In a fiery session of the House of Commons, Members of Parliament engaged in a heated debate over the government’s controversial decision to eliminate Energy Performance Certificate (EPC) targets for landlords in its quest to achieve net-zero emissions by 2050. The move, which aimed to alleviate the financial burden on landlords, drew sharp criticism from some MPs who labelled it as “unforgivable.”
Energy Security and Net Zero Secretary, Claire Coutinho, defended the government’s decision, asserting that the scrapping of energy efficiency targets was necessary to avoid placing an exorbitant financial burden on landlords. The estimated costs of implementing energy efficiency improvements could have reached as high as £15,000 per property, she revealed.
Liberal Democrat MP, Wera Hobhouse, took the floor and called upon the Energy and Net Zero Secretary to consider an alternative approach. Hobhouse proposed allowing landlords to offset their expenditures on insulation against their income tax bills, arguing that this would provide an incentive for landlords to make their properties more energy-efficient, ultimately benefiting tenants and reducing carbon emissions.
Hobhouse stated, “It is unforgivable that the government has cancelled the obligation for landlords to upgrade homes to an EPC grade C rating by 2028 at the latest. A comprehensive home insulation scheme would reduce bills and carbon emissions this winter. I am going to make a proposal that might sound quite attractive to Conservative ears because it is about incentivizing and tax breaks.”
Energy Security and Net Zero Secretary Coutinho responded by expressing reservations about the proposal. She argued, “The real-world reason for why we did not pursue energy efficiency targets is that it could have cost property owners and landlords up to £15,000, and we did not want to put further pressure on rents at a time when families are really struggling. With regard to the Hon. lady’s policy on income tax relief, I suggest that is not necessarily the best response, because a lot of landlords are pensioners and will not necessarily pay income tax.”
The debate continued with several MPs, including Green Party MP Caroline Lucas and former Labour Party leader Ed Miliband, criticizing the government’s decision to water down energy-efficiency targets. Lucas pointed out that the changes would burden tenants with an additional £300 in annual expenses, as projected by the Climate Change Committee. Meanwhile, Ed Miliband argued that implementing the regulations would have led to substantial energy bill reductions for renters, ultimately outweighing any potential rent increases. He contended that the government’s actions were not lowering costs but raising them.
As the debate rages on, the contentious issue of EPC targets for landlords remains a critical focal point in the government’s ambitious plan to achieve net-zero emissions by 2050, prompting further discussions and potential policy revisions in the future.