Energy inefficient households will pay £750 extra compared to those with good efficiency

More than 19 million households in the UK and Wales with a low energy efficiency rating will pay nearly £750 extra a year in bills, compared to the nine million households with a good energy rating.

Over two-thirds of families live in properties with an energy performance certificate (EPC) of D or below – and face a bills price hike of as much as £1,730 extra a year.

But on the other end of the scale, households with an EPC rating of C or above – the government’s target energy efficiency – will be a staggering £750 a year better off, facing an annual increase of just £982.

Typically houses with double glazing, good insulation, energy-efficient boilers, and LED lighting receive a better EPC – with an A rating the best, and G the worst.

These measures all help towards lowering energy bills by improving efficiency.

The research was carried out by economics consultancy Cebr, as part of a study on behalf of Kingfisher, the home improvement company which owns B&Q and Screwfix.

And Kingfisher’s study revealed a huge regional efficiency divide across Britain – with homes in high poverty regions such as Wales, Yorkshire, and the West Midlands set to be hit the hardest by rising bills, due to having some of the least energy efficient properties in the UK.

In contrast, on average, Londoners have the most energy efficient homes.

Thierry Garnier, Kingfisher CEO, said: “The UK’s housing stock is among the least energy-efficient in Europe, with UK homes losing heat up to three times faster than European neighbours.

“With a near £750 gap in bills between the most and least energy efficient homes, and homes responsible for around 20% of the UK’s emissions, tackling this challenge has never been more important.

“Based on our experience working with governments in eight countries across Europe, we are proposing five practical policies that we believe would make a difference – helping households to cut both their energy bills and their emissions.”

The Cebr research comes after a survey of 2,000 adults revealed a staggering 84% were already feeling the pressure on their finances from rising energy costs.

On average, they are currently forking out £131 a month on their gas and electricity bills – however, that figure will rise sharply from October.

And more than two-thirds (67%) said October’s energy price cap rise was already weighing on their minds.

The current and looming pressures on finances have resulted in 61% becoming more interested in improving the energy efficiency of their home.

And 66% would now pay more attention to the efficiency rating of a property, were they to move, than they would have previously.

Despite a growing interest in energy efficiency measures, only 40% felt they could correctly identify what their EPC rating was.

And just a third (34%) plan to install energy efficiency measures in their property in the next 12 months.

The main reasons for not doing more included upfront costs (34%), not knowing enough about the options available (32%), and not being sure if it’s worth the investment (31%).

But over half (55%) of those polled, via OnePoll, were unaware of any government schemes which aim to improve the energy efficiency of homes – while two-thirds think the government should do more.

Among the measures people would like to see introduced are grants to fund or subsidise energy efficiency measures (64%), interest-free or low-interest loans to fund installation (54%), and cutting VAT to zero on all energy efficiency products (51%).