Households will be able to apply for £5,000 grant to replace gas boilers as new scheme unveiled
Households will be able to apply for a £5,000 grant to swap their gas boiler for a low-carbon heat pump, as part of government plans to cut emissions.
The government announced that the £450m Boiler Upgrade Scheme, which is part of the more than £3.9bn funding to cut carbon from heating and buildings, will be used to help it reach its target for all new heating system installations to be low carbon by 2035.
However, the government insisted families will not be forced to remove their existing fossil fuel boilers.
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Can Britain have zero carbon electricity?
Ministers said that switching to low carbon heating will cut emissions and reduce the UK’s dependency on fossil fuels, as well as its exposure to global price spikes in gas. It will also support up to 240,000 jobs across the country by 2035, they added.
The scheme will encourage people to install low carbon heating systems such as heat pumps, which run on electricity and extract energy from the air or ground.
The £3.9bn funding will be used to cut carbon from heating and buildings, including by making social housing more energy efficient and cosier, as well as reducing emissions from public buildings, over the next three years.
The £5,000 grants will be available from April and will mean people installing a heat pump will pay a similar amount to those installing traditional gas boilers, according to the plans.
The grants for heat pumps will be available for households in England and Wales, as part of the UK-wide heat and buildings strategy.
Heat pumps currently cost an average £10,000 to install and do not necessarily deliver savings on running costs despite being much more efficient than gas, because green levies are higher on electricity than on gas.
The government said its plans would help people install low-carbon heating systems in a simple, fair and cheap way as they replace their old boilers over the next decade.
It said it would work with industry to make heat pumps the same cost to buy and run as fossil fuel units by 2030.
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Prime Minister Boris Johnson said: “As we clean up the way we heat our homes over the next decade, we are backing our brilliant innovators to make clean technology like heat pumps as cheap to buy and run as gas boilers – supporting thousands of green jobs.
“Our new grants will help homeowners make the switch sooner, without costing them extra, so that going green is the better choice when their boiler needs an upgrade.”
Business and Energy Secretary Kwasi Kwarteng added: “Recent volatile global gas prices have highlighted the need to double down on our efforts to reduce Britain’s reliance on fossil fuels and move away from gas boilers over the coming decade to protect consumers in long term.
“As the technology improves and costs plummet over the next decade, we expect low carbon heating systems will become the obvious, affordable choice for consumers.”
Greg Jackson, chief executive and founder of Octopus Energy, said that when the grant scheme launches, his company will install heat pumps at about the same cost as gas boilers.
“Electric heat pumps are more efficient, safer and cleaner than gas boilers and can help make homes more comfortable with less energy,” he said.
“Today we’ve crossed a massive milestone in our fight against climate change and to reduce Britain’s reliance on expensive, dirty gas.”
Labour’s shadow business secretary, Ed Miliband, said: “As millions of families face an energy and cost of living crisis, this is a meagre, unambitious and wholly inadequate response.
“Families up and down the country desperately needed Labour’s 10-year plan investing £6bn-a-year for home insulation and zero carbon heating to cut bills by £400 per-year, improve our energy security, create jobs and reduce carbon emissions.
“People can’t warm their homes with yet more of Boris Johnson’s hot air but that is all that is on offer.”
Politics
Rachel Reeves turning around UK’s finances ‘like Steve Jobs did for Apple’, claims minister
Rachel Reeves will turn around the economy the way Steve Jobs turned around Apple, a cabinet minister has suggested ahead of the upcoming spending review.
Science and Technology Secretary Peter Kyle compared the chancellor to the late Apple co-founder when asked on Sky News’ Sunday Morning with Trevor Phillips where the £86bn for his department is coming from.
Politics Live: Winter fuel payment cut to be dealt with ‘in run up to autumn’
Apple Inc. chief executive Steve Jobs, who died in 2011. Pic: Reuters
Chancellor Rachel Reeves
The package, confirmed ahead of the full spending review next week, will see each region in England granted £500m to spend on science projects of their choice, including research into faster drug treatments.
