Recommendations & Conclusions
39 items
1
Conclusion
Seventh report - Decarbonising heat in …
Ineffective historic heating policy and the absence of a clear, strategic policy direction for low carbon heating has created confusion and uncertainty in the transition to low carbon heating and has affected investor confidence. We welcome the long overdue publication of the Heat and Buildings Strategy. However, a greater amount …
Government response. The Heat and Buildings Strategy outlines our approach over the first half of this decade, which will be focussed on growing supply chains, growing the skills base and creating the right enabling environment for growth in the sector. A long-term …
Department for Business and Trade
2
Conclusion
Seventh report - Decarbonising heat in …
Evidence was clear that for low carbon heating installations to work effectively and to heat homes adequately, properties need to be upgraded to the correct levels of energy efficiency. It is critical then that Government policies and strategies are interlinked. If people are encouraged to switch to low carbon heating …
Government response. The Government has a clear plan for our major clean heat technologies and is continuing to develop a long-term plan for deploying these measures at scale, of which the Heat and Buildings Strategy represents a significant first step. We are …
Department for Business and Trade
3
Recommendation
Seventh report - Decarbonising heat in …
To successfully decarbonise domestic heating in time to deliver net zero by 2050, the Government must provide clear, strategic direction and guidance. The Government must now focus on providing a coherent policy environment that encourages policy consistency and certainty in the transition to low carbon domestic heat.
Government response. this Parliament and will do so at the earliest possible opportunity. In December, we published the Government response to the Heat Networks Market Framework consultation which sets out our proposals for regulation. We announced that we will appoint Ofgem as …
Department for Business and Trade
4
Recommendation
Seventh report - Decarbonising heat in …
We call on Ministers to publish a heat technology road map, produced in partnership with chief technologists from industry partners, to clearly set out the development, scale up and integration milestones of different low carbon heating technologies, and the associated interventions, such as energy efficiency upgrades, and initiatives required to …
Government response. Whilst legislating for heat is devolved to Scotland, consumer protection for heat networks is a reserved matter across Great Britain. The Heat Networks Market Framework (HNMF) will therefore introduce consumer protection rules in England, Scotland and Wales, and Ofgem will …
Department for Business and Trade
5
Recommendation
Seventh report - Decarbonising heat in …
We congratulate the Department on its work on heat networks, including the consultation on heat network zoning. We support the rollout of heat networks across the country, the retrofitting of high-density housing, and the installation of heat networks in new build developments. However, we recognise the real concerns of consumers …
Government response. Government supports the growth of the UK heat networks market as a crucial part of the UK’s heat decarbonisation journey. The provision of accurate market information is essential for developers and other partners within the heat networks supply chain. Since …
Department for Business and Trade
6
Recommendation
Seventh report - Decarbonising heat in …
We recommend that the Government consider the Scottish Government’s approach of legislation for heat networks. If Ministers disagree with the approach taken in Scotland, an explanation in response to this report is required.
Government response. The current timeline of the Future Homes Standard (FHS) delivers on our Net Zero commitments, while ensuring that new, good quality, warm homes are delivered in sufficient numbers in the places that need them. The Government has listened to calls …
Department for Business and Trade
7
Recommendation
Seventh report - Decarbonising heat in …
Furthermore, the Government must rapidly develop its data collection and records on the location of heat networks, and statistics about their use. Without a detailed understanding of how many heat networks are operational in the UK and where they 54 Decarbonising Heat in Homes are located, the Government cannot effectively …
Government response. The Government will continue to make the case for moving quickly to Net Zero and expects social housing landlords to help tenants to understand why works are required to their homes and the benefits of the transition. The Heat and …
Department for Business and Trade
8
Conclusion
Seventh report - Decarbonising heat in …
We note that the then Ministry for Housing, Communities and Local Government felt it only played a “limited role” in the decarbonisation of heating in housing and demand that Ministers prioritise this crucial work more clearly in the future.
