Warm Homes Plan: the industry responds

Niamh O Regan, Senior Researcher, Social Market Foundation:
“Britain has some of the coldest homes in Europe, alongside high energy costs. The best way to reduce energy bills in the long term is through reducing energy consumption.
The arrival of the long-awaited Warm Homes Plan shows the government has acknowledged exactly that. There is much to welcome in the Plan. The introduction of low and zero interest loans for installing energy efficiency measures will help many homeowners to overcome the barrier of high upfront costs often faced when adopting green technologies.
Support for renters is especially welcome, and something the Social Market Foundation has long called for. With little power over upgrades to their homes, new rules for landlords should help ensure they see the benefits of the Warm Homes Plan too.The £5 billion in targeted measures to help low-income families to improve their homes is also a positive announcement, helping to replace previous funding available for those in the poorest homes.”

Chris Galpin, Senior Policy Advisor, E3G:
“Stronger building efficiency standards will be life-changing for many renters – slashing their bills by hundreds of pounds a year, as well as keeping their homes drier and healthier. But more still needs to be done to protect households with electric heating, who are twice as likely to face fuel poverty as other households.”

Nigel Pocklington, CEO, Good Energy:
“This is the breakthrough the industry has been waiting for. Most households want to make greener energy choices, but the first hurdle is the upfront cost. That’s why the Warm Homes Plan is a welcome step towards making comfortable, renewable-powered homes more achievable.
“Done well, efficient and well-insulated homes powered by clean energy can cut bills and reduce emissions, while supporting a more flexible and resilient energy system. However, funding will need to be at scale to truly make a difference to the Government’s net zero targets, with an application process that doesn’t put people off with complex jargon.”

Bill Esterson MP, Chair, Commons Energy Security and Net Zero Committee:
“It is good to see the Government supporting people, especially low-income families, to buy into technological solutions like heat pumps and solar panels. But we must remember that beyond those upfront costs, it’s still cutting the price of electricity and closing the gap with gas that will make this work.
“In the meantime, notwithstanding the concerns about botched cavity wall insulation schemes, loft insulation is still a cheap, easy way to warm your home and cut your bills. We need to ensure we have trained, trusted fitters across the country with the confidence to take part in the Warm Homes Plan after the scandal of ECO.
“Insulating homes for warmth and reduced energy demand was the right idea before, and it’s still the right idea”.

Chris Unsworth, Head, ADE: Heat Networks:
“The Warm Homes Plan stops short of providing the certainty to unlock growth. To attract the major investment required, government must now go further – formally recognise heat networks as critical infrastructure, deploy capital to deliver heat networks for the lowest income households and ensure a level playing field on policy costs. This will transform a foundation into a lasting legacy of lower bills.”

Arooj Shah, Chair, Neighbourhoods Committee, Local Government Association:
“Cold, damp homes are a serious public health and social issue. Councils are pleased to see the significant investment behind the measures in this Plan, which will help cut bills and make homes warmer, safer and healthier.
“It is crucial that it is delivered properly and to high standards, with good advice for residents and a workforce with the right skills. Councils are best placed to lead this work locally and target support where it’s needed most. We need more powers and long-term, devolved funding so we can get on with improving homes and protecting tenants.”

Greg Jackson, Founder, Octopus Energy:
“The Warm Homes Plan is a really important step forward. Electrifying homes is the best way to cut bills for good and escape the yoyo of fossil fuel costs. Solar panels can slash energy costs – and paired with a battery we get the electricity when we need it. Heat pumps can be cheaper to run, and with solar they’re often dramatically cheaper. With the right finance, simpler rules and a big push from manufacturers, heat pumps will increasingly be the best solution for many homes – as they are in other countries like Sweden, Norway and Finland.
“We still need to focus on getting electricity costs lower for everyone, building on the changes in the budget, but this plan sends a clear signal that the future of home heating is electric.”

