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Investment in Green Industries

Volume 697: debated on Tuesday 22 June 2021

The Prime Minister’s 10-point plan for a green industrial revolution set out £12 billion of new investment in green industries and will crowd in three times as much private investment. Budget 2021 built on the 10-point plan by encouraging private investment, using the tax system and continuing with the direct Government support announced at the spending review. It also included announcements on offshore wind, energy innovation and hydrogen.

Does the Minister agree with me that it makes sense to help, support and incentivise people on low incomes and pensioner households to convert to heat pumps and to insulate their homes?

I entirely agree with my hon. Friend. Since June 2020, the Government have spent £1.5 billion on supporting low-income households to improve energy efficiency and install clean heat. A number of subsidy schemes for heat pumps are available and in development. The sector expects to install 67,000 heat pumps in 2021, which is up considerably from the 35,000 installed in 2019. At Budget 2020 we extended the renewable heat incentive, and announced the clean heat grant. That will provide grants for all homeowners towards the cost of heat pumps from 2022. Further funding decisions will be announced at the spending review.