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Low-carbon Off-gas Grid Heating
16 June 2022
Lead MP
David Jones
Clwyd West
Con
Responding Minister
Greg Hands
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Word Count: 12283
Other Contributors: 5
At a Glance
David Jones raised concerns about low-carbon off-gas grid heating in Westminster Hall. A government minister responded.
Key Requests to Government:
The Government should reconsider the 2026 deadline and align it with their plans to phase out all fossil fuel boilers by 2035. They should adopt a 'heat-pump ready first' approach targeting post-1970 homes, on and off grid. The Government must also provide a choice of heating systems and support other technologies such as hybrid heat pumps, bioliquids, and biogases to enable affordable decarbonisation for rural homeowners and businesses.
How the Debate Unfolded
MPs spoke in turn to share their views and ask questions. Here's what each person said:
Lead Contributor
I am concerned about the significant undertaking to replace oil-fired systems in rural homes and businesses that are not connected to the gas grid. Over 4 million people live and work in these communities, where many properties are old and draughty, with 47% of such homes built before 1949. Only 3% of off-gas grid homes achieve an energy performance certificate rating of band C, meaning they require significant investment for electrified heating. The Government's proposals to ban the installation of replacement fossil fuel boilers in rural areas from 2026 and in larger businesses from 2024 are particularly pressing, while on-grid homes won't see changes until 2035. Rural household incomes are smaller than urban ones, making heat pump installations more difficult for many households to afford, with an average cost of £12,000 plus additional retrofitting costs.
Alan Whitehead
Lab
Southampton, Test
Mr Whitehead acknowledged the debate's comprehensive discussion on off-grid properties and decarbonisation. He highlighted that approximately 1.1 million houses in England, 230,000 in Wales, and 550,000 in Scotland are off-grid and predominantly rely on high-carbon heating methods such as oil (78%), LPG (13%), and coal (9%). He emphasised the need for urgent decarbonisation due to the limited choices available to these properties. Additionally, he noted that 86% of off-grid homes in England are poorly insulated compared to their urban counterparts. Noted that support for heat pumps under the boiler upgrade scheme would be insufficient to replace all off-grid boilers, indicating the target of 600,000 heat pumps by 2028 will fail.
Ben Lake
PC
Ceredigion Preseli
Mr. Lake supported the debate, emphasizing the need for a just and fair transition to decarbonisation in rural areas. He highlighted that off-grid households and businesses face significant cost challenges due to rising fuel prices and lack of government support. He cited examples from his constituency where energy bills had increased by up to 450%, impacting both profitability and operational sustainability. Mr. Lake also pointed out the inefficiency of older housing stock in rural areas, urging for greater focus on energy efficiency measures and financial support for retrofitting homes with low-carbon technologies. Inquired about the concern of farmers who have commercial electricity contracts for their homes and are worried about receiving the £400 payment. Questioned the effectiveness of the energy price cap for those not on the grid and suggested there might be anti-competitive practices in the heating oil market. Asked about support measures available for off-grid properties.
Drew Hendry
SNP
Inverness, Nairn, Badenoch and Strathspey
He expressed concern about the inadequate UK Government support for low-carbon heating and buildings, highlighting that only a maximum of 90,000 households are eligible. He mentioned 45% of Welsh households being in fuel poverty and raised affordability issues, particularly with businesses struggling to find funds for new technology due to increasing costs. Asked the Minister to support Ofgem involvement in regulating off-gas grid areas and questioned whether £8 per head spent on insulation in England compared with £27 per head in Scotland was adequate. Called UK government support inadequate, raised concerns about fuel poverty in Scotland. Asked about the boiler upgrade scheme's implementation and its impact on consumers.
Greg Smith
Con
Mid Buckinghamshire
Mr Smith discussed the high costs of installing heat pumps in older off-grid homes, noting costs ranging from £12,000 to £30,000. He emphasized the importance of having alternative low-carbon heating options such as drop-in fuels and renewable liquid gas for affordability and practicality. Asked about the transition timeline and mentioned parts of Kent with large numbers of off-gas-grid properties. Interested in hybrid systems for hard-to-treat properties.
Jim Shannon
DUP
Strangford
Discussed the limited options for rural communities to switch to low-carbon heating and highlighted affordability concerns. Mentioned that the average cost of a heat pump installation in an off-gas grid home is £12,000. Emphasised the importance of addressing fuel poverty gaps between urban and rural areas. Recognised Northern Ireland's role in decarbonisation efforts, thanked the minister for frequent discussions on renewable energy opportunities.
Government Response
Greg Hands
Government Response
The government is committed to decarbonising off-gas-grid heating through a £450 million Boiler Upgrade Scheme offering up to £5,000 grants for heat pump installation and a £1.1 billion Home Upgrade Grant for lower-income households. By 2028, the government aims for 600,000 installations annually with costs reduced by 25-50% by mid-decade. The transition to clean heating will be fair and affordable, ensuring no unsuitable technology is forced upon consumers.
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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.