Gas Boilers and Heaters: Replacement Programme

Lord Howell of Guildford Excerpts

Tuesday 12th January 2021 Lords Chamber

Asked by

[Lord Howell of Guildford]

To ask Her Majesty’s Government what is their estimate of the total cost of replacing gas boilers and heaters in all homes in the United Kingdom; when any such replacement programme will commence; and what charges will fall on (1) individual households, (2) property owners, and (3) tenants.

[Lord Howell of Guildford (Con) [V]]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper. I declare my interests as set out in the register.

[The Parliamentary Under-Secretary of State, Department for Business, Energy and Industrial Strategy (Lord Callanan) (Con)]

We are currently developing different pathways to decarbonise heat, and as such it is too soon to estimate these costs accurately. However, the climate change committee estimates that the investment required to decarbonise the entire economy and meet net zero is less than 1% of GDP until 2050. Ensuring that the costs of transition are allocated fairly is a priority, and we will publish a call for evidence on affordability and fairness by April.

[Lord Howell of Guildford (Con) [V]]

My Lords, I thank the Minister for that reply. These estimates are interesting but, according to the Government’s excellent energy White Paper, there are 23 million existing homes attached to the gas supply grid. While it clearly makes sense to equip newly built homes with hydrogen or heat pumps or other technologies, is not the cost of retrofitting all existing homes—estimated by a government research paper at anything between £2,500 and £8,000, or more, per dwelling—and possibly having to replace large parts of the gas delivery grid as well, clearly going to be absolutely astronomical, whether it falls on consumers or taxpayers? Given the tiny contribution, at best, that this whole project could conceivably make to taking over all global emissions growth, is this really the wisest or most effective use of our national resources in combating worldwide climate change?

[Lord Callanan (Con)]

I understand the point my noble friend is making, but we do of course have a legal commitment and obligation to reach net zero emissions by 2050. Of course, 19% of total UK greenhouse gas emissions come from buildings, so we clearly need to take action in this sector. We also marry that up with an ambitious international agenda. We are hosting COP 26 this year and we will seek to persuade our international partners to follow this agenda as well.