Poorly insulated homes will leak £12.7bn of energy over two years, with a third of that cost being incurred by the Government, council leaders warn.

New research by the Local Government Association (LGA) has revealed that homes with an EPC D rating or lower will have an average of £488 of heat per year escaping out of poorly insulated doors, windows, roofs and walls.

Badly insulated homes are likely to cost families £8.6bn in energy waste over the next two years. The remaining £4.1bn will be paid by the Government under the Energy Price Guarantee.

Cllr David Renard, environment spokesperson for the LGA, said: ‘Retrofitting more homes is a practical, sustainable and economically responsible solution to keep many people warmer and safer through winters.

‘Investment now will save households and taxpayers money further down the line, ease the cost-of-living crisis, reduce health crisis for people in cold and damp homes, and mean families have added security and flexibility within their budgets.’

The LGA’s research also revealed that the most wasteful homes in England are older and more likely to be occupied by older people and those on lower incomes, with over 60% over 65s living in England’s least energy efficient homes.

Owner occupied and private rented homes are almost twice as likely to be rated EPC D or below than social homes.

Cllr Renard continued: ‘Alongside a transition to renewable energy, a retrofit renaissance could be the centrepiece of renewed efforts to drive economic growth, create more jobs and increase productivity, and deliver net zero to protect our environment now and for the future.

‘Councils are eager to help the Government deliver on this win-win-win agenda as fast as possible.’