Màiri McAllan has announced a major climbdown on the Scottish Government's plans to introduce a bill which would require homes to become more energy efficient and less reliant on fossil fuel powered heating systems.
The housing secretary said the administration will not bring in a Heat in Buildings Bill in the current session of the Scottish Parliament.
She said the decision followed delays to the UK Government’s Warm Homes Plan and lack of clarity on cost of energy bills.
In a statement, Ms McAllan said she would not ask the Scottish Parliament to consider the Bill without a full understanding of the UK policy context.
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She reaffirmed the Scottish Government’s commitment to decarbonising buildings in Scotland by 2045 in a way that does not exacerbate fuel poverty.
The cabinet secretary also announced additional grant support for homeowners of up to £7,500 (or up to £9,000 for households in island and remote rural areas) from December to incentivise connections to local heat networks.
She said the government intended to bring forward legislation as early as possible in the next parliamentary session, subject to the outcome of the 2026 election and clarity on the UK Government position.
A draft Buildings (Heating and Energy Performance) and Heat Networks (Scotland) Bill has been published to give clarity to households and investors on future plans for legislation.
She said: “Decarbonising how we heat our homes and buildings is a vital step in our efforts to tackle climate change. We must take action and in a way that does not worsen fuel poverty. The Scottish Government is fully committed to this by 2045, as set out in our draft Climate Change Plan.
“We have always been clear that our plans depend on essential clarity from the UK Government, but repeated delays to their Warm Homes Plan have left key questions unanswered – particularly on how they intend to make the switch to clean heat more affordable by reducing the cost of electricity.
“This is critical in ensuring decarbonising homes does not exacerbate fuel poverty at a time of spiralling energy bills.
“Ultimately, it is perverse that Scottish Ministers should be in the dark about plans related to Scotland’s own energy resources. If we had all the powers of a normal country – including over our own energy resources and market – we would not be in this position.
“In the meantime, we are determined to continue to press ahead with our existing decarbonisation agenda including developing heat networks as a significant investment proposition and viable heating source for households. Therefore, I am pleased to confirm the extension of grant funding for households to connect to local district heat networks, bringing it into line with grants available to install heat pumps.”
Scottish Greens MSP Patrick Harvie was furious.
He said the government's decision to halt its Heat in Buildings bill was "a pathetic capitulation to the anti-environment lobby".
The Bill, which was under development by Mr Harvie in his time as a minister, and was well on track for introduction in November last year, was intended to focus on improving the energy efficiency of our homes and changing to clean, affordable heating systems.
Mr Harvie said: “This is an extraordinary announcement and an act of climate surrender. It represents a complete capitulation to the anti-environment lobby.
“This Bill was on track to be introduced well over a year ago, and it's pathetic for the SNP to blame others for their own decision to stall it.
“The Greens have made huge efforts to strengthen the SNP's resolve on climate. While we were in Government the work we led to help people switch to clean, affordable heat was one of the few areas of Scottish climate policy to win praise from the independent experts.
“Only last week the SNP were calling for world leaders to take swift and decisive climate action at the COP conference and now they are U-turning on one of the most important steps they could take.
“Keeping people stuck on gas is devastating for our planet, and it punishes households and families all across our country by forcing them to fork out for sky high bills while the fossil fuel companies post record profits.
“The clean heat sector should be a thriving success story for Scotland, with thousands of high quality jobs in building and installing kit that will cut emissions and cut the cost of living at the same time.
“But this can only happen if industry is given consistent, crystal clear support from the Government, in the way that the renewables sector was. SNP Ministers are choosing failure, and they are locking people into high fossil fuel prices for years to come."
Environmental organisations criticised the government for dropping the legislation.
Friends of the Earth Scotland senior climate campaigner Alex Lee described the decision as "cowardly". and said it would condemn people to cold homes, high bills and ill health for longer.
“Well insulated, warm homes are a win win solution to bring down household energy bills, improve people's health and wellbeing and cut climate emissions. It is an epic failure by the Scottish Government not to champion this climate solution and bring forward the money and support needed to make that positive change in people's lives," he said.
“With the spiraling cost of living, decent, well-insulated homes are vital. People are already worrying about heating costs and their health at this time of year.
"To tackle fuel poverty, the Scottish Government should ramp up funding to create a street by street programme to insulate homes, starting first with those people in greatest need. Instead of meeting with energy company lobbyists, ministers should be listening to folks having to choose between heating and eating."
“This choice by ministers adds to the litany of climate rollbacks under John Swinney from scrapping plans to cut polluting cars on our streets, abandoning its Just Transition Plan for workers and failure to oppose new oil drilling like Rosebank.”
Chief Executive of Consumer Scotland Sam Ghibaldan said: “It is disappointing that there is insufficient time left in the parliamentary term to introduce this important Bill. What matters now is the practical steps the Scottish and UK Governments take to help consumers decarbonise their homes.
“Consumer Scotland’s investigation into the green home heating market recommended a number of actions to both governments on what they need to do to improve protections for consumers and build confidence in the sector.
“These recommendations include the delivery of appropriate financial incentives and the provision of the support and information consumers need to engage with the transition to low carbon heating. This will help deliver energy security and lower bills in the longer term.
“As the statutory body for consumers in Scotland, Consumer Scotland will continue to engage with the Scottish Government to progress these important actions as well as working with them on the development of the new Bill.”
Since 2020, the Scottish Government has allocated £1.67 billion of funding through its Heat in Buildings schemes, including over £840 million for energy efficiency and clean heat projects.
