Home energy organisations have called  for the Scottish Government to reaffirm its commitment to spending the £1.8 billion it pledged to Heat in Buildings in tomorrow's budget. The push comes in response to the news that, with only a year and a half to go, just a third of that budget had been spent.

Lori McElroy, Chair of the Existing Homes Alliance (EHA), said: “The news that the Scottish Government has spent only a third of the £1.8 billion budget allocated to its Heat in Buildings programme is hugely disappointing.

"With just over a year left in this Parliament, this is a missed opportunity to tackle fuel poverty, create jobs and reduce climate change emissions. It also highlights the lack of a clear plan to decarbonise Scotland’s homes and stalls our efforts to reach net zero by 2045."

The revelation that only £575 million of the budget  had been spent by September of this year was triggered by a parliamentary question.

In answer, the Scottish Government said: “Of the £1.8bn commitment made in our Heat in Buildings Strategy, over £1.3bn has been allocated to date, of which, over £575m has been spent to the end of September 2024. Any further budget allocations will be set out in the Scottish Government draft budget, which will be published on 4 December.”

The £1.8 billion commitment, which was made as part of the Bute House Agreement, is a small fraction of the £33 billion it has been estimated that it could cost the public sector, businesses and households to deliver the full Heat in Buildings Strategy.

Retired physics teacher Pat Hackett with his heat pumpRetired physics teacher Pat Hackett with his heat pump (Image: Gordon Terris)

Scottish Government grants and loans offer up to £7,500 towards the installation of a heat pump, and in some rural areas £9000, have fuelled uptake of heat pumps.

Though installations this year hit record levels, with more than 5000 MCS-certified heat pumps installed by October, a 34% rise compared to the same period in 2023, the low budget spend indicates that progress is not on target.

But the rate is not enough to meet emissions targets, and far greater acceleration needs to happen in the coming years if Scotland is to hit the Scottish Government target of 200,000 heat pump installations per year by the end of the decade.

Meanwhile, fuel poverty remains an issue, with an energy price cap rise due in January. There have also been cuts to Home Energy Scotland, which provides energy advice services, with reportedly “significant numbers” of jobs axed, and in the autumn budget review, £800,000 was cut from the Heat in Buildings awareness-raising campaign.

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An EHA spokesperson said: “Rather than cutting these budgets, the Scottish Government needs to be leading from the front – by investing in awareness raising and fuel poverty programmes, they can create customer demand which will fuel industry to upskill.”

“The Budget Statement must reaffirm the Scottish Government’s commitment to spending this £1.8bn during this Parliament.” “There are excellent programmes, including Warmer Homes Scotland, Area Based Schemes and Social Housing Net Zero Heat Fund, that could be spending that money now - tackling fuel poverty, creating jobs and cutting emissions. We need a clear plan for spending this funding before the end of this Parliament. We need bold ideas that transform whole neighbourhoods, combining funding pots to maximise impact and make the best use of public funding.”

Other bodies also backed the call for commitment to investment. Josiah Lockhart, Chief Executive of Changeworks, said: “We need long term investment commitments that will bring down household energy bills and help to tackle the climate emergency.

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“It’s important to protect and build upon key services like Home Energy Scotland, Area Based Schemes and Warmer Homes Scotland. We urge the Scottish Government to uphold its pledges to tackle the climate emergency and to provide the vital energy advice and support that householders need. Despite these challenges, at Changeworks our commitment to decarbonising Scotland’s homes and ensuring a just transition to net zero remains steadfast.”

Scott Sanford, Technical and Skills Manager for The Scottish and Northern Ireland Plumbing Employer’s Federation (SNIPEF), said “SNIPEF has consistently urged the Government to adopt a more holistic approach to its Heat in Buildings strategy, emphasising that public-facing decarbonisation targets can only be achieved through sufficient investment in upskilling the existing workforce and addressing the wider skills shortages within the industry.

“Only by equipping plumbers and heating engineers with training in low-temperature heating design, heat pump installation, and maintenance can the Government ensure the industry is prepared to meet demand and deliver on the broader goals of the strategy effectively and sustainably.”

A Scottish Government spokesperson said: “The Scottish Government is unwavering in its commitment to tackle the climate crisis and to reach net zero by 2045, including by transforming heating systems and improve the energy efficiency of buildings. As the EHA recognises, levels of heat pump installations are increasing and we continue to offer a generous package of support for households looking to move to clean heat.

“We are committed to setting out a long-term direction of travel that is deliverable and affordable for households and businesses. The draft budget will be set out in the Scottish Parliament on 4 December.”