Energy Secretary Ed Miliband to unveil new package of new zero policies as UK is left counting cost of Middle East energy crisis
The government is hiking a boiler upgrade grant in the face of an energy shock triggered by the Iran war.
Energy Secretary Ed Miliband will also confirm an extra £100 million to cut energy bills for those in social housing. And he will pledge £25million to help low income households bag plug-in solar panels.
The package will also include increasing the use of solar on public land, and encouraging a switch to electric cars. It comes as households and businesses are left fearing rising energy bills because of a surge in oil prices caused by the Middle East conflict.
Campaigners say reducing the UK’s reliance on fossil fuels and boosting renewable alternatives is the best way to prevent the country being buffeted by global events.
But critics argue the drive towards net zero involves huge upfront costs, with Labour under pressure to allow more drilling for North Sea oil.
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Mr Miliband will use a speak on Tuesday to double down on Labour’s net zero drive in the face of opposition. Among new measures will be an increase in the grant available through the Boiler Upgrade Scheme from £7.500 to £9,000.
The scheme allows households in England and Wales to ditch their gas boiler in favour of a heat pump. They are designed as a form of low carbon central heating that captures heat from outside, either from the air or the ground. But the cost – as well as modifications to households’ existing radiators – has put people off.
The increase in the grant will close the gap. According to the Department for Energy Security and Net Zero, a heat pump costs around £9,300 without the grant, and that comes down to £1,800 with one.
It says the money will especially benefit households and small businesses who rely on heating oil or LPG (Liquefied Petroleum Gas) – often in rural areas – which have been particularly hard‑hit by rising prices following instability in the Middle East.
Other announcements include an additional £100million for the Social Housing Fund, to help pay for 57,000 rooftop solar panels for households this financial year.
The government says it is already investing £1.2 billion to upgrade 100,000 social homes over the next two years. In addition, a further 100 schools will benefit from new rooftop solar installations this year.
Mr Miliband said: “We are fighting people’s corner through this crisis. Thanks to our decisions the energy price cap fell by £117 at the start of April, with savings locked in until the end of June.
“But the lesson is clear: to protect families in the long term, we must go further and faster to electrify Britain and end our exposure to volatile fossil fuel markets. That’s why today we’re stepping up support for people in social housing and rural areas to upgrade their homes and cut their bills, as we accelerate towards clean, homegrown energy we control.”
Simon Francis, coordinator of the End Fuel Poverty Coalition, said: “Every spike in global gas markets feeds directly into household energy costs, and people in fuel poverty often pay the heaviest price. Research shows that the public understands this and wants to take action, but needs support to invest in energy efficiency measures.
“Any speeding up of the Warm Homes Plan will deliver more support to households quicker than planned. However, delivery through this Plan must include locally provided, specialist advice to ensure households choose the right options and a Warm Homes Guarantee so that consumers are sure to see the benefits of new technology.”
Angharad Hopkinson, political campaigner for Greenpeace UK, said: “Britain is sick and tired of an energy system where pump prices and household bills go up and down based on Trump’s latest social post or the Persian Gulf opening and closing like an umbrella in April.
“The government is absolutely right to be looking at every possible solution to cut our dependence on volatile fossil fuels and take back control of our energy.”
Pranesh Narayanan, senior research fellow at think tank the IPPR, said: “Ed Miliband is right: the transition to net zero is the only way to protect the UK from a never-ending wave of international conflict driving up energy prices.
“Closing the Strait of Hormuz won’t push up the price of solar. Trump invading Greenland wouldn’t make wind more costly. But this won’t fight inflation today. If the Iran conflict drags on, the government will need to consider additional measures, such as energy price caps.”
