Select Committee · Business and Trade Committee

Decarbonising heat in homes

Status: Closed Opened: 2 Oct 2020 Closed: 18 May 2022 28 recommendations 11 conclusions 1 report

The Business, Energy and Industrial Strategy (BEIS) Committee has launched an inquiry examining the path to decarbonising heating in homes. The BEIS Committee will examine the Government’s ‘Buildings and Heat Strategy’, due in November, and investigate the policies, priorities and timelines which are needed to decarbonise heating in residential buildings and help ensure the UK … Show more

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Reports

1 report
Title HC No. Published Items Response
Seventh report - Decarbonising heat in homes HC 1038 3 Feb 2022 39 Responded

Recommendations & Conclusions

16 items
1 Conclusion Seventh report - Decarbonising heat in … Acknowledged

Ineffective historic heating policy and the absence of a clear, strategic policy direction for low...

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 … Read more

Government response AI summary
The government acknowledges the need for clarity and outlines its approach, including aiming for as many homes as possible to reach EPC C by 2035 and phasing out natural gas boilers by 2035, with strategic decisions on heat by 2026.
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Department for Business and Trade
2 Conclusion Seventh report - Decarbonising heat in … Acknowledged

Evidence was clear that for low carbon heating installations to work effectively and to heat...

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 … Read more

Government response AI summary
The government acknowledges the need for interlinked policies and highlights its plans, including a strategic decision on hydrogen by 2026, the Future Homes Standard, and the Boiler Upgrade Scheme.
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Department for Business and Trade
5 Recommendation Seventh report - Decarbonising heat in … Acknowledged

We congratulate the Department on its work on heat networks, including the consultation on heat...

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 … Read more

Government response AI summary
The Government acknowledges concerns around heat networks and mentions its support for the market, data publication and forthcoming regulatory framework, but does not specifically commit to giving Ofgem the mandate and resources to expand and enforce consumer protections.
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Department for Business and Trade
8 Conclusion Seventh report - Decarbonising heat in … Acknowledged

We note that the then Ministry for Housing, Communities and Local Government felt it only...

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 AI summary
The government recognizes the need to phase out fossil fuel heating systems, using market trigger points and learning from the transition to low carbon transport, but doesn't commit to anything specific in response to the committee's statement.
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Department for Business and Trade
9 Conclusion Seventh report - Decarbonising heat in … Acknowledged

The Future Homes Standard is another key policy in the Energy White Paper.

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% … Read more

Government response AI summary
The government is committed to phasing out high-carbon fossil fuel heating in buildings off the gas grid during the 2020s, primarily through electrification of heat, but recognizes the need for a pace that works for industry and consumers, including targeted financial measures and regulations, with …
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Department for Business and Trade
12 Recommendation Seventh report - Decarbonising heat in … Acknowledged

Delivering net zero by 2050 will require a ban on the installation of fossil fuel...

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 … Read more

Government response AI summary
The government discusses the Green Home Finance Innovation Fund, the Green Home Finance Accelerator Programme (doubling funding to £20 million), and consultation on incentivizing mortgage lenders, but doesn't directly commit to a ban on fossil fuel heating systems or more ambitious plans for pricing and …
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Department for Business and Trade
13 Recommendation Seventh report - Decarbonising heat in … Acknowledged

We recommend that in the context of the phasing out of gas boilers, the Government...

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 … Read more

Government response AI summary
The Government outlines the measures being taken to ensure the market is in place to deliver on the ambition of 600,000 annual heat pump installations by 2028, including financial support, market intervention and regulations. They are working with industry to ensure the enabling conditions are …
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Department for Business and Trade
14 Recommendation Seventh report - Decarbonising heat in … Acknowledged

It is vital that the Government should meet its target to deliver a minimum of...

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 AI summary
The government describes its plans for a market-based mechanism and consultation but does not directly address how it will meet the 600,000 heat pump target, only stating that the mechanisms are *designed to deliver* on the ambition.
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Department for Business and Trade
21 Recommendation Seventh report - Decarbonising heat in … Acknowledged

We recommend that the Government introduce a heat decarbonisation sector deal by 2023 so that...