Government response. The Government recognises the need for a clear pathway to phase out fossil fuel heating systems from our buildings, balancing market certainty with consumer choice and flexibility. The Heat and Buildings Strategy was explicit about our intention that, by 2035 …
Department for Business and Trade
9
Conclusion
Seventh report - Decarbonising heat in …
The Future Homes Standard is another key policy in the Energy White Paper. It aims for new build homes to be fitted with low carbon heating, and high levels of energy efficiency to ensure that homes built to the Future Homes Standard will be zero carbon ready and have 75% …
Government response. The Government is committed to phasing out the installation of high-carbon fossil fuel heating in buildings currently off the gas grid during the 2020s. Acting early on these buildings is a no regret option, as they often use the highest …
Department for Business and Trade
10
Recommendation
Seventh report - Decarbonising heat in …
We acknowledge that the Government wants to give industry the time to develop its supply chains; however, this appears to be to the detriment of new build homeowners, who will have to pay to retrofit their homes. It is unnecessary to wait until 2025 to implement the Future Homes Standard. …
Government response. The Heat and Buildings strategy (HBS) summarises the range of measures we are taking to ensure the market is in place to deliver on our ambition of 600000 annual heat pump installations by 2028. These include a mixture of financial …
Department for Business and Trade
11
Conclusion
Seventh report - Decarbonising heat in …
We also call on Ministers to set out, in response to this report, what measures are being considered to assist tenants who rent their homes in managing the transition to low carbon heating with their landlords; and what support might be put in place for housing associations and equivalent social …
Government response. The Government has set out its ambition for the market to grow to 600000 heat pump installations a year in the UK by 2028. This level is consistent with delivering against carbon budget commitments and is sufficient to allow for …
Department for Business and Trade
12
Recommendation
Seventh report - Decarbonising heat in …
Delivering net zero by 2050 will require a ban on the installation of fossil fuel heating systems by the mid-2030s at the latest. We note that the Government signalling, instead of setting, an end-date for the phase out of gas boilers fails to give industry and consumers a clear date …
Government response. Catalysing the market for Green Finance is a priority for Government to help support non-fuel poor homeowners who are ineligible for grants to cover the upfront costs of energy efficiency retrofits and improvements. The £1.8 million Green Home Finance Innovation …
Department for Business and Trade
13
Recommendation
Seventh report - Decarbonising heat in …
We recommend that in the context of the phasing out of gas boilers, the Government adopts a clear and specific end-date by regulating through legislation the phase out of gas boilers. We also recommend that the Government sets out its plan on how it expects the industry and consumers to …
Government response. The Heat and Buildings strategy outlines the measures being taken to ensure the market is in place to deliver on the ambition of 600000 annual heat pump installations by 2028. This includes a mixture of financial support, market intervention and …
Department for Business and Trade
14
Recommendation
Seventh report - Decarbonising heat in …
It is vital that the Government should meet its target to deliver a minimum of 600,000 heat pumps a year by 2028 or it will fall off course in delivering net zero by
Government response. The market-based mechanism is a core part of the Government’s intended policy framework for supporting the development and scale-up of the UK heat pump market. It will provide the heating industry with a durable, market-wide framework and incentive to invest …
Department for Business and Trade
15
Recommendation
Seventh report - Decarbonising heat in …
We ask the Government to set out in response to this report the intended milestones and targets it has in place to ensure that the UK meets its 2028 target and what funding it will put in place to ensure that each of these milestones is met. The Government must …
Government response. The Government is committed to working with industry to rapidly scale up the heat pump supply chain and to reduce the costs of deploying heat pumps. As announced in the British Energy Security Strategy, the Government will run a Heat …
Department for Business and Trade
16
Recommendation
Seventh report - Decarbonising heat in …
To ensure that the UK does not fall off course in achieving its targets for carbon emissions reductions, we recommend that the Government works with industry to consider how the Climate Change Committee’s advice to deliver 900,000 heat pumps a year by 2028 can be achieved.
