Source · Select Committees · Energy Security and Net Zero Committee
Recommendation 27
27
Accepted in Part
Increase Heat Training Grant to fully compensate workers for lost earnings during retrofit upskilling.
Recommendation
The Government should increase the value of the Heat Training Grant to provide workers with full compensation for lost earnings when taking time off work to upskill on low carbon retrofit. This should take effect until market demand provides sufficient incentives for the workforce, supply chain and employers to self-fund training. (Recommendation, Paragraph 139) 64
Government Response Summary
The government announced an additional £5 million in funding for the Heat Training Grant this financial year and continues to work on ensuring its value for money. However, they are sceptical about plans to fully compensate installers for lost earnings due to concerns about complexity and fraud risks.
Government Response
Accepted in Part
HM Government
Accepted in Part
The government continues to work with training providers and industry to ensure the Heat Training Grant offers the best value for money. The Heat Training Grant helps to overcome the barriers that existing professionals face when upskilling to become a heat pump installer or work in heat networks. In heat networks, the scheme enables new entrants and those transitioning from other sectors to become part of this growth opportunity. Industry estimates suggest we need to train at least 6,600 installers a year until 2028. In total around 9,000 individuals completed training in 2024 through a combination of the Heat Training Grant and industry training. Furthermore, Government recently announced an additional £5 million in funding for the Heat Training Grant this financial year. The Low Carbon Heating Technician apprenticeship launched in Autumn 2023 to help bring new entrants into the heat pump sector and build a sustainable skills pipeline. While we are always open to making improvements to the scheme, we are sceptical about plans to compensate installers for lost earnings given the complexity of delivering this in a way that avoids risks of fraud.