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CCC publishes independent assessment of the UK Heat and Buildings Strategy

The Climate Change Committee has published an independent assessment of the UK Government's Heat and Buildings Strategy, finding ambition but gaps in funding, policy detail and supply chain capacity.

A newspaper on a kitchen table beside a model of rules and regulation

The Climate Change Committee (CCC) published an independent assessment of the UK Government's Heat and Buildings Strategy on 9 March 2022, examining the policies set out in the strategy published in October 20211. The assessment was written up by Marcus Shepheard, the CCC's lead analyst on residential buildings1.

The CCC states that the UK has more than 28.5 million homes and another 1.9 million other buildings, including offices, hospitals, shops and warehouses, most heated by gas boilers1. It says buildings are the second-largest source of greenhouse gases after surface transport, with nearly a fifth of all UK emissions coming from buildings before electricity used within them is counted1. On heat pumps, the CCC notes the Government projects 600,000 installations per year by 2028, up from around 35,000 last year1.

The assessment identifies funding and policy gaps. The CCC says public buildings and fuel poor homes need public money for energy efficiency and low-carbon heat, and that the Government is likely to need to invest more, particularly as the number of households in fuel poverty rises with wholesale gas prices1. It states that policies needed to drive energy efficiency improvements in homes that are not fuel poor are currently inadequate, and that gaps also exist for small commercial buildings1. On supply chains, the CCC says the UK does not have anywhere near enough capacity to install the number of heat pumps or heat networks it will need, and cites barriers including the relative costs of electricity and gas and shortages of skilled installers1. It notes the UK's construction workforce has shrunk since 20191.

The CCC describes the strategy as a step forward for ambition, citing deadlines for phasing out gas and oil boilers, new long-term policies for low-carbon heat, and new funding for heat networks, public buildings and the fuel poor1. It also notes the Government expects a different balance between heat pumps, more than the CCC's Balanced Net Zero pathway, and district heat networks, less, by the late 2030s1.

"Critically, the policies needed to drive improvements in energy efficiency in homes that are not fuel poor are currently inadequate."
Climate Change Committee, independent assessment of the Heat and Buildings Strategy1

The CCC lists unanswered questions including what efficiency standards will apply to existing residential and non-residential buildings, how obligations will apply to boiler manufacturers and mortgage lenders, and what new powers bodies in central and local government will have1.

CCC assessment findingDetail given
Heat pump installations projected600,000 per year by 2028, up from around 35,000 last year
Buildings coveredMore than 28.5 million homes and 1.9 million other buildings
Emissions shareNearly a fifth of UK emissions from buildings, before electricity used within them
Policy gap identifiedEnergy efficiency in homes that are not fuel poor

Why it matters for households

The assessment sets out how far current policy reaches into the fabric and heating of individual homes. Most UK homes run on gas boilers, and the CCC's figures show the projected shift to heat pumps by 2028 is far above recent installation rates1. For a household, the pace of that shift depends on policies the CCC says are still incomplete, including efficiency standards for existing homes and obligations on manufacturers and lenders1. The CCC also links energy efficiency to bills, stating that improving efficiency is one of the easiest and most cost-effective steps to reduce the impact of high bills in the near term1. Its finding that policies for non-fuel-poor homes are inadequate indicates that support and standards for ordinary households remain unsettled. The UK Home Energy Regulation and Policy: The Full Guide covers the wider framework, and the CCC's role in advising on carbon budgets and net zero targets sits behind this assessment. Devolved administrations control parts of buildings policy, as set out for Scotland and Wales.

What happens next

The CCC says the Government needs to move fast to complete its current engagement and clarify the fine details of how its policies and programmes will work, so that individuals and firms can take action, raise finance and make spending decisions1. It identifies the unanswered details as efficiency standards for existing residential and non-residential buildings, how obligations will apply to boiler manufacturers and mortgage lenders, and what new powers central and local government bodies will have1. No dates for those decisions are given in the assessment1.

Sources1 cited
  1. Taking stock of the UK Government’s Heat and Buildings Strategy - Climate Change Committee, theccc.org.uk