Seventh report - Decarbonising heat in homes
Select Committee
Business and Trade Committee
HC 1038
3 February 2022
Government Response (AI assessment · 39 of 39 classified)
Accepted
14
Acknowledged
16
Deferred
3
Rejected
1
Recommendations
9 results
5
Acknowledged
Para 45
We congratulate the Department on its work on heat networks, including the consultation on heat...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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12
Acknowledged
Para 60
Delivering net zero by 2050 will require a ban on the installation of fossil fuel...
Recommendation
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 …
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Government Response 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 innovation, as the recommendation urged.
Department for Business and Trade
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13
Acknowledged
We recommend that in the context of the phasing out of gas boilers, the Government...
Recommendation
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 …
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Government Response 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 right to support this growth through initiatives like the Heat Pump Ready Innovation Programme and by ensuring appropriate training is available.
Department for Business and Trade
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14
Acknowledged
It is vital that the Government should meet its target to deliver a minimum of...
Recommendation
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 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.
Department for Business and Trade
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21
Acknowledged
Para 80
We recommend that the Government introduce a heat decarbonisation sector deal by 2023 so that...
Recommendation
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 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.
Department for Business and Trade
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23
Acknowledged
Para 91
The Government must urgently develop a low carbon heating training programme, in partnership with industry...
Recommendation
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 …
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Government Response 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 carbon heating training program in partnership with industry and trade unions.
Department for Business and Trade
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25
Acknowledged
In addition to working with industry and trade unions, we recommend that the Government works...
Recommendation
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 …
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Government Response 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 regional authorities on the regional delivery of the adult skills budget, or promoting the connection between net zero policies and ‘green job’ creation.
Department for Business and Trade
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27
Acknowledged
Para 105
We call on the Government to prioritise the development and launch of a replacement for...
Recommendation
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 …
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Government Response 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.
Department for Business and Trade
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31
Acknowledged
We call on Ministers to mandate the Committee on Fuel Poverty to monitor and report...
Recommendation
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 Summary
Ministers cannot mandate the actions of the Committee on Fuel Poverty but will continue to work closely with them.
Department for Business and Trade
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Conclusions (7) Observations and findings — click to expand
1
Conclusion
Acknowledged
Para 30
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 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.
2
Conclusion
Acknowledged
Para 31
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 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.
8
Conclusion
Acknowledged
Para 52
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 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.
9
Conclusion
Acknowledged
Para 53
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 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 a consultation on new regulations already conducted in October 2021.
29
Conclusion
Acknowledged
Para 123
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 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.
32
Conclusion
Acknowledged
Para 139
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 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.
33
Conclusion
Acknowledged
Para 140
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 Summary
The government acknowledges the committee's conclusion.