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Lords committee say Government’s Boiler Upgrade Scheme is failing

An inquiry into the Government’s Boiler Upgrade Scheme (BUS) by The Lords Environment and Climate Change Committee has found that it is failing to deliver on its objectives, following a disappointingly poor take-up. 

The scheme was launched in April 2022 in order to move people away from  fossil fuel heating systems, offering £5,000 towards an air source heat pump, £6,000 towards a ground source heat pump and £5,000 towards a biomass boiler, setting a target of 600,000 installations per year by 2028. As things stand, the take-up rate is so slow that it will only use half the allocated budget. The committee also observed that 80 per cent of people still have little or no awareness of air source heat pumps.

The key findings of the report were:

  • public awareness of low-carbon heating systems is very limited, and promotion of the BUS has been inadequate
  • there is a shortage of heat-pump installers & insufficient independent advice for homeowners
  • Hydrogen is not a serious option for home heating for the short to medium-term and misleading messages, including from the Government, are negatively affecting take-up of established low-carbon home heating technologies like heat pumps
  • upfront costs are too high for many households, even with the help of the grant, making it impossible for low-income households to benefit from the scheme
  • while heat pump running costs are becoming competitive with gas boilers in some modelling, progress is urgently needed through electricity market reform to ensure running costs are affordable.

Baroness Parminter, Chair of the Environment and Climate Change Committee, said: ‘The transition to low-carbon heat is fundamental in the path to net zero, given that 17% of the UK’s greenhouse gas emissions come from our homes.

‘The Government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems. It is vital they do so if we are going to meet our Net Zero ambitions.’

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