Government response. The Government is working closely with industry to ensure that appropriate high-quality training is available, both for new entrants to the sector and existing heating installers who do not have heat pump experience. This includes coordinated action through the BEIS-led …
Department for Business and Trade
17
Recommendation
Seventh report - Decarbonising heat in …
We further recommend that the Government should convene the retail banking sector to encourage and facilitate low-cost and innovative lending products for consumers, and that public funds are used most widely in supporting lower income families with appropriate grants.
Government response. measures and installation of a new low carbon heating system, the Government believes that consumer demand for this sort of approach will grow in the future. Installations completed through government-endorsed energy efficiency schemes must be completed under the PAS (Publicly …
Department for Business and Trade
18
Recommendation
Seventh report - Decarbonising heat in …
The Secretary of State’s assertion that the target to deploy 600,000 heat pumps will “have to be delivered” highlights the Government’s determination but there is still a lack of specific, strategic action on its part to ensure that low carbon heat targets are delivered. The Government must set out a …
Government response. The Government is investing £550 million to significantly expand Skills Bootcamps, which provide adults in England with in-demand skills in a range of areas, including green skills. Invitation to tender for the delivery of the next wave of Skills Bootcamps …
Department for Business and Trade
19
Recommendation
Seventh report - Decarbonising heat in …
We acknowledge the introduction of the market-based mechanism outlined in the Heat and Buildings Strategy; however, it will not deliver the scaled-up heat pump market needed to achieve the Government’s heat pump target. The Government must expand the market-based mechanism as well as explore other options to catalyse the development …
Government response. The Green Homes Grant Voucher Scheme (GHGVS) did not deliver at the rate and scale the Government originally hoped for and faced significant delivery challenges. After reviewing the efficacy of the scheme, it was closed to new applications on 31st …
Department for Business and Trade
20
Conclusion
Seventh report - Decarbonising heat in …
To meet the Government’s targets for decarbonising heat, significant action needs to be taken to innovate and develop low carbon heating markets and in bringing these markets to scale. Scaling up the markets for low carbon heating technologies also offers opportunities for cost reductions. A heat decarbonisation sector deal would …
Government response. The design of the Boiler Upgrade Scheme (BUS) has been heavily informed by scrutiny of the Green Homes Grant Scheme. The targeted scope of the scheme, flat rate grant and installer-led application will all contribute to a simpler and more …
Department for Business and Trade
21
Recommendation
Seventh report - Decarbonising heat in …
We recommend that the Government introduce a heat decarbonisation sector deal by 2023 so that there may be a heightened focus on scaling up low carbon heating markets and reducing costs.
Government response. consumers to make green choices, such as switching from gas boilers to electric heat pumps. We are committed to keeping costs fair and affordable for industry and consumers, and working to identify how costs can be allocated in a way …
Department for Business and Trade
22
Conclusion
Seventh report - Decarbonising heat in …
It is vital that the heating and energy efficiency workforce has the capacity and skills required for the job at hand. This will require training new workers as well as supporting existing workers in the home heating sector. It is imperative that the 56 Decarbonising Heat in Homes Government actively …
Government response. The Committee on Fuel Poverty is an advisory non-departmental public body. As an arm’s length body, sponsored by the Department for Business, Energy & Industrial Strategy, it is not directed by the Government and provides independent advice on the effectiveness …
Department for Business and Trade
23
Recommendation
Seventh report - Decarbonising heat in …
The Government must urgently develop a low carbon heating training programme, in partnership with industry and trade unions. The training programme should align with the Government’s own target to deploy 600,000 heat pumps by 2028 and the plans it has to deliver on this goal. The Government must support and …
Government response. The Government agrees with the Committee’s recognition that further action is needed to increase consumer awareness in this area, the key technologies and interventions involved, and the priority actions to take through a blend of Government-led and industry-led advice. Strengthening …
Department for Business and Trade
24
Conclusion
Seventh report - Decarbonising heat in …
At present there is no company that operates as a “one stop shop” where customers can procure all the services required for a successful retrofit installation and change to a low carbon heating system. Consideration should be given to project management upskilling with regards to whole system and energy efficiency …
