The Powering Up Britain report has set out the government's energy security and net-zero objectives.

Some of its key plans for delivery that are likely to affect the heating and plumbing industry include:

• Delivering a hydrogen economy
  •  The government is announcing a suite of developments that get that ambition underway: confirming the first winning projects from the £240 million Net Zero Hydrogen Fund, naming the two CCUS-enabled hydrogen projects moving forward on the Track-1 clusters, publishing a shortlist of 20 projects it intends to enter due diligence with for the first electrolytic hydrogen allocation round; and announcing its intention to open two further hydrogen funding rounds in 2023. 
• Reducing the UK's reliance on fossil fuels to heat buildings
  • The government has an ambition to phase out all new and replacement natural gas boilers by 2035 at the latest and will further consider the recommendation from the Independent Review of Net Zero in relation to this. People's homes will be heated by British electricity, not imported gas, the government says. The £30 million Heat Pump Investment Accelerator will mean heat pumps are manufactured in the UK at a scale never seen before, according to the government. It also wants to make it as cheap to buy and run a heat pump as a gas boiler by extending the Boiler Upgrade Scheme by three years, and by rebalancing the costs of electricity and gas.
• A "world-leading commitment" to Carbon Capture, Usage and Storage (CCUS)
  • The government has announced eight projects to progress to negotiations to form the first two CCUS clusters, in the North East and North West, and will launch a process to enable expansion of those Track-1 clusters later this year. It is also launching the process for confirming the next clusters for deployment in Track-2.
• Reducing household bills by increasing energy efficiency
  • The government is confirming plans for its new Energy Company Obligation scheme, the Great British Insulation Scheme, extending help to a wider group of households. This will mean that around 300,000 of the country’s least energy efficient homes could save £300-£400 each year as part of a £1 billion energy efficiency programme by March 2026. This will form part of its work to meet the UK's 15% demand reduction target by 2030 which will not only help lower bills, but also support net-zero objectives. 

Prime Minister Rishi Sunak said: "When global energy supplies are disrupted and weaponised by the likes of Putin, we have seen household bills soar and economic growth slow around the world.

"We have stepped in to shield people from its worst impacts by helping to pay around half the typical energy bill. But we are also stepping up to power Britain and ensure our energy security in the long term with more affordable, clean energy from Britain, so we can drive down energy prices and grow our economy.

"That’s why we’re driving forward plans to boost renewables, revive nuclear and build new thriving industries like carbon capture, which will in turn create good jobs across the country, provide new opportunities for British businesses at home and abroad, and maintain our world-leading action to reach net-zero."

To read the Powering Up Britain report in full, click here.