Boiler Upgrade Scheme has been a flop, Lords climate committee warns

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Peers have slammed the government’s Boiler Upgrade Scheme for attracting a “disappointingly low” take-up of grants.

Launched in May 2022 and open to landlords and home owners, 9,889 vouchers have been issued and 7,641 vouchers redeemed so far, making the government’s 2028 target of 600,000 installations per year very unlikely to be met, according to the Lords’ Environment and Climate Change Committee.

It warns that if the current take-up rate continues, only half of the allocated budget will be used to help households switch to low-carbon heating systems and that there won’t be enough installers and manufacturers to implement the government’s low-carbon heating policy.

It slams inadequate promotion of the scheme and misleading messages from the government which it says has negatively affected take-up of established low-carbon home heating technologies such as heat pumps.

Upfront costs are too high for many households and landlords, even with the help of the grant, making it impossible for low-income households to benefit from the scheme.

Extended

The committee wants the government to provide greater clarity on feasible options for low-carbon home heating through a consistent policy framework, public communications, and householder advice. The remainder of the scheme’s first year budget could be rolled over into the second year and possibly extended.

It also suggests correcting Energy Performance Certificates methodology so that certificates properly reward households for making the switch to low-carbon heating.

Committee chair Baroness Parminter (pictured) says: “The government must quickly address the barriers we have identified to a successful take-up of the Boiler Upgrade Scheme in order to help grow the take up of low-carbon heating systems.

“It is vital they do so if we are going to meet our Net Zero ambitions.”

Read official guidance about the scheme.

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