Heat and Buildings Strategy: Gas Boilers
Question
2.58pm
Asked by
The Lord
To ask His Majesty’s Government what assessment they have made of
progress on their Heat and Buildings Strategy, published on 19
October 2021; and whether they have any plans to change the date
of 2025 for banning the installation of gas boilers in new-build
homes.
The Parliamentary Under-Secretary of State, Department for Energy
Security and Net Zero () (Con)
My Lords, the Government have made good progress towards their
target. Between October 2021 and November 2022, 240,300 measures
were installed through Help to Heat schemes. The building
regulations will continue to set a performance-based standard
rather than banning specific technologies. However, to ensure
that new homes are carbon-zero ready, we plan to ensure that the
future homes standard is set at a level that will effectively
preclude new homes being built with fossil fuel heating.
The Lord
My Lords, I thank the Minister for his Answer and draw attention
to my membership of your Lordships’ Environment and Climate
Change Committee. I note that in 2020 the Government brought
forward, in a very welcome way, the date for phasing out new
petrol and diesel cars from 2035 to 2030, which has had a
significant positive effect on that market. Has further
consideration been given to bringing forward to 2030 the present
date of 2035 for prohibiting the installation of new gas boilers
to further encourage the rapid development of low-carbon domestic
heating?
(Con)
I can correct the right reverend Prelate. We have not set a date
of 2035 for prohibiting the installation of new gas boilers; we
have said that this is our aim but, crucially, it will depend on
the availability of cheap alternatives for people to heat their
homes with.
(LD)
My Lords, the overwhelming evidence is that hydrogen will never
work in domestic heating. Will the Government stop their trials
of hydrogen villages and concentrate their efforts where hydrogen
really can make a difference?
(Con)
The noble Lord is right to an extent. At the moment, hydrogen
heating for homes is an unproven technology, which is why we need
to carry out trials and research to ascertain whether it is a
viable technology. In the meantime, we know that heat pumps and
electrification work and are operable technologies, which is why
we support them.
(Con)
My Lords, I remind my noble friend the Minister that there are
millions and millions of terraced houses throughout the United
Kingdom. It is absolutely impossible for them to have heat pumps.
Against that situation, would it not be much more sensible to ask
the gas industry to produce, in the interim, new boilers that are
less difficult in relation to zero carbon? In addition, the point
that was just made about hydrogen seems equally relevant to
me.
(Con)
I am afraid that I do not agree with my noble friend. It is
perfectly possible for heat pumps to be used in terraced
properties. The thing about the UK is that there is a
multiplicity of different property types and flavours; not all
solutions will be appropriate for all properties, so we need to
look at a number of options. We also need to continue to improve
the efficiency and effectiveness of gas boilers. In whatever
scenario, there will still be millions of gas boilers fitted in
existing properties in the next few years; there is more that we
can do to improve existing efficiencies.
(Lab)
My Lords, one of the main reasons given for the relatively low
take-up of heat pumps is that there are not enough skilled
engineers to install them. What work is being done to retrain
existing gas boiler installers so that they can install this new
technology, speed up installation and help us meet our carbon
targets?
(Con)
The noble Baroness makes an important point. We are rapidly
increasing the number of available skilled installers. I have
opened a number of schemes in both the public sector and the
private sector. In September we launched the home decarbonisation
skills training competition, a £9.2 million fund for training
people who work in the energy efficiency, retrofitting and
low-carbon heating sectors. Of course, the industry itself is
also investing in training capacity; for example, Octopus Energy
is investing £10 million in a new training centre and Ideal
Heating has announced a new £1 million training centre near Hull.
So there is a combination of public and private sector investment
in this area.
(CB)
My Lords, as a further incentive for people to change their
energy sources, will the Government give consideration to an
energy-saving stamp duty under which energy-efficient homes pay
an adjusted lower rate, with a rebate paid to new home owners who
improve the energy efficiency of their home within two years of
purchase? Will they also consider reintroducing the landlord’s
energy saving allowance, which used to encourage landlords to
undertake energy-efficiency measures but was abolished in
2015?
(Con)
The noble Baroness will be aware that these are matters for the
Chancellor. As a Minister, I have long observed not getting into
predicting taxation policy. I will certainly pass her suggestions
on to the Chancellor.
