As part of the UK's strategy to tackle climate change, consumers will be encouraged to replace fossil fuel heating systems with electric heat pumps at an average cost of over £10,0001 to install.
Oil heated households2 (1.5 million) will be among those targeted first under the plans.
Government is currently consulting on proposals to offer £4,000 'Clean Heat Grants' to help supplement the cost of heat pumps, and in limited cases, biomass heating systems.
However, this still leaves a £6,000 shortfall for installation alone which many consumers will not be able to afford, especially during a post pandemic recession with a recent report suggesting the UK economy will be the worst hit of any developed country3.
OFTEC, which represents the liquid fuel heating industry, says that while it's vital to push ahead with decarbonisation plans, promoting technical solutions that are financially out of reach for most consumers risks stalling climate change progress and will keep financially stretched households trapped living in homes they struggle to affordably heat.
1 BEIS Domestic Renewable Heat Incentive monthly deployment data January 2020
2 BEIS Minister Written Answer 29/10/2018
3 Office for Economic Cooperation and Development's (OECD) June 2020
4 BEIS Annual Fuel Poverty Statistics Report April 2020
5 Savings and investments (nominal) of adults in low to middle income households (UK). Resolution Foundation 2020.