The proposals promised clear and consistent messaging that would inspire homeowners to act.

Now well into its first year in elected government, Labour is tasked with delivering on these commitments as it rolls out its Warm Homes Plan.

June’s Spending Review is expected to be a pivotal moment in assessing the government’s ambitions for the delivery of warmer, more energy efficient homes.

Our new report Greening Homes, Creating Growth sets out how investment and coordination between the private and public sectors are key to unlocking economic opportunities. 

But without public buy-in, the transition to net zero and the accompanying environmental and economic benefits will not materialise at the scale, or speed required.

In the two and a half years since publishing our previous report, we have seen the full impact global events have had on the “cost of living” – most notably, in the context of heating our homes. 

As a result, the higher costs associated with installing clean heating systems remain a significant barrier. Unsurprisingly, 54 per cent of homeowners surveyed by us said that the cost of a heat pump would prohibit them from installing one. 

Higher upfront costs, potentially higher running costs and a less than frictionless customer journey, all contribute to the perception that going zero carbon, is far from the mainstream option.

However, clarity on cost benefits could be the catalyst for many – 44 per cent said cost savings would motivate them to install a heat pump. An uptick by that many people installing heat pumps could be vital in reducing unit costs (via economies of scale), improving supply chain infrastructure and investment, while increasing word-of-mouth “good news” stories.

Improving savings by pivoting existing taxes and levies away from electricity bills requires bold action. However, it would also be an important factor in reducing running costs. Knowledge from the outset, that the green option is the most cost-effective one, will encourage many more homeowners to consider the low-carbon route as their first choice.

More could be done to raise awareness of available grant funding, but the government could go further and introduce further subsidies and tax initiatives to encourage green retrofit. For example, the introduction of salary sacrifice schemes has had a material impact on the appeal of electric vehicles for many who may never have previously considered them.

The finance sector has an important role to play too, but the reality is, although finance providers have continued to develop products, their uptake has remained low.

These green finance products will continue to remain niche, unless homeowners start to see heat pump installation as the norm.

Government should continue to work with lenders to develop low-cost green finance – but it’s important to recognise that implementing other measures first will drive the public to act – not finance.

Homeowners already know where to go to fund home upgrades. They have experience of using a range of secured and unsecured credit, as well as savings products to fund new kitchens and bathrooms, and substantial renovations such as extensions and loft conversions.

Realistically, homeowners will never be as excited about installing a heat pump or battery system, in the same way as they would a new kitchen – and this will affect their willingness to fund them. Promoting convenience and lower bills could contribute towards normalising green upgrades and integrating them into renovations that property owners carry out. For example, it should become standard practice to consider installing solar panels when converting a loft, or a heat pump when extending a kitchen.

Industries need to work collaboratively, not in silos, to raise awareness of measures – this will include heating engineers, utilities companies, manufacturers, subcontractors and architects – as well as lenders. Workforces across industries need to be upskilled to enable sign-posting – ensuring a seamless end-to-end customer journey – with private sector finance playing its part as, and when, required.

Most importantly however, the government must be consistent in its ambitions and messaging, and its Warm Homes Plan will be key in signalling how ambitious it is.