Malcolm Farrow, head of public affairs at OFTEC

It’s fair to say the new government’s honeymoon period didn’t last very long. Labour has faced challenges on multiple fronts and it would be easy to criticise the slow progress made towards decarbonisation too. However, there’s a more positive story to be told here. Labour could deliver its net zero commitments, whilst driving forward its core principles of protecting low-income households and creating new opportunities for young people.

To first set out the current landscape. Whilst the Labour Party came in with a huge majority and hundreds of eager and optimistic new MPs, the existing challenges the previous government faced remain. Whether it’s stubborn growth, NHS waiting times, fragmented services or the challenges in transitioning the UK onto cleaner energy, which is what we’re going to talk about.

The two main barriers facing Labour in accelerating the rollout of low carbon heating off the gas grid are the same as they were five years ago. Cost and skills. However, both of these are areas Labour is arguably best placed to deliver on as it gets to the heart of what the party is all about: financial security and helping people succeed.

The cost relates predominantly to the installation of the technology, although running costs can also be a factor. The previous government adopted a heat pump first approach which Labour seems to be continuing. To be clear, OFTEC not only fully supports the rollout of heat pumps but we are actively involved in their delivery through our heat pump training courses and renewable scopes of registration for technicians. For many properties, a heat pump is an ideal solution.

However, we are also pragmatic in recognising that many buildings, particularly off the gas grid, are older and poorly insulated. The cost of making the necessary energy efficiency upgrades for a heat pump to work effectively is often too high. Not to mention the disruption it brings. Even with the government’s £7,500 contribution through the Boiler Upgrade Scheme, households could still have to pay tens of thousands of pounds. This isn’t fair or realistic for homeowners. Increasing the grant also puts an additional burden on the public purse when budgets are already tight.

Labour’s message has been very clear in that they do not want to put additional financial burden on working people or those with low incomes. There’s no indication these installation costs will come down so they need alternative solutions. That’s why we are calling for support for renewable liquid fuels. For oil heated homes, it’s a low cost and seamless transition onto fuels such as Hydrotreated Vegetable Oil (HVO). This opens a pathway that has the potential to reduce emissions by nearly 90%. It’s a win-win.

Another barrier for heat pumps is the shortage of qualified technicians. This is partly due to a reluctance to enter an industry when the market is relatively small and future demand is unclear. Again Labour, a party which believes in creating equal opportunities, can seize the initiative.

By actively promoting a multi technology route to net zero, which includes both heat pumps and renewable liquid fuels, the government can provide clarity and a clear pathway forward. This in turn will give confidence to heating businesses looking to diversify and invest in training.

Combined with the government’s reform to the Apprenticeship Levy, which is becoming the Growth and Skills Levy, this could unlock new career prospects and opportunities for young people who don’t want to go through the university route.

So yes, Labour is facing the same decarbonisation challenge as the previous government. The facts don’t change. However, rather than seeing this as a barrier, Labour can instead use this as an opportunity to drive forward its core principles and social values. OFTEC will continue to work proactively and positively with the government to fulfil this ambition.