Towards the very end of a debate on supporting households with cost of living pressures and rising energy bills in the Scottish Parliament on 11 March, Gillian Martin, the cabinet secretary for net zero and energy, announced that she would not be introducing the Heat in Buildings Bill “in its current form”. Martin suggested that the Bill, which had been drafted as part of the Bute House agreement between the Scottish National Party (SNP) and Scottish Green Party, would need to be reconsidered to ensure it could tackle both fuel poverty and net-zero ambitions.

While some media reporting has suggested that the Bill has been dropped, this is not what the cabinet secretary said, and without any official communication saying that the Bill will not be introduced during this parliamentary term as set out in the Programme for Government, we can only assume that revisions to the legislation are underway.

So, what is the Heat in Buildings Bill and why is it so important?

The Heat in Buildings Bill

The Bill is intended to progress the Scottish Government’s Heat in Buildings Strategy which sets out a pathway for all buildings, residential and non-residential, to contribute towards the Scottish Government’s statutory target of meeting net zero by 2045.

The Bill has not been introduced yet so we don’t know the exact details, but the Scottish Government has carried out extensive consultation suggesting that it would include wide-ranging measures across all housing tenures. The cross-tenure nature of the Bill is a huge challenge but is necessary to ensure that all homes are energy efficient and fit for purpose, not just those in the social housing sector which amount to less than a quarter of homes across Scotland.

Of course, homes in the social rented sector already have minimum energy efficiency standards which are under review separately, but the Bill would: 

    • Introduce minimum energy efficiency standards for homes in the private rented sector (PRS) 
    • Introduce minimum energy efficiency standards for owner occupied homes
    • Require homes across all tenures to switch to renewable heating.

There would be different timescales and exemptions involved but the aim would be to improve the energy efficiency of all homes and move away from the use of fossil fuels by the 2045 deadline.

Concerns about the Bill

There are legitimate concerns about the Bill and it is right that we should question how it would be delivered, but not that we should risk further delay or a scrapping of the Bill altogether.

There is no definitive figure for how much it would cost, partly because different housing types will need different retrofit solutions and some will be more costly than others. As such, the Scottish Government must ensure that sufficient financial support is in place to incentivise people to make improvements to their homes in an affordable way. This will mean targeting grant funding to those who need it and providing access to low-cost loans for those who are able to fund the work themselves but will need help to spread the cost.

Improving the energy efficiency of homes can help to reduce energy demand and therefore reduce bills. However, there is a risk of costs being passed on in other ways, like through increased rents to pay for the work. For some, switching from gas heating to electric heating could increase costs because the unit price for electricity is higher. There is a clear need for consumers to be able to access accurate and trusted advice and to make informed decisions about their homes. The Existing Homes Alliance, in which CIH Scotland is a partner, has made recommendations about what an ideal customer journey should look like and how a network of one stop shops and advice agencies across Scotland can support the roll out of retrofit.

Why do we need the Bill?

In short, everyone should live in a home that is energy efficient and affordable to heat, regardless of their tenure. There has been a great deal of debate in recent years about the pros and cons of different retrofit approaches, about heat pumps versus heat networks, the cost of renewable energy compared to fossil fuels, and while these debates trundle on, we’re getting closer and closer to the climate deadline. To be able to move forward, we need decisive action from government. 

Introducing the Heat in Buildings Bill would set a clear intention and provide certainty so that we all know what is expected of us and what support will be in place to help us meet net zero. For industry, this will be a green light to invest in technology, production and up-skilling of the workforce, creating jobs and boosting the economy across Scotland. For landlords, it will provide clarity and allow them to plan their business accordingly. And for homeowners, it will give as much time as possible to explore the options and make informed decisions. 

Failing to introduce the Bill in this Parliament would mean failing to address the challenges we face in meeting the climate deadline.