The Boiler Upgrade Scheme (BUS), launched in May 2022, is failing
to deliver on its objectives, following a disappointingly low
take-up of grants, the House of Lords Environment and Climate
Change Committee has concluded. Given the urgent need to reduce
emissions from our homes, changes must be made swiftly.
In a letter sent to , Parliamentary Under
Secretary of State for Energy Security and Net Zero, today
(Wednesday 22 February) the Committee warns 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.
The Committee has found:
- public awareness of low-carbon heating systems is very
limited, and promotion of the BUS has been inadequate
- there is a shortage of heat-pump installers &
insufficient independent advice for homeowners
- Hydrogen is not a serious option for home heating for the
short to medium-term and misleading messages, including from the
Government, are negatively affecting take-up of established
low-carbon home heating technologies like heat pumps
- upfront costs are too high for many households, even with the
help of the grant, making it impossible for low-income households
to benefit from the scheme
- while heat pump running costs are becoming competitive with
gas boilers in some modelling, progress is urgently needed
through electricity market reform to ensure running costs are
affordable.
The Committee is calling on the Government to:
- provide greater clarity to industry and consumers on feasible
options for low-carbon home heating through a consistent policy
framework, public communications, and householder advice
- roll over the remainder of the BUS first year budget into the
second year and establish a review to consider extending the
scheme
- correct the Energy Performance Certificates (EPC) methodology
so that certificates properly reward households for making the
switch to low-carbon heating and flawed EPC recommendations cease
being a barrier to BUS eligibility
- upgrade the provision of Government advice, alongside
recognising the role of independent retrofit coordinators, to
help households navigate low-carbon heating installations
- relax the requirement arising from Permitted Development
Rights to site a heat pump a certain distance from neighbouring
properties.
, 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.”
Notes to editors
- The House of Lords Environment and Climate Change
Committee considers matters relating to the environment and
climate change.
- The Boiler Upgrade Scheme provides grants for the
installation of low-carbon heating systems in domestic and small
non-domestic properties. The Committee has examined how effective
the scheme has been, and is likely to be, by exploring the
experiences of grant applicants and recipients.
- As of 31 January 2023, 9,889 vouchers have been issued worth
a total value of £49,730,000. The Committee's position on the
take-up rate is based on the total value of vouchers issued. By
the same date, 7,641 vouchers have been redeemed, meaning there
have been 7,641 installations under the BUS. £150mn has been
allocated for each year of the scheme and £450mn is available in
total. Source: https://www.ofgem.gov.uk/publications/bus-monthly-scheme-update
