# 44% of UK Households are Worried They’ll Have to Foot the Bill for Net Zero
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-12-07
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Impact of Gas Boiler Ban on UK Households
Meta Description: Find out how the upcoming gas boiler ban will affect UK homes, and how the government's grant scheme aims to help homeowners transition to low-carbon heat
URL: https://financedigest.com/44-of-uk-households-are-worried-theyll-have-to-foot-the-bill-for-net-zerohtml

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A new survey of 1,165 people, carried out by [energy retailer](https://www.loveenergysavings.com/energy-suppliers/) Love Energy Savings, has found that many households are worried they will be expected to fork out thousands to help the government reach its net zero targets by 2050.

This comes after a recent announcement that the government is planning to phase out gas boilers in the UK, forcing homeowners to switch to an alternative heat source that’s better for the environment.

**How the gas boiler ban will impact UK households**

As of March 2021, 87% of UK households use gas to heat their home, with 10% coming from fixed heaters and the rest coming from gas central heating. However, with a gas boiler ban looming, the majority of homes will need to implement an alternate form of heating. The boiler ban will start specifically with new build [houses but is expected to be rolled out to all properties](https://www.financedigest.com/fractional-property-isnt-quite-as-safe-as-houses.html "Fractional property isn’t quite as safe as houses!") at some point in the near future.

**What is the government saying?**

With increasing pressure on Ministers to announce a plan to tackle Net Zero, a new grant scheme of £5,000 for up to 90,000 homes in England and Wales was announced. The grant aims to make the installation a similar cost of installing a new gas boiler.

Its goal is to encourage households to upgrade their gas boilers for a low-carbon heat pump. Whilst a voluntary scheme to help subsidise the cost of installation is currently in place, the [government did not completely rule](https://www.financedigest.com/italys-rightist-government-tightens-rules-for-migrant-rescues.html "Italy’s rightist government tightens rules for migrant rescues") out banning the installation of new gas boilers in the future; although they place a strong emphasis on the scheme being optional.

**UK’s [renewable electricity](https://www.financedigest.com/funds-from-electricity-levy-could-help-german-households-says-renewables-association.html "Funds from electricity levy could help German households, says renewables association") pledge by 2035 – the first milestone**

Despite the majority of the public welcoming the news of increased investment in renewable electricity; there are also concerns on how we are going to achieve the goals [set out by the government within this time](https://www.financedigest.com/love-in-a-time-of-inflation-how-much-will-valentines-day-set-you-back.html "Love in a time of inflation: how much will Valentine’s Day set you back?") frame.

However, many leaders in the energy [industry believe that achieving 100%](https://www.financedigest.com/gumgum-announces-industrys-first-100-brand-safe-ad-exchange.html "GumGum Announces Industry’s First 100% Brand Safe Ad Exchange") renewable electricity by 2035 can be done, but it’s clear the government would need to act with a sense of urgency in order to hit the target.

**_Nigel Pocklington, CEO of_** [**_Good Energy_**](https://www.goodenergy.co.uk) **_, comments:_**

_“Getting electricity to 100% renewable by 2035 is completely feasible. Though it means we [need to move fast with big investment in renewable technologies and removing things](https://www.financedigest.com/4-things-you-need-to-know-about-mortgages.html "4 Things you Need to Know About Mortgages") like the planning blockers for new onshore wind. Lots of people will generate their own power too — half of all UK homes should have solar — so we need to make that easy and affordable.”_

The government has a [target to cut](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") emissions by 78% by 2035, compared with 1990 levels.

According to the latest report from the [Climate Change Committee](https://www.theccc.org.uk/publication/2021-progress-report-to-parliament/) however, the government’s current plans will only achieve around a fifth of the cut required to meet the target. This leads many to believe that the government is likely to introduce more drastic changes in policy in the coming months.

**Who will foot the bill for the 2050 net zero target?**

Whilst the Government insists the boiler grant scheme will remain voluntary, and that families will not be forced to remove their existing gas boilers; many believe it will become mandatory in the future.

Low-carbon heat pumps currently cost around £10,000 to install, and while the grant scheme would see that [price cut](https://www.financedigest.com/tesla-cuts-u-s-model-s-and-model-x-prices-between-4-and-9.html "Tesla cuts U.S. Model S and Model X prices between 4% and 9%") in half, the installation of a heat pump would not deliver savings on running costs due to households having to pay £159 in green levies on their electricity bills.

As the British public becomes increasingly aware of the UK Government’s plans to hit Net Zero, concern and worry is spreading among homeowners.

Overall, Love **[Energy Savings research found that 44% of UK households are worried they’ll have to foot the bill](https://www.financedigest.com/energy-bill-support-pushes-uk-budget-deficit-to-february-record.html "Energy bill support pushes UK budget deficit to February record") for net zero**, with a whopping **32% of people stating that they couldn’t afford to install alternative heating.**

**_A spokesperson from_** [**_R A Brown Heating Services_**](https://rabrown.co.uk/) **_believes this could be a very real concern:_**

“ _Household carbon emissions contribute to 40% of the UK’s carbon production. For the UK to achieve the net zero targets, the carbon produced from heating and hot water needs to be reduced by 95%…_

_“Older heating systems will be less efficient and use more fuel to run them and therefore it is crucial to look at replacing older heating systems if we are serious about making improvements to achieve net zero targets.”_

**_Dale Anderson, MD of_** [**_Fabrik Invest_**](https://fabrikinvest.com/) **_adds:_**

“Naturally this may have an impact on the poorest, who are unable to afford it. Therefore, it will be imperative for the government to provide subsidised costing for people who are unable to afford this if they are going to meet their targets, by using grants or incentives to [insulate homes](https://www.financedigest.com/uk-to-launch-new-billion-pound-home-insulation-programme.html "UK to launch new billion-pound home insulation programme") and use lower-carbon alternatives.”

