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UK Green Building Council also says rowing back on climate change policies has harmed green business investment and jobs

Businesses have criticised Rishi Sunak’s decision to water down the ban on polluting boilers, though some energy suppliers and landlords have welcomed the rethink.

The Prime Minster has rolled back pledges to ban new gas boilers by 2026 while tougher rules for landlords to upgrade the energy efficiency of their properties have been scrapped.  He also announced he would delay the 2030 ban on new petrol and diesel cars until 2035.

The government says homeowners and landlords must be given more time to switch to alternative heating systems. Grants to help households with the cost of replacing their old fossil fuelled boilers with heat pumps or biomass boilers have been increased from £5,000 to £7,500.  

The revised target now aims to phase out 80% of boilers in homes, instead of 100% by 2035. About a fifth of the hardest hit households won’t have to switch to heat pumps or low carbon alternatives, including off-gas grid homes and those that need expensive retrofitting. The Prime Minister described this as a “more pragmatic” and “realistic approach that eases the burden on families.”

But the reversals on key climate change policies have damaged the UK’s ability to meet its carbon-cutting goals and will keep bills high for millions of households, the UK Green Building Council (UKGBC) has warned.

Simon McWhirter, deputy chief executive of UKGBC, said: “Its damaging to the industry who were scaling up for these changes and this package of net zero delays will be doubly destructive to our climate. Buildings are the second biggest source of climate emissions in the UK. We can’t keep burning fossil fuels to heat our homes and meet our legal climate targets.”

Calls to upgrade the nation’s housing stock

With the clock ticking on climate change, upgrading the UK’s homes is one of the biggest opportunities to reduce carbon emissions while tackling the cost-of living crisis and energy security, says UKGBC.

The UK has one of the oldest and leakiest housing stocks in western Europe with heat escaping from uninsulated walls, windows and doors.  Most of the nation’s homes are heated by gas. Any spike in gas prices immediately translates to higher heating bills.

Both issues can be tackled by an ambitious nationwide programme to improve insulation and energy efficiency, argues the UKGBC. The organisation points out it’s not just cold we need to protect ourselves from but also blazing summers and flooding as extreme weather events becomes more common.

It’s a mammoth task but also entirely achievable say climate action groups. Up to 300,000 families will get help to insulate homes with the government’s Great British Insulation Scheme. But experts point out millions of poorly insulated homes need upgrading.

Do I need to rip out my existing gas boiler?

In short, no. If your boiler is relatively new and doing a good job, there’s no need to scrap it. There is no legislation that means you must replace a boiler in existing homes before or after 2025.

That said, heat pumps are highly energy efficient, so switching might make sense if your boiler is old and you are considering replacing it. But there is nothing to stop anyone from buying a new gas boiler if they wish. Nine out of ten properties in the UK currently rely on gas boilers so this form of home heating is likely to be around for a few years yet.

Ministers had been under pressure from green campaigners to set a date for a full ban, but in October 2023 announced a grant system to reduce the upfront cost of heat pumps. An outright ban is possible in future, but the Conservative government believes it is better to try to persuade people gas boilers are no longer the best choice. 

So, what does the gas boiler ban mean?

The ban means that gas boilers won’t be installed in new-build homes after 2025. The Government wants to ensure developers install cleaner alternatives, such as heat pumps, from day one. The gas boiler ban doesn’t apply to homes built before 2025.

What about oil-fired boilers?

Government has also softened its stance on banning oil-fired boilers after a backlash from Tory MPs. About 1.7 million houses in rural communities would be affected by any proposals to ban the installation of new oil-fired boilers.

Now there will be exemptions for those who are hardest hit so they may never have to switch to heat pumps. For example, those who live in off-gas grid homes with solid walls where cavity wall insulation isn’t an option, making the buildings less suitable for heat pumps.  

Why are gas boilers being phased out?

Some 14% of UK greenhouse gas emissions come from domestic energy use, according to official figures and a large chunk of this is due to gas boilers. The government wants to phase out gas boilers to combat climate change and to fulfil its legal obligation to reach net zero by 2050.

Around 8m buildings will need to switch from gas boilers to cleaner alternatives to meet the UK’s 2050 net zero target, according to the National Infrastructure Commission, a government’s advisory body.

Put simply, net zero refers to the balance between the amount of greenhouse gas that’s produced and the amount that’s removed from atmosphere, for example by planting trees. Reaching net zero requires us to add no more than we can take away. Finding an alternative to fossil fuels is key to achieving net zero – and saving our planet.  

Climate change is triggered by higher levels of greenhouse gases in the atmosphere. The name comes from the greenhouse effect they create by trapping energy from the sun and warming the Earth’s surface and the air above it. Carbon dioxide, methane and water vapour are among the most common greenhouse gases.

What is the Boiler Upgrade Scheme?

Heat pumps are seen as critical to hitting the UK’s climate targets by halving the carbon emissions from heating buildings. But take-up of heat pumps has been slow due to the high upfront cost of installations and a lack of clear information.

Under the Government's Boiler Upgrade Scheme, grants are available to cover part of the cost of replacing a fossil fuel heating system with a heat pump or a biomass boiler.

To be eligible for the grant you must:

• own the property you’re applying for (including if it’s a business, a second home, or a property you rent out to tenants)
• have installed (or plan to install) your new heating system on or after 1 April, 2022
• be replacing fossil fuel heating systems (such as oil, gas or electric)

In addition, your property must have a valid Energy Performance Certificate (EPC) with no outstanding recommendations for loft or cavity wall insulation. An EPC rating is a review of a property's energy efficiency, and it is represented on a scale from A, which is the most efficient, to E the least efficient.

The scheme is open to people in England and Wales, while those in Scotland might be able to get an interest-free loan or grant to make homes more energy efficient, and those in Northern Ireland can access a grant to replace their boiler. For more information see  https://www.gov.uk/apply-boiler-upgrade-scheme