Select committee: Public Accounts Committee
Conclusion 26
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 ↗
Conclusion (the committee's words)
The NAO reported that DESNZ was yet to determine its approach for homes that are complex to decarbonise. DESNZ told us that it considered that heat networks would be the next major alternative low-carbon technology for people living in properties that are unsuitable for a heat pump. DESNZ outlined that it was identifying areas suitable for heat networks through heat network zoning in partnership with local authorities. It explained that it had a strong pipeline of projects for heat networks and was investing some £868 million in heat networks up to 2028. This included £338 million to 2025 and £530 million between 2025 and 2028. It explained that the main source of funding was 42 Q 66; C&AG’s Report, para 2.21 43 DHH0045 44 DHH0043 45 Qq 114–116; C&AG’s Report, para 2.22 46 DHH0024, Written evidence submitted by Mr Tom Lowe, 29 April 2024; DHH0044, Written evidence submitted by Tepeo, 29 April 2024 47 DHH0041, Written evidence submitted by NexGen Heating, 29 April 2024 Decarbonising home heating 17 its Green Heat Network Fund, which it said had so far provided grants of £268 million to support 20 projects. DESNZ stated that most applications to this fund were for large heat pumps, some of which use energy from waste, mine water or geothermal sources. DESNZ estimated that around 3% of total heat demand is supplied to buildings through heat networks, but it believed that there was potential for that to expand to around 20% by 2050.48
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.