UK retrofit policy context – post 2017
On the back of the Climate Change Act 2008 and the Paris Agreement 2016, the UK government developed The Clean Growth Strategy, a government policy document that aimed to lower emissions while boosting the economic growth through different UK sectors. It covered various sectors including business, housing, transport, power, and the natural environment.
In November 2020, the government expanded on CGS groundwork and published the 10-point plan for a Green Industrial Revolution, setting out a path to Net Zero by 2050 by outlining specific areas for investment and development. More specifically, Point 7: Greener Buildings, sets out the ambitions for future and existing homes.
The Net Zero Strategy: Build Back Greener further builds on both strategies, setting detailed policies and proposals to achieve net zero emissions by 2050.
To achieve net-zero obligations, decarbonisation of the built environment sector is key. To achieve this, different strategies have been highlighted such as industrialised construction and retrofitting the existing housing stock.
As a result of the UK government strategies on sustainable growth, the construction sector developed their response. Since then, various initiatives have emerged to support a more innovative and sustainable industry, as outlined below.
Retrofitting policy
To date, UK policy for retrofit to decarbonise the housing stock has been ineffective. The Green Deal (2012-2015) aimed to stimulate the market by offering loans repaid through energy bill savings, but high interest rates undermined its success.
The remaining energy efficiency industry has largely centred around the Energy Company Obligation (ECO), which mandates energy companies to invest levies from bill payers into retrofitting homes for those in fuel poverty.
Like many similar funding schemes, the ECO often led to a focus on delivering individual measures rather than addressing the specific needs of residents or properties. This resulted in poor practices and significant defects, including notable failures.
In response to these issues, the government published the Each Home Counts (EHC) Review in 2017, calling for comprehensive reform of the industry and its funding mechanisms. The EHC Review recommended several key changes to ensure public safety and value for money:
- TrustMark: Establishing TrustMark as the recognized quality mark for the energy efficiency sector, with all involved in design and installation being assessed and certified.
- Code of Practice: Implementing a code of practice for installing home renewable energy and energy efficiency measures to minimize poor-quality installations. Key standards include PAS 2030 (2019) for installers and PAS 2035 for overarching energy efficiency.
- Data Warehouse: Creating a data warehouse to store information about all projects delivered under TrustMark.
Retrofit policies
2013 – Introduction of ECO
The Energy Company Obligation (ECO) is a government energy efficiency scheme in Great Britain designed to tackle fuel poverty and help reduce carbon emissions. (Ofgem, 2025). The scheme has seen 4 iterations, ECO, ECO1, ECO2 and ECO3, with ECO4 underway until March 31 2026.
2016 – Each home counts report
The ‘Each Home Counts’ report was commissioned by the UK government to review home energy efficiency measures and renewable energy measures, standards, enforcement, advice and protection, seeking to answer the following questions:
- Is there any framework in place to support the decisions of consumers prior to an installation of an energy-efficient device or system?
- Is there any way to ensure the correct products are fitted to the right properties, and in the proper manner?
- How can the government ensure that sub-standard work is dealt with effectively – and what arrangements are in place to audit, check for compliance, and if needs be sanction poor-quality contractors?
Each Home counts acted as the blueprint for PAS2035, PAS2030, and the expansion of Trustmark.
2016 – Trustmark (2005) Expands to Include RMI and EE Measures
Trustmark is the government endorsed quality scheme for tradespeople. In 2016 its remit was expanded to include repair, maintenance, and improvement, retrofit, and energy efficiency.
2019 – GCB retrofit recommendations
Provides recommendations from a time limited task group, chaired by Lynne Sullivan OBE, based on government’s announcement on the Clean Growth Grand Challenge to “use new technologies and modern construction practices to at least halve the energy use of new buildings by 2030…, and to halve the costs of reaching the same standard in existing buildings.”
2019 – Implementation of PAS2030:2019
PAS2030 is a specification for contractors and installers delivering energy efficiency retrofit measures under government backed initiatives. The intention of the specification is to provide a framework to ensure installed measures meet quality, safety, and compliance with government and industry guidelines. PAS2035 is a direct follow on from the ‘Each Home Counts’ report.
2019 – Implementation of PAS 2035:2019
PAS2035 provides guidance to follow for the energy retrofit of domestic buildings including best practice for retrofit projects and the delivery of whole home retrofits which consider the whole system of retrofit measure rather than each in isolation. PAS2035 is a direct follow on from the ‘Each Home Counts’ report.
2020 – Future Buildings Standard consultation
The Future Homes Standard aims to ensure that new homes built under new Building regulations will produce 75-80% less carbon emissions than homes built under current Building Regulations.
2020 – Heat in buildings by BEIS
This strategy sets out how the UK will decarbonise our homes, and our commercial, industrial and public sector buildings, as part of setting a path to net zero by 2050 (DESNZ; BEIS, 2021).
2020 – Green Homes Grant
The Green Homes Grant voucher scheme provided grants to homeowners and landlords to make energy efficient improvements to homes. The Green Homes Grant closed in May 2023.
2020 – SHDF launched
The Social Housing Decarbonisation Fund is a UK government initiative aimed at improving the energy efficiency of social housing. The fund aims to upgrade a significant amount of the social housing stock that currently sits below EPC C.
2020/21 – CLC National Retrofit Strategy launched
The National Retrofit Strategy is a 20 year blueprint for retrofitting the UK’s 28 million existing homes aiming to provide consistency for businesses, and households who want to invest in retrofit (CLC, 2021).
2021 – Heat and buildings strategy (UK Government – DESNZ & DBEIS)
Heat and buildings strategy – GOV.UK
Published on 19 October 2021 and last updated 1 March 2023, this strategy sets out how the UK will decarbonise our homes, and our commercial, industrial and public sector buildings, as part of setting a path to net zero by 2050.
2021 – UKGBC Retrofit Playbook
A resource to support local and combined authorities in developing retrofit policies and initiatives, through sharing best practice and guidance. This Playbook forms part of the Accelerator Cities Programme – a project designed to support and enable local and combined authorities to take action on home retrofit, run by UKGBC and partners, with co-funding from EIT Climate-KIC.
2021 – TIPS Roadmap to 2030 focus area 4
Transforming Infrastructure Performance (TIP) is the Infrastructure and Projects Authority’s (IPA’s) flagship programme to lead system change in the built environment. Focus area 4 highlights ‘Retrofitting existing buildings to achieve net zero greenhouse gas emissions by 2050’.
2023 – Implementation of PAS 2030:2023 (UK Government – DESNZ & BSI)
This standard specifies requirements for the installation of energy efficiency measures in existing dwellings. It ensures installers follow best practices, use appropriate materials, and meet training and competency standards. Compliance is mandatory for government-funded schemes like ECO and the Social Housing Decarbonisation Fund.
2023 – Implementation of PAS 2035:2023 (UK Government – DESNZ & BSI)
PAS 2035:2023 is the overarching framework for managing domestic retrofit projects using a “whole-house” approach. It covers assessment, design, coordination, and evaluation to ensure energy efficiency improvements are effective and durable. The 2023 update simplifies processes and aligns with national policy to improve retrofit outcomes.
2025 – Warm Homes Plan (UK Government – DESNZ)
In January 2026, DESNZ published the Warm Homes Plan which will deliver £15 billion of public investment to upgrade up to 5 million homes – designed to lift up to a million families out of fuel poverty by 2030.
This information was correct in January 2026.