10 August 2021
•
3 min read
Reports suggest Treasury is drawing up plans to protect poorer households from costs associated with the net zero transition
The government is reportedly considering boosting grant funding for households deploying heat pumps and other forms of green heat technologies, as pressure mounts on Ministers to set out how they intend to accelerate the UK's transition to net zero emissions.
The Telegraph reported this morning that the government is considering increasing grants available through the new Clean Heat Grant scheme, which is due to replace the Renewable Heat Incentive (RHI) scheme from next March and provide households with grants of up to £4,000 if they switch to approved green heat systems.
Under current plans, the scheme is expected to have a budget of £100m that is set to run for just two years. But with the fledgling heat pump market well short of the government's goal of delivering 600,000 heat pump installations a year from 2028, The Telegraph reported Ministers are considering making the grant more generous while also extending the eligibility criteria for the scheme.
A final decision on the proposals is expected to be included in the Heat and Buildings Strategy, which is expected to be published next month following a series of delays caused by disagreements within Whitehall over how to fund the shift to green technologies and how ambitious the government's phase out date for fossil fuel boilers should be.
The reports came as Business Secretary Kwasi Kwarteng told the BBC yesterday that the government was also exploring plans to replace the Green Homes Grant scheme, which was controversially axed this Spring despite soaring demand from households that were keen to take advantage of grants to help fund energy efficiency improvements.
Meanwhile, allies of Chancellor Rishi Sunak yesterday pushed back against accusations he is blocking more ambitious climate policies, insisting he is on the "same page" as the Prime Minister on the need to accelerate the net zero transition.
The Times reported that Sunak was working on plans to ensure lower income families are protected from climate policy costs, with richer households covering the bulk of any costs. New green heat subsidies and tax breaks on energy bills are being considered by the Treasury, the paper reported.
"[We] will put affordability and fairness at the heart of reforms, such as investing £1.3bn into keeping bills low, helping make the homes of low-income families more energy efficient and cheaper to heat," the government said.
In related news, the heat pump industry is preparing for a surge in demand with the launch of a major new training programme designed to train over 40,000 installers a year.
The Heat Pump Association (HPA) today formally launched a new training course, which will be provided at 38 training centres spread across the UK.
"Today's launch is a landmark achievement and the HPA is proud to have worked hard with others across industry to bring this new heat pump training pathway to life," said Phil Hurley, chair of the association. "When we laid out our vision to government last year, we recognised our role in delivering training and skills, and we have successfully achieved this whilst working in constructive partnership with the Secretary of State and his team.
"The heat pump industry is now fully equipped to lead the way in transforming the way homes are heated to reduce carbon and lower energy bills. Importantly, we are also supporting plans to build back better through upskilling existing heating installers so that they are equipped with the tools and skills they need to allow consumers to access heat pumps as a solution to decarbonise their homes."
The new course was welcomed by Kwarteng, who predicted it would play a major role in helping to deliver on the government's goal of installing 600,000 heat pumps a year.
"The government is absolutely committed to working with industry to drive down the costs of heat pumps over time so they are increasingly affordable for consumers," he said. "While heat pumps are fast becoming a natural option for households, we need to ensure we have enough skilled tradespeople to hit our target of 600,000 installations each year by 2028 - so the Heat Pump Association setting up this training scheme is absolutely critical in this endeavour."
