What does retrofit mean for people in fuel poverty?

The government’s evaluation of Whole House Retrofit and the SHDF found that some residents reported no savings on energy bills. While this could have been affected by the timing of the evaluation and retrofit works, which coincided with energy price hikes following Russia’s invasion of Ukraine, it indicates caution is needed when discussing cost savings as a benefit of retrofit.

Despite this, resident engagement guidance funded by the Department for Energy Security and Net Zero suggests framing the benefits to residents of retrofit as lower bills. While it may be helpful for landlords to talk to residents about the potential for long-term cost savings, other providers have avoided this messaging, focusing instead on greater comfort. 

“Modelled data used to estimate energy and cost savings will not always accurately reflect the reality for households in fuel poverty, who tend to under, rather than over, consume energy”

But, as is the case for the fuel poor now, if residents cannot afford energy charges, then neither comfort nor cost savings will be achieved. 

The way in which retrofit measures are assessed and planned can also impact the fuel poor adversely. Funding cycles of the WH:SHF, and its predecessors, can make it difficult to take a considered and consultative approach to retrofit by giving enough room to consult and plan with residents.

Modelled data used to estimate energy and cost savings will not always accurately reflect the reality for households in fuel poverty, who tend to under, rather than over, consume energy. If the suitability of measures and estimated cost savings are assessed on modelled averages and assumptions, this underconsumption may affect the suitability of what is proposed, as would any use of secondary heating sources, such as solid fuel.

Another issue to consider is that people may not identify themselves as fuel poor. This can undermine targeted messaging, making it harder to support those who need it. 

At Altair, we have identified a range of ways social landlords are working to deliver retrofit in a more equitable way, particularly for fuel-poor residents, through a mix of strategy, action and education. 

These include a fabric-first approach to retrofit (improving the thermal performance of the building’s fabric), modelling actual performance, and talking to residents about their energy demands and how they use their home before planning measures. Octopus Energy is trialling ‘zero-bills’ retrofits, installing measures such as heat pumps, batteries and solar panels to guarantee no energy bills for at least five years. 

“Measures must be based on actual usage and behaviour, with sufficient time and funding in government policies and programmes to properly plan and meet the needs of the fuel poor”

Strong actions include: funds in retrofit programmes to assist with energy bills as households adjust to new technologies, as suggested by residents involved in the Northern Housing Consortium’s climate jury. In the Royal Borough of Kensington and Chelsea, residents and the neighbourhood team for the Lancaster West Estate co-designed a price promise for their new heat network, which caps tariffs at the cost of gas until 2030. Retrofit programme Energiesprong’s Comfort Plan charge gives residents certainty about bills.

Education is also vital. Detailed guidance and fitting measures to people’s lifestyles are important to ensure that products are suitable and used appropriately, as explored in this guide on heat pumps for fuel-poor households from charity National Energy Action. This is particularly necessary, as some retrofit measures are new technology and require an adjustment.

Other educational methods include exemplar homes, product demonstrations, digital and printed booklets, videos, visuals and analogies to explain products, and home visits. In one recent study of retrofitting in social housing in Wales, a housing professional noted that tenants “aren’t guinea pigs”. Early and continuous engagement on approach and impacts before, during and after works is essential for a good outcome.

These approaches, innovations and interventions are promising, and it is likely that many more are occurring. Measures must be planned based on actual usage and behaviour, with sufficient time and funding in government policies and programmes to plan for and meet the needs of the fuel poor, including action on household electricity prices. 

We want to hear from others who are delivering retrofit with fuel-poor residents in mind. Sharing insights, monitoring outcomes and working towards solutions that deliver for both people and planet are crucial to developing an equitable retrofit agenda.

Bekah Ryder, research and insights manager, Altair