The government has failed to reach targets for its Boiler Upgrade Scheme, which was designed to encourage households to become more energy-efficient.
Households could apply for the finance to help with the cost of updating to a heat pump or biomass boiler from a gas, electric or oil one.
Those in England and Wales can apply for the grant if they own a property and it has no outstanding recommendations for loft or cavity wall insulation.
If successful, applicants can receive up to £5,000 to upgrade their boiler, which could also help to reduce their energy bills.
However, recent government figures showed that just over half of the available 30,000 vouchers have been awarded.
Since May 2022, 16,052 vouchers have been given out, which means it has fallen short of its target by 13,948.
The government had hoped to fund 90,000 heat pumps until March 2025, propelling the number of installations per year to 600,000 by 2028.
However, the lack of uptake from the public suggests it will fail to hit this goal, as it has more than 75,000 vouchers still to award in 18 months.
According to the BBC, the low demand to replace boilers is the result of a lack of installers to do the job, and having to spend money preparing homes so they are equipped for heat pumps.
Heat pumps are a big part of the government’s plans for the UK to become carbon-neutral by 2050, as heating residential properties accounts for 14 per cent of the nation’s CO2 emissions, which means the failure of the scheme could threaten its overriding target.
Earlier this year, the Lords Environment and Climate Change Committee raised its concerns about the success of the Boiler Upgrade Scheme.
Due to the “disappointingly low take-up of grants”, the budget allocated to the scheme could be affected. Therefore, there will not be enough installers of manufacturers who can fit them, putting the government’s 2028 goal under threat.
According to the Committee, there is not enough public awareness for the scheme. What’s more, the upfront costs are still too much for many people, despite the government’s financial assistance.
Over the last year, households have been hit with sky-high energy prices, with the government having to introduce a price cap to stop costs from spiralling.
The Energy Price Guarantee (EPG) from October 1st 2022 to June 30th 2023 capped energy costs at £2,500 per year for an average household in the UK, extending it from April 2023.
This was below the Ofgem Energy Price Cap of £3,280 between April 1st and June 30th this year.
From July 1st, households will no longer be protected by the Energy Price Guarantee, as the Ofgem threshold is lower at £2,074 per year until September.
However, should prices exceed £3,000 per year, the government can reintroduce the EPG until March 2024.
Homeowners looking to upgrade their heating could consider a new boiler installation in London. Call us today for more information.