The Boiler Upgrade Scheme - launched in May 2022 and open to landlords as well as homeowners - is failing to deliver on its objectives, a key Parliamentary committee claims.
The House of Lords Environment and Climate Change Committee says there has been a low take-up of grants for the scheme and, given the urgent need to reduce emissions from our homes, changes must be made swiftly.
In a letter sent to Lord Callanan, the Parliamentary Under Secretary of State for Energy Security and Net Zero, 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 that 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 and insufficient independent advice for homeowners; and that 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.
In addition the committee claims that 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; and that 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 therefore 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; and to roll over the remainder of the BUS first year budget into the second year and establish a review to consider extending the scheme.
It says the government should also “correct the Energy Performance Certificates methodology so that certificates properly reward households for making the switch to low-carbon heating and flawed EPC recommendations cease being a barrier to Boiler Upgrade Scheme eligibility”, and upgrade the provision of government advice, alongside recognising the role of independent retrofit coordinators, to help households navigate low-carbon heating installations.
The committee also urges the relaxation of the requirement arising from Permitted Development Rights to site a heat pump a certain distance from neighbouring properties.
Baroness Parminter, chair of the Lords Environment and Climate Change Committee, says:”The transition to low-carbon heat is fundamental in the path to net zero, given that 17 per cent 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.”
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Public sector incompetence , that is a surprise
Yes , they certainly need to sort out EPC's. I removed a gas fire and installed an air to air heat pump in one room and because I replaced a gas appliance with an electric one, (the heat pump), my EPC was downgraded. How ludicrous is that.
If they want low carbon installations taken up then they need to ensure EPCs reflect that, so that my houses with electrical heating only register well with the EPC. The whole system is flawed because EPCs measure energy cost are are therefore poor because green energy is expensive but better for gas heated houses as gas is cheaper. you can measure apples and expect to get pears!
I lament at how poor this government is…. When will we get someone, anyone with an IQ sufficient to do the job ? The EPC rubbish has been rumbling for ages, we all just want some certainty, then we can do the work needed or sell up.
You think this lot are bad , just wait for liebour and the likes of David Lammy in charge
You have to gasp in disbelief at his performance on celebrity mastermind
David Lammy on Celebrity Mastermind:
Question: Who succeeded Henry VIII?
Answer: Henry VII
Question: What blue cheese traditionally goes with Port?
Answer: Red Leicester
DOH !
We were promised a new EPC algorithm that reflected the fact that electricity is much greener than it used to be by the end of last year yet it is nowhere to be seen. No-one in their right mind will change to electric heating until the fiasco that is the EPC assessment is sorted out.
I can see the best solutions for clean air and the environment are the worst ones for the pocket.
The EPC’s assessments are always on about cost savings but the two don’t fit together.
Spot on!
Trying to conflate energy efficiency, heating costs and now carbon footprint is on a fools errand. But this is precisely what the Government are attempting (and failing) to do.
Then to try and do this in a world were energy prices are on a roller coaster is just insane, and makes a complete mockery of the whole EPC system.
As a heating engineer, I see many installations. The current generation of heat pumps just don't work well for most houses. So the whole approach is wrong. Just another example of government trying to impose improperly researched solutions.
The govt are deluded. A neighbour of mine moved from a brand new “eco house” with heat pump to a 1950’s bungalow in need of a lot of tlc. He said the running costs of his old oil boiler in the bungalow were a fraction of the costs for the new build. I am hearing again and again from people who have installed these things that the running costs are prohibitive! And I see the idiots have now floated the idea of banning oil boilers. I live in the countryside so no gas. How on earth do they think that will work? They will destroy our economy and make life impossible for us whilst China and India continue to pollute -
Heat pumps aren't going to be a good idea for landlords until the government have done some fairly major tweaks to several policies:
1 - Firstly the EPC problem needs to be addressed. Without a gas heating system millions of homes can't get to EPC C. Any that are currently EPC C are likely to drop to a D if their gas heating is replaced with any kind of electric system.
2 - The tax treatment needs to be amended. Right now replacing a gas boiler with a new gas boiler is a fully tax deductible replacement. Changing a gas boiler for a heat pump would almost certainly be counted as a Capital improvement, so not tax deductible. It may eventually be taken into account in the CGT calculation if we sell before we die. If the government don't change the CGT rules. That's all a bit too uncertain for my liking. If the government want us to install eco stuff at least make it tax deductible. Commercial landlords got a super deduction if they installed solar panels this year while residential landlords got nothing.
3 - There needs to be clear public information on how best to operate whatever heating system. Not hundreds of conflicting articles on whether it's best to switch it off when you're out, turn it on for brief periods morning and evening, run it constantly at 21, etc. Far too much advice seems to relate to old fashioned heating controls with very poor functionality. On, off and fiddle with a manual dial. In reality a decent heating programmer can make a huge difference to both comfort and utility bills. If the government really wanted people to cut gas consumption they would incentivize the installation of good thermostats and programmers. Something with a decent app showing exactly when the boiler has come on is incredibly helpful in understanding how often a boiler actually has to run to maintain a comfortable temperature. I can see on a very clear graph in the last 24 hours my Victorian terrace 4 bedroom student house with a low C has had the boiler cut in 7 times for a total of about 2 hours to maintain a comfortable temperature. My more modern 5 bedroom terrace cut in 6 times for a total of 1 hour 45 minutes. It's February and people are terrified of turning on their heating because they don't understand how to most effectively control it. One of my tenants keeps her heating thermostat programmer in her bedside drawer, has the heating turned on for 2 hours in the morning, 2 hours in the afternoon, says her gas bill is ridiculous and uses a convector heater in the evening to keep the gas bill under control. Where do you even begin when tenants think any of that is a good idea?
You're asking for the impossible i.e. for the Government to apply some commonsense.
However, it's part of the grander WEF plan "you own nothing..." including houses. Next move is "no EPC 'C', no mortgage" (so big corporates with cash can buy).
G romit - maybe for BTL, but not owner occupied, that would destroy the housing market and cause millions of voters with old terrace’s and flats to vote for parties that don’t have that policy.
Already happening in the PRS. In the owner occupier some lenders are offering lower rates for houses with EPC "C" or better or to put it another way higher rates for poor EPC rated properties.
Government is using lenders to do their dirty work, you know those nasty greedy Bankers(whilst giving them big juicy backhanders).
G romit, big corporates borrow money as does the government !
True, but I can see there being certain exceptions being made in order to, say, facilitate Labour mobility or some other concocted excuse.
Besides any Government of whatever persuasion will be signed up to (aka have its strings pulled by) the WEF anyway.
G romit WEF openly boasting about control of governments, l think the NZ premier was one as well. It's phenomenally subversive.
Exactly!
G romit, l believe Sunak is as well.Quite amazing subversion in plain sight - thank god for MI5 MI6 and the police for preventing it ! Not ! Just pick on landlords instead and other law abiding citizens.
George Dawes, the public sector is actually quite efficient, it's that politicians won't take responsibility for their actions, no body would vote for them if they disclosed their motives and desires. Not only that net zero is impossible to get, it would result in a type of feudalism, North Korea style or worse.
Yes public sector is quite efficient at squandering money, mal managing policy, manipulating public consultations, endlessly propagating bureaucracy and excusing their endless failings.
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