Select committee: Public Accounts Committee
Recommendation 8
Thirty-Seventh Report - Decarbonising home heating
Published 26 May 2024
Addressed to HM Treasury
Public Accounts Committee Decarbonising home heating All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Recommendation (the committee's words)
Grants under the Boiler Upgrade Scheme are available to all households irrespective of income. While other schemes are available for low income households, such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and the Energy Company Obligation, DESNZ explained that the Boiler Upgrade Scheme is designed for the able- to-pay market. The £7,500 grant covers nearly 60% of the average cost of installing a heat pump, based on the average cost in 2023.11 An energy industry representative, the Energy & Utilities Alliance, told us in its written evidence to us that by definition, only those households who can afford to pay the remaining amount to top up the grant can afford to participate in the Scheme.12 According to the Energy Saving Trust, this creates a gap in support for those who are ineligible for fuel poverty schemes but are unable to afford the total upfront cost of switching to a low carbon heating system.13 Similarly, the MCS 5 Qq 3, 49; C&AG’s Report, paras 15–16. Installation cost figures represent real-term reduction compared to the cost in 2021 6 Qq 3, 30, 119; C&AG’s Report para 16 7 DHH0015, Written evidence submitted by The Building Societies Association, 29 April 2024; DHH0043, Written evidence submitted by Calor Gas, 29 April 2024; DHH0046, Written evidence submitted by Good Energy, 29 April 2024; DHH0053, Written evidence submitted by Centrica, 29 April 2024 8 Qq 3, 10, 30; C&AG’s Report, para 15 9 Qq 11, 43 10 Qq 11, 43; C&AG’s Report, para 3.19 11 Qq 30, 54–55; C&AG’s Report, para 15 12 DHH0040, Written evidence submitted by Energy & Utilities Alliance, 29 April 2024 13 DHH0026, Written evidence submitted by Energy Saving Trust, 29 April 2024 Decarbonising home heating 11 Foundation told us that upfront costs were too high for many households even with the help of a grant, making it “impossible for households without savings to benefit from the scheme”.14 Energy UK, a representative body for the energy industry, called for the costs to be
From: Public Accounts Committee, Thirty-Seventh Report - Decarbonising home heating (HC 653), 26 May 2024
Government response
The government responded to the whole report on 11 July 2025 (deadline 26 July 2024).
Summary written by Accountability Index from the government's response. It is not the government's own words.The government states that it agrees with most of the Committee's recommendations on decarbonising home heating, some with target dates still "to be confirmed", and disagrees with one, on gas network decommissioning.
- On heat pump running costs, the government agrees with the recommendation, but implementation is "dependent on further steers from new ministers" and no date is set. It says it "is considering" the best way to bring costs down.
- On installer numbers, the government agrees, with a target of Summer 2025. It says decisions on future training support "will form part of Spending Review 2025 (SR25)", as the Heat Training Grant is funded until April 2025.
- On data, the government agrees to publish quarterly data on retrofit installations using government funding, with a target of Winter 2024. It "cannot commit" to publishing data on new builds or unfunded installations "until a suitable mechanism is found".
- The government disagrees with the recommendation to set out gas network decommissioning arrangements by end-June 2025, saying a full assessment "will require more time". It says it is "currently exploring ways" to facilitate the transition.