Heat pump growth stalls as government support cut, warns climate watchdog

Almost a fifth of the country's emissions come from the way that we heat our homes.

The vast majority of households currently use gas boilers, but the government's ambition is to move most properties over to heat pumps. These run on electricity rather than gas which can be generated from green energy sources like solar and wind.

However for most, heat pumps are prohibitively expensive to install. The government does have the Boiler Upgrade Scheme which offers a £7,500 grant upfront towards the cost of the technology but that can still leave households more than £2,500 to pay.

And the government removed the ECO scheme which provided heat pumps fully funded to lower-income homes after reports of botched installations.

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The Committee and the industry have said a new grant system needs to be provided but also efforts need to be made to bring down running costs.

"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," said Bean Beanland, former director of the Heat Pump Association.

The UK has some of the highest electricity bills in Europe because of upgrades to the network and charges on energy bills.

In contrast to heat pumps, continuing record sales of electric cars indicate they are all but set to replace their petrol and diesel counterparts in the coming years on UK roads.

Emma Pinchbeck, CEO of the Climate Change Committee, praised the improvement in greener transport.

"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."

She said the growth had been accelerated by the Iran fuel crisis, which has seen significant increases in petrol and diesel prices at the pump pushing people to seek out other options.

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

But the industry body, Society of Motor Manufacturers (SMMT), said most of this demand had been brought about by huge discounts offered by car manufacturers.

"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," said Mike Hawes, CEO of SMMT.

It supported the government's plan to weaken its Zero Emission Vehicles (ZEV) mandate - which sets a target for number of EVs manufacturers produce and a penalty for failing to meet that target.

The UKCCC disagreed and urged the government to keep the policy.