How a Rebate to Renovate could kick-start a green jobs revolution
In the Better Home Alliance’s inaugural report, we argued that the Government should introduce a Rebate to Renovate where households receive a stamp duty rebate should they decide to upgrade the energy efficiency of their property within two years of purchase.
A financial incentive of this nature is vital if the UK is serious about decarbonising its inefficient housing stock. Without a radical behavioural change involving changes to the tax system, too many households will simply not be able to afford to make the necessary improvements to their property.
By incentivising rather than penalising homeowners, we can kick start an energy efficiency
revolution which not only helps reduce our national carbon emissions but also puts more money in the backpockets of hard pressed consumers through cheaper energy bills.
The Better Homes Alliance’s second report builds on this argument. We demonstrate that
the introduction of a Rebate to Renovate will also have significant benefits on the national
economy, creating tens of thousands of new jobs and supporting local supply chains right
across the UK.
Our analysis finds that a Rebate to Renovate would:
Create demand for nearly 164,000 jobs. While the majority of the demand will be in the construction sector (67,000), many jobs and skills will be needed across a wider industry mix such as manufacturing (18,000).
Strengthen local supply chains. Of the 164,000 potential new jobs, nearly 80,000 will be created in local businesses across the country which specialise in retrofitting services such as loft insulation or double-glazing installation.
Support the government’s levelling up agenda. Distributional benefits help the whole country, but our analysis finds that the highest demand is created in those areas that are most in need of levelling up, according to the Government’s own criteria.
Be a cost-effective way to generate new employment. For every £1 million spent on retrofit construction, this creates direct demand for 17 additional full-time workers, both directly and across the wider-supply chain. And the scheme can also bring long-term fiscal benefits through sustained tax revenues.
The research further underlines the importance of using a fiscal incentive to drive not only environmental benefits but to kick start a green jobs revolution in every corner of the UK.
A Rebate to Renovate won’t simply benefit an individual household. It has the potential to stimulate broader economic activity and support local businesses.
Gavin Miller, Community Union's National Officer for Light Industries, said:
“Whether they work in heavy manufacturing or light industries, British workers understand the pressing need to make our economy greener, and are eager to play their part in that process. If that transition takes place in the fair and just way we have been calling for, this should support existing jobs and generate a range of new opportunities in green manufacturing.
"The Better Homes Alliance's 'Rebate to Renovate' proposal sets out how we can harness the drive to retrofit homes - which in itself is an essential step to reduce carbon emissions - to kickstart a greens job revolution. There's a real opportunity here to employ tens of thousands of new heat pump engineers, utilising the skills and expertise that already exists in the boiler-making sector which employs many of our members. That's on top of thousands of other jobs that could be created across the energy and housing sector.”
Joshua Emden, Senior Research Fellow at IPPR said:
“The scale of the retrofitting challenge is huge. By next year, we need a six-fold increase in the number of energy efficiency measures we are installing to meet our net zero targets. To achieve this, we should be exploring any and all policy measures to unlock the retrofitting market, create jobs and permanently reduce energy bills. We welcome the call for a stamp duty rebate and the important role it could play in delivering a nationwide retrofitting programme"
Paul McNamee, Chair of the Labour Climate and Economic Forum said:
“In an increasingly unstable global landscape, improving and retrofitting our homes is one of the most effective ways we can increase the UK’s energy independence. Not to mention the money it saves on peoples' bills and the jobs it creates both locally and across the supply chain. This report shows the huge potential both for retrofitting across the country, and for investing through a Warm Homes Plan. Consumer-friendly initiatives, such as Rebate to Renovate, are exactly what a future Labour government will need to fully unlock this potential.”