Government response. Ofgem is the independent regulator for gas and electricity markets in Great Britain. As such, they already have a significant role regulating companies in the heating sector. The Government is committed to legislating within this parliament to regulate the heat …
Department for Business and Trade
25
Recommendation
Seventh report - Decarbonising heat in …
In addition to working with industry and trade unions, we recommend that the Government works closely with local and regional authorities in England allowing local leaders to deliver coherent services to their populations, for example through the regional delivery of the adult skills budget and promote the connection between net …
Government response. Local and regional governments play a vital role in driving local climate action, especially in key areas such as energy, housing, and transport. We understand that the Government has a crucial role to play in supporting local areas to deliver …
Department for Business and Trade
26
Conclusion
Seventh report - Decarbonising heat in …
The Green Homes Grant was an important and welcomed initiative. However, the way in which the Government designed the Green Homes Grant, both as a short- term stimulus instead of a long-term national infrastructure project and as a hastily developed, outsourced scheme, was misguided. It is vital that the lessons …
Government response. The Government has been working closely with regional government representatives to attract investment within the supply chain. This has included facilitating discussions with heating appliance manufacturers interested in increasing their manufacturing capacity and training capability in the UK. The Government …
Department for Business and Trade
27
Recommendation
Seventh report - Decarbonising heat in …
We call on the Government to prioritise the development and launch of a replacement for the Green Homes Grant, delivered locally through regional and local government in England instead of centrally by the Department. Ministers should provide an update on this work in response to this report.
Government response. The Government recognises that local authorities play an essential role in driving local climate action, including on the decarbonisation of homes. We are committed to working closely with local and regional governments to help them deliver on their ambitions, including …
Department for Business and Trade
28
Recommendation
Seventh report - Decarbonising heat in …
We welcome the new Boiler Upgrade Scheme announced in the Heat and Buildings Strategy. To ensure the success of the scheme, we recommend that in the delivery of the scheme, the Government must: 1) explain what lessons have been learnt from various failed past schemes and how this scheme will …
Government response. Placing climate at the centre of Government decision-making is vital to ensure the UK remains on track to achieving net zero emissions. Our governance is a critical way that we understand the links across Net Zero, and between Net Zero …
Department for Business and Trade
29
Conclusion
Seventh report - Decarbonising heat in …
The current apportioning of environmental levies disincentivises the switch to electrified low carbon heating solutions, such as heat pumps, because the running costs are greater than a gas boiler. As we have seen with the ongoing gas market crisis, increases in gas prices have increased energy bills, which has, in …
Government response. Government recognises that current pricing of electricity and gas does not incentivise consumers to make green choices, such as switching from gas boilers to electric heat pumps. We are committed to keeping costs fair and affordable for industry and consumers, …
Department for Business and Trade
30
Recommendation
Seventh report - Decarbonising heat in …
We recommend that the Government reapportions environmental levies to improve the financial attractiveness of electrified heat and to encourage the uptake of electrified low carbon heating systems incrementally over several years. The levies should reflect the relative carbon emissions of gas and electricity. We further recommend that this reapportioning must …
Government response. Government recognises that current pricing of electricity and gas does not incentivise consumers to make green choices, such as switching from gas boilers to electric heat pumps. We are committed to keeping costs fair and affordable for industry and consumers, …
Department for Business and Trade
31
Recommendation
Seventh report - Decarbonising heat in …
We call on Ministers to mandate the Committee on Fuel Poverty to monitor and report annually on the transition costs on fuel poor households. (Paragraph 125) Consumer engagement and protection
Government response. The Committee on Fuel Poverty is an advisory non-departmental public body. As an arm’s length body, sponsored by the Department for Business, Energy & Industrial Strategy, it is not directed by the Government and provides independent advice on the effectiveness …
Department for Business and Trade
32
Conclusion
Seventh report - Decarbonising heat in …
Consumer engagement and awareness when it comes to the decarbonisation of domestic heat is low. One of the greatest shortfalls of the Heat and Buildings Strategy is that it misses the opportunity to outline the Government’s plan to drive up consumers’ understanding of the importance of the transition to low …
