Warm Homes Plan delayed: Future Ready Fuel update

By the time you read this, it’s possible that the Labour Government may have finally published its policy proposals for heat decarbonisation – its long-promised Warm Homes Plan.

The plan was due to be published on 22nd October but was delayed by wrangles over funding with the Treasury, and the need to respond to a damning report by the National Audit Office into numerous failings with government-funded solid wall insulation work. Even with the huge subsidies now available, heat pumps remain out of reach of most households, which makes it hard to understand why the potential of renewable liquid heating fuels continues to be overlooked.

Ahead of the Budget, there was speculation that some of the funding in the £13.2 billion plan allocated to the deployment of heat pumps would be cut, and the Boiler Upgrade Scheme curtailed or even cancelled, but that remains to be seen.

The current overall policy focus on electrification is unlikely to change, but OFTEC and UKIFDA have lobbied hard for the inclusion of a renewable liquid heating fuel obligation (RLHFO), and a change to the tax on fuels like HVO when used in heating. We have done this both directly to MPs, ministers and civil servants, and indirectly through our Future Ready Fuel campaign, which has generated over 1,000 letters from oil-heating householders to rural MPs in the last two months.

A clear message

Our message remains the same – supporting renewable liquid heating fuels is a way to make significant decarbonisation progress immediately, with no capital cost, disruption or subsidy needed. By increasing the renewable percentage of the blend, this may become a final decarbonisation solution for some (and we think the Government underestimates how many), but because no capital investment is required, it also leaves the door open to other alternatives, which retains consumer choice.

This could be just what the Government needs and we will update you once the plan is published, so look out for updates in the OFTEC e-news. We have developed response plans for a range of different outcomes once the plan is released.

Rural MP support grows

Regardless of what the Warm Homes Plan contains, we now have very strong support among many rural MPs, and 15 attended our Westminster drop-in event on 15th October. There is clearly concern among rural MPs about the need for rural friendly policies across a range of key topics, including heat decarbonisation. This will stand us in good stead should we need to continue our work to get liquid fuels supported in heat policy, beyond the publication of the Warm Homes Plan – which seems likely based on recent engagement with civil servants.

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