Asked by Trevor Phillips how the government is finding the money, Mr Kyle said: “Rachel raised money in taxes in the autumn, we are now allocating it per department.
“But the key thing is we are going to be investing record amounts of money into the innovations of the future.
“Just bear in mind that how Apple turned itself around when Steve Jobs came back to Apple, they were 90 days from insolvency. That’s the kind of situation that we had when we came into office.
“Steve Jobs turned it around by inventing the iMac, moving to a series of products like the iPod.
“Now we are starting to invest in the vaccine processes of the future, some of the high-tech solutions that are going to be high growth. We’re investing in our space sector… they will create jobs in the future.”
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The spending review is a process used by governments to set departmental budgets for the years ahead.
Asked if it will include more detail on who will receive winter fuel payments, Mr Kyle said that issue will be “dealt with in the run-up to the autumn”.
“This is a spending review that’s going to set the overall spending constraints for government for the next period, the next three years, so you’re sort of talking about two separate issues at the moment,” he said.
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‘So we won’t get an answer on winter fuel this week?
Scrapping universal winter fuel payments was one of the first things Labour did in government – despite it not being in their manifesto – with minsters saying it was necessary because of the financial “blackhole” left behind by the Tories.
But following a long-drawn out backlash, Sir Keir Starmer said last month that the government would extend eligibility, which is now limited to those on pension credit.
Read more: Spending review 2025 look ahead
It is not clear what the new criteria will be, though Ms Reeves has said the changes will come into place before this winter.
Mr Kyle also claimed the spending review will see the government invest “the most we’ve ever spent per pupil in our school system”.
However, he said the chancellor will stick to her self-imposed fiscal rules – which rule out borrowing for day-to-day spending – meaning that while some departments will get extra money, others are likely to face cuts.
Politics
Minister dismisses US misgivings over Chinese ‘super embassy’ in London – as Tories warn of ‘espionage base’
A minister has dismissed reported US misgivings about plans for a Chinese “super embassy” near London’s financial districts.
Peter Kyle told Sky News’ Sunday Morning with Trevor Phillips that security concerns will be “taken care of assiduously in the planning process”.
Politics live: Winter fuel payment cut to be dealt with ‘in run up to autumn’
There have been protests against the new Chinese embassy. Pic: Reuters
According to The Sunday Times, the White House has warned Downing Street against the proposed massive embassy at Royal Mint Court.
The site is between financial hubs in the City of London and Canary Wharf and close to three data centres, raising concerns about espionage risk.
Asked for the government’s view on the risk, Mr Kyle said: “These issues will be taken care of assiduously in the planning process.
“But just to reassure people, we deal with embassies and these sorts of infrastructure issues all the time.
“We are very experienced and we are very aware of these sorts of issues constantly, not just when new buildings are being done, but all the time.”
He added that America and Britain “share intelligence iteratively” and if they raise security concerns through the planning process “we will have a fulsome response for them”.
However, shadow home secretary Chris Philp said he shared the US’s concerns.
He told Trevor Phillips: “I agree with the United States. We think it is a security risk in the government.
“The Conservatives were very clear. We should not be allowing the Chinese to build the super embassy. It is likely to become a base for their pan-European espionage activities.”
He added that underneath the sites are cables connecting the City of London to Canary Wharf and these could be intercepted.
Sky News has contacted the Chinese embassy for comment.
Read More: Diplomatic win for UK hosting US-China trade talks
China has been attempting to revise plans for the Royal Mint building, opposite the Tower of London, since purchasing it in 2018.
The proposal for the embassy, which would be China’s largest in Europe, was previously rejected by Tower Hamlets council in 2022.
However, Beijing resubmitted it in August after Labour won the election, and the plans were “called in” by Angela Rayner, the deputy prime minister and housing secretary.
It means that an inspector will be appointed to carry out an inquiry into the proposal, but the decision ultimately rests with central government rather than the local authority.
Two large protests were held at the site in February and March, which organisers claimed involved thousands of people.
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