3. Statement by the Minister for Climate Change: Improving the Energy Efficiency of Welsh Homes

Part of the debate – in the Senedd at 2:40 pm on 8 November 2022.

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Photo of Julie James Julie James Labour 2:40, 8 November 2022

We will continue to learn from previous and current programmes. Multiple Welsh and UK schemes have delivered real benefit for vulnerable households. However, we are dealing with the legacy of some very poorly designed and delivered schemes from a decade ago. I recently approved £4.5 million for schemes in Bridgend and Caerphilly county borough councils to fix over 150 homes let down badly by previous UK Government schemes. It is important that we learn from these mistakes to make a positive and lasting difference.

It is my intention to bring forward a replacement national demand-led scheme focused on homes in fuel poverty. In addition, I also intend to develop an integrated approach across all tenures and income levels to drive decarbonisation. The new demand-led service, which is expected to be procured next year, will replace the current Nest scheme, with a greater focus on decarbonisation. The additional integrated approach will follow, developing from the experiences of ORP and other Welsh housing initiatives. The first step is to encourage landlords to explore the possible use of ORP to deliver improvements to, for example, a whole small community action, rather than being a solely tenure-driven solution. This dual approach will support the development of a skilled workforce and expansion of the supply chain in Wales. The approach will also support those able to pay, providing confidence they are taking the right steps.

We are investing in a new a housing net zero carbon performance hwb to provide expert guidance on all aspects of decarbonising residential homes. The hwb will start with social landlords, but will be extended after the first year to help private landlords and home owners as well. We will also maximise the opportunity afforded by the energy company obligation scheme in partnership with local authorities. The next ECO4 has now launched, and is worth £4 billion over the next four years. Decarbonising and improving the energy efficiency of homes in Wales across all tenures, and how it might be funded, is very complex. It is also not the sole responsibility of Government. We've recently begun work with the Development Bank of Wales to look at funding options for the owner-occupied sectors. We are also bringing together a panel of experts from across the finance sector to work with us on evaluating options and shaping those viable funding solutions. 

Finally, Deputy Presiding Officer, urgent action is needed across all areas of society to reduce our emissions of greenhouse gases and build our resilience to the impacts of climate change. A draft strategy for public action and engagement was published on 20 October. This is one of the items being discussed during Wales Climate Week, which is 21 November to 25 November, and, of course, as Delyth said earlier, today is Youth Climate Week, which I'm very pleased to see as well. We encourage people to join us for a week of events and discussions on how we can create a greener, stronger, fairer Wales. Diolch.