UK heat pump growth stalls as government support is cut

The expansion of heat pump installations in the UK is faltering as government financial support diminishes, a climate watchdog has warned. Heat pumps are seen as crucial for decarbonizing home heating, which accounts for nearly a fifth of the country's emissions.

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This transition in our homes is no different to the ones we've had before. Fresh running water in homes, indoor sanitation, central heating, heat pumps. It's just another transition. We have to find a way to make it affordable. And that's the government job.

Homeowners currently rely heavily on gas boilers, but the government aims to shift towards electric heat pumps. However, the high installation costs remain a significant barrier. The Boiler Upgrade Scheme offers a £7,500 grant, but many households still face bills exceeding £2,500. Furthermore, the ECO scheme, which previously provided fully funded heat pumps to lower-income households, was discontinued following reports of faulty installations.

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We've made big progress on things like electric vehicles, where one in four cars being bought in the UK today is now an EV.

Industry experts and the Committee on Climate Change (CCC) are calling for a new grant system and measures to lower running costs. Bean Beanland, former director of the Heat Pump Association, stressed that this transition is comparable to previous home utility upgrades and requires government action to make it affordable.

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We can see in the numbers what people want - cheap cars and cars that will save them money, particularly as fossil fuels are volatile.

In contrast, the adoption of electric vehicles (EVs) is surging, with one in four new cars sold in the UK now being electric. Emma Pinchbeck, CEO of the CCC, attributed this growth to factors like rising petrol prices and the appeal of cheaper running costs. However, the Society of Motor Manufacturers (SMMT) cautioned that significant manufacturer discounts, costing the industry over £10 billion since 2024, have driven this demand, potentially impacting investment in research and development.

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This has cost the industry more than £10 billion since 2024 – an unsustainable amount when that money should be going into R&D, manufacturing and the workforce.