Malcolm Farrow, head of public affairs at OFTEC, has welcomed the Spending Review by Chancellor Rachel Reeves.
We welcome the announcement from the Chancellor that the government is committed to delivering £13.2bn of funding for the Warm Homes Plan over the next five years. We mustn’t lose focus on the importance of improving energy efficiency and transitioning all homes onto low carbon heating systems, in line with our net zero targets.
Electrification is an important element of the transition, which is why we are supporting OFTEC registered technicians in diversifying into this technology through our training centres. However, we also know that many off-grid households and businesses that use oil heating would face significant cost and disruption to switch to a heat pump system, even with the government grants available. In this current economic climate, they need alternative solutions to match their circumstances or they risk being left behind with poor outcomes. We firmly believe in consumer choice and fairness, which is why we urge the government to also provide policy support for renewable liquid fuels in its upcoming Warm Homes Plan.
Renewable liquid fuels, such as Hydrotreated Vegetable Oil (HVO), provide a practical and affordable decarbonisation solution for these harder to treat homes whilst immediately delivering significant carbon savings. It’s versatility also makes it suitable for churches, village halls, pubs and other non-domestic buildings which make up the fabric of rural communities.
The Chancellor noted the challenging state of the UK’s finances. The switch to renewable liquid fuels can be delivered at no cost to the Treasury and reduce the financial pressures on heat pump subsidies through the Boiler Upgrade Scheme. We will continue to work positively with the government on a shared ambition to deliver net zero whilst supporting all communities across the UK.