nd November at London’s ExCeL, we will be debating the skills needed to deliver retrofit across the UK housing sector. Register now to join us to hear from speakers from The Retrofit Academy, Essex County Council. Fortem and Ashden

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