Decision

1. 1

The Committee considered a report which contained the Council’s proposed approach to achieving compliance with the forthcoming Minimum Energy Efficiency Standards (MEES) for social housing by April 2030.

1. 2

RESOLVED UNANIMOUSLY: That the Housing Policy Committee:-

a)    Approve the proposed strategic approach to achieving compliance with the forthcoming Minimum Energy Efficiency Standards (MEES) for social housing, as set out in this report.

b)    Note the estimated scale of investment, programme requirements and delivery challenges associated with achieving compliance across the Council housing stock by 2030.

1. 3

Reasons for Decision

1. 3.1

The proposed MEES programme is recommended to ensure compliance with forthcoming Government regulations requiring all social housing to achieve a minimum EPC C standard by 2030. The programme will improve the energy performance of council homes, reduce fuel poverty, enhance tenant comfort, health and wellbeing, support climate change objectives, and help meet future regulatory requirements. The proposed approach provides a deliverable, evidence-based strategy that targets investment where it will achieve the greatest impact while maximising external funding and innovative delivery models to reduce costs to the Housing Revenue Account.

1. 4

Alternatives Considered and Rejected

1. 4.1

Alternative Option 1: Do Nothing The Council could choose not to proceed with the proposed MEES compliance programme; however, this would result in a significant number of homes remaining below the anticipated EPC C standard, increasing the risk of future non-compliance, higher energy costs for tenants, and missed opportunities to improve the energy efficiency and sustainability of the housing stock.

1. 4.2

Alternative Option 2: Do not utilise ‘energy as a service’. HRA funded only. Focus on most cost-effective approach. This approach would not pursue Energy as a Service (EaaS) models and would instead deliver the required energy efficiency improvements through direct investment from the Housing Revenue Account (HRA). The programme would focus on prioritising the most cost-effective measures and delivery routes to maximise value for money and support compliance with future standards. While this approach provides greater certainty and control over delivery, it requires the Council to meet the full cost of the programme and does not rely on securing external investment.

This option was dismissed as it placed a greater strain on the HRA. The total cost of the project would be around £59.5m. Against the current budget allocation this would create a shortfall of £41m.

1. 4.3

Alternative Option 3: Do not utilise ‘energy as a service’. HRA funded only. Focus on fabric measures. This approach would not pursue Energy as a Service (EaaS) models and would instead fund all improvements directly through the Housing Revenue Account (HRA). Investment would focus on fabric-first measures, such as insulation, windows and doors, and air tightness improvements, prioritising the most cost-effective interventions to improve energy efficiency, reduce heat loss, and support compliance with future standards. This approach provides greater certainty and control over delivery but requires the Council to meet the full cost of the programme.

This option was dismissed as it placed a greater strain on the HRA. The total cost of the project would be around £65m. Against the current budget allocation this would create a shortfall of £46.5m.