Select committee: Public Accounts Committee
Conclusion 27
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)
In a written submission to our inquiry, the Chartered Institute of Housing expressed concern that the social housing sector, which it said accounted for over half of all heat networks, would need clear guidance and support to prepare and respond to the new regulatory regime for heat networks, and that this represented a “considerable shift” for the sector. It added that almost all heat networks in the social housing sector were operated on a cost recovery basis, and “significant” costs of regulation and zoning would therefore be passed through to residents for them to remain viable. Its overall concern was that connecting customers to heat networks through the zoning process could increase running costs for residents relative to the gas systems they replace, with social housing residents having a much lower household income than other tenures.49 DESNZ explained that it was developing a regulatory framework to oversee heat networks through the Energy Act. It said the aim for this framework was to ensure fair pricing and quality of service that is already in place for gas and electricity customers. The NAO called for DESNZ to further consider how to ensure that people living in harder-to-decarbonise homes are not left behind or penalised unfairly.50 The role of hydrogen and gas networks
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.