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Scottish Government statement on draft heat buildings legislation

The Scottish Government has paused its Heat in Buildings Bill for this parliamentary session, publishing a draft instead and offering grants of up to £9,000 for heat network connections.

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

The Cabinet Secretary for Housing, Màiri McAllan, told the Scottish Parliament on 18 November 2025 that the Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill will not be introduced in this session1. The draft Bill and draft Explanatory Notes were published the same day1.

The Scottish Government said the decision followed delays to the UK Government's Warm Homes Plan, which it expected to set out how and to what extent electricity prices would be rebalanced relative to gas2. In her letter to the Local Government, Housing and Planning Committee, Ms McAllan wrote that there was "no longer time in the Parliamentary term to introduce the Bill" and that she would not ask Parliament to consider it without a full understanding of the UK policy context2.

"That plan has been delayed and, with little time left in this parliamentary session, we therefore concluded that the Bill should be paused."
Scottish Government, Heat in buildings: future plans1

The draft Bill sets a heat decarbonisation target that by the end of 2045, as far as reasonably practicable, no direct emission heating system is used in any building in Scotland3. It would allow ministers to set minimum energy performance standards for buildings using direct emission heating systems, require owners of buildings that do not meet the standard to improve them, and provide for civil penalties not exceeding £15,0003. It also covers heat network zones, including requirements that buildings in a zone be connected to a district heat network and that direct emission heating systems not be used there3.

Alongside the pause, the Scottish Government confirmed grant support for homeowners connecting to heat networks through the Home Energy Scotland Grant and Loan scheme2. Its letter states grants of up to £9,000 together with loans for households in island and remote rural areas2. The Scottish Federation of Housing Associations reported the figure as up to £7,500, or up to £9,000 for island and remote rural households, available from December4. The two accounts differ on the standard grant amount.

MeasureFigureSource
Grant for heat network connection, island and remote rural areasUp to £9,000 plus loans2
Grant for heat network connection, standardUp to £7,5004
Maximum civil penalty under draft Bill£15,0003
Heat in Buildings schemes funding since 2020£1.67 billion4

The Scottish Government has allocated £1.67 billion through its Heat in Buildings schemes since 2020, including over £840 million for energy efficiency and clean heat projects, and has supported an average of 15,000 households a year to decarbonise, according to the SFHA4. Existing standards remain in place: new homes built under a building warrant applied for on or after 1 April 2024 must not use direct emissions heating systems5.

Why it matters for households

The Bill would have carried the legal duties that shape how Scottish homes are heated, including the 2045 prohibition on polluting heating and the point-of-sale trigger. With it paused, those duties are not yet law, so no homeowner faces a statutory deadline from this legislation in the current session. The 2045 commitment itself is unchanged and restated in the draft Climate Change Plan1.

For homes on or near a district heat network, the grant support is the practical change: connection costs may be partly covered, with a higher ceiling in island and remote rural areas2. For homes off the gas grid, or in tenements where communal solutions may be needed, the draft Bill's heat network zone provisions indicate the direction of travel but carry no force until a Bill passes3. The Scottish Government's own figures show 85% of social rented homes already meet EPC D or above, while only 42% of owner-occupied homes were rated EPC C or better in 20195.

What happens next

The Scottish Government intends to introduce the Bill after the Scottish Parliament returns following the Scottish Election in May 2026, subject to the outcome of that election1. A consultation on heat network installation and maintenance licences is planned for early 20261. On 29 January 2026 the Scottish Government published the Consultation Analysis Report and its response to the 2023 consultation, which it said played a vital role in shaping the draft Bill6.

Sources6 cited
  1. Heat in buildings: future plans - gov.scot, gov.scot
  2. [](https://www.parliament.scot/-/media/files/committees/local-gov/correspondence/2025/heat-in-buildings-bill-update-from-cab-sec-18-november-2025.pdf), parliament.scot
  3. Draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill, gov.scot
  4. Decarbonising heating in homes and buildings | SFHA, sfha.co.uk
  5. Energy efficiency in homes - Energy efficiency - gov.scot, gov.scot
  6. Letter from Cab Sec for Housing to LGHP - Heat in Buildings - Government consultation response and report - 29 January 2026, parliament.scot