Dhara Vyas, CEO, Energy UK:
“Supporting better access to clean heat systems, solar panels, batteries and insulation will help millions of households across the UK bring down their energy bills. £15 billion is a substantial commitment, and it’s great to see the plan has an offer for all households with substantial grants for clean heat solutions and affordable finance options for various low-carbon technologies, as well as fully funded measures for fuel poor and low-income homes.
“The Warm Homes Plan also provides certainty to investors and businesses in the energy market, and will drive growth, supporting the creation of thousands of good jobs across the country.
“To ensure the plan realises its full potential, it will be important to tackle the factors that currently make electricity artificially expensive. We look forward to working with the Government to deliver the plan and accelerate the adoption of low-carbon heating technologies, including bolstering investment in heat networks, which have a critical role to play in switching millions more properties to clean heat.”

Jess Ralston, Energy Analyst, Energy and Climate Intelligence Unit:
“This plan should enable many more people able to live in ‘net zero’ homes with solar panels, insulation, batteries and heat pumps lowering bills and cutting households vulnerability to the kind of volatile gas prices that have left many homes struggling with the cost of living. At this tense time globally, it’s also an investment in the UK’s energy security with every heat pump we install reducing our reliance on gas, which will increasingly come from abroad as North Sea output continues years of decline.
“Some decisions have been a long time coming, such as minimum standards for private renters and the introduction of the Future Homes Standard for new builds. That timelines are being pushed back is likely to be frustrating for those who are still colder and poorer in shoddy rental homes, but the public overwhelmingly back better standards for new builds so should be encouraged to see new requirements on the house builders at long last.”

Andy Prendergast, National Secretary, GMB:
“This is exactly the kind of muddle-headed top down bureaucracy that gives the green transition a bad name.
“We will never hit net zero in the country if Ministers don’t listen to the voices of the people who work in energy, keeping our lights on and our homes warm. Handing out massive heat pump subsidies to a sceptical public doesn’t work – but the Government seems hell bent on doubling down. The idea that we will deploy more than one and a half million heat pumps a year within a decade is a fantasy; we don’t have the supply chains, skills or public appetite.
“This is money that could have been spent decarbonising a popular, successful gas network. Instead we are throwing good money after bad to a public who don’t want what DESNEZ is selling.”

Sachin Vihbute, HVAC and Heat Pumps Technical Consultant and Product Training Manager, LG:
“The Warm Homes Plan puts serious weight behind clean heat, with a £2.7bn commitment to the Boiler Upgrade Scheme that could be a real turning point for heat pump adoption.
“But while the plan sets out funding and ambition, it is lighter on the practical measures needed to help heat pump installations scale at pace. Financial support is an important part of the picture, but clearer consumer guidance and long-term policy certainty will be essential to give households and installers the confidence to invest.
“Manufacturers are already playing their part in supporting this transition — investing in innovation and helping to build a skilled workforce ready to meet growing demand. To fully unlock the potential of the Warm Homes Plan, continued focus on training, skills and installer capacity will be critical. Without enough qualified people to deliver these upgrades, progress risks falling short of its potential”.

Steve Brittan, CEO, Xoserve:
“While electrification of heat may be a good option for many households, it is not suitable or affordable for every UK home.
“We are pleased to see that today’s Warm Homes Plan recognises the key complementary roles green gas and biomethane will play making decarbonisation affordable and accessible to every household in the UK, decarbonising industrial processes, and ensuring availability of reliable, dispatchable electricity generation. We look forward to contributing to the biomethane policy framework consultation expected later this Spring.
“Ofgem’s ongoing “Energy System Cost Allocation and Recovery Review”, is a welcome opportunity to consider how a sustainable energy future should be funded by energy bill payers while balancing the need to keep energy costs to a minimum. We will continue to make the case for biogases as an affordable and reliable low carbon fuel for heating 85% of UK homes.”

James Earl, CEO, Future Energy Networks:
“The Warm Homes Plan is a subsidy scheme for heat pumps and loans for solar and batteries that will largely benefit those who can already afford them, doubling down on an approach that isn’t working while ignoring technologies that could make decarbonisation accessible for all.
“Biomethane is already heating around one million homes. Hybrid heat pumps cut emissions while keeping bills down, yet remain outside the Boiler Upgrade Scheme. A serious plan would use every available tool, not exclude options that are already working.
“Households are still navigating a cost of living and energy debt crisis. They need affordable choices, not a one-size-fits-all approach.”

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