(Con)
My Lords, further to the questions from the right reverend
Prelate and my noble friend , I was involved in raising
funds to refurbish our rectory. The church insisted on putting in
a heat pump; because of the nature of the property, it cost
nearly £40,000 just to insulate it in order to make the heat pump
work efficiently. Heat pumps are not suitable for all buildings,
which is why it is essential that we look for an alternative.
(Con)
I partly agree with my noble friend. It is a good thing that the
rectory was insulated anyway, whatever kind of heating was
installed in it. Heat pumps obviously work best in well-insulated
properties, but you can now get high-temperature heat pumps that
work in all scenarios. I agree with my noble friend that, as I
said earlier, there is a multiplicity of property types and
different technologies will work in different properties.
(Lab)
My Lords, from the evidence that it received, the Environment and
Climate Change Committee, of which I was a member at the time,
concluded in its inquiry on the boiler upgrade scheme that a
shortage of relevant skills is a major barrier to the take-up of
the boiler upgrade scheme and low-carbon heat. The
microgeneration certification scheme, which certifies whether
companies are capable of fitting renewable heat products, gave
evidence to the committee that the three-year duration of the
scheme and
“the delayed release of the market-based mechanism to support
heat pump growth”
did not
“provide sufficient long-term certainty to grow the sector and
encourage retraining.”
Despite this investment in training, does the Minister agree with
the MCS that a long-term policy of decadal length is required to
create a stable policy landscape to encourage investment in
training? If he does, what do the Government intend to do about
that?
(Con)
The noble Lord will be aware that the next Question is on the
boiler upgrade scheme; his question might perhaps have been more
appropriate there, but I agree with him. The Answer I gave
earlier shows what we are doing to invest in upgrading existing
skills. It is a long-term job over decades, as the MCS correctly
said. I was at a reception with the MCS last week, talking to it
about this very issue.
(CB)
I agree with the Minister in his statement that there is a
multiplicity of solutions for decarbonising heat. One very
promising technology is the use of heat loops, or networked
ground source heat pumps. These are much more efficient than even
air source heat pumps and are an excellent technology that we
should be trialling, perhaps instead of hydrogen.
(Con)
I am aware of the noble Baroness’s scepticism about hydrogen—we
have discussed it a number of times. I agree with her about
ground source heat pumps. There are some great, innovative UK
companies developing them and we support them under the boiler
upgrade scheme.
(Lab)
My Lords, the Committee stage of the Energy Bill started in
September 2022, and we still have not reached Report. Is this
delay down to the Government adopting the Labour Party’s
suggestions in Committee, which would make targets of the future
homes standard and ban the installation of gas boilers in new
homes? I guess from the Minister’s response so far that this is
not the case. Can he say what is causing the delay?
(Con)
I am sorry to tell the noble Lord that it is nothing to do with
the Labour Party’s policies. My responsibilities do not extend to
predicting the business of this House. I am sure that the Chief
Whip has taken careful note of the noble Lord’s comments.
(LD)
My Lords, permitted development rights are still insisting that
heat pumps are sited a metre away from the boundary of
properties. Given the Minister’s welcome commitment to heat pumps
and to getting these new homes with low-carbon solutions, what
plans do the Government have to update PDR to ensure that heat
pumps can play the role that we need them to?
(Con)
One of the factors of the UK’s planning system is that different
interpretations are given by different local authorities. I
suspect that certain Members on the Opposition Benches would
criticise us if we dictated to local authorities how they should
implement their own planning policies. Clearly, we need to work
with them. As I said earlier, there is a huge range of different
areas and property types. Some local authorities are quite
permissive in what they will allow and some are not, but we
continue to work with them to make sure that they are abreast of
all the latest guidance.
Domestic Heat Pumps: Budget Underspend
Question
3.08pm
Asked by
To ask His Majesty’s Government what assessment they have made of
the reasons for the underspend in the annual £150 million budget
to install domestic heat pumps and other low-carbon alternatives
to gas boilers.
The Parliamentary Under-Secretary of State, Department for Energy
Security and Net Zero () (Con)
My Lords, despite it being a challenging year for the energy
sector, provisional data from Ofgem shows that we have received
14,100 applications so far.
