Enabling more investment to improve homes – Social PAYS
Fuel poverty impacts over 2.3m households. As a nation we are drastically behind on our carbon reduction targets. Many landlords are in a key position to lead change but there is an issue. Improvements made to homes help residents save energy but housing associations are restricted in the rent they can charge and cannot therefore recoup any energy savings.
At our National Retrofitting conference on 5 June 2014 we asked SHIFT landlords if more retrofit works could be done if they could recoup up to 25% of the energy savings residents made from energy efficient homes. There was support for this.
Sustainable Homes are calling for the Government to analyse the potential that rent flexibility could have on enabling more lower energy new build homes to be built and more existing homes to be retrofitted. At the same time Gentoo and Affinity Sutton have commissioned a report from Verco on a social housing PAYS model based on rent, to fund retrofit alongside substantial government investment.
Any mechanism would guarantee that no resident was left out of pocket as a result – with most substantially better off.