Boiler Upgrade Scheme is failing, says Lords committee

Launched in May 2022, the BUS aims to kickstart the decarbonisation of UK homes by providing grants to replace ageing gas-fired boilers with heat pumps or biomass boilers. But take-up of the scheme has been slow, according to the Lords committee, with public awareness and a lack of qualified installers highlighted as reasons for the disappointing results to date.

In a letter sent to Lord Callanan, Parliamentary Under Secretary of State for Energy Security and Net Zero, the committee warned that current take-up rates would see only half of the scheme’s allocated budget used up. Further down the line, the requisite market of installers and manufacturers will not be in place in time to implement low-carbon heating policy measures smoothly, with the government’s 2028 target of 600,000 installations per year ‘very unlikely to be met’.

According to the committee, the upfront costs of heat pump installation are too high for many households, even taking into consideration the £5,000/£6,000 grant available. In order to make running costs of heat pumps more cost-effective – and hence deliver a quicker return on investment – the Lords committee urged for electricity market reform.