UK Government Sets Out Warm Homes Plan with £2.7bn Investment in Heat Pumps and Insulation Upgrades, but Gas Boilers Won't Be Banned.
The UK government has unveiled a major warm homes plan worth £15 billion, aimed at cutting energy bills by as much as £1,000 per year for millions of households. The plan will overhaul 5 million dwellings across England, with billions of pounds dedicated to heat pumps and insulation upgrades.
Labour's key strategy to tackle the UK's cost of living crisis involves overhauling 5 million homes, which could save households as much as £1,000 a year on their energy bills. According to estimates, this will lift 1 million people out of fuel poverty, with grants for insulation and clean energy for those on low incomes.
The plan includes five schemes in England, with £2.7 billion dedicated to the boiler upgrade scheme, where households can swap their existing gas boilers for a new heat pump for £7,500. Additionally, £1.1 billion will go towards heat networks, which could be large heat pumps or geothermal sources, and £2.7 billion towards innovative finance through the warm homes fund.
Landlords will be forced to ensure that their rental properties are energy-efficient under the plan. However, despite opposition from parties, there won't be a ban on new gas boilers being fitted after 2035, as the government aims for about 450,000 heat pumps per year by 2030 instead of the target 600,000.
Critics argue that incentives are too weak, and larger grants for low-income households and investment in reducing electricity prices are needed. They also question the effectiveness of a "carrots not sticks" approach, suggesting that stronger measures, including a possible boiler ban, should be taken to tackle energy poverty.
"We need a 'stick' approach," says Mike Childs from Friends of the Earth. "The incentives are currently too weak – we need larger grants for low-income households and investment in reducing the price of electricity."
However, others argue that heat pumps will become increasingly popular as they become more affordable. According to Greg Jackson, founder of Octopus Energy, solar panels paired with a battery can slash energy costs, while heat pumps can be cheaper to run.
The UK government's plan is expected to support Britain's burgeoning industry for green home installations, which have struggled due to lack of political clarity.
The UK government has unveiled a major warm homes plan worth £15 billion, aimed at cutting energy bills by as much as £1,000 per year for millions of households. The plan will overhaul 5 million dwellings across England, with billions of pounds dedicated to heat pumps and insulation upgrades.
Labour's key strategy to tackle the UK's cost of living crisis involves overhauling 5 million homes, which could save households as much as £1,000 a year on their energy bills. According to estimates, this will lift 1 million people out of fuel poverty, with grants for insulation and clean energy for those on low incomes.
The plan includes five schemes in England, with £2.7 billion dedicated to the boiler upgrade scheme, where households can swap their existing gas boilers for a new heat pump for £7,500. Additionally, £1.1 billion will go towards heat networks, which could be large heat pumps or geothermal sources, and £2.7 billion towards innovative finance through the warm homes fund.
Landlords will be forced to ensure that their rental properties are energy-efficient under the plan. However, despite opposition from parties, there won't be a ban on new gas boilers being fitted after 2035, as the government aims for about 450,000 heat pumps per year by 2030 instead of the target 600,000.
Critics argue that incentives are too weak, and larger grants for low-income households and investment in reducing electricity prices are needed. They also question the effectiveness of a "carrots not sticks" approach, suggesting that stronger measures, including a possible boiler ban, should be taken to tackle energy poverty.
"We need a 'stick' approach," says Mike Childs from Friends of the Earth. "The incentives are currently too weak – we need larger grants for low-income households and investment in reducing the price of electricity."
However, others argue that heat pumps will become increasingly popular as they become more affordable. According to Greg Jackson, founder of Octopus Energy, solar panels paired with a battery can slash energy costs, while heat pumps can be cheaper to run.
The UK government's plan is expected to support Britain's burgeoning industry for green home installations, which have struggled due to lack of political clarity.