Domestic Heat Pumps: Budget Underspend

Baroness Sheehan Excerpts

Tuesday 28th February 2023 Lords Chamber

Asked by

[Baroness Sheehan]

To ask His Majesty’s Government what assessment they have made of the reasons for the underspend in the annual £150 million budget to install domestic heat pumps and other low-carbon alternatives to gas boilers.

[The Parliamentary Under-Secretary of State, Department for Energy Security and Net Zero (Lord Callanan) (Con)]

My Lords, despite it being a challenging year for the energy sector, provisional data from Ofgem shows that we have received 14,100 applications so far. Industry has reacted positively to the scheme during its first year, with suppliers developing competitive offers alongside the grant. The Government recently launched a targeted marketing campaign to increase public awareness. We will consider options such as increased marketing, as well as keeping grant levels under close review.

[Baroness Sheehan (LD)]

My Lords, I thank the Minister for his Answer. We know that heat pumps are the only show in town today that can deliver low-carbon domestic heating cheaply and quickly. In 2022, a whopping 20 million heat pumps were installed across 16 EU countries, yet our Government fall short time after time in delivering even the basics needed for success, such as home insultation measures, a skilled workforce and improved public awareness. What plan do the Government have to move their woeful current rate of under 10,000 in almost a year on the boiler upgrade scheme to their target of 600,000 a year by 2028? Without a plan, the target is pie in the sky.

[Lord Callanan (Con)]

The noble Baroness obviously did not listen to the Answer that I gave her, because I just said that we have received 14,100 applications for the scheme. But this is not the only scheme by which heat pumps are installed. There are those that are installed by the private sector, and they are already starting to be installed in many new properties. A range of our other schemes—the social housing decarbonisation fund, home upgrade grant, et cetera—also support the installation of heat pumps.