**The UK’s Perfect Storm of Financial Hardships**

Only 6.5% of UK households have savings according to a [survey](https://dontdisappoint.me.uk/resources/finance/savings-statistics-uk/). With the mounting financial hardships that have impacted many during the COVID-19 pandemic, there is [potential that the need to replace a gas boiler would create the ‘perfect storm’](https://www.financedigest.com/stocks-becalmed-before-potential-cpi-storm.html "Stocks becalmed before potential CPI storm") of financial worries; which already includes tax increases, the furlough scheme ending; gas prices increasing and a reduction in universal credit.

The potential of footing the majority of the bill for a new low-carbon heat pump adds further strain on the UK’s already struggling lowest-income families as we emerge from the COVID-19 crisis.

**_Frank Soodeen, a Deputy Director at the_** [**_Joseph Rowntree Foundation_**](https://www.jrf.org.uk) **_, commented:_**

_“Even before the pandemic hit, low-income [families in the UK had experienced several years](https://www.financedigest.com/another-momentous-year-beckons-for-britains-royal-family.html "Another momentous year beckons for Britain’s royal family") of particularly weak income growth._

_“Low-income families have been forced to rely on emergency support and/or to [cut back on essentials in the face of higher costs](https://www.financedigest.com/gms-cruise-to-focus-on-cost-cuts-as-it-ramps-up-robotaxis.html "GM’s Cruise to focus on cost cuts as it ramps up robotaxis") arising from the family staying at home. 6 in 10 families have also been forced to borrow money since the start of the crisis – with many relying on payday [loans or credit](https://www.financedigest.com/credit-union-loans-in-high-demand.html "Credit Union Loans in High Demand") cards.”_

**How Much Will Changing My Gas Boiler Cost?**

The average [cost of a low-carbon heat pump](https://www.financedigest.com/cutting-business-costs-pros-of-using-commercial-heat-pumps-in-2016.html "Cutting business costs: Pros of using commercial heat pumps in 2016") is around £10,000.

With the grant scheme in place, this still places the cost of the boiler on UK households. However, with concerns of high running costs and the likelihood of heat pump prices reducing in the coming years, there is currently little incentive for investment.

In addition, there is the added [challenge of incentivising households to invest in a new heating](https://www.financedigest.com/guccis-challenge-reigniting-heat-while-boosting-timeless-appeal.html "Gucci’s challenge: reigniting heat while boosting timeless appeal") system when typically they would keep their gas boilers for over a decade on average. Experts in the boiler industry do not see any immediate impact due to several challenges that have not been addressed.

**_Andy Kerr, co-founder of_** [**_BOXT_**](https://www.boxt.co.uk/) **_said:_**

_“We don’t foresee that the changes to gas boilers will have an impact on sales as on average boilers last between 12-14  years and currently all boilers have the facility to take up to 20% of their capacity with a hydrogen/natural gas mix._

**Gas Boiler Ban on New Build Homes**

In his Spring Statement, the Chancellor of the Exchequer announced a new Future [Homes Standard that will include a gas boiler ban in new build properties](https://www.financedigest.com/taylor-fay-homes-recruit-cordant-projects-for-innovative-property-initiative.html "Taylor Fay homes recruit Cordant Projects for innovative property initiative") from 2025. Household emissions from UK homes equate to 40% of the UK’s total emissions; so this is a significant milestone on the journey to achieving Net Zero.

Some [expect some financial stress to be placed](https://www.financedigest.com/revealed-the-top-5-places-brits-expect-to-find-the-one-in-2016.html "REVEALED: THE TOP 5 PLACES BRITS EXPECT TO FIND ‘THE ONE’ IN 2016") on housing developers as they will be required to install more expensive heating systems, potentially causing a price increase for new builds. However, many believe that prices will come down as the technology is adopted.

**_Charlotte Moxon, Seniors Associate Director of_** [**_Strutt & Parker_**](https://www.struttandparker.com) **_, comments:_**

“If you’re building a new home today, installing a heat pump may be more expensive than a basic gas central heating system. However, the cost of heat [pumps and alternative technologies](https://www.financedigest.com/chatgpt-mania-pumps-up-chinese-ai-technology-stocks.html "ChatGPT mania pumps up Chinese AI technology stocks") is likely to decrease in the coming years, particularly with policy changes designed to phase out gas boilers.”

Whilst the UK Government is making clear strides to hit Net Zero targets, it is evident that much is left to do in reassuring the British public. Whilst many details have already been released about the government’s plans and how these will impact portions of the public, more will [need to be done to ensure those with the lowest incomes don’t bear the brunt of achieving climate](https://www.financedigest.com/analysis-global-climate-coalitions-need-safer-harbour-from-antitrust-turbulence.html "Analysis-Global climate coalitions need safer harbour from antitrust turbulence") goals. Hopefully, more information will be released off the back of [COP22](https://unfccc.int/process-and-meetings/conferences/past-conferences/marrakech-climate-change-conference-november-2016/cop-22).

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