The average UK household paid £1,738 for gas and electricity in 2024, nearly double the rate in Japan. That gap is not a quirk of geography. It is the result of policy choices, building standards and market design. And it is exactly what Andy Burnham, the mayor of Greater Manchester, wants to change.
As reported by The i Paper, Burnham is studying energy models from Japan, South Korea and Singapore. His team wants to copy their approach to district heating, local energy trading and mandatory insulation standards. For a UK homeowner on a standard variable tariff, the implications are direct: lower bills, better EPC ratings and fewer draughts.
Why Asian countries pay less for heat
Japan spends about 4% of household income on energy. The UK spends 6.5%. The difference is not fuel prices, Japan imports almost all its gas, but efficiency. Japanese homes built after 2000 have insulation standards roughly equivalent to a UK Passivhaus. South Korea mandates heat pumps in new builds. Singapore runs a national district cooling network that cuts air-conditioning costs by 40%.
Burnham’s team has identified three specific policy levers. First, mandatory minimum EPC band C for all rental properties by 2028, already law in Greater Manchester’s social housing. Second, expansion of heat networks: Manchester already has the UK’s largest district heating scheme in the city centre, serving 2,800 homes. Third, local energy markets where households sell solar power to neighbours at a discount, bypassing the national grid.
Ofgem’s latest data shows network charges add £240 to the average bill. A local energy market could reduce that by £60–£80 per household per year. The catch is that the upfront cost, smart meters, local substations, software, runs into millions. Burnham is lobbying the Treasury for a £50m pilot fund.
What it means for a typical 3-bed semi
Take a 1980s semi-detached house in Sale, south Manchester. Current EPC band D. Gas boiler, single-glazed in parts, loft insulation at 100mm. Annual bill: £2,100.
The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. A heat pump installation would cost £7,500 after the Boiler Upgrade Scheme grant. The local heat network connection would add £3,000. Total retrofit cost: roughly £12,000.
But the annual bill would drop to £1,200, a saving of £900. The EPC would rise to band B. Payback period: 13 years. The Energy Saving Trust calculates that such a retrofit also adds £15,000 to the property’s value. For a homeowner planning to stay put for a decade, the numbers stack up.
Yet the UK installs only 60,000 heat pumps a year. Japan installs 1.2 million. The gap is policy, not technology.
Who benefits, and who pays
Burnham’s proposal is not a silver bullet. District heating works best in dense urban areas. Rural homeowners in the Peak District or Lake District would see little direct benefit. The cost of extending heat networks to low-density suburbs is prohibitive, typically £15,000 per connection, according to a 2023 government feasibility study.
But the insulation and heat-pump elements apply everywhere. The UK has 19 million homes with EPC band D or below. Bringing them to band C would save the average household £400 a year, according to the Climate Change Committee. That is £7.6 billion in total annual savings, money that would stay in local economies rather than flowing to energy suppliers.
The sticking point is upfront cost. The government’s own net-zero plan assumes £5,000 per home for retrofit. Burnham wants the Treasury to front-load that spending through a 20-year interest-free loan scheme, repaid through energy bills. Similar models exist in Germany and France. The UK has no equivalent.
What homeowners can do now
While Burnham lobbies Whitehall, households can act. Check your EPC at gov.uk. The Great British Insulation Scheme closed on 31 March 2026. It funded insulation measures only and never covered windows or glazing. The scheme covers cavity wall and loft insulation for free in most cases.
For heat pumps, the Boiler Upgrade Scheme offers £7,500 off installation until 2028. The grant is not means-tested. The Energy Saving Trust estimates a typical 3-bed semi saves £300–£500 a year switching from gas to a heat pump.
And if you live in Greater Manchester, write to your local councillor supporting the district heating pilot. The consultation closes on 30 September. Burnham’s Asian inspiration may be a decade away from national policy, but local action starts now.
Frequently Asked Questions
No. The proposal is at the consultation stage and would require Treasury funding and legislation. However, homeowners in Greater Manchester may see pilot schemes within two years. Nationwide adoption would take at least five years.
Loft insulation costs about £300–£500 for a typical 3-bed semi and pays back in two years. Cavity wall insulation is often free through the Great British Insulation Scheme. Both can lift an EPC from D to C.