Government response. The Government agrees with the Committee’s recognition that further action is needed to increase consumer awareness in this area, the key technologies and interventions involved, and the priority actions to take through a blend of Government-led and industry-led advice. Strengthening …
Department for Business and Trade
33
Conclusion
Seventh report - Decarbonising heat in …
It is clear that current technologies to decarbonise home heating lack widespread consumer awareness and are at price points that make transition costly for most households. The sector needs to demonstrate more commitment to improving their product capabilities and greater potential for price reductions as production 58 Decarbonising Heat in …
Government response. It is clear that current technologies to decarbonise home heating lack widespread consumer awareness and are at price points that make transition costly for most households. The sector needs to demonstrate more commitment to improving their product capabilities and greater …
Department for Business and Trade
34
Recommendation
Seventh report - Decarbonising heat in …
The Government should establish a national consumer awareness campaign that, as a minimum, informs the public on why the decarbonisation of heat is needed, what low carbon heating solutions are available and the changes that consumers may have to make in their homes to install low carbon heating. The Government …
Government response. The Government agrees with the Committee’s recognition that further action is needed to increase consumer awareness in this area, the key technologies and interventions involved, and the priority actions to take through a blend of Government-led and industry-led advice. Strengthening …
Department for Business and Trade
35
Recommendation
Seventh report - Decarbonising heat in …
Currently, there are no sufficiently robust consumer protections in place for the heating sector, especially for poor quality installations. The Heat and Buildings Strategy failed to set out a robust consumer protections framework that will build consumer confidence and trust in energy companies and the heating sector as a whole. …
Government response. Ofgem is the independent regulator for gas and electricity markets in Great Britain. As such, they already have a significant role regulating companies in the heating sector. The Government is committed to legislating within this parliament to regulate the heat …
Department for Business and Trade
36
Recommendation
Seventh report - Decarbonising heat in …
We were pleased to see in the Heat and Buildings Strategy the Government’s recognition of the role that local authorities play in the decarbonisation of domestic heat and the net zero agenda as a whole. The Government must avoid setting unfunded mandates for local and regional governments to deliver its …
Government response. Local and regional governments play a vital role in driving local climate action, especially in key areas such as energy, housing, and transport. We understand that the Government has a crucial role to play in supporting local areas to deliver …
Department for Business and Trade
37
Recommendation
Seventh report - Decarbonising heat in …
Throughout our inquiry we have heard about the co-ordination gap between central policies and the delivery of these policies at the local level. It is an oversight of the Heat and Buildings Strategy that it did not explore how the delivery of low carbon heat can be improved. Further to …
Government response. The Government has been working closely with regional government representatives to attract investment within the supply chain. This has included facilitating discussions with heating appliance manufacturers interested in increasing their manufacturing capacity and training capability in the UK. The Government …
Department for Business and Trade
38
Conclusion
Seventh report - Decarbonising heat in …
The Department for Levelling Up, Housing and Communities should give higher priority to the decarbonisation of homes and the support it offers to local and regional government in England, and should, in partnership with the Department for Business, Energy and Industrial Strategy, publish joint milestones and metrics setting out which …
Government response. The Government recognises that local authorities play an essential role in driving local climate action, including on the decarbonisation of homes. We are committed to working closely with local and regional governments to help them deliver on their ambitions, including …
Department for Business and Trade
39
Recommendation
Seventh report - Decarbonising heat in …
We call on the COP26 President, the Rt Hon Alok Sharma MP, in his capacity as chair of the Cabinet Office Climate Adaptation and Implementation Committee, Decarbonising Heat in Homes 59 to take ministerial responsibility for improved coordination between Departments and to present an annual report to Parliament on progress …
Government response. Improved coordination Placing climate at the centre of Government decision-making is vital to ensure the UK remains on track to achieving net zero emissions. Our governance is a critical way that we understand the links across Net Zero, and between …
Department for Business and Trade