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 AI summary
The government says they are committed to keeping costs fair and affordable, exploring options to shift energy levies away from electricity, expand carbon pricing, and remove costs from electricity bills, with proposals to be published in 2022, while providing financial support through existing schemes.
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Department for Business and Trade
23 Recommendation Seventh report - Decarbonising heat in … Acknowledged

The Government must urgently develop a low carbon heating training programme, in partnership with industry...

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 … Read more

Government response AI summary
The Government agrees that further action is needed to increase consumer awareness and mentions progress made in raising public awareness and interest in climate change, enhancing communication channels, and increased investment into the digital service, Simple Energy Advice, but doesn't directly address developing a low …
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Department for Business and Trade
25 Recommendation Seventh report - Decarbonising heat in … Acknowledged

In addition to working with industry and trade unions, we recommend that the Government works...

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 … Read more

Government response AI summary
The government acknowledges the vital role of local and regional governments and mentions the Local Net Zero Forum, the Local Net Zero Programme, and funding for various decarbonisation schemes delivered in partnership with local authorities, but does not commit to specifically working with local and …
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Department for Business and Trade
27 Recommendation Seventh report - Decarbonising heat in … Acknowledged

We call on the Government to prioritise the development and launch of a replacement for...

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. Read more

Government response AI summary
The government acknowledges the role of local authorities in decarbonising homes and mentions strategies and milestones for decarbonizing heating, but doesn't commit to prioritizing a replacement for the Green Homes Grant delivered locally, as specifically recommended.
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Department for Business and Trade
29 Conclusion Seventh report - Decarbonising heat in … Acknowledged

The current apportioning of environmental levies disincentivises the switch to electrified low carbon heating solutions,...

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 … Read more

Government response AI summary
The government acknowledges the disincentives in current electricity and gas pricing, commits to keeping costs fair, and states they are exploring options to shift or rebalance energy levies away from electricity, with proposals to be published in 2022.
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Department for Business and Trade
31 Recommendation Seventh report - Decarbonising heat in … Acknowledged

We call on Ministers to mandate the Committee on Fuel Poverty to monitor and report...

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 AI summary
Ministers cannot mandate the actions of the Committee on Fuel Poverty but will continue to work closely with them.
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Department for Business and Trade
32 Conclusion Seventh report - Decarbonising heat in … Acknowledged

Consumer engagement and awareness when it comes to the decarbonisation of domestic heat is low.

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 … Read more

Government response AI summary
The government agrees that further action is needed to increase consumer awareness, is working to develop a strategy for climate change communications, enhance communication channels, and increase investment into the digital service, Simple Energy Advice.
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Department for Business and Trade
33 Conclusion Seventh report - Decarbonising heat in … Acknowledged

It is clear that current technologies to decarbonise home heating lack widespread consumer awareness and...

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 … Read more

Government response AI summary
The government acknowledges the committee's conclusion.
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Department for Business and Trade

Oral evidence sessions

5 sessions
Date Witnesses
16 Nov 2021 Ian Rippin · Microgeneration Certification scheme, Juliet Phillips · E3G, Marcus Shepheard · Climate Change Committee, Zoe Guijarro · Citizens Advice View ↗
8 Jun 2021 Caroline Bragg · Association for Decentralised Energy, Ed Dodman · Ombudsman Services, James Richardson · National Infrastructure Commission, Jenny Hill · Committee on Climate Change, Matthew Copeland · National Energy Action, Neil Kenward · Ofgem, Polly Billington · UK100, Stephen Knight · Heat Trust View ↗
20 Apr 2021 Emma Harvey · Coalition for the Energy Efficiency of Buildings, Juliet Phillips · E3G, Mark Barrett · University College London, Naomi Baker · Energy Saving Trust View ↗
16 Mar 2021 Angie Needle · Cadent Gas, David Renard · Local Government Associations’ Environment, Economy, Housing and Transport Board, George Day · Energy Systems Catapult, Greg Jackson · Octopus Energy, Michael Lewis · E.ON, Patrick Chauvin · Stonewater, Randolph Brazier · Energy Networks Association, Steve Keeton · Vaillant Group UK Ltd View ↗
9 Feb 2021 Craig Dyke · National Grid Electricity System Operator, Dr Richard Lowes · University of Exeter, Dr Will McDowall · University College London, Graham Halladay · Western Power Distribution, Gus McIntosh · SGN, Ian Rippin · Microgeneration Certification Scheme Service Company, Professor Janette Webb · University of Edinburgh, Professor Nick Eyre · University of Oxford View ↗

