Scottish Government slammed for spending less than third of £1.8bn cash pot for green home heating

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Scottish ministers have been slammed for spending less than a third of a £1.8billion cash pot set aside to decarbonise the nation’s homes and buildings. The fund was set up to accelerate the transition away from gas-guzzling boilers to clean heat alternatives as well as drive forward a nationwide insulation programme.

But the Scottish Government has now admitted it has spent just £575million on its Heat in Buildings strategy so far out of £1.8billion committed by the end of this parliament in 2026. Domestic heating accounts for around a fifth of Scotland’s carbon emissions.

The SNP government’s plan, first published in 2021, will require all homes to meet new energy standards by 2033 - and to replace all boilers with green power systems like heat pumps and solar by 2045. But it’s been repeatedly criticised by green groups and industry for failing to move fast enough - having previously ditched a target to get to a million low-carbon homes by 2030.

In a written response to Labour’s net zero spokeswoman Sarah Boyack, the Scottish Government said £1.3billion of the total funding commitment had been allocated, although only around £575million spent. Boyack said: “Decarbonising heat is a chance to reduce emissions during a climate crisis and cut bills for Scots during a cost of living crisis - but the SNP’s progress has been woeful.

“ Years have passed since the SNP set out its Heat in Buildings strategy but huge questions still hang over its delivery. By underspending on its budget, job opportunities are being missed and people are not getting the improvements they need to keep their homes warm.

“ The SNP must up its game and set out a real plan to decarbonise buildings with the urgency needed, tackle fuel poverty and deliver a just transition.”

Industry figures also hit out, with the Existing Homes Alliance (EHA) branded the findings “hugely disappointing”. Speaking ahead of today’s Holyrood Budget, Lori McElroy, chair of the EHA, said: “With just over a year left in this parliament, this is a missed opportunity to tackle fuel poverty, create jobs and reduce climate change emissions.

“It also highlights the lack of a clear plan to decarbonise Scotland’s homes and stalls our efforts to reach net zero by 2045." She added: “We have also seen cuts to Home Energy Scotland, which provides energy advice services, and in the autumn budget review, £800,000 was cut from the Heat in Buildings awareness-raising campaign.

"Rather than cutting these budgets, the Scottish Government needs to be leading from the front… the Budget statement must reaffirm the Scottish Government’s commitment to spending this £1.8billion during this parliament.”

Josiah Lockhart, Chief Executive of Changeworks, said: “We need long term investment commitments that will bring down household energy bills and help to tackle the climate emergency. It’s important to protect and build upon key services like Home Energy Scotland, Area Based Schemes and Warmer Homes Scotland.

"We urge the Scottish Government to uphold its pledges to tackle the climate emergency and to provide the vital energy advice and support that householders need.”

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Scott Sanford, of The Scottish and Northern Ireland Plumbing Employers’ Federation (SNIPEF), warned eco targets could only be hit by major investment to “upskill the existing workforce and addressing the wider skills shortages within the industry”. He added: “Only by equipping plumbers and heating engineers with training in low-temperature heating design, heat pump installation, and maintenance can the Government ensure the industry is prepared to meet demand.”

Climate action minister Alasdair Allan said: “Scotland’s Heat in Buildings strategy, published in October 2021, outlines our ambitious programme that reflects the scale and the size of the challenge to reduce emissions from our buildings. Our commitment to allocate £1.8billion over this parliament is helping kick-start growth in the market and support those least able to pay.

“Of the £1.8billion commitment made in our Heat in Buildings Strategy, over £1.3billion has been allocated to date, of which, over £575million has been spent to the end of September 2024. Any further budget allocations will be set out in the Scottish Government draft budget.”

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