Industry has reacted positively to the scheme during its first
year, with suppliers developing competitive offers alongside the
grant. The Government recently launched a targeted marketing
campaign to increase public awareness. We will consider options
such as increased marketing, as well as keeping grant levels
under close review.
(LD)
My Lords, I thank the Minister for his Answer. We know that heat
pumps are the only show in town today that can deliver low-carbon
domestic heating cheaply and quickly. In 2022, a whopping 20
million heat pumps were installed across 16 EU countries, yet our
Government fall short time after time in delivering even the
basics needed for success, such as home insultation measures, a
skilled workforce and improved public awareness. What plan do the
Government have to move their woeful current rate of under 10,000
in almost a year on the boiler upgrade scheme to their target of
600,000 a year by 2028? Without a plan, the target is pie in the
sky.
(Con)
The noble Baroness obviously did not listen to the Answer that I
gave her, because I just said that we have received 14,100
applications for the scheme. But this is not the only scheme by
which heat pumps are installed. There are those that are
installed by the private sector, and they are already starting to
be installed in many new properties. A range of our other
schemes—the social housing decarbonisation fund, home upgrade
grant, et cetera—also support the installation of heat pumps.
The Lord Speaker ()
My Lords, the noble Lord, , will participate
remotely.
(Lab) [V]
My Lords, with heat pump technology plagued by misinformation,
can the Government not sponsor a network of privately or
commercially occupied exhibition homes with air source heat pumps
installed, where potential investors can be advised on the
efficacy of their installation and the need for accompanying
measures of draught and insulation control, without which they
are ineffective and a waste of money? A well-designed
installation will give 3 to 4 kilowatts of heat output per
kilowatt of mains supply. That is a good return.
(Con)
I agree with the noble Lord’s figures on the efficiency of heat
pumps. He will find that there are a number of show properties
around the country already; a lot of the installers or
manufacturers already have showrooms demonstrating the technology
for prospective purchasers.
(Con)
My Lords, I declare an energy interest, as in the register.
Further to this and the last Question, do the Government accept
that, with their full commitment to future renewables, the
removal of all gas heating and cooking, and millions of new
electric vehicles, we will see an enormous need not only for more
generating plant but, more importantly, for a completely new
electrical transmission system nationwide? It is estimated that
the burden on the
transmission system will increase 400%, when it is already at
100% and overloaded. Do we have the plans in place to cope?
(Con)
My noble friend makes a very good point: huge investment is
required to both upgrade and reconfigure the transmission grid.
We are moving away from a system based on point loads to a much
more diversified system of renewables, et cetera. The point is
valid. Billions of pounds are being invested in the grid and we
have a plan to upgrade it. It is worth saying that there will be
ongoing demand for gas; it will be declining, but we will still
be using it.
(CB)
My Lords, we have just heard claims that are often made about
heat pumps—that they generate four to five times the energy you
put in. That is only in ideal circumstances, typically where the
outside temperature is 15 degrees and the water temperature is
about 38 degrees. The reality is that you get out about two and a
half times the energy you put in. That is a good result, but not
if you are expecting four to five times. I worry that these
unrealistic claims of real-life performance may undermine
consumer confidence and reduce the uptake of heat pumps. Can the
noble Lord please ensure that real-life performance is always
made clear and included in the MCS database?
(Con)
The noble Lord makes a very good point. Performance will vary
depending on the temperature outside. It is also worth saying
that heat pumps have been installed extensively across Europe,
including in countries which typically have much lower ambient
air temperatures than the UK does, such as Norway. But his point
is valid: we need to make sure that people are given accurate
information.
(Lab Co-op)
Would the noble Lord, , be a little less pedantic
than his noble friend ? Since the noble Lord, , mentioned Ofgem in his
initial reply, could he explain why Ofgem wants us to pay more
for all our heating, despite the wholesale cost of gas reducing?
What are the Government going to do about this?
(Con)
I thank the noble Lord for a question not at all related to heat
pumps. He makes a valid point: the price cap has been reduced in
line with the reduction of wholesale prices. At the same time,
there is a gap in funding because of government support. We
have—the taxpayer has—been paying about one-third of people’s
energy bills through the winter. That support is unsustainable in
the longer term and is starting to be withdrawn, but I am sure
the Chancellor is looking at this very closely.
