Energy Inefficient Homes Costing £3.8bn In Additional Annual Energy Bills

• Energy inefficient homes are costing households an average of £299 per year in extra energy bills – adding more than £3.8bn per year to bills across England
• Older generations are the hardest hit, with 60% of over 65s living in inefficient homes – amounting to an extra £256 in annualised energy bills compared to under 30s at current prices
• Younger generations are the most likely to be planning energy efficiency improvements, with 83% of 18–34-year-olds looking to invest in efficiency upgrades in the next five years
• 71% of Brits are concerned about energy prices this winter and 77% have become more conscious of saving energy due to higher bills

Energy inefficient homes¹ are set to cost households an average of £299 each this year in additional energy bills. A new study² from Kingfisher, owner of B&Q and Screwfix, in partnership with the economics consultancy Cebr, reveals that energy inefficient homes are costing a total of £3.8bn in additional annual bills across the country.

The study found that older generations are the worst impacted by energy inefficiency, with 60% of over 65s currently living in inefficient properties, compared to 43% of 16-34-year-olds. This means they are set to spend £256 more on annualised energy bills this winter compared to under 30s. The study also revealed that over 65s are spending the highest proportion of their money on energy bills of any age group.

Despite this, a new survey of 3,000 UK adults³ has found that over 65s are the age group most unaware of the inefficiency of their homes. Just 16% were able to say what their home’s EPC rating was and 57% said they believed their home is already efficient – compared to the reality of just 40%.

While over 65s have the most to gain from efficiency improvements, they are significantly less likely to be planning upgrades than other age groups, with just 49% intending to do so in the next five years. Instead, over 65s are more likely to turn to habits such as using extra blankets on sofas and beds (47%), washing on lower temperatures (53%), only heating the room they are using (44%), or turning down their thermostat (47%).

Meanwhile, younger generations appear to be more aware of their home’s energy efficiency, with 53% of 18–34-year-olds knowing their home’s EPC rating. They are also more likely to be planning improvements in the future, with 83% planning to invest in energy efficiency upgrades in the next five years. Among the most popular planned measures are lower cost improvement measures including smart electricity or gas meters (61%), smart thermostats (58%) and Temperature Control Valves on radiators (53%).

However, younger generations are much less willing to compromise their lifestyle or change behaviours to save energy. More than half (52%) of 18–34-year-olds would rather pay more on energy bills to live comfortably, while nearly half (45%) said they turn on the heating ‘whenever they fancy’.

Irrespective of people’s age, the biggest barrier to improving energy efficiency for Brits is upfront costs, with 40% saying they are too high and 20% concerned that the payback period is too long.

Overall, there are high levels of concern across all age groups about energy bills this winter. 71% of Brits say they are worried, and 77% say they have become more conscious of saving energy as a result.

Thierry Garnier, Kingfisher CEO, said: “Too many UK households are still paying higher bills due to energy-inefficient homes, especially those who can least afford it. Yet the vast majority of people aren't aware of their home’s inefficiency, or the extra bills they're incurring. While our research highlights how upfront costs can be a barrier to action, there are plenty of low-cost DIY improvements that can lead to significant savings, and it’s promising to see younger generations eager to make upgrades.

"The Government’s goal to boost efficiency in five million homes by 2030 is a strong start. While there is no silver bullet, we believe three key policies would accelerate this effort. First, a focused initiative by winter 2025 to insulate the over five million uninsulated lofts across the UK. Longer term, we must empower and incentivise consumers with improved grants for low-income households and easy, consumer-focused solutions for those who are more able to pay. Finally, robust support for trade careers is critical to building a skilled workforce capable of delivering technical upgrades at scale."

Kingfisher and its banners, including B&Q and Screwfix in the UK, are responding by working to make energy saving as easy and affordable as possible for everyone.

B&Q and Screwfix offer a range of low-cost energy saving products, from insulation roll and LED light bulbs to draught excluders and smart heating products. B&Q also offers a free energy-saving advice service providing personalised guidance on how to improve any home’s efficiency, recommending relevant products and installation services from carefully selected partners. It has also been working with the Department of Energy Security and Net Zero and the Greater Manchester Combined Authority to trial more direct local action initiatives.

Kingfisher’s study found that 1 in 10 Brits “don’t know where to start” when it comes to making energy efficient home improvements. To help, Kingfisher’s Product Sustainability Manager, Gin Tidridge, has compiled a list of top energy-saving tips: 

Energy bill savings figures calculated by the Energy Saving Trust – ‘InFact savings and statistics bulletin’, October 2024 

1. Inefficient homes defined as those with an Energy Performance Certificate rating of below C (D-G).
2. Cebr analysis of ONS English Housing Survey and Family Spending Workbook data. Energy prices based on the announcement regarding the change to the Ofgem price cap from 1^st January 2025.
3. Nationally representative survey of 3,000 UK adults carried out by OnePoll. Fieldwork dates 11-18 October 2024.
4. Kingfisher is making the following policy proposals for government based on experience supporting a range of government initiatives on energy efficiency across Europe:
   
   a) Make this winter the last uninsulated winter with a long-term Warm Homes Plan starting from the spring spending review, focusing on the five million+ lofts that are uninsulated and easy to access. This should be followed by funding for the installation of energy efficiency measures, similar to the MaPrimeRénov scheme in France, alongside interest free or low interest loans for those more able to pay, like those offered in Germany.
   
   b) Improve the EPC-rating scheme and then introduce a specific, transparently tracked measure for the number of energy efficiency installations and home improvements to get to EPC band C, to get UK homes to maximum efficiency as soon as possible.
   
   c) Increase funding for trade apprenticeships to help tradespeople take on more apprentices, building the skills base needed to install and maintain energy efficiency measures at scale, and provide high quality advice to consumers on the most effective measures.
   

Source : Kingfisher plc

Image : Petmal / iStockphoto.com / 538895150

For all the very latest news and intelligence on the UK's largest home improvement and garden retailers, sign up for the Insight DIY weekly newsletter.