The Second National Infrastructure Assessment – a five yearly review conducted by the National Infrastructure Commission – sets out a programme of transformation for the country’s energy, transport and other key networks over the next 30 years.

Alongside other recommendations on various aspects of the country’s infrastructure needs, the Assessment makes the case for heat pumps and heat networks as the solution for switching buildings from gas for heating.

Noting that 7 million buildings in England will need to make this transition by 2035 to meet the Sixth Carbon Budget, the Commission sets out a comprehensive and fully costed programme of government support for households to make the switch, including:

• Around £1.3 billion per year to 2035 to cover the full cost of heat pump installations for lower income households (one third of UK households – based on income), with additional support for energy efficiency improvements and devolution to local authorities to manage local energy efficiency programmes
• Around £1.9 billion per year to 2035 for an initial upfront subsidy of £7,000 to households installing a heat pump or connecting to heat networks, tapered over time as costs fall, in addition to zero per cent financing for the remaining cost
• Around £3.2 billion per year to 2035 to improve energy efficiency and install heat pumps across the public sector estate and social housing.

In addition, it calls on government to rule out supporting hydrogen heating to enable an exclusive focus on switching to electric heating, and limit hydrogen use to power generation and industrial decarbonisation. This is based on a number of what it sees as negative factors linked ot the implementation of the technology, such as cost, deliverability, and environmental impact.

The Assessment sets out the likely impact of the Commission’s recommendations on households, where private investment is recouped through infrastructure service bills. It finds that the average household will save at least £1,000 per year by the mid 2030s compared to today, largely driven by the transition away from fossil fuels onto cheaper low carbon electricity.

The report also recommends the introduction of compulsory water metering as part of efforts to reduce water demand.

Writing in the report’s foreword, Sir John Armitt, Chair of the National Infrastructure Commission, said: “The good news is that modern, reliable infrastructure can support economic growth, help tackle climate change and enhance the natural environment.

“We stand at a pivotal moment in time, with the opportunity to make a major difference to this country’s future. But we need to get on with it.

“People often talk about infrastructure as the backbone of our economy: what our infrastructure needs now is the collective mettle to turn commitments into action that will reap rewards for decades to come.”

Government is expected to respond formally to the Assessment within 12 months.