The Parliamentary Under-Secretary of State for Energy Security and Net Zero (Miatta Fahnbulleh)
The Government were elected on a promise to deliver warmer homes with lower energy bills for families across the country. Decent homes are the foundation of decent lives, and our warm homes plan is driven by a simple principle: every household deserves the security of a home they can afford to heat.
Today, I am pleased to confirm funding for the warm homes plan that means that next year more homes will benefit from upgrades to make them more energy efficient and cheaper to run—more than double the number of upgrades delivered last year. Next year will see a total investment of £3.2 billion from Government, social housing providers and obligations on suppliers.
As part of the changes we are announcing today, more households will now be able to install an air source heat pump without the need to submit a planning application. The Government are removing the rule requiring heat pumps to be installed at least one metre away from a property’s boundary, which was an outdated regulation that prevented thousands of installations.
In addition, the Government are increasing direct grant support for heat pumps through the boiler upgrade scheme, adding £30 million for the rest of this financial year and doubling the budget for the next financial year to £295 million. We are also setting out plans to consult on further increases to energy efficiency standards for both new heat pumps and new boilers, helping households save money off their bills.
We recognise that support for the supply chain will be critical to deliver the warm homes plan. That is why we will be providing investment in home-grown heat pump production through the heat pump investment accelerator competition, and stimulating further investment in the supply chain through the introduction of a reformed clean heat market mechanism, for which we are laying a statutory instrument today. Ministers have been engaging closely with industry on a shared vision for the transition to cleaner, cheaper heating and look forward to continuing that constructive dialogue and partnership during the further development and delivery of the warm homes plan.
Over the coming months, I look forward to building on the announcements made today and publishing our warm homes plan in full. This will detail our new approach to delivering warmer homes with lower energy bills, tackling the fuel poverty currently experienced by too many people, and creating new opportunities for jobs, skills, and investment right across the country.
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