UK Inquiry Tracker

Decarbonising home heating

Public Accounts Committee Closed Inquiry

Opened: 22 Mar 2024 Closed: 29 May 2024 Parliament page

Home heating made up 18% of all UK greenhouse gas emissions in 2021. In October of the same year, the Government published its Heat and Buildings Strategy, which has the ambition to end the installation of new fossil fuel boilers by 2035. It also commits to growing the supply chain … Read more Home heating made up 18% of all UK greenhouse gas emissions in 2021. In October of the same year, the Government published its Heat and Buildings Strategy, which has the ambition to end the installation of new fossil fuel boilers by 2035. It also commits to growing the supply chain for heat pumps to a minimum market capacity of 600,000 installations per year by 2028 – an eleven-fold increase from 55,000 heat pump sales in 2022. Heat pumps and heat networks are envisaged by Government as the primary low-carbon technology for the decarbonisation of home heating over the next decade. It also set 2026 as the year by which evidence would be developed to inform decisions on the future role of hydrogen in home heating. In March 2024, the National Audit Office’s (NAO) report on progress in decarbonising home heating found that trials of hydrogen schemes intended to support government decision-making are either delayed or cancelled. It also found that the Government’s Boiler Upgrade Scheme has achieved a lower than expected uptake, with expectations for the increase in heat pump installations by 2028 based on optimistic assumptions. The Committee’s reports on the Renewable Heat Incentive (2018) and the Green Homes Grant Voucher Scheme (2021) found that both schemes underperformed, provided poor value for money, and were also based on over-optimistic promises. Based on the NAO report, the Committee will hear from senior officials at the Department for Energy Security and Net Zero (DESNZ), on how Government intends to deliver emission reductions in home heating, which will be key to meeting the overall target to achieve net zero by 2050. If you have evidence on these issues, please submit it here by 23:59 on 10 April 2024. Please look at the requirements for written evidence submissions and note that the Committee cannot accept material as evidence that is published elsewhere. This inquiry was closed due to the 2024 General Election. Show less

16 Recommendations

23 Conclusions

1 Report

1 Oral session

1 Letter

1 Event

Activity timeline 5 events

11 Jul
2025

Report published

Treasury minutes: Government response to the Committee of Public Accounts on the Thirty-seventh report from Session 2023-24

26 May
2024

Report published

Thirty-Seventh Report - Decarbonising home heating

8 May
2024

Correspondence

Correspondence from Richard Warren, Director of Public Affairs, The Kensa Group, re Decarbonising Home Heating, dated 1 May 2024

24 Apr
2024

Oral evidence

Decarbonising home heating

24 Apr
2024

Formal meeting (oral evidence session) · The Grimond Room, Portcullis House

Decarbonising home heating

Oral evidence sessions 1 session

24 Apr 2024

View on parliament.uk

Decarbonising home heating

Ben Rimmington · Department for Energy Security and Net Zero David Capper · Department for Energy Security and Net Zero Jeremy Pocklington CB · Ministry of Defence

Reports 1 report · click to expand

Title	HC No.	Published	Items	Response
Thirty-Seventh Report - Decarbonising home heating	HC 653	26 May 2024	39	Responded

Recommendations & Conclusions

11 results

2 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

Set out plans to simplify heat pump landscape for consumers, clarifying insulation impacts.

We are concerned that there is too much complexity and potential confusion for households to enable them to make informed decisions about installing a heat pump. Households can face complex decisions when looking to install a heat pump. For example, … Read more

Government Response

The government agrees and is improving its Heat Pump Home Suitability tool to include localized links, advice on pipework and radiators, and the impact of insulation on energy bills. It will also set out further improvements to consumer navigation in the Warm Homes Plan.

HM Treasury

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3 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

Set out actions to increase heat pump installer numbers beyond 2025 to meet targets.

DESNZ has made good progress in increasing the number of trained heat pump installers, but it faces a huge challenge to make sure there are enough installers to achieve its target to install 600,000 heat pumps per year by 2028. … Read more

Government Response

The government agrees and is taking actions to increase installers, including the Heat Training Grant (until April 2025), a new Low Carbon Heating Technician apprenticeship (Autumn 2023), and supporting local supply chains with over £600,000 in pilots. It has also established the Office for Clean Energy Jobs.

HM Treasury

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5 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

DESNZ lacks clear plan for decarbonising homes where heat pumps are impractical.

DESNZ has not yet worked out how it will support households to decarbonise their homes where heat pumps are not a practical solution. An estimated 20 per cent of homes might be exempt from the government’s plans to phase out … Read more

Government Response

The government agrees to provide further information on alternative low-carbon heating technologies for properties unsuitable for traditional heat pumps and has commissioned research on feasible approaches, which it intends to publish in Summer 2025.

HM Treasury

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7 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

Government plans to decarbonise power, crucial for low-carbon heating, face substantial delays.

Low-carbon heating will increase demand for electricity, but the government’s plans to decarbonise power have been delayed substantially. Heat pumps may change existing patterns around the demand for electricity, and DESNZ recognises that it needs to make sure the power … Read more

Government Response

The government agrees and has announced a Clean Power by 2030 target, appointing Chris Stark to lead a '2030 Mission Control' to accelerate delivery of critical clean energy infrastructure and resolve obstacles.

HM Treasury

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1 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

Committee took evidence from DESNZ on decarbonising home heating based on C&AG report.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (DESNZ) about decarbonising home heating.1

Government Response

The government agrees, stating it is investing up to £42 million in the Heat Pump Ready innovation programme, part of the £1 billion Net Zero Innovation Portfolio, with projects underway and concluding in 2025, to overcome barriers and support innovation in heat pump deployment.

