The Government's revised energy strategy, Powering Up Britain, has been backed by some in the industry, but left many others feeling disappointed at the lack of overall ambition.
The government's revised strategy arrives in the wake of a 2022 High Court ruling that the previous plan did not provide enough detail on plans to tackle climate change.
The strategy now outlines key areas of activity for the government in progressing towards net zero but, importantly, contains little in the way of new announcements or funding. Given the significant role surveyors have in supporting the decarbonisation of the built environment, RICS has eagerly anticipated this announcement.
Key points from the revised strategy include the following:
- Launching the Great British Insulation Scheme that will see up to 300,000 homes become more energy efficient
- Phasing out of new and replacement gas boilers by 2035
- The continuation of the Boiler Upgrade Scheme and £30 million towards boosting the manufacturing of heat pumps
- Significant investment in carbon capture and nuclear technologies, as well as offshore wind farm infrastructure
Sam Rees, Senior Public Affairs Officer for RICS, said: "While RICS welcomes any investment in the decarbonisation of the UK, RICS is disappointed by the lack of ambition or indeed any major new announcements – especially in light of the publication of the Independent Review of Net Zero led by Chris Skidmore MP. With an estimated 15 million homes needing a form of energy efficiency improvement work, the insulation policy targeting 300,000 homes falls well short of the ambition needed.
“Powering Up Britain contained little in the way of incentives for the majority of consumers and businesses to create low-carbon, energy-efficient properties. Further expected announcements by the government look set to push back decarbonisation of the built environment, including a now 12-year phasing out of gas boilers and delays to create higher EPC-rated homes.
“RICS will continue to work with UK Government, the Energy Efficiency Taskforce and Net Zero Coalition to push for greater resources towards creating a low-carbon UK, recognising the important role surveyors have in supporting the net zero transition."
Julie Hirigoyen, Chief Executive at UKGBC said the Government has “doubled down” on new clean energy generation, describing it as a positive stimulus at this febrile moment for energy security.
“But it has missed an opportunity by failing to publish a comprehensive national plan to curb the staggering levels of energy waste from our homes and buildings,” she continued. “Without this, we’re trapped into unsustainable demand for heat and electricity, making it extraordinarily difficult to see how we’ll pay our bills or hit our climate goals.
“Initiatives such as the ECO+ scheme and extension to heat pump support, while welcome, will only reach a fraction of the 27 million homes that need retrofitting. Similarly, reforms to the planning system set out today do not include the net zero test recommended by Chris Skidmore MP.
“As our climate emergency intensifies, the Government should be leading from the front by seizing the opportunities of a nationwide retrofit plan that would deliver £56 billion to the UK’s green economy, slash energy bills to save households £8bn every year and create 500,000 skilled jobs in a decade.
“We hope that the Government makes use of the opportunities to get on track offered by the Energy Efficiency Taskforce and amendments to the planning system through the Levelling Up Bill.”
The Building Research Establishment called for a longer-term approach to support planning and investment, as UK Government announces climate strategy.
Gillian Charlesworth, CEO of BRE, said: “We need a clear plan to transition our homes and buildings to clean heat and this latest announcement is a key step forward in achieving this.
“However, I am concerned that there is not enough of a sense of urgency about the scale of the challenges we face. Although there are welcome steps towards certainty for business, a longer term approach to support planning and investment is still not fully in place. We need to join up and raise standards across the board if we are to stand a chance of meeting the UK’s net zero targets.
“I am concerned that there is not enough of a sense of urgency about the scale of the challenges we face. Although there are welcome steps towards certainty for business, a longer term approach to support planning and investment is still not fully in place” – Gillian Charlesworth CEO of BRE.
“The ‘Great British Insulation Scheme’ will provide welcome support to around 300,000 homes to improve the energy efficiency of their properties. However, this only accounts for a small portion of the UK’s homes and will not tackle the vast majority of the able-to-pay market. We hope that this is the next step towards a truly comprehensive national retrofit strategy which offers targeted advice and support to every home which needs it.
“We are also pleased to see investment in the Heat Pump Investment Accelerator as part of the Government’s efforts to stimulate the UK heat pump market and bring down costs over the long-term for businesses and consumers. Plans to rebalance gas and electricity costs are similarly welcomed as this will help incentivise households to transition to heat pumps.
“We hope that extending the Boiler Upgrade Scheme may mean that more households can make use of the funding and move away from gas boilers – but only with a targeted effort to raise awareness of the scheme itself.
“We will look forward to reading the Government’s responses to the consultation on improving the energy performance of privately rented homes which has been long-awaited by industry, and responding to its forthcoming consultation on how best to support owner-occupiers. As well as standards for rented buildings and homes, it is reasonable that large commercial buildings should be measuring and benchmarking their energy use and resulting carbon emissions. The government consulted on a plan for this in 2021 and we would like to have heard how it plans to move this forward.
“Lastly, the investment in the UK Infrastructure Bank (UKIB) will be key in driving green finance. Our world-leading sustainability standard BREEAM is used by an increasing number of global financial institutions to provide assurance that their investments are green. Maximising the impact of these types of schemes through programmes like the UKIB will be important in helping more companies reach net zero.”
The Heat Pump Association welcomed announcements by the Government to speed up the UK’s Net Zero pathway.
It said it looked forward to working with government as it works to implement the below package of measures to ensure the country reaches the target of 600,000 heat pump installations per year by 2028. Proposed plans, if implemented effectively, will succeed in providing much needed clarity for the heat pump industry to invest in the technology and upskill heat pump rollout across the country.
The government have released a consultation on clean heat market mechanism – a policy aimed at supporting the development of the UK market for heat pumps through a market incentive to grow the numbers of heat pumps installed in premises each year.
A welcome extension was also placed on the Boiler Upgrade Scheme (BUS), until 2028, to help the scheme take full advantage of money available to help households with the initial up-front costs of installing heat pump systems. The HPA hopes to see a more detailed response from government to address issues laid out in the House of Lord’s review into BUS and an indication as to the amount of funding available to consumers. Installers will also benefit from the extension of the Home Decarbonisation Skills Training Competition, providing discounts for heat pump training for installers across England.
The HPA is pleased to see details of a new £30 million Heat Pump Investment Accelerator to boost the heat pump manufacturing and supply chain. By unlocking investment in the UK heat pump supply chain, businesses can better gear up for increased heat pump rollout in the UK and unlock the economic benefits of net zero.
The announcement also included news that gas and electricity costs will be rebalanced to speed up electrification for households and businesses. Placing focus on driving down electricity bills will result in a more comparable cost difference between fossil fuel boilers and heat pumps.
The HPA has advocated for a long-term, predictable policy framework for home heating, recommending commitment to a fixed date for the phase out of fossil fuel boilers and for developing policy to aid the effort to reach the Government’s heat pump installation targets. We hope that the Government continues to consider these key changes to further provide certainty to the industry and emphasise the important role heat pumps will have in transforming Britain’s heating supply.
Phil Hurley, Chair of the HPA said: “The Heat Pump Association will continue to work closely with the Government to grow the market to catch up with heat pump rollout from our European counterparts, and we hope the Government will soon publish its response to Chris Skidmore’s Net Zero Review and have confidence to commit to a firm end date for the sale of fossil fuel boilers.”
