DESNZ research released earlier this year found homes dependent on electricity for heating had the highest rate of fuel poverty, at just over 20 percent, but the vast majority of homes still depend on gas.
“It is a significant political risk of the policy, as designed, that it will help a small demographic, and that by choosing that over, say, broader rebalancing [of green levies on all bills] they have chosen risk of that accusation over fiscal risk,” the industry figure said.
Ministers are considering other policies ahead of October to incentivize a shift towards cleaner tech.
That includes year-on-year increases to the Boiler Upgrade Scheme, a grant program to help with the cost of installing a heat pump, every year up to 2029/30, according to the text of emails sent by DESNZ and seen by POLITICO.
Grants of £7,500 are currently available under the scheme, which has a budget of £295 million between 2025 and 2026.
Ministers are also considering “significant funding to deliver heat network schemes” during this parliament, the same email said. DESNZ said last year that heat zones are one option to help “more homes and businesses … access greener, cheaper heat.”