HM Treasury

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8 Recommendation Accepted

Thirty-Seventh Report - Decarbonis…

Upfront heat pump installation costs remain too high for many households despite grants.

Grants under the Boiler Upgrade Scheme are available to all households irrespective of income. While other schemes are available for low income households, such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and the Energy Company Obligation, DESNZ explained … Read more Grants under the Boiler Upgrade Scheme are available to all households irrespective of income. While other schemes are available for low income households, such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and the Energy Company Obligation, DESNZ explained that the Boiler Upgrade Scheme is designed for the able- to-pay market. The £7,500 grant covers nearly 60% of the average cost of installing a heat pump, based on the average cost in 2023.11 An energy industry representative, the Energy & Utilities Alliance, told us in its written evidence to us that by definition, only those households who can afford to pay the remaining amount to top up the grant can afford to participate in the Scheme.12 According to the Energy Saving Trust, this creates a gap in support for those who are ineligible for fuel poverty schemes but are unable to afford the total upfront cost of switching to a low carbon heating system.13 Similarly, the MCS 5 Qq 3, 49; C&AG’s Report, paras 15–16. Installation cost figures represent real-term reduction compared to the cost in 2021 6 Qq 3, 30, 119; C&AG’s Report para 16 7 DHH0015, Written evidence submitted by The Building Societies Association, 29 April 2024; DHH0043, Written evidence submitted by Calor Gas, 29 April 2024; DHH0046, Written evidence submitted by Good Energy, 29 April 2024; DHH0053, Written evidence submitted by Centrica, 29 April 2024 8 Qq 3, 10, 30; C&AG’s Report, para 15 9 Qq 11, 43 10 Qq 11, 43; C&AG’s Report, para 3.19 11 Qq 30, 54–55; C&AG’s Report, para 15 12 DHH0040, Written evidence submitted by Energy & Utilities Alliance, 29 April 2024 13 DHH0026, Written evidence submitted by Energy Saving Trust, 29 April 2024 Decarbonising home heating 11 Foundation told us that upfront costs were too high for many households even with the help of a grant, making it “impossible for households without savings to benefit from the scheme”.14 Energy UK, a representative body for the energy industry, called for the costs to be Show less

Government Response

Government agrees with the recommendation and commits to writing to the Committee by Spring 2025 upon publication of interim findings from the Boiler Upgrade Scheme evaluation, detailing heat pump uptake among different socio-economic groups.

HM Treasury

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9 Recommendation Accepted

Thirty-Seventh Report - Decarbonis…

Boiler Upgrade Scheme's universal grants risk "deadweight" for affluent heat pump adopters.

We asked DESNZ whether heat pumps were being installed by people who may have switched to a heat pump anyway, particularly more affluent households. DESNZ accepted that the universal nature of the Boiler Upgrade Scheme raised a prospect of “deadweight”, … Read more

Government Response

HM Treasury

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23 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

DESNZ evaluates Boiler Upgrade Scheme, but evaluation scope and coverage remain unclear.

We asked DESNZ how it was learning lessons from the roll out of heat pumps. It explained that it had already learned some lessons, such as about the level of grant driving demand, and that it would continue to evaluate … Read more

Government Response

The government agrees with the recommendation and commits to writing to the Committee upon publication of the first interim findings from the Boiler Upgrade Scheme evaluation. This report is expected in Spring 2025 and will include details on heat pump take-up across different socio-economic groups.

HM Treasury

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28 Recommendation Accepted

Thirty-Seventh Report - Decarbonis…

Major hydrogen heating village trials cancelled or delayed, impacting 2026 strategic decision.

In the 2021 Heat and Buildings strategy, DESNZ committed to developing the evidence base necessary to take strategic decisions on the role of hydrogen for heating buildings in 2026. It also committed to establishing large-scale trials of hydrogen for heating, … Read more

Government Response

Government confirms the recommendation is implemented, acknowledging the cancellation or delay of major hydrogen trials and outlining its ongoing research and development programme to gather evidence for strategic decisions on hydrogen for heating.

HM Treasury

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29 Recommendation Accepted

Thirty-Seventh Report - Decarbonis…

Hydrogen town pilot progress halted until after 2026 strategic heating decisions.

We observed that, at the time of our evidence session, an announcement on a successful bidder for a hydrogen town, planned for the end of this decade, was delayed by 13 months. We asked DESNZ when an announcement could now … Read more

Government Response

Government confirms the recommendation is implemented, stating the decision not to progress a hydrogen town pilot until after 2026 strategic decisions, and outlining its ongoing research and development programme for hydrogen heating.

HM Treasury

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30 Conclusion Accepted

Thirty-Seventh Report - Decarbonis…

Hydrogen trials cancellations adversely impact evidence collection for 2026 strategic decision.

In response to a question about how DESNZ had got so far with the trial at Redcar before realising that the supply of hydrogen needed was not available, DESNZ said that it was not solely reliant on the outcomes from … Read more

Government Response

The government states the recommendation is already implemented, detailing its ongoing research and development programme for hydrogen heating. This programme includes safety evidence, technical assessments, trial evidence, and energy systems modelling to inform a strategic decision in 2026.

HM Treasury

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Government Response AI assessment · 39 of 16 classified

Accepted 11

Accepted in Part 5

Acknowledged 9

Deferred 11

Rejected 3

Total 16 recs + 23 conclusions

Correspondence 1 letter

8 May 2024 Correspondence from Richard Warren, Director of Public Affairs, The Kensa Group, re Decarbonising Home Heating, dated 1 May 2024

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