UK to Invest £15 Billion to Reduce Reliance on Gas-Fired Boilers
(Bloomberg) -- The UK will spend £15 billion ($20 billion) over the next three years to help families cut their energy bills and switch away from gas boilers.
Home heating represents 18% of the country’s greenhouse gas emissions, and switching to greener options is key for the UK to meet its carbon neutrality targets. Still, a slew of efforts in that direction have failed or been abandoned over the past 15 years.
As part of its Warm Homes Plan released on Wednesday, the current Labour government aims to encourage the uptake of heat pumps, batteries, solar panels and better insulation.
“Today’s plan marks a turning point. It will help to slash energy costs and lift up to a million people out of fuel poverty,” Prime Minister Keir Starmer said, according to a statement.
The plan will earmark £5 billion for low income households to install green home-heating technologies and another £2.7 billion to upgrade existing boilers. It also lays out £2 billion worth of government backed low-cost loans to all consumers.
The government has a target to deliver more than 450,000 heat pump installations a year by 2030, and said it wants 70% of those installed in the UK by 2035 to be made domestically. The plan has set out £90 million to encourage the use of heat pumps.
The latest proposals seek to deliver on the Labour Party’s campaign promise to end the fits and starts that it said characterized the Conservative Party’s approach to home energy upgrades.
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