Source · Select Committees · Business and Trade Committee
Recommendation 19
19
Paragraph: 75
We acknowledge the introduction of the market-based mechanism outlined in the Heat and Buildings Strategy;...
Recommendation
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 and scaling up of the heat pump market.
Paragraph Reference:
75
Government Response
Acknowledged
HM Government
Acknowledged
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 March 2021. In order to ensure the effective management of the end of the scheme, it was fully closed on 30th November 2021, and this was communicated to voucher holders and installers. Local authorities are currently delivering a package of support in England including the first and second phases of the Local Authority Delivery (LAD) Scheme, worth £500 million. For 2022/23, government granted an initial £152 million in funding for the first phase of the Home Upgrade Grants (HUG) Scheme, alongside the £287 million third phase of LAD, as part of the Sustainable Warmth competition. On 21st February 2022, the Government announced a further £67 million offered to successful local authorities to supplement funding under HUG phase one. These schemes will support energy efficiency and low-carbon heat upgrades to low-income households living in the least energy efficient homes. The Heat and Buildings Strategy sets out our plans to transform heat and buildings over the next decade. This includes continuing local authority delivery by increased funding for the Social Housing Decarbonisation Fund (investing a further £800 million over 2022/23 to 2024/25) and HUG (investing £950 million over 2022/23 to 2024/25). Both schemes aim to improve the energy performance of low-income households, support low carbon heat installations, help to reduce fuel poverty and build the green retrofitting sector to benefit all homeowners. Government will continue to ensure financial support is targeted to those who need it most, supporting the most vulnerable in society in switching to low carbon heating and improving the energy efficiency of their homes.