The committee warned that if the current take-up rate continues, only half of the allocated budget will be used to help households switch to low-carbon heating systems and a healthy market of installers and manufacturers will not be in place in time to implement low-carbon heating policy measures smoothly. Therefore, the Government’s 2028 target of 600,000 installations per year is very unlikely to be met.
Baroness Parminter, Chair of the Environment and Climate Change Committee, said: “The transition to low-carbon heat is fundamental in the path to Net Zero, given that 17% of the UK’s greenhouse gas emissions come from our homes.
The Government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems. It is vital they do so if we are going to meet our Net Zero ambitions.”
Henk van den Berg from heat pump manufacturer Daikin UK said: “It’s disappointing there hasn’t been more uptake in the Boiler Upgrade Scheme, but the government must do better at properly communicating the benefits of heat pumps versus fossil fuel systems.
“For example, a heat pump will typically save 5%-10% in annual running costs compared to a gas boiler. We also believe the ban on the installation of gas boilers in new homes should be brought forward if heat pumps are to become mainstream and support the UK’s net zero ambition.
“Clearer training support for installers – particularly sole operators – will be key to meeting this target, too. Daikin currently trains 3,000 engineers to fit low carbon heat pumps every year, but we have the capacity to double this number. The government needs to support our industry in shouting about the opportunities that jobs in the green economy offer.”
Dr Matthew Trewhella, chie executive of The Kensa Group said: “We are calling on the government to reconsider the subsidies that are currently offered by the Boiler Upgrade Scheme which is currently failing to incentivise ground source heat pumps fairly.
“We propose that grant levels should be related to carbon savings as ground source heat pumps are the most energy efficient heating and cooling technology. They should also be reflective of the impact on the grid and the longevity of the infrastructure – both of which are more beneficial with ground source technology.
“A Networked Heat Pump solution provides a tangible pathway for a widescale and rapid transition away from gas to renewable energy for all buildings including; commercial, private homes and tower blocks. This solution is available right now as demonstrated by our current projects with Thurrock Council and Northumberland Council, and Heat The Streets; a pioneering scheme offering high value, low-carbon ground source heat pump technology to households of any tenure, street-by-street, with the ground array infrastructure in the street, mimicking the gas grid.”
Meanwhile Mike Foster, chief executive of the not-for-profit trade association the Energy and Utilities Alliance (EUA), has called for the BUS to be scrapped.
He said: “This report confirms just how far removed this committee is from the average member of the public. While we agree the Boiler Upgrade Scheme is failing, we want to see it scrapped, rather than see the recommendation of the committee to double-down on the flawed policy be supported.”
“Giving a £5,000 taxpayer handout to the well-off is immoral and simply cannot be justified when millions are living in fuel poverty and we all face a 20 per cent increase in our bills from April.”
“The committee suggests removing government protections around insulation requirements as a way of increasing the take up of heat pumps, when this will only push up bills and create a backlash against this technology. Because the money is tied up in the scheme, it can’t be used to fund sensible measures like insulation that permanently reduce bills and carbon emissions. Insulation can also be targeted at the least well-off, making it a fairer policy too!”
“The Government’s plans for hydrogen-ready boilers are a no regrets option going forward, helping households decarbonise their homes with minimal disruption and crucially without the £13,000 upfront cost of a heat pump.”
“This sum may be pocket change to the committee members but to most British households, it is simply eye-watering; they can’t afford it with or without a £5,000 bung.”