(Con)
My Lords, is it not fair to say that implicit in the last two
Questions is the rather disappointing uptake in the number of
homes putting in heat pumps? I declare that I put in a gas boiler
recently and got change from £5,000. Have the Government done any
work on the point raised by my noble friend Lord Forsyth on the
cost for the average
punter to change their home? The reality is that the markets
determine what people put in. We need to look at the actual cost
of installing a heat pump. If we imagine a scenario where 10% of
new builds have heat pumps and the retrofit programmes go in
great guns, what would it cost to install one of these things?
Have we got research? If the Minister cannot answer me directly
at the Dispatch Box, will he please write to me with a detailed
response?
(Con)
I can answer my noble friend directly: we have done lots of
research on these matters. I will give him a couple of examples
of existing offers. British Gas has a starting price for an air
source heat pump of £2,999 and Octopus Energy is offering one for
£2,500 including the upgrade grant that we are offering. It
obviously depends on the circumstances of the property. There are
huge number of variable factors, such as how many radiators you
need—whether your existing radiators can be reused will depend on
their size. There are a lot of different factors to take into
consideration, but his point is ultimately valid, in that we have
to make sure that the prices of heat pumps come down over time.
As consumers get more used to them and volumes go up, I think
that they will.
(CB)
My Lords, I request a similarly detailed answer from the Minister
on the costs of the hydrogen trials. As he will know, I do not
support this way of moving forward. However, had we taken the
same approach to heat pumps, ground source heat pumps in
particular, how much would it have cost us per household for
2,000 homes? How much are we spending per household on the
hydrogen trials?
(Con)
As the noble Baroness is aware, we have two potential trial
villages at the moment. We will make a decision later this year
on which one will be selected, assuming that we get the powers to
do so in the Energy Bill. We are still looking very closely at
the costs of the trial. They are still to be determined, so I
cannot give her an answer yet. The two gas networks are looking
at the costs as we speak.
(Lab)
My Lords, in addition to the underspend highlighted in the
Question by the noble Baroness, Lady Sheehan, about £2.1 billion
remains unspent of the £6.6 billion promised in the Conservative
manifesto to be used on energy efficiency and decarbonisation of
heat. The think tank E3G puts this down to a lack of effective
policies on domestic insulation and decarbonisation. Can the
Minister say if and how the Government intend to deliver on that
manifesto promise?
(Con)
The noble Lord will have to have a little patience and wait for
the Chancellor’s spending announcement. As I have said before,
there has been no lack of government commitment in this area: we
are spending £6.6 billion over this Parliament, and we have
already had another £6 billion committed by the Chancellor for
energy-efficiency schemes from 2025. It is going well.
(Con)
My Lords, I draw my noble friend’s attention to the Swaffham
Prior Heat Network—
Noble Lords
This side!
(Con)
I gave way last time.
(LD)
My Lords, one of the reasons for the so far disappointing uptake
of the welcome boiler upgrade scheme is the lack of consumer
awareness. Even the Minister’s own figures from what was BEIS
said that 80% of people have little or no awareness of heat
pumps. He mentioned that there will be further marketing: my
understanding is that this will be ads on search engines and
social media. Does he really believe that £300,000 spent is
sufficient for the scale of the challenge and to make this
welcome scheme work?
(Con)
It is certainly a good start. I was talking to officials about it
earlier today. It started only in the middle of January and has
already driven about a 62% increase in traffic to the GOV.UK
website that provides information about heat pump offers. As the
scheme moves into its second year, we will move into what further
marketing activity we can do.
I will go back to the question from my noble friend, who I
believe was going to ask me about the Swaffham Prior scheme. For
those in the House who are not aware, Swaffham Prior is a village
in Cambridgeshire. I suspect that it was in his constituency—
(Con)
No.
(Con)
Anyway, I have visited it, and it is a great example of a
community coming together to install heat pumps and a domestic
heat network, supported by government funding. It is an excellent
project and is going extremely well. I give my congratulations to
Cambridgeshire County Council and Swaffham Prior on implementing
it.
