Heat industry companies, think tanks and fuel poverty campaigners have slammed the decision by the Scottish Government to delay its Heat in Buildings Bill.
"Putting the Heat in Buildings Bill on ice is a big mistake,” said Oxfam Scotland. WWF described the move as “yet another case of the government flip-flopping”.
The delay to the legislation - originally drafted by the Scottish Greens as part of the Bute House Agreement - was revealed during a Cost of Living Crisis debate in Holyrood yesterday.
Acting net zero secretary Gillian Martin said the current Bill would “make people poorer” and would be redrafted. "I'm going to introduce," she said, "a Heat in Buildings Bill when I can be satisfied that those interventions within it will decrease fuel poverty at the same time as decarbonising houses."
But both charities and industry criticised the move. WWF Scotland's climate and energy policy manager, Io Hadjicosta, said: “This announcement is deeply concerning and is yet another case of the Scottish Government flip-flopping when it comes to tackling the climate emergency.
“Reducing emissions from Scotland’s housing stock by improving insulation and fitting renewable heat pumps would lift people out of fuel poverty – not increase it. By delaying the introduction of the Heat in Buildings Bill further all the government is doing is condemning the poorest in our society to increasingly high fossil fuel costs and damp, unhealthy homes.”
Robin Parker, sustainable future mission manager at the think tank Nesta Scotland, said: “The Heat in Buildings Bill is set to be the driving force behind insulating homes that some of the worst off people in Scotland are currently paying too much to heat and power. By linking switching to low carbon heating with house sales, this legislation should also reduce disruption and make it easier for people to finance future-proofing their homes.
“The sooner we see legislation introduced that protects the worst-off and reduces carbon emissions from home heating, the more time homeowners, industry and others have to prepare.”
Nearly a fifth of Scotland’s carbon emissions come from heating our homes. The Bill, which legislated to create a new heat in buildings standard for energy efficiency and how we heat our homes, was set to require anyone purchasing a home or business premises to replace their polluting heating systems within a fixed period following completion of the sale.
The Chief Executive of the Scottish Federation of Housing Associations, Sally Thomas, responded to the delay by pointing out that housing associations are already having to decarbonise.
“The decision to scrap the Heat in Buildings Bill casts huge uncertainty on how the Scottish Government plans to decarbonise Scotland’s buildings, without requiring tenants to foot the bill.
“But moreover, it is fundamentally a question about fairness: the Scottish Government is currently requiring housing associations to invest billions of pounds in clean heating systems, but is not yet requiring the same financial sacrifices, or standards, for other types of housing.”
“The Scottish Housing Regulator estimates the cost of decarbonising Scotland’s social homes alone at £9 billion- yet Government has made less than 0.5 percent of this sum available to housing associations to achieve it.
“So, whilst we wholeheartedly support the efforts to make homes more energy efficient and use clean sources of heat, it cannot be funded through higher rents.
“The Scottish Government needs to set out an approach to future clean heating standards which levels the playing field across all types of homes. It is untenable to expect social housing to decarbonise alone without the funding to do so.”
The heat pump industry expressed concern over the uncertainty. Head of Scotland at the heat pump manufacturer, Aira, Nicola Mahmood said: “The Heat in Buildings Bill is a defining moment for Scotland’s climate future, but without bold action, we risk failing both our planet and our people. If we allow global warming to continue unchecked, every Scottish household will feel the economic strain—not just from rising energy costs but from the devastating financial and social consequences of global warming itself.”
In 2024 alone, said Aira, heat pump installations grew by 20% compared to the previous year, “showing that Scots are ready to embrace change”.
“Yet,” said Ms Mahmood, “for this industry to thrive and help us meet our climate targets, the government must ensure its policies genuinely support homeowners and installers alike. While taxation on electricity remains outside Holyrood’s control, there is a clear opportunity to reform the Home Energy Scotland funding scheme—making it more accessible and installer-friendly, without compromising on customer protection, to encourage broader participation from the heating sector.
“Aira will be seeking urgent clarification on the government’s statement that continuing with gas will be cheaper. If public money is used to prop up fossil fuels while clean energy alternatives struggle with policy barriers, Scotland will not only fall behind on its climate goals but also lock its citizens into higher long-term costs. Now is the time for decisive leadership—one that prioritises clean, affordable heating solutions and secures a sustainable future for all Scots.”
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Some critics of the delay acknowledged the problem with cost and finance. Dave Hawkey, senior research fellow at The Institute For Public Policy Research, said: “Scrapping the heat in buildings bill is the wrong decision and puts Scotland's climate targets even further out of reach. Without legislation, there is no credible plan to deliver the massive project of retrofitting clean heat in around 2.5 million homes across Scotland to prepare them for a future without fossil fuels.
“That's not to say the bill was perfect. At its heart there was a massive hole: how to pay for the transition fairly. Our research shows that grants backed up by taxes is far more equitable than leaving households to pay the costs themselves. Instead of scrapping the bill altogether, the Scottish government should lead an upfront conversation about the costs of climate action and how we can cover them collectively.”
How long the Heat in Buildings Bill will be delayed is as yet unknown. In yesterday's parliamentary debate, Ms Martin promised "to craft a bill that is going to simultaneously reduce carbon and tackle fuel poverty".
"Until I can do that," she said, "I'm afraid there will not be a bill put forward in its current drafted form because at the moment it will make people poorer."
