Following Wednesday’s Autumn Budget, Russell Dean, at Mitsubishi Electric has shared his thoughts about why cuts to the Warm Homes Plan or Boiler Upgrade Scheme risk undermining the UK’s clean heating ambitions, potentially pushing more households towards fossil fuel heating for years to come…
Russell Dean, Residential Heating Expert at Mitsubishi Electric, comments: “The Budget extended the VAT cut on electricity and provided support towards energy bills, alongside the recently announced Energy Wealth Fund. But progress towards clean heating risks being undermined by cuts to the Warm Homes Plan.
“This includes plans to save £1 billion in capital grants from the scheme, yet little detail has been given on where these reductions will fall. Worryingly, the Budget also appears to signal a £200 million reduction in Boiler Upgrade Scheme funding for next year, compared with previous commitments.
“This is despite 1,000 households using oil and LPG switching to heat pumps in August alone, over four times the number in July.
“This risks putting the UK’s transition to renewable energy in jeopardy – at a time when we need to reduce dependence on imported oil and gas to protect households from international market volatility, drive down bills and build a more resilient energy system.
“Commitments towards net zero and energy security must be matched by meaningful action. This includes making electricity more affordable relative to gas. Our recent report with Energy UK found that removing policy costs from electricity bills could save households £40 a year, or up to £300 for those with a heat pump.
“Without protecting incentives and addressing the cost of electricity, the Government risks slowing the transition to clean heating and jeopardising both affordable warmth and the UK’s long-term energy security.”
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