Who gave evidence

31 witnesses
WitnessOrganisationSessions
Juliet Phillips · Senior Policy Advisor E3G 2
Angie Needle · Director of Strategy Cadent Gas 1
Caroline Bragg · Head of Policy Association for Decentralised Energy 1
Craig Dyke · Head of Strategy and Regulation National Grid Electricity System Operator 1
David Renard · Chair Local Government Associations’ Environment, Economy, Housing and Transport Board 1
Dr Richard Lowes · Research Fellow and Lecturer University of Exeter 1
Dr Will McDowall · Associate Professor University College London 1
Ed Dodman · Director of Regulatory Affairs Ombudsman Services 1
Emma Harvey · Programme Director Coalition for the Energy Efficiency of Buildings 1
George Day · Head of Markets, Policy and Regulation Energy Systems Catapult 1
Graham Halladay · WPD Operations Director Western Power Distribution 1
Greg Jackson · CEO and Founder Octopus Energy 1
Gus McIntosh · Director of Energy Futures SGN 1
Ian Rippin · Chief Executive Officer Microgeneration Certification scheme 1
Ian Rippin · Chief Executive Officer Microgeneration Certification Scheme Service Company 1
James Richardson · Chief Economist National Infrastructure Commission 1
Jenny Hill · Head of Buildings and International Action Committee on Climate Change 1
Marcus Shepheard · Lead Analyst Residential Buildings Climate Change Committee 1
Mark Barrett · Professor of Energy and Environmental Modelling University College London 1
Matthew Copeland · Policy Manager National Energy Action 1
Michael Lewis · CEO E.ON 1
Naomi Baker · Policy Officer Energy Saving Trust 1
Neil Kenward · Director for Strategy and Interim Director for Ma… Ofgem 1
Patrick Chauvin · Executive Director - Assets Stonewater 1
Polly Billington · Chief Executive Officer UK100 1
Professor Janette Webb · Professor of Sociology of Organisation University of Edinburgh 1
Professor Nick Eyre · Professor of Energy and Climate Policy University of Oxford 1
Randolph Brazier · Director of Innovation and Electricity Systems Energy Networks Association 1
Stephen Knight · Managing Director Heat Trust 1
Steve Keeton · Director of External Affairs Vaillant Group UK Ltd 1
Zoe Guijarro · Senior Policy Researcher Citizens Advice 1

Correspondence

16 letters
DateDirectionTitle
1 Mar 2022 To cttee Letter from the COP President on decarbonisation of domestic heat
9 Feb 2022 To cttee Letter from the Chair to the COP26 President on the decarbonisation of heat in …
8 Sep 2021 To cttee Letter from the Minister of State for Housing on policies for decarbonising hea…
22 Jul 2021 To cttee Letter from the Exchequer Secretary to the Treasury relating to policy relevant…
13 Jul 2021 From cttee Letter to the Exchequer Secretary to the Treasury requesting a Minister to atte…
13 Jul 2021 To cttee Letter from the Exchequer Secretary to the Treasury on the request to attend th…
13 Jul 2021 To cttee Letter from the Chair to the Secretary of State for Housing, Communities and Lo…
8 Jul 2021 To cttee Letter from the Minister for Housing declining the invitation to give oral evid…
27 May 2021 To cttee Letter from the Chief Executive, Octopus Energy, to the Chair relating to decar…
13 May 2021 To cttee Letter from Chris O’Shea, CEO of Centrica, to the Chair relating to decarbonisi…
27 Apr 2021 To cttee Letter from Greg Jackson, CEO, Octopus Energy to the Chair in follow up on poin…
13 Apr 2021 To cttee Letter from the Secretary of State to the Chair regarding the Green Homes Grant…
23 Mar 2021 To cttee Letter from the Director of Strategy, Cadent Gas, to the Chair in follow up to …
23 Mar 2021 To cttee Letter from the Chair of the Local Government Association Environment, Economy,…
23 Mar 2021 To cttee Letter from the Chief Executive of E.ON to the Chair in follow up to oral evide…
4 Mar 2021 To cttee Letter from the Chair to the Secretary of State regarding the Green Homes Grant

Meetings & visits

1 item
DateTypeDetail
15 Apr 2021 Informal meeting Private briefing · Virtual meeting