Three heating industry figures responded on 16 March 2023 to the Spring Budget, with reactions ranging from relief at continued bill support to criticism that no long-term efficiency measures were included. Martyn Bridges of Worcester Bosch, Trevor Harvey of Stelrad Group and Henk Van den Berg of Daikin UK each gave statements, reported by the Chartered Institute of Plumbing and Heating Engineering (CIPHE), which described "mixed views within the industry in response to the Spring Budget"1.
The Chancellor extended the £2,500 price cap for three months1. Bridges said Worcester Bosch welcomed the extension "to reduce financial pressures on UK households", but called it "only a temporary measure" and said the firm had hoped for a national grant scheme encouraging homeowners to insulate their properties1. Harvey said the U-turn on energy bill support would come as "a welcome relief to people struggling with their heating bills", but described the Budget as passing up a long-term opportunity "in favour of a short term sticking plaster"1.
Harvey said the Government should incentivise practical measures such as insulating homes more effectively and installing more modern and efficient radiators, and argued that encouraging "the mass adoption of heat pumps which aren't even suitable for the vast majority of homes" is not a coherent strategy1. He cited heating in UK homes as producing around 17% of the country's greenhouse gas emissions1.
Van den Berg said the Budget had "ignored the clear case for shifting the Climate Change Levy's focus away from electricity to gas, leaving low-carbon heating out in the cold"1. He said a heat pump will typically save 5-10% in annual running costs compared to a gas boiler, but that further savings are being "strangled by what's basically an outdated tax on the electricity that powers them"1. He called for better communication of heat pump benefits to encourage uptake of the Boiler Upgrade Scheme, bringing forward a ban on installing gas boilers in new homes, and clearer training support for installers1.
"We were hoping to see a national grant scheme encouraging homeowners to insulate their properties and increase energy efficiency."
Why it matters for households
The three-month extension of the £2,500 price cap kept a ceiling on unit rates for a further period, which affects what a household pays for the gas and electricity it uses1. The industry statements point to a split between short-term bill support and measures that change how much energy a home needs in the first place. Insulation and more efficient radiators were named as the practical measures the Government was urged to incentivise, and no such national grant scheme was announced1. For a home's energy independence, the running-cost gap between a heat pump and a gas boiler was put at 5-10% in favour of the heat pump, a figure that bears on whether low-carbon heating pays back over time1. The Climate Change Levy, which falls on electricity rather than gas, was identified as working against that gap1. The Budget did not address it1.
What happens next
The price cap extension runs for three months from the Budget1. Daikin UK called for the ban on installing gas boilers in new homes to be brought forward, but no date for that is given in the statements1. No further measures on home insulation, radiator efficiency or the Climate Change Levy were reported1.
Sources1 cited
- Industry Responds to Spring Budget, ciphe.org.uk