The UK government’s Boiler Upgrade Scheme, which provides grants for homeowners to replace fossil fuel heating with heat pumps, has come under criticism for benefiting wealthier homeowners and not covering the full cost of installation. As of March, the government had spent £138.9 million on grants through the scheme, with most applications being for air source heat pumps. Heat pumps are part of the government’s strategy to reach net-zero carbon emissions by 2050.
However, Mike Foster, CEO of The Energy and Utilities Alliance, has raised concerns about the scheme. He argues that the subsidy of £7,500 falls short of covering the average cost of installation, which is £13,300. This means that homeowners have to come up with the additional £5,800 themselves. Foster believes that this effectively rewards those who can afford the extra cost and is paid for by taxpayers.
Furthermore, Foster highlights that heat pumps are more expensive to run than gas boilers on average. He suggests that people who choose heat pumps are doing so to reduce their carbon emissions rather than to save money. However, this choice becomes challenging for those already struggling to pay their bills. Foster emphasizes that there are five million homes in the UK without loft insulation, and he urges the government to prioritize making these homes more energy-efficient before focusing on heat pumps.
The scale of the challenge in decarbonizing heating in British homes is significant. The UK’s Climate Change Committee projects that by 2050, all heating in homes will be provided by low-carbon sources, with 52% being heat pumps. According to a study by the TaxPayers’ Alliance, if the scheme were extended to cover all 23 million homes currently using gas boilers, it could cost £115 billion.
In response to the criticism, the Department for Energy Security and Net Zero was contacted for comment but did not provide a statement.
