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Upgrading housing stock to EPC C will unlock £140 billion in benefits

7 May 2025

Turbocharging the benefits of Great Britain's emerging home energy efficiency sector

We’re share insights from our latest collaborative report with Baringa, which highlights the significant benefits of improving the energy efficiency of residential housing stock in Great Britain.

Read the full report

Here is our CEO, Sharon Johnson, talking about the report

An estimated 16.3 million homes in Great Britain have an Energy Performance Certificate (EPC) below C, the standard for a warm home. Our collaborative report with Baringa reveals that an investment of £16 billion in government funding for home energy efficiency could attract an additional £49 billion in private financing. This total of £65 billion is essential to elevate Great Britain's housing stock to EPC C.

Upgrading the housing stock to EPC C is projected to generate up to £140 billion in benefits for the wider economy by 2040. Prioritising investment in warm homes can provide an immediate economic uplift, with £49 billion of the total £140 billion benefit being unlocked over the next five years.

A strategy delivering multifaceted benefits

This investment would not only be economical but also provide social and environmental benefits:

  • Immediate affordability for consumers: Upgrading homes to EPC C can significantly reduce energy bills, alleviating cost-of-living pressures. Homeowners can save an average of £415 annually, with funded schemes like ECO3 achieving estimated lifetime bill savings of £8.6 billion.
  • Reduced healthcare costs: Upgrading Britain's housing stock to EPC C could reduce NHS winter peak patient numbers by 30% for cold-home-related conditions. Enhanced energy efficiency could also prevent up to 670,000 children from developing asthma. 
  • Reduced emissions: Effectively insulating homes could cut Britain's overall emissions by 5%, while fully transitioning to low-carbon technology could reduce emissions by nearly 18%. 

Attracting private sector investment

To realise these benefits and secure £49 billion in private finance, the Government must provide the right conditions for effective collaboration between the public and private sectors. A consistent policy framework is essential to maintain momentum and avoid disruptions, along with a committed Warm Homes Plan underpinned by stable and long-term funding to provide certainty for investors and industry.

To significantly reduce carbon emissions from homes in Great Britain, we need a clear, long-term policy runway to tackle the energy affordability challenge and the need for decarbonisation of domestic dwellings, combined with the certainty of government funding. Such a framework will not only bring many households out of fuel poverty, but it is also an undeniably attractive economic opportunity. It is a key enabler to unlock significant private investment and boost economic growth.

Sarah Johnson, CEO, AgilityEco

Upgrading the housing stock to EPC C is a strategic economic decision with profound benefits. The projected £140 billion in economic gains by 2040, including an immediate potential £49 billion uplift over the next five years, highlights the transformative impact of energy efficiency. By fostering effective collaboration between the public and private sectors, the government can attract essential private finance, driving substantial economic growth and social benefits. This investment will reduce energy bills, alleviate cost-of-living pressures, and significantly cut healthcare costs related to cold-home conditions. Moreover, it will play a crucial role in reducing emissions, contributing to the UK's climate goals.

Rebecca Teasdale, Director, Baringa