Trade Skills Index 2024

Improving energy efficiency of homes will save residents money on bills

Domestic properties by Energy Efficiency (EPC) Rating in England and Wales as of 2023 (share of total, %)

There are a range of benefits to improving energy efficiency of the residential stock including reducing emissions in the battle against climate change. But households will also benefit from future savings in energy bills. Data from the English Housing Survey 2019-20, produced by the Ministry of Housing, Communities and Local Government, suggests that moving from EPC rating D to C will save households an average of £236 per year. Moving from E to C and F/G to C will save £783 and £1,764 each year respectively.* Around 58% of domestic properties in England and Wales are EPC rated D or worse. If all of these properties implemented retrofit measures to reach EPC rating C, the total savings to households would total £8.8 billion annually.

38

40

31

30

20

15

12

10

4

1

0

0

A

B

C

D

E

F

G

Average annual saving from upgrading to an EPC rating C by starting EPC rating (£, 2024)*

Estimates of annual savings in the UK if all properties below EPC rating C are improved to C

Initial EPC rating

Saving per year, £bn

2000

1764

EPC D

2.7

1500

EPC E

3.6

1000

783

EPC F and G

2.6

500

236

Total

8.8

0

D

E

F or G

Sources: Capital Economics, * 2019 published estimates updated by Capital Economics based on change in Ofgem energy price cap. Savings are gross figures that do not account for initial cost of work

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