Spending on utilities was down 10.6% year-on-year in November, as prices remain below 2023 levels. However, this is the smallest decrease since July 2024, reflecting the energy price cap rise which came into effect on 1 October and the arrival of colder weather, according to Barclays.
The bank surveyed its customers and found that a quarter of homeowners (25%) are making improvements to their home to increase its energy efficiency. Of those making changes over half (52%) are seeking to reduce long-term energy use and a fifth (19%) hope to improve the value of their property.
The most popular improvements are loft insulation (48%), wall insulation (37%), double or triple glazing (35%), and fitting solar panels (33%).
However, although some consumers are already taking these steps, the Bank’s recent report, Electrifying the future: boosting the energy efficiency of UK homes, found that one in three (35%) are dissuaded from making improvements to their home because they do not understand which options are right for their property.
Some homeowners are also reluctant to shoulder the financial burden of retrofitting, with 69 per cent of those identified as ‘able to pay’ saying the Government should fund retrofitting activities, with a further two-thirds (67 per cent) believing the Government needs to take action to change how the nation heats or cools its homes.
In the report, Barclays makes five recommendations to government to help tackle the structural and behavioural barriers to retrofitting. These include convening a Retrofitting Delivery Authority to address implementation challenges and supporting strategic cross-sector collaboration.
With Christmas fast approaching, sustainability and budgeting are front of mind, as two fifths of those who celebrate Christmas (42 per cent) are choosing to reuse decorations over buying new, and 24 per cent of those trying for a more sustainable Christmas are opting for LED light bulbs.
Over half (51%) are choosing to forgo buying a Christmas tree or decorations this year; with the average celebrator intending to spend £33.30 decking the halls, compared to £204.20 on presents, £51 on festive parties and socialising, and £41.90 on travel to see friends and family.
Renters were more likely to opt out of spending on seasonal interiors (56%), but also reported limitations in their ability to decorate, with over one in 10 (12%), saying that their housing situation prevents them decorating for the festive season in the way they’d like to.
Mark Arnold, head of mortgages and savings at Barclays, commented: “We are seeing some positive news with homeowners interested in retrofitting measures, which has the dual effect of benefitting both the environment as well as consumers’ back pockets. However, there remains more to be done to build awareness and understanding of the options available. This is where we see the government being able to play a key role, helping to bring together the public and private sectors to collectively harness consumer interest and help accelerate efforts to make UK homes more energy efficient.”
Rent and mortgage spending